Cambodia is stepping up efforts to tackle worsening air pollution by targeting one of its biggest environmental challenges, the country’s growing number of second hand and aging vehicles. As of June 2026, the government is preparing to legally enforce Euro V vehicle emission standards by 2027, with a long term goal of cutting transport related black carbon and PM2.5 emissions by as much as 75 percent over the next decade. The move comes as the Kingdom faces rising traffic congestion, increasing vehicle ownership, and growing concerns about public health and climate change.

While stricter rules on used vehicle imports are part of the solution, environmental experts believe the issue goes much deeper. Cambodia’s dependence on older fossil fuel powered vehicles, combined with limited public transportation options and rapid urbanization, means that reducing pollution will require a broader and more sustainable transport strategy.

Cambodia’s Used Vehicle Market Faces Growing Scrutiny

New findings from the Climate and Clean Air Coalition reveal that Cambodia is currently the only ASEAN country where average carbon emissions from imported light duty vehicles continue to rise. If no action is taken, emissions could reach 325 grams of carbon dioxide per kilometer by 2030.

The challenge is closely linked to the country’s vehicle market. More than 60 percent of imported vehicles are over 10 years old, while second hand vehicles account for 96 percent of newly registered cars. According to the CCAC, inconsistent regional regulations have made countries like Cambodia a destination for high emitting used vehicles.

“This is particularly important given the popularity of imported used vehicles in places like Cambodia, where 96 percent of newly registered vehicles are purchased second-hand. Even older cars can produce far fewer harmful emissions when cleaner fuels are used, but these fuels must be widely available to realise their benefits,” CCAC said.

Experts Say the Solution Goes Beyond Old Cars

Environmental advocates argue that simply removing old vehicles from the roads will not fully solve Cambodia’s air quality problems. Soeung Saroeun, Executive Director of NGO Forum on Cambodia, believes the country needs a more comprehensive approach.

“While improving vehicle standards and gradually phasing out the most polluting vehicles is important, the solution goes beyond addressing old vehicles alone,” he noted, adding that any sustainable transport transition should prioritise the development of convenient, affordable, accessible and low-emission public transportation systems, such as EV and public buses and trains.

Saroeun explained that stronger public transport networks would improve air quality, reduce traffic congestion, lower transportation costs, and help Cambodia meet its climate commitments. He also pointed to countries such as Singapore, China, Norway, Japan, and Vietnam as successful examples of balancing economic growth with environmental sustainability through investments in cleaner mobility.

“I think Cambodia can learn from countries such as Singapore, China, Norway, Japan and Vietnam, which have combined cleaner vehicle policies with investments in public transport and electric mobility.”

Government Pushes for Cleaner Transport

The Cambodian government has already introduced several policies aimed at reducing pollution from the transport sector. According to the Ministry of Public Works and Transport, more than 8.3 million vehicles were registered nationwide as of March 2026, including 16,210 electric vehicles.

Authorities have developed the National Road Safety 2021 to 2030 strategy to limit the age of imported used vehicles, improve vehicle inspections, strengthen driving license procedures, and encourage the adoption of electric vehicles.

The Ministry of Environment has also implemented the Clean Air Plan and upgraded vehicle emission standards for imports. Officials say roadside inspections, stricter fuel quality requirements, and tighter import controls are all part of the government’s strategy to modernize transportation and reduce pollution.

Euro V Standards Could Cut Pollution by 75 Percent

Cambodia’s latest climate commitments include some of the country’s most ambitious environmental targets to date. Through its updated Nationally Determined Contribution and the national Clean Air Plan, the government aims to legally require Euro V emission standards for all imported and locally assembled vehicles by 2027, followed by Euro VI standards by 2030.

“It solidifies the legal and operational framework to mandate Euro V standards for all imported and local vehicles by 2027 and Euro VI by 2030. This integration is projected to slash transport-related black carbon and PM2.5 emissions by up to 75 percent,” Atitya stated.

Research under the Clean Air Plan identifies transportation as one of the three largest contributors to PM2.5 and black carbon pollution in Cambodia. Experts estimate that effective vehicle emission standards and improved fuel quality could reduce black carbon, PM2.5, and PM10 emissions from the transport sector by around 75 percent by 2030.

Air Pollution Remains a Public Health Concern

Air pollution is not only an environmental issue but also a growing health challenge. According to the World Health Organization, pollutants such as particulate matter, carbon monoxide, ozone, nitrogen dioxide, and sulphur dioxide contribute to serious respiratory and other chronic illnesses.

Health Ministry spokesperson Ly Sovann warned that changing weather patterns and rising temperatures linked to climate change are affecting air quality across Cambodia.

“It can cause long-term health issues for people.”

He also encouraged people who regularly spend time outdoors to protect themselves by wearing masks and maintaining good personal hygiene to reduce exposure to polluted air.

Readers can learn more through the original report published by Kiripost.

Conclusion

Second hand and aging vehicles are playing a significant role in Cambodia’s growing air pollution problem, but experts agree they are only part of a much larger challenge. Cleaner vehicle standards, better fuel quality, expanded public transportation, and greater investment in electric mobility will all be essential to creating a healthier and more sustainable future. As Cambodia moves toward Euro V and Euro VI standards, the country has an opportunity to balance economic growth with environmental responsibility while improving the quality of life for millions of people.

Kandal Province is emerging as a new destination for automotive investment as Cambodia’s vehicle market continues to grow. In July 2026, two Cambodian business leaders announced major plans to establish motorcycle and vehicle assembly factories in the province, aiming to capture rising domestic demand while strengthening Cambodia’s manufacturing capacity. The projects, led by businessman Sry Chanty and Cheam Khunnan, reflect growing confidence in Cambodia’s industrial potential and the country’s ambition to become part of the regional automotive supply chain.

The new investments are expected to create more opportunities for local businesses, generate employment, develop technical skills, and encourage Cambodian suppliers to participate in the automotive industry. As Cambodia continues attracting investment in manufacturing and technology, these projects highlight the country’s potential to move beyond assembly and develop a stronger industrial ecosystem.

Okhna Srey Chanthorn Launches AVATAR X Cambodia Motorcycle Assembly Plant

On July 20, 2026, businessman Okhna Srey Chanthorn announced plans to establish a motorcycle assembly factory for AVATAR X CAMBODIA, a Cambodian motorcycle brand built with international technology standards. The factory will be located within the 9NG Special Economic Development Project in Kandal Province.

The AVATAR X CAMBODIA project represents an effort to bring modern vehicle technology, international expertise, and manufacturing standards to Cambodia while creating opportunities for local companies involved in producing motorcycle parts and components.

According to Okhna Srey Chanthorn, the project carries a vision focused on empowering Cambodian talent and supporting local industries. He stated: “AVATAR X-CAMBODIA is more than an automotive project, it is a vision for the future of Cambodian people. I want to create opportunities for our young generation to gain skills, develop expertise, and participate in building a modern automotive industry. At the same time, I want Cambodian businesses and manufacturers to produce locally made parts and components to supply our factory. As a Cambodian, my goal is to bring advanced automotive technology, international expertise, and global manufacturing standards to Cambodia. Together, we can create a new milestone for the country’s automotive sector while generating jobs, developing local industries, and building a stronger industrial future for Cambodia.”

The factory is expected to contribute to the development of Cambodia’s motorcycle industry by encouraging local production and reducing dependence on imported components. It could also open new opportunities for Cambodian entrepreneurs who want to enter the automotive parts supply chain.

KNN Group Invests $28 Million in Jetour Vehicle Assembly Factory

A few days later, on July 26, 2026, KNN Group, led by Neak Okhna Cheam Khunnath, officially began construction of a Jetour vehicle assembly factory in Khsach Kandal district, Kandal Province.

The project represents a total investment of $28 million and covers 10 hectares of land. The factory is expected to begin production in early 2027, with an annual capacity of more than 20,000 vehicles.

The Jetour assembly facility will be designed to produce and assemble different types of vehicles, including traditional gasoline-powered vehicles, plug-in hybrid electric vehicles (PHEV), and fully electric vehicles (EV). The project aims to serve Cambodia’s growing automotive market while preparing for potential exports to other ASEAN markets in the future.

Advanced Technology and International Production Standards

One of the key features of the Jetour factory is its use of advanced automation systems, including Automated Guided Vehicles (AGV), throughout the production process. This technology is designed to improve efficiency, accuracy, and production quality.

Beyond the assembly line, KNN Group is also investing in a 1,335-metre vehicle testing track built to international standards. The test track will allow every vehicle produced at the factory to undergo quality checks before reaching customers.

The combination of modern manufacturing technology, vehicle testing facilities, and multi-energy vehicle production capability positions the factory as one of Cambodia’s significant steps toward developing a more advanced automotive sector.

What These Investments Mean for Cambodia’s Automotive Future?

The arrival of two major vehicle assembly projects in Kandal Province shows increasing investor confidence in Cambodia’s manufacturing sector. The projects are not only about assembling motorcycles and cars but also about building a wider ecosystem involving suppliers, skilled workers, technology transfer, and supporting industries.

For entrepreneurs and investors, these developments create new possibilities in automotive parts production, logistics, maintenance services, technology solutions, and workforce training. As Cambodia continues integrating into regional supply chains, the automotive sector could become another important driver of industrial growth.

Conclusion

The investment plans by Okhna Srey Chanthorn and Oknha Cheam Khunnath mark a significant milestone for Cambodia’s automotive industry. With the development of AVATAR X CAMBODIA’s motorcycle assembly plant and KNN Group’s Jetour vehicle factory, Kandal Province is becoming a key location for future industrial expansion.

These projects demonstrate Cambodia’s growing ability to attract technology-driven investment while creating opportunities for local businesses and entrepreneurs. As production begins in the coming years, they could help transform Cambodia from a vehicle importing market into a more active participant in regional automotive manufacturing.

Cambodia is reinforcing its position as a preferred destination for automotive investment as international manufacturers continue to expand their operations in the country. The latest milestone came on July 26 in Khsach Kandal district, Kandal province, where KNN Automotive Co., Ltd., a subsidiary of KNN Group, officially broke ground on a new vehicle assembly plant. The project reflects growing investor confidence in Cambodia’s stable political environment, improving business climate, and long term economic potential.

Speaking at the groundbreaking ceremony, Council for the Development of Cambodia (CDC) Cambodian Investment Board Secretary General Chea Vuthy said the investment demonstrates the confidence that both local and international businesses have in Cambodia’s economic outlook. The new facility is expected to support the country’s ambition of becoming a regional automotive manufacturing centre while creating new opportunities for businesses, investors, and skilled workers.

New Assembly Plant Signals Strong Investor Confidence

The launch of KNN Automotive’s vehicle assembly plant marks another important step in Cambodia’s industrial development. The investment highlights the increasing appeal of the country as manufacturers seek competitive production locations in Southeast Asia.

According to Chea Vuthy, Cambodia continues to benefit from a favourable investment environment supported by political stability, business friendly policies, and ongoing economic reforms. These factors have encouraged companies to establish long term operations and expand their manufacturing capabilities across the country.

Investment Momentum Continues to Accelerate

Cambodia’s investment performance has remained strong over the past two years. In 2025, the Council for the Development of Cambodia approved 630 investment projects with a combined value of nearly $10 billion, demonstrating sustained confidence from both domestic and international investors.

The positive trend has continued into 2026. During the first six months of the year, the CDC approved another 276 investment projects valued at approximately $4.7 billion. These figures highlight the country’s growing attractiveness as a destination for industrial production, manufacturing, and business expansion.

Special Economic Zones Drive Industrial Growth

One of the key contributors to Cambodia’s investment success has been the continued expansion of Special Economic Zones. These industrial zones have played an important role in attracting high value investments while supporting the diversification of the country’s manufacturing sector.

Chea Vuthy noted that Cambodia is steadily developing into an automotive manufacturing hub, supported by the establishment of vehicle assembly plants, tyre manufacturing facilities, and automotive parts suppliers. This growing ecosystem is strengthening the country’s industrial capacity and increasing its competitiveness within regional supply chains.

Automotive Industry Creates Long Term Economic Benefits

The expansion of automotive manufacturing is expected to generate significant economic benefits for Cambodia beyond increased investment value. New factories will create employment opportunities, promote technology transfer, strengthen workforce skills, and deepen Cambodia’s integration into global manufacturing networks.

The CDC reaffirmed its commitment to working closely with investors to ensure projects are implemented efficiently and successfully. By supporting business growth and improving competitiveness, Cambodia aims to attract even more high quality investments that contribute to sustainable economic development.

Conclusion

The groundbreaking of KNN Automotive’s new vehicle assembly plant reflects Cambodia’s growing reputation as a competitive manufacturing destination in Southeast Asia. Supported by strong investment inflows, expanding Special Economic Zones, and government efforts to improve the business environment, the country is steadily building a stronger automotive industry. As more manufacturers establish operations in Cambodia, the sector is expected to create new jobs, encourage technology transfer, and position the Kingdom as an increasingly important player in regional and global supply chains.

Source: Khmer Times and AKP. For more information, visit the official Council for the Development of Cambodia website at https://cdc.gov.kh.

One of Russia’s biggest automobile manufacturers is preparing to enter the Cambodian market as the country continues to attract international investors with its stable economic growth and expanding business environment. GAZ, a long established Russian vehicle producer known for its commercial transport solutions, believes Cambodia offers strong long term opportunities despite ongoing global uncertainties and economic shifts.

The company’s decision reflects growing international confidence in Cambodia’s economic resilience and development potential. GAZ executives say the company wants to support local businesses, improve transportation services, and help reduce logistics costs for enterprises operating in Cambodia. More information about the company can be found on the official GAZ website.

GAZ Sees Long Term Potential in Cambodia

Speaking to Fresh News, Leonid Dolgov, Export Director of GAZ, explained that the company is focused on Cambodia’s future economic potential rather than short term global challenges. He emphasized that Cambodia’s consistent growth has made it an attractive destination for business expansion and investment.

“GAZ believes that conflicts and problems are temporary. But there is long term stable economic growth in Cambodia, which has already been proven. We want to contribute to this economic growth by assisting small and medium sized businesses, reducing their logistics costs and providing better services for passengers. So, we think about a long term strategy. That is why we focus not on truck solutions or off road vehicles for the military or for the police. We want to show our products for business.”

According to Dolgov, the company is particularly interested in introducing business focused transport solutions that can support Cambodia’s growing commercial and logistics sectors. Instead of concentrating on military or government transport vehicles, GAZ plans to prioritize commercial vehicles designed for entrepreneurs, transportation providers, and small and medium sized enterprises.

Cambodia Continues to Attract Foreign Investors

GAZ’s planned market entry highlights Cambodia’s increasing appeal to foreign investors seeking opportunities in Southeast Asia. Over the past decade, Cambodia has experienced rapid economic development, driven by expanding infrastructure, trade growth, tourism recovery, and industrial investment.

International companies are increasingly viewing Cambodia as a strategic location for regional business operations and logistics networks. The country’s improving road infrastructure and growing demand for transportation services have also created new opportunities for automobile and commercial vehicle manufacturers.

Industry observers believe the arrival of a major Russian automobile producer could help diversify Cambodia’s automotive market while offering businesses more transport options tailored to local needs.

A Historic Russian Automaker Expands Abroad

GAZ, officially known as Gorkovsky Avtomobilny Zavod, is one of Russia’s oldest and largest automobile manufacturers. Founded in 1932, the company has played a major role in Russia’s transportation and industrial sectors since the Soviet era.

The company is widely recognized for producing commercial vehicles, buses, trucks, and transport solutions used across Russia and other international markets. Its expansion into Cambodia marks another step in its broader international growth strategy as the company looks for emerging markets with strong long term economic prospects.

Experts say Cambodia’s expanding economy and increasing demand for logistics services make the country an attractive market for commercial transport companies looking to establish an early presence.

Business Focus Could Support Cambodia’s Logistics Sector

As Cambodia’s trade and business sectors continue to grow, efficient transportation and logistics systems are becoming increasingly important. GAZ believes its commercial vehicles can help support small businesses and passenger transportation operators while improving logistics efficiency throughout the country.

The company’s focus on affordable and practical business transportation solutions could also benefit Cambodia’s rapidly developing urban and provincial economies. Analysts say stronger transport infrastructure and lower logistics costs are essential for supporting long term economic competitiveness in the region.

Conclusion

GAZ’s decision to enter Cambodia reflects rising international confidence in the country’s economic future and growing transportation sector. By focusing on business oriented vehicle solutions, the Russian automaker hopes to support Cambodia’s expanding logistics and commercial industries while building long term partnerships in the market. As Cambodia continues attracting global investment, the arrival of new international brands could further strengthen the country’s position as a fast growing economic hub in Southeast Asia.