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.