Cambodia’s manufacturing sector is entering a period of rapid expansion, with investment in operating factories climbing more than 29 percent to approximately $28.08 billion as of the end of July 2026. At the same time, the country’s industrial production reached $9.8 billion during the first six months of the year, according to figures released by the Ministry of Industry, Science, Technology and Innovation on August 13. The growth highlights the increasing role of manufacturing in Cambodia’s economy, exports and employment, while also pointing to a broader shift toward more diversified and technology driven industries.
The latest figures were announced as three international industrial exhibitions opened at the Koh Pich Exhibition Centre in Phnom Penh from August 13 to 16. More than 200 exhibitors are taking part, showcasing machinery, automation systems and manufacturing technologies. Together, the investment and production figures suggest Cambodia is moving beyond traditional factory production and creating stronger opportunities for higher value manufacturing and industrial investment.
Factory Investment Reaches $28.08 Billion
By the end of July, Cambodia had 3,357 registered factories with more than 1.35 million workers. Women make up more than 70 percent of the industrial workforce, highlighting the sector’s major contribution to employment and household incomes across the country.
The value of investment in operating factories reached about $28.08 billion, representing an increase of more than 29 percent. The rise reflects continued investor interest in Cambodia’s manufacturing sector and growing efforts to expand the country’s industrial base.
Industrial Production Tops $9.8 Billion
Industrial production reached $9.8 billion during the first half of 2026, with approximately $7.3 billion worth of manufactured goods produced for export. The strong export component underlines how closely Cambodia’s industrial growth is connected to international trade and the country’s broader economic performance.
The figures also show why strengthening manufacturing capacity remains important for Cambodia. As factories expand production and connect with international markets, the sector can create more jobs, increase exports and support businesses operating across supply chains.
Cambodia Expands Beyond Traditional Manufacturing
The latest industrial growth is not limited to Cambodia’s traditional manufacturing sectors. Investment is increasingly moving into areas such as automotive and auto parts, food processing, electronics, chemicals and furniture.
This diversification could become increasingly important as Cambodia seeks to build a more resilient and competitive economy. A broader industrial base gives the country opportunities to participate in more stages of global supply chains instead of relying heavily on a limited number of manufacturing industries.
Technology Is Becoming Critical to Cambodia’s Industrial Future
Industry Minister Hem Vanndy said Cambodia needs to continue upgrading its industrial capabilities to raise productivity, improve product quality and strengthen competitiveness. He also encouraged businesses to adopt artificial intelligence, automation, robotics and smart manufacturing as technology continues to reshape global industries.
For Cambodian manufacturers, this means future competitiveness will depend on more than increasing production capacity. Businesses will also need to improve efficiency, product standards and technological capabilities to compete for higher value investment and international markets.
Stronger Cooperation Could Drive the Next Stage
Vanndy also stressed that Cambodia’s future industrial development will require closer cooperation between the government, private sector, investors, research institutions and development partners.
That cooperation could help businesses gain access to new technologies, technical expertise, investment opportunities and research capabilities. It could also support the development of a stronger industrial ecosystem in which local companies can participate more actively in growing manufacturing supply chains.
Industrial Exhibitions Highlight New Opportunities
The three exhibitions taking place at the Koh Pich Exhibition Centre are designed to promote technology transfer, encourage business partnerships and attract additional investment. With more than 200 exhibitors presenting machinery, automation and manufacturing technologies, the events provide Cambodian businesses and investors with opportunities to explore new industrial solutions.
The timing is significant as Cambodia’s industrial sector records rising investment and production. The exhibitions offer a practical platform for manufacturers to see how new technologies can improve operations while also connecting local businesses with potential partners and investors.
What Does the Growth Mean for Cambodia’s Economy?
The combination of $28.08 billion in factory investment, $9.8 billion in industrial production and $7.3 billion in export production shows that manufacturing is becoming an increasingly important pillar of Cambodia’s economy. The sector is not only attracting substantial investment but also supporting more than 1.35 million jobs.
More importantly, the current expansion could give Cambodia an opportunity to move toward higher value and technology driven manufacturing. If businesses continue investing in automation, artificial intelligence, robotics, skills and modern production systems, the country could strengthen its position in regional manufacturing supply chains.
Conclusion
Cambodia’s industrial sector is showing strong momentum in 2026, with factory investment rising more than 29 percent to $28.08 billion and industrial production reaching $9.8 billion in just the first half of the year. With $7.3 billion of production destined for export and more than 1.35 million people employed in registered factories, manufacturing is playing a growing role in the country’s economic development.
The next challenge will be turning this investment growth into greater productivity, stronger local supply chains and higher value production. For businesses, investors and policymakers, the increasing adoption of AI, automation, robotics and smart manufacturing could shape the next chapter of Cambodia’s industrial growth.