Cambodia’s industrial sector is entering a new phase of rapid expansion, with the number of large scale factories rising sharply to 3,319 by June 2026. According to the Ministry of Industry, Science, Technology and Innovation, the Kingdom recorded a year on year increase of more than 25 percent in operational industrial plants, highlighting growing investor confidence and the country’s shift toward higher value manufacturing. The announcement was made during the Cambodia Industrial Development Conference and Industrial Expo 2026 in Phnom Penh, where government leaders outlined the nation’s evolving industrial strategy.
The latest figures reflect Cambodia’s success in attracting long term investment while creating employment and strengthening its position in regional and global manufacturing supply chains. Backed by continued investment, technological advancement, and supportive government policies, the country’s industrial landscape is steadily moving beyond low cost production toward innovation driven growth.
Cambodia Reaches a New Industrial Milestone
Cambodia had 3,319 large scale operating factories as of June 2026, representing one of the strongest periods of industrial expansion in recent years. The factories have attracted approximately $27.8 billion in cumulative investment, underscoring the country’s growing appeal among both domestic and international investors.
Compared with the same period last year, the number of operational factories increased by more than 25 percent. The rapid expansion demonstrates the resilience of Cambodia’s manufacturing sector and its increasing importance as one of the country’s key engines of economic growth.
More Than 1.3 Million Jobs Created
The continued growth of Cambodia’s industrial sector has translated into significant employment opportunities across the country. According to Minister of Industry, Science, Technology and Innovation Hem Vanndy, the nation’s large scale factories now employ more than 1.3 million people.
The expanding workforce reflects not only the opening of new manufacturing facilities but also the continued growth of existing businesses. As industrial investment increases, more Cambodians are benefiting from stable employment and new career opportunities across a wide range of manufacturing industries.
Cambodia Shifts Toward High Value Manufacturing
Speaking at the opening ceremony of the Cambodia Industrial Development Conference and Industrial Expo 2026 in Phnom Penh last Friday, Hem Vanndy emphasized that Cambodia is transforming its industrial model to compete on more than affordable production costs.
He explained that the country is increasingly focusing on technology, innovation, productivity, and product quality to strengthen its competitiveness in regional and international markets. This strategic transition is helping Cambodian manufacturers move further up the global value chain while attracting higher quality investment.
“Cambodia’s industrial development is entering a new stage, marked by a growing number of factories, investment, employment and industrial production value, reflecting investors’ confidence in the stability, potential and future of Cambodia’s industrial sector,” Vanndy said.
Technology Is Reshaping Cambodia’s Manufacturing Future
The minister also pointed to the rapid transformation taking place across the global manufacturing industry. Advances in artificial intelligence, automation, robotics, and digital technologies are reshaping production processes and becoming major factors in industrial competitiveness.
Cambodia is positioning itself to take advantage of these technological changes by encouraging industries to adopt modern manufacturing practices. This approach is expected to improve productivity, attract advanced manufacturing projects, and strengthen the country’s long term industrial competitiveness.
Strong Investment Confidence Continues
The rapid increase in factories reflects growing confidence among investors who view Cambodia as a stable and promising destination for industrial development. Continued government support, infrastructure improvements, and policies that encourage business expansion have helped strengthen the country’s manufacturing environment.
As Cambodia continues attracting investment in higher value industries, the industrial sector is expected to play an even greater role in driving exports, creating jobs, and supporting sustainable economic growth in the years ahead. Readers who wish to explore the original report can find it on the Khmer Times website.
Conclusion
Cambodia’s industrial sector is experiencing one of its strongest periods of growth, marked by rising investment, expanding employment, and a growing number of factories. More importantly, the country is evolving beyond traditional low cost manufacturing by embracing technology, innovation, and higher value production. This transformation is strengthening Cambodia’s position as an increasingly competitive manufacturing hub in Southeast Asia and creating new opportunities for businesses, investors, and workers alike.