Cambodia Moves to Strengthen Industrial Planning for Future Growth
Cambodia is taking another major step toward strengthening its long term economic competitiveness as Prime Minister Hun Manet has instructed the Ministry of Land Management, Urban Planning and Construction to work closely with municipal and provincial authorities to create detailed land use and zoning plans across the country. Speaking during a land title certificate distribution ceremony in Ksach Kandal district of Kandal province, the Prime Minister stressed that every province should be planned according to its unique geographical strengths to support industrial development, logistics, residential expansion, and sustainable economic growth.
The directive comes at a time when Cambodia is accelerating its transition toward an industry led economy. By clearly identifying areas for industrial hubs, logistics networks, supply chains, and housing, the government aims to unlock unused land resources, attract higher quality investment, reduce land related conflicts, and create stronger opportunities for businesses and local communities. The initiative also supports Cambodia’s broader vision of becoming a modern manufacturing and investment destination in Southeast Asia.
Strategic Land Planning to Maximize Provincial Strengths
Using Kandal province as an example, Prime Minister Hun Manet highlighted its strategic location surrounding Phnom Penh within the Mekong lowlands and its excellent transportation links through major national highways. He explained that every province possesses different geographical advantages, and future development should be based on these natural strengths instead of applying a single development model nationwide.
“Clear zoning plans and land-use mapping are essential to unlocking each province’s natural land resources, maximising economic value, and fostering sustainable community development.”
The Prime Minister noted that carefully designed land use planning would help prevent future land disputes while giving investors greater confidence when selecting business locations. Better planning would also improve public infrastructure, support balanced urban growth, and create stronger economic opportunities for local residents.
Government Advances Cambodia’s Industrial Transformation
The new zoning initiative complements Cambodia’s broader industrial development strategy. Earlier this week, the Ministry of Economy and Finance reviewed the achievements of the Industrial Development Policy 2015 to 2025, which successfully helped transform Cambodia from an agriculture focused economy into one with a stronger industrial foundation integrated into regional and global supply chains.
Building on that progress, the government is now preparing the Industrial Development Policy 2026 to 2035, which will prioritize advanced technology, skilled human resources, innovation, and higher value manufacturing. The new strategy aims to help Cambodia remain competitive as global production networks continue to evolve. More details about Cambodia’s industrial policies are available through the Council for the Development of Cambodia and the Ministry of Economy and Finance.
Business Community Welcomes the Prime Minister’s Directive
The business community has strongly supported the government’s emphasis on strategic zoning. Cambodia Chamber of Commerce Vice President Lim Heng believes that clear land use planning will create greater certainty for both domestic and international investors while improving long term economic planning.
“Clear zoning plans for industrial hubs, logistics routes, and residential zones provide much needed clarity and confidence for both domestic and foreign investors.”
He explained that better planning around industrial corridors will encourage the growth of manufacturing clusters, logistics centers, and warehousing facilities while supporting well planned residential development for workers. These improvements could significantly strengthen Cambodia’s competitiveness as a regional manufacturing and trade hub.
“When land-use policies align with infrastructure and geographical advantages, it drastically reduces operational costs and streamlines supply chains.”
Special Economic Zones Continue Driving Industrial Expansion
Cambodia’s growing network of Special Economic Zones continues to play a central role in attracting foreign investment and diversifying the country’s industrial base. According to the Council for the Development of Cambodia, the country now has 65 Special Economic Zones, with 39 currently in operation.
These zones have attracted investment across a wide range of industries, including tyre manufacturing, vehicle assembly, bicycle production, electronics, furniture manufacturing, and supporting industries. Beyond creating thousands of jobs, they have also helped introduce more advanced manufacturing capabilities into Cambodia’s economy.
Chea Vuthy, Secretary General of the Cambodia Investment Board under the Council for the Development of Cambodia, believes Cambodia is becoming an increasingly attractive regional production base for automotive manufacturing and supporting industries due to continued investment in assembly plants, tyre factories, and component manufacturers.
“The success of SEZ development has been important in diversifying the industrial base and attracting high-quality, high- value-added investment capital to Cambodia.”
Strong Investment Momentum Supports Cambodia’s Growth
Cambodia’s investment performance continues to demonstrate growing confidence from international and domestic investors. In 2025, the Council for the Development of Cambodia approved 630 investment projects with a combined value of approximately $10 billion. During the first half of 2026 alone, another 276 projects worth around $4.7 billion received approval.
Foreign direct investment is increasingly flowing into sectors beyond garments, including electronics, furniture, automotive components, tyres, and advanced manufacturing. This growing diversification reflects Cambodia’s ongoing transformation into a more resilient and higher value economy that offers expanding opportunities for investors, manufacturers, entrepreneurs, and global supply chains.
Conclusion
Prime Minister Hun Manet’s directive to develop precise provincial zoning plans represents more than a land management initiative. It forms a critical part of Cambodia’s long term economic strategy to attract investment, strengthen industrial competitiveness, improve infrastructure planning, and promote sustainable development. Combined with the country’s expanding Special Economic Zones, rising foreign investment, and next generation industrial policy, Cambodia is positioning itself as an increasingly attractive destination for business expansion and regional manufacturing in the years ahead.