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.