Cambodia’s labour market continues to expand as the Kingdom records more than 47,000 active enterprises employing over 2.3 million workers nationwide. According to a report released by the Ministry of Labour and Vocational Training, the latest figures as of June 2026 reflect sustained business growth, rising employment opportunities, and continued investor confidence. The increase is being driven by government policies that promote employment, strengthen social protection, improve vocational training, and create a more competitive business environment.

The report highlights Cambodia’s steady progress in building a resilient workforce that supports economic growth across key industries including garments, agriculture, manufacturing, and handicrafts. For businesses, entrepreneurs, investors, and executives, the latest data signals that Cambodia remains an attractive destination for investment, production, and long term business expansion.

Cambodia’s Business Sector Continues to Grow

Cambodia had 47,494 active enterprises operating across the country as of June 2026, according to the Ministry of Labour and Vocational Training. Together, these businesses employ more than 2.3 million people, demonstrating the country’s expanding economic activity and growing labour force.

The latest total marks a significant increase from approximately 46,000 registered enterprises at the end of 2025. The steady rise reflects continued business formation and expansion across a wide range of industries, reinforcing Cambodia’s position as one of Southeast Asia’s emerging investment destinations.

The country’s business landscape remains diverse, with enterprises operating in garment manufacturing, agriculture, industrial production, handicrafts, and small scale manufacturing. This broad industrial base continues to create employment opportunities while supporting sustainable economic development.

Government Policies Strengthen Employment Growth

Minister of Labour and Vocational Training Heng Sour credited the workforce expansion to targeted government policies that focus on employment development, vocational education, and social security reforms.

“The implementation of these measures has significantly contributed to protecting workers’ rights, benefits and working conditions both inside and outside the formal system, resulting in continuous improvement,” he said during a recent meeting in Phnom Penh.

The minister explained that improvements in labour standards and workplace conditions have strengthened industrial relations while increasing investor confidence. These reforms have helped attract both domestic and foreign investment, allowing businesses to expand operations and create more jobs throughout the country.

Although the ministry did not disclose the total investment value represented by these enterprises, the continued increase in business registrations suggests that Cambodia’s investment climate remains positive.

Garment Industry Remains the Largest Employer

The garment, footwear, and travel goods sector continues to serve as the backbone of Cambodia’s export economy and remains the country’s largest private sector employer. The industry currently provides jobs for nearly one million people, with women making up the majority of the workforce.

According to the General Department of Customs and Excise, Cambodia exported nearly $8 billion worth of garment, footwear, and travel goods during the first half of 2026. This represents a 6.2 percent increase compared with the same period last year and accounts for 46.8 percent of the Kingdom’s total exports.

The Ministry of Commerce said the United States, the European Union, Canada, and Japan remain Cambodia’s largest export markets for these products, highlighting the country’s continued integration into global supply chains.

Trade Challenges Continue but Cambodia Remains Competitive

Despite strong export growth, Cambodia’s manufacturing sector continues to face challenges from evolving global trade policies. The United States has introduced a new 10 percent Section 301 tariff affecting garments and several other imported goods, creating uncertainty for exporters.

Deputy Prime Minister Sun Chanthol, who also serves as First Vice Chairman of the Council for the Development of Cambodia, sought to reassure investors by explaining that the tariff should not be viewed as an additional layer on previous proposals. He also argued that Washington has used forced labour concerns as a regulatory justification.

He noted that Cambodia’s tariff rate remains lower than several regional competitors facing rates of 12.5 percent, helping preserve the country’s competitive position within the regional manufacturing sector.

Skills Development Remains a National Priority

Looking ahead, the Ministry of Labour and Vocational Training plans to continue expanding Technical and Vocational Education and Training programmes to develop a more skilled workforce that meets the evolving needs of modern industries.

The ministry also intends to introduce more automated inspection systems to improve compliance, strengthen labour standards, and support sustainable employment growth. These initiatives are expected to help Cambodia remain competitive while providing businesses with access to a better trained workforce capable of supporting higher value industries.

Conclusion

Cambodia’s workforce surpassing 2.3 million across more than 47,000 active enterprises reflects the country’s growing economic strength and improving investment environment. Supported by government reforms, stronger labour protections, expanding vocational training, and continued business confidence, Cambodia is well positioned to attract new investment and create more employment opportunities. For investors, entrepreneurs, business leaders, and manufacturers, these developments reinforce Cambodia’s role as an increasingly competitive destination for long term business growth in Southeast Asia.

Cambodia’s business community is being encouraged to place greater focus on workforce development as companies prepare for a more competitive economic future. Speaking at the National Business Financing Forum 2026 on July 30, RMA Cambodia Chief Executive Officer Ngorn Saing emphasized that investing in employee skills is no longer optional but a strategic necessity for businesses seeking sustainable growth. His message comes at a time when Cambodia is strengthening its investment climate and expanding opportunities for businesses, entrepreneurs, investors, and startups.

The discussion highlighted the growing importance of human capital in driving productivity, innovation, and long term competitiveness. Saing also praised the Skills Development Fund for helping businesses improve workforce capabilities through financial support and practical training programs, creating a stronger foundation for business expansion and economic resilience.

Human Capital Drives Business Success

For businesses looking to expand in Cambodia, technology, equipment, and capital alone are not enough. According to Ngorn Saing, the real competitive advantage comes from developing people who have the skills to adapt, innovate, and contribute to long term business performance.

Speaking before business leaders at the National Business Financing Forum 2026, Saing stressed that every successful growth strategy ultimately depends on the quality of a company’s workforce. He encouraged business owners and executives to view employee development as a long term investment rather than an operational expense.

“Without investing in staff training, you can’t grow your revenue. No matter how good your plans or strategies are, in the end, business growth relies on people,” Saing said.

Skills Development Creates Competitive Businesses

As Cambodia’s economy continues to diversify, companies are facing increasing demand for skilled workers capable of supporting higher value industries and modern business operations. Continuous learning and professional development have become essential for improving productivity and maintaining competitiveness.

Saing noted that businesses which invest in workforce capabilities are better positioned to improve efficiency, adapt to market changes, and deliver stronger financial performance. Building a skilled workforce also helps companies remain resilient during periods of economic uncertainty.

Skills Development Fund Supports Business Growth

Saing praised the Skills Development Fund for providing practical assistance that enables businesses to strengthen their human resources more effectively. He said the fund offers valuable financial support together with practical guidance, making workforce development more accessible for companies of different sizes.

The business friendly approach adopted by the Skills Development Fund allows enterprises to implement training initiatives without placing excessive financial pressure on their operations. This support encourages more businesses to invest in upgrading employee skills while improving overall organisational performance.

Private Sector Encouraged to Take Advantage of Available Support

Saing also encouraged Cambodian businesses to make full use of government and institutional programs designed to strengthen workforce development. By leveraging these resources, companies can improve operational efficiency while preparing for future business opportunities.

He believes stronger collaboration between the private sector and public institutions will contribute to sustainable economic growth, higher productivity, and a more competitive business environment across Cambodia. For entrepreneurs, investors, senior executives, and business leaders, investing in people today will help build stronger companies tomorrow.

Why Should Businesses Invest in Workforce Skills?

The message from RMA Cambodia is clear. Businesses that invest in employee development gain stronger productivity, higher operational efficiency, improved innovation, and better long term competitiveness. Skilled employees are better equipped to solve problems, adopt new technologies, and deliver greater value to customers, ultimately leading to sustainable revenue growth and stronger business performance.

As Cambodia attracts more foreign investment and expands into higher value industries, companies with highly trained workforces will be better positioned to seize new opportunities and compete in regional and global markets.

Conclusion

Workforce development is becoming one of the most valuable investments businesses can make in Cambodia’s evolving economy. Ngorn Saing’s message serves as a reminder that sustainable business success depends not only on capital and strategy but also on people. By investing in employee skills and taking advantage of available support programs, businesses can strengthen their competitiveness, increase productivity, and contribute to Cambodia’s long term economic growth.

Cambodia is strengthening its commitment to supporting existing foreign investors as part of a broader strategy to accelerate industrial growth and attract long term investment. On a visit to Yura Harness Cambodia Co Ltd in Kampong Speu province, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia Sun Chanthol reaffirmed the government’s dedication to helping international manufacturers expand their operations in the Kingdom. The visit reflects Cambodia’s shift from simply attracting foreign investment to actively helping established businesses grow, create jobs, and contribute to sustainable economic development.

The inspection took place following discussions between Cambodian officials and South Korea’s YURA Corporation in Seoul on June 18. By maintaining close engagement with existing investors, the government aims to strengthen confidence in Cambodia’s business environment while encouraging manufacturers to expand production, develop local talent, and build stronger industrial supply chains across the country.

Government Strengthens Support for Existing Investors

Deputy Prime Minister Sun Chanthol visited the Yura Harness manufacturing facility in Chbar Mon City at the invitation of Chief Executive Officer Lee Doo Yeun. During the visit, he toured the factory’s production lines and reviewed workforce development initiatives, employee training programs, and the company’s long term expansion plans.

The visit highlights the Cambodian government’s growing focus on supporting businesses that have already invested in the country. Rather than concentrating solely on attracting new investment, officials are placing greater emphasis on helping existing companies expand, improve productivity, and generate more employment opportunities for Cambodian workers.

Yura Harness Continues Expanding in Cambodia

Yura Harness Cambodia Co Ltd began operations in 2022 as a subsidiary of South Korea’s YURA Corporation. Since then, the factory has grown into an important manufacturing operation in Kampong Speu province, employing around 1,100 workers while producing automotive wiring harnesses for international markets.

Accompanied by senior officials from the Cambodian Investment Board, Chanthol also reviewed the company’s future expansion roadmap. Officials believe that supporting successful foreign manufacturers already operating in Cambodia will play a key role in strengthening the country’s industrial base and ensuring sustainable economic growth.

Partnership Built Through Investment Diplomacy

The factory inspection follows Chanthol’s investment promotion mission to Seoul, where he met YURA Corporation Vice Chairman Dae Yeol Ohm on June 18. Those discussions laid the foundation for deeper cooperation between Cambodia and one of South Korea’s leading automotive component manufacturers.

The continued dialogue demonstrates Cambodia’s proactive approach to investment diplomacy. Government leaders are working closely with global companies to identify opportunities for expansion while ensuring that regulations and investment policies continue to support industrial development throughout the Kingdom.

Why Existing Investors Matter?

Retaining and expanding current investors has become an increasingly important pillar of Cambodia’s economic strategy. Businesses that have already established operations possess valuable experience with the local market, workforce, and regulatory environment, making expansion faster and more efficient than starting entirely new projects.

For entrepreneurs, investors, business leaders, and manufacturers considering Cambodia, the government’s hands on engagement sends a strong message that long term partnerships remain a priority. Continued support for established companies also helps strengthen local supply chains, encourage technology transfer, develop skilled workers, and increase Cambodia’s competitiveness as a regional manufacturing hub.

What This Means for Businesses and Investors?

The government’s direct engagement with companies like Yura Harness demonstrates that Cambodia is committed not only to attracting investment but also to helping businesses succeed after they arrive. This approach provides greater confidence for multinational corporations considering expansion while creating more opportunities for local suppliers and small and medium enterprises to participate in global manufacturing networks.

As Cambodia continues improving infrastructure, investment policies, and workforce capabilities, companies looking to establish or expand manufacturing operations are likely to find an increasingly supportive business environment. The strategy also reinforces Cambodia’s ambition to become a leading production base in Southeast Asia.

Conclusion

Sun Chanthol’s visit to Yura Harness reflects Cambodia’s evolving investment strategy of building lasting partnerships with businesses that have already chosen the Kingdom. By supporting expansion, encouraging industrial growth, and maintaining close cooperation with international manufacturers, Cambodia is strengthening its position as an attractive destination for investment, production, and long term business development. This continued collaboration is expected to generate more jobs, attract additional investment, and contribute to sustainable economic growth in the years ahead.

Cambodia’s manufacturing sector continues to strengthen its role as a major driver of the national economy, with the number of large scale factories climbing to 3,284 by the end of May 2026. According to the Ministry of Industry, Science, Technology and Innovation, the steady increase reflects growing investor confidence, expanding employment opportunities, and the country’s success in attracting long term industrial investment. The latest figures also reinforce Cambodia’s reputation as one of the region’s increasingly attractive manufacturing destinations.

The report, released on Saturday, highlights the Kingdom’s continued progress in industrial development, supported by government investment in infrastructure, business friendly policies, and efforts to diversify manufacturing beyond traditional industries. As more international companies establish or expand operations in Cambodia, industry leaders believe the country is steadily moving toward higher value production and stronger integration into global supply chains.

Cambodia’s Industrial Sector Continues Strong Growth

Cambodia recorded 3,284 operating large factories by the end of May 2026, according to the Ministry of Industry, Science, Technology and Innovation. The factories collectively employ more than 1.33 million workers while attracting cumulative investment exceeding $27.6 billion, demonstrating the industry’s growing contribution to national economic development.

Compared with the 3,084 factories operating at the end of 2025, the latest total represents a 5.35 percent increase in just five months. The continued expansion reflects sustained confidence from both domestic and international investors, further strengthening manufacturing as one of Cambodia’s most important economic pillars.

Investor Confidence Remains Strong

Speaking during the Asia Prestige 50 Under 50 CEO Excellence Award 2026, Minister of Industry, Science, Technology and Innovation Hem Vanndy reaffirmed that Cambodia remains committed to welcoming quality investment and building long term partnerships with businesses around the world.

“Investor confidence is reflected in the increased investment projects and continued expansion of existing manufacturers, citing the launch of Toyota’s new Hilux Travo assembly line the previous day as a strong vote of confidence in Cambodia’s long term potential,” Vanndy said.

The minister also encouraged both Cambodian and international companies to expand investment in supporting industries while strengthening cooperation with local small and medium sized enterprises. He noted that many Cambodian SMEs are becoming increasingly capable of serving as dependable partners within global supply chains.

Cambodia Moves Toward Higher Value Manufacturing

Industry experts believe Cambodia is gradually shifting from traditional labor intensive manufacturing toward more advanced industrial production. This transition is expected to improve competitiveness and create greater economic value over the long term.

Anthony Galliano, Honorary Board Advisor of the Association of Global Entrepreneur 1% Club, said Cambodia’s growing appeal to investors reflects this transformation.

“The continued innovation and competitiveness will be key to advancing further up the global value chain,” Galliano said during the event.

Although garments, footwear, and travel goods continue to dominate Cambodia’s manufacturing sector, government policies are increasingly encouraging investment in electronic components, automotive assembly, and other higher value industries that offer greater opportunities for long term growth.

Business Community Welcomes Factory Expansion

The Cambodia Chamber of Commerce described the latest factory growth as a positive indicator of the country’s improving investment climate. Business leaders believe Cambodia’s competitive policies continue to attract manufacturers seeking stable and cost effective production locations in Southeast Asia.

“The increase in factory numbers reflects continued investment inflows and supports Cambodia’s position as an attractive manufacturing destination,” its Vice President Heng told Khmer Times.

The steady rise in new factories also highlights the government’s ongoing efforts to improve infrastructure, strengthen industrial policies, and create an environment that supports sustainable business expansion. For more details, readers can refer to the original report published by Khmer Times.

Conclusion

Cambodia’s growing number of large factories demonstrates the country’s continued economic momentum and its increasing appeal to global manufacturers. Rising investment, expanding employment, and government support for industrial diversification are helping position the Kingdom as a competitive manufacturing hub in Southeast Asia. As Cambodia continues moving toward higher value industries while strengthening partnerships with local businesses, its industrial sector is expected to remain a major engine of economic growth and long term investment.