Cambodia Moves to Strengthen Industrial Planning for Future Growth

Cambodia is taking another major step toward strengthening its long term economic competitiveness as Prime Minister Hun Manet has instructed the Ministry of Land Management, Urban Planning and Construction to work closely with municipal and provincial authorities to create detailed land use and zoning plans across the country. Speaking during a land title certificate distribution ceremony in Ksach Kandal district of Kandal province, the Prime Minister stressed that every province should be planned according to its unique geographical strengths to support industrial development, logistics, residential expansion, and sustainable economic growth.

The directive comes at a time when Cambodia is accelerating its transition toward an industry led economy. By clearly identifying areas for industrial hubs, logistics networks, supply chains, and housing, the government aims to unlock unused land resources, attract higher quality investment, reduce land related conflicts, and create stronger opportunities for businesses and local communities. The initiative also supports Cambodia’s broader vision of becoming a modern manufacturing and investment destination in Southeast Asia.

Strategic Land Planning to Maximize Provincial Strengths

Using Kandal province as an example, Prime Minister Hun Manet highlighted its strategic location surrounding Phnom Penh within the Mekong lowlands and its excellent transportation links through major national highways. He explained that every province possesses different geographical advantages, and future development should be based on these natural strengths instead of applying a single development model nationwide.

“Clear zoning plans and land-use mapping are essential to unlocking each province’s natural land resources, maximising economic value, and fostering sustainable community development.”

The Prime Minister noted that carefully designed land use planning would help prevent future land disputes while giving investors greater confidence when selecting business locations. Better planning would also improve public infrastructure, support balanced urban growth, and create stronger economic opportunities for local residents.

Government Advances Cambodia’s Industrial Transformation

The new zoning initiative complements Cambodia’s broader industrial development strategy. Earlier this week, the Ministry of Economy and Finance reviewed the achievements of the Industrial Development Policy 2015 to 2025, which successfully helped transform Cambodia from an agriculture focused economy into one with a stronger industrial foundation integrated into regional and global supply chains.

Building on that progress, the government is now preparing the Industrial Development Policy 2026 to 2035, which will prioritize advanced technology, skilled human resources, innovation, and higher value manufacturing. The new strategy aims to help Cambodia remain competitive as global production networks continue to evolve. More details about Cambodia’s industrial policies are available through the Council for the Development of Cambodia and the Ministry of Economy and Finance.

Business Community Welcomes the Prime Minister’s Directive

The business community has strongly supported the government’s emphasis on strategic zoning. Cambodia Chamber of Commerce Vice President Lim Heng believes that clear land use planning will create greater certainty for both domestic and international investors while improving long term economic planning.

“Clear zoning plans for industrial hubs, logistics routes, and residential zones provide much needed clarity and confidence for both domestic and foreign investors.”

He explained that better planning around industrial corridors will encourage the growth of manufacturing clusters, logistics centers, and warehousing facilities while supporting well planned residential development for workers. These improvements could significantly strengthen Cambodia’s competitiveness as a regional manufacturing and trade hub.

“When land-use policies align with infrastructure and geographical advantages, it drastically reduces operational costs and streamlines supply chains.”

Special Economic Zones Continue Driving Industrial Expansion

Cambodia’s growing network of Special Economic Zones continues to play a central role in attracting foreign investment and diversifying the country’s industrial base. According to the Council for the Development of Cambodia, the country now has 65 Special Economic Zones, with 39 currently in operation.

These zones have attracted investment across a wide range of industries, including tyre manufacturing, vehicle assembly, bicycle production, electronics, furniture manufacturing, and supporting industries. Beyond creating thousands of jobs, they have also helped introduce more advanced manufacturing capabilities into Cambodia’s economy.

Chea Vuthy, Secretary General of the Cambodia Investment Board under the Council for the Development of Cambodia, believes Cambodia is becoming an increasingly attractive regional production base for automotive manufacturing and supporting industries due to continued investment in assembly plants, tyre factories, and component manufacturers.

“The success of SEZ development has been important in diversifying the industrial base and attracting high-quality, high- value-added investment capital to Cambodia.”

Strong Investment Momentum Supports Cambodia’s Growth

Cambodia’s investment performance continues to demonstrate growing confidence from international and domestic investors. In 2025, the Council for the Development of Cambodia approved 630 investment projects with a combined value of approximately $10 billion. During the first half of 2026 alone, another 276 projects worth around $4.7 billion received approval.

Foreign direct investment is increasingly flowing into sectors beyond garments, including electronics, furniture, automotive components, tyres, and advanced manufacturing. This growing diversification reflects Cambodia’s ongoing transformation into a more resilient and higher value economy that offers expanding opportunities for investors, manufacturers, entrepreneurs, and global supply chains.

Conclusion

Prime Minister Hun Manet’s directive to develop precise provincial zoning plans represents more than a land management initiative. It forms a critical part of Cambodia’s long term economic strategy to attract investment, strengthen industrial competitiveness, improve infrastructure planning, and promote sustainable development. Combined with the country’s expanding Special Economic Zones, rising foreign investment, and next generation industrial policy, Cambodia is positioning itself as an increasingly attractive destination for business expansion and regional manufacturing in the years ahead.

Japan’s MinebeaMitsumi Inc. is significantly strengthening its long term commitment to Cambodia by expanding its investment in Pursat province to a total of $700 million. The announcement was made in Phnom Penh during a high level meeting between the company’s President and CEO Yoshihisa Kainuma and Cambodia’s Minister of Mines and Energy Keo Rottanak. The expansion highlights Cambodia’s growing appeal as a destination for advanced manufacturing, green industry, and foreign direct investment while reinforcing confidence in the Kingdom’s long term economic prospects.

The latest investment comes after MinebeaMitsumi has already invested around $1.9 billion in Cambodia over the past 15 years. The new phase is expected to accelerate the country’s transition toward high technology manufacturing, create thousands of employment opportunities, strengthen industrial supply chains, and support sustainable economic growth. For business leaders, investors, and entrepreneurs, the announcement sends another strong signal that Cambodia continues to attract globally recognized manufacturers seeking long term expansion.

MinebeaMitsumi Deepens Its Commitment to Cambodia

MinebeaMitsumi officially confirmed that it will expand its second production project in Pursat province, raising the total investment to $700 million. The expansion represents one of the largest recent commitments by a Japanese manufacturer in Cambodia and demonstrates continued confidence in the country’s investment climate.

The announcement was made by President and CEO Yoshihisa Kainuma during a joint press conference following discussions with Minister of Mines and Energy Keo Rottanak in Phnom Penh. The expansion builds on the company’s successful operations in Cambodia and reflects its strategy to strengthen regional manufacturing while supporting Cambodia’s industrial development.

Government Support Fuels Investor Confidence

Kainuma credited the Cambodian government for creating a favorable business environment that has enabled the company’s continued success.

“The two projects, in Phnom Penh and Pursat province, have been successfully expanded with strong support from the Cambodian government,” Kainuma said at a joint press conference with Minister Rottanak.

He reaffirmed the company’s future plans by adding, “Based on this, we are committed to growing our Pursat operation in the near future,” he said.

Company representatives explained that Cambodia’s strong commitment to renewable and green energy played an important role in the decision to expand operations. Reliable access to sustainable energy aligns with MinebeaMitsumi’s global manufacturing strategy and supports environmentally responsible production.

Green Energy Strengthens Cambodia’s Investment Appeal

Cambodia’s growing focus on clean energy continues to attract international manufacturers seeking sustainable production locations. Government efforts to expand renewable energy infrastructure have become an increasingly important competitive advantage for the Kingdom.

Minister Keo Rottanak welcomed the company’s expansion and reaffirmed the government’s commitment to supporting investors.

“We will certainly support you. Green energy will continue to be a backbone of your success and expansion,” he said.

The emphasis on green energy not only supports existing manufacturers but also strengthens Cambodia’s reputation as a destination for environmentally responsible industrial investment.

Expansion Expected to Boost High Tech Manufacturing

The second phase of MinebeaMitsumi’s investment in Pursat is expected to advance Cambodia’s high technology manufacturing capabilities while creating new employment opportunities and expanding industrial capacity.

MinebeaMitsumi manufactures high precision electronic and mechanical components used in automotive, industrial equipment, infrastructure, healthcare, robotics, and information technology industries. Expanding these operations will help Cambodia move further into advanced manufacturing while improving its position within regional and global supply chains.

Senior Cambodian Leaders Welcome the Expansion

Before announcing the investment, Kainuma met with several of Cambodia’s senior leaders, including Senate President Hun Sen, Prime Minister Hun Manet, and Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia Sun Chanthol.

Sun Chanthol described the expansion as an important milestone for Cambodia’s economic future.

“MinebeaMitsumi’s plan to expand its investment will serve as a vital driving force in propelling Cambodia’s economy toward sustainable development, high technology integration, and attracting further international investors.”

Government leaders believe the project will encourage additional multinational companies to consider Cambodia as a strategic manufacturing hub for Southeast Asia.

Why This Investment Matters for Businesses and Investors?

MinebeaMitsumi’s latest expansion demonstrates that Cambodia continues to offer a competitive environment for international manufacturers through political stability, improving infrastructure, skilled labor, and strong government support.

For entrepreneurs, investors, suppliers, and business executives, the project creates new opportunities across manufacturing, logistics, engineering, industrial services, renewable energy, and local supply chains. It also reinforces Cambodia’s ambition to become a regional center for higher value manufacturing and technology based industries.

Conclusion

MinebeaMitsumi’s decision to increase its Pursat investment to $700 million marks another major milestone in Cambodia’s industrial transformation. Backed by government support, green energy development, and a favorable investment climate, the expansion is expected to generate new jobs, strengthen high technology manufacturing, and attract more international investors. As Cambodia continues to diversify its economy and modernize its industrial base, investments of this scale further position the Kingdom as one of Southeast Asia’s emerging destinations for advanced manufacturing and sustainable business growth.

Cambodia is taking an important step toward shaping its next phase of industrial and economic development by conducting a final review of the Industrial Development Policy 2015 to 2025. During a high level meeting held in Phnom Penh on Monday, government leaders gathered to assess how the policy has performed over the past decade, identify its achievements and shortcomings, and determine the lessons that will guide future industrial strategies. The evaluation is expected to provide policymakers with valuable insights as Cambodia works to strengthen its competitiveness, attract more investment, and achieve sustainable economic growth.

The review reflects the government’s commitment to ensuring that national development policies deliver meaningful results. By carefully examining the policy’s implementation and real world impact, Cambodia aims to build a stronger industrial foundation that supports businesses, investors, entrepreneurs, and manufacturers while creating new opportunities for long term economic expansion.

Government Reviews the Final Evaluation Report

The final draft of the Industrial Development Policy 2015 to 2025 evaluation report was reviewed during a meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth at the Ministry of Economy and Finance headquarters in Phnom Penh.

Around 100 senior government leaders and technical officials representing ministries and institutions responsible for implementing the policy attended the meeting. Their participation demonstrated the government’s coordinated approach to evaluating one of Cambodia’s most significant economic development strategies before the report is finalized.

Broad Participation Strengthens the Assessment

The Ministry of Rural Development was represented by Secretary of State Pho Pharith, Deputy Director General of Administration and Finance Meng Saophakkun, along with technical officials who contributed to the discussions.

According to the Ministry of Rural Development, the meeting focused on reviewing the final draft evaluation report and gathering recommendations from ministries and institutions under the Economic and Financial Policy Committee. The consultation process is designed to ensure the final report accurately reflects the policy’s implementation over the past decade and incorporates valuable feedback from all relevant stakeholders.

A Decade of Industrial Transformation

Since its introduction, the Industrial Development Policy 2015 to 2025 has provided a strategic framework for transforming Cambodia’s industrial sector. The policy has encouraged industrial expansion, improved productivity, attracted investment, and strengthened the country’s competitiveness within regional and global markets.

Beyond supporting manufacturing growth, the policy has also promoted economic diversification, encouraged greater value added production, and helped Cambodia integrate more deeply into international supply chains. These efforts have contributed to creating a more resilient and modern industrial economy capable of supporting future growth.

Lessons Will Shape Future Industrial Policies

The discussions gave participating ministries an opportunity to evaluate both the successes and challenges experienced during the policy’s implementation. Officials reviewed the report’s findings to ensure the final evaluation presents an accurate picture of the policy’s overall performance while highlighting important lessons learned.

The completed evaluation will provide policymakers with a comprehensive understanding of the Industrial Development Policy’s real world impact. It is also expected to identify areas requiring further improvement and help shape Cambodia’s next generation of industrial and economic policies as the country pursues sustainable, inclusive, and innovation driven development.

What This Means for Businesses and Investors?

For business leaders, entrepreneurs, investors, and manufacturers, the government’s comprehensive review signals that Cambodia remains committed to improving its investment environment and strengthening industrial competitiveness. The evaluation is expected to influence future policies that support higher value manufacturing, supply chain development, infrastructure improvements, and investment incentives.

Companies considering expanding into Cambodia can view this review as evidence that the government continues to refine its long term economic strategy based on measurable results. A stronger industrial policy framework is likely to create new opportunities across manufacturing, logistics, technology, supporting industries, and export oriented businesses.

Conclusion

The final evaluation of Cambodia’s Industrial Development Policy 2015 to 2025 marks an important milestone in the country’s economic journey. By reviewing a decade of progress, identifying lessons learned, and planning future improvements, the government is laying the foundation for a more competitive and sustainable industrial economy. For businesses, entrepreneurs, investors, and development partners, the review demonstrates Cambodia’s continued commitment to creating a stronger investment climate and supporting long term economic growth.

Cambodia’s economy is expected to maintain steady growth in 2026 despite a challenging global environment, according to the National Bank of Cambodia. The central bank forecasts the country’s economy will expand by 3.9 percent this year, reflecting resilience amid international economic uncertainty and domestic challenges. The outlook is supported by stronger exports, continued foreign direct investment, and the government’s commitment to preserving macroeconomic stability while advancing long term structural reforms.

The latest forecast provides encouraging news for businesses, entrepreneurs, investors, and international companies considering Cambodia as an investment destination. While external pressures continue to affect many economies, Cambodia is expected to accelerate growth during the second half of 2026 as manufacturing, agriculture, and investment activities gather stronger momentum.

Cambodia’s Growth Expected to Accelerate

According to the National Bank of Cambodia, the country’s economy grew by an estimated 3.5 percent during the first half of 2026. Growth was moderated by global economic uncertainty and several domestic challenges that affected business activity and investor confidence across multiple sectors.

Despite these headwinds, the central bank expects economic growth to improve to 4.3 percent during the second half of the year. The stronger performance is expected to be driven by rising exports of garments, non garment manufactured products, and agricultural goods, alongside continued inflows of foreign direct investment that support industrial expansion and job creation.

Exports and Investment Continue to Drive Growth

Cambodia’s export sector remains one of the country’s strongest economic engines. Growing international demand for manufactured goods and agricultural products continues to strengthen the country’s trade performance while encouraging new investment in production facilities and supporting industries.

Foreign direct investment also remains an important source of economic momentum. Continued investment from international companies is helping diversify Cambodia’s economy, expand manufacturing capacity, and create new opportunities for local businesses and skilled workers.

NBC Highlights Cambodia’s Economic Resilience

Speaking during a meeting in Phnom Penh on July 27 to review the first half of 2026 and outline priorities for the remainder of the year, National Bank of Cambodia Governor H.E. Dr. Chea Serey said the country’s economic performance demonstrates its ability to withstand multiple challenges.

“The fact that Cambodia is expected to achieve economic growth of between 3 and 4 percent demonstrates the resilience of the Cambodian economy in the face of crises,” said NBC Governor H.E. Dr. Chea Serey.

She explained that Cambodia, like many countries around the world, continues to face uncertainty in the global economy. At home, prolonged border tensions with Thailand, the government’s ongoing campaign against cyber fraud, and the lingering effects of the COVID 19 pandemic have also weighed on economic activity.

International Forecasts Present Different Outlooks

The National Bank of Cambodia’s latest forecast comes after the International Monetary Fund revised its 2026 growth projection for Cambodia to 3.0 percent following its Article IV consultation.

Meanwhile, other international institutions remain more optimistic. The Asian Development Bank and the ASEAN Plus Three Macroeconomic Research Office continue to project Cambodia’s economic growth at around 4.2 percent, reflecting confidence in the country’s medium term economic fundamentals.

Government Reforms Strengthen Long Term Growth

H.E. Dr. Chea Serey credited Cambodia’s resilience to the Royal Government’s continued efforts to maintain peace, security, political stability, and macroeconomic stability under the leadership of Prime Minister Samdech Moha Borvor Thipadei Hun Manet.

She added that structural reforms under the first phase of the Pentagonal Strategy are helping diversify Cambodia’s economy while strengthening its ability to withstand future external shocks. These reforms are laying a stronger foundation for sustainable economic growth, greater investment attraction, and improved competitiveness over the long term.

Why This Matters for Businesses and Investors?

For business owners, investors, startup founders, and corporate leaders, the latest economic outlook signals continued confidence in Cambodia’s investment climate. Rising exports, expanding manufacturing, and ongoing government reforms create favorable conditions for companies seeking growth opportunities in Southeast Asia.

The forecast also suggests that Cambodia remains committed to improving its business environment through economic diversification, infrastructure development, and policies that encourage private sector investment. These factors continue to position the Kingdom as an increasingly attractive destination for manufacturing, logistics, agriculture, technology, and other emerging industries.

Conclusion

Although Cambodia continues to navigate global economic uncertainty and domestic challenges, the latest National Bank of Cambodia forecast highlights the country’s resilience and long term growth potential. Supported by stronger exports, sustained foreign investment, and ongoing structural reforms, Cambodia is expected to strengthen its economic performance during the second half of 2026. For businesses, entrepreneurs, investors, and international partners, the outlook reinforces confidence that Cambodia remains one of the region’s promising destinations for investment and sustainable business growth.