As of the end of 2025, Cambodia has 3,083 large factories in operation. This marks a significant increase of 658 factories compared to 2024, representing growth of 27.13 percent, according to the Ministry of Industry, Science, Technology and Innovation. In simple terms, the Kingdom saw nearly 30 percent more large factories in just one year, a clear signal of accelerating industrial expansion.
This growth came despite 42 large factories closing during the year, compared to 26 closures in 2024. The net increase underscores the resilience and momentum of Cambodia’s manufacturing sector, even amid global uncertainty and regional pressures.
Where Are These Factories Located?
The distribution of factories highlights Cambodia’s key industrial hubs. Phnom Penh leads with 895 factories, followed by Kampong Speu with 603, Kandal with 403, Svay Rieng with 327, Preah Sihanouk with 305 and Takeo with 231. These provinces and the capital collectively form the backbone of Cambodia’s industrial ecosystem, supported by special economic zones, logistics connectivity and access to ports and borders.
The presence of large factories inside zones such as the Royal Group Phnom Penh Special Economic Zone reflects a broader strategy to cluster manufacturing operations in well serviced industrial parks that offer streamlined customs procedures and investor friendly infrastructure.
What Do These Factories Produce?
While garment manufacturing remains dominant, Cambodia’s industrial base is no longer limited to light industry. Factories are increasingly engaged in leather processing, paper and paper products, food processing, electrical equipment, rubber and plastic products, furniture, non metallic mineral products and timber goods.
This diversification indicates gradual movement up the value chain. The country is building stronger domestic production chains and integrating more deeply into regional and global supply chains, in line with national economic strategies.
How Many People Do They Employ?
By the end of 2025, factories across Cambodia employed approximately 1.27 million workers. This represents a 9.38 percent increase compared to 2024. The manufacturing sector remains one of the largest sources of formal employment in the country, supporting household incomes and domestic consumption while strengthening social stability.
Why Is the Number Growing So Fast?
Several structural factors explain this rapid expansion. According to economist Hong Vanak of the Royal Academy of Cambodia, reforms to investment laws, improved labour productivity and access to broad export markets have been critical drivers.
Cambodia has also benefited from bilateral and multilateral free trade agreements, competitive labour costs and a young workforce. Government reforms under its seventh mandate have focused on improving the business environment, strengthening competitiveness and promoting higher value added manufacturing.
The industrial sector grew by around 9.3 percent in 2025 and is projected to expand by 7.2 percent in 2026, despite challenges including border tensions with a neighbouring country. The sector has been identified as a strategic pillar under phase one of the Pentagonal Strategy, positioning industry, science, technology and innovation as key engines of long term growth.
What This Means for Investors and Business Leaders?
For investors, executives and policymakers, the figure of 3,083 large factories is more than a statistic. It reflects increasing investor confidence, deeper integration into global supply chains and expanding export capacity. Cambodia is evolving from a predominantly garment based manufacturing economy toward a more diversified industrial landscape.
The continued growth in factory numbers strengthens Cambodia’s export potential and enhances economic resilience. As production capacity scales and industrial capabilities broaden, the Kingdom is positioning itself as a more competitive manufacturing destination in Southeast Asia.
In 2025, the answer is clear. Cambodia is home to over 3,000 large factories and the trajectory remains upward.