Why Takeo, Kampong Speu, Kampong Chhnang, and Pursat Are Emerging as Cambodia’s New Industrial Hubs? A Full Story!
In recent years, Cambodia has been undergoing a quiet but transformative industrial shift. While Phnom Penh and Sihanoukville have traditionally been magnets for foreign direct investment, the tides are now changing. Four provinces—Takeo, Kampong Speu, Kampong Chhnang, and Pursat—are becoming Cambodia’s next potential industrial hubs. This story traces the socio-economic, geographical, infrastructural, and political factors driving this transformation, offering a complete look into why these regions are poised for industrial expansion and economic opportunity.
From Peripheral to Prominent: A New Industrial Era
It wasn’t long ago that these four provinces were considered peripheral to Cambodia’s economic engine. However, over the past decade, and especially under the current administration of Prime Minister Hun Manet, strategic infrastructure development, improved access to utilities, and government policy reforms have turned them into hotspots for industrial investment.
In a speech delivered during the inauguration of Hun Sen Pramoay High School in Veal Veng district, Pursat, Prime Minister Hun Manet declared that Kampong Chhnang and Pursat are fast emerging as Cambodia’s next major industrial hubs, following in the footsteps of Kampong Speu.
Let’s dive into what makes each of these four provinces—Takeo, Kampong Speu, Kampong Chhnang, and Pursat—so special.
1. Kampong Speu Province: The Gateway Between Phnom Penh and Sihanoukville
Kampong Speu’s transformation began earlier than the other three provinces. Strategically nestled between Phnom Penh and the coastal economic zone of Sihanoukville, Kampong Speu has been the preferred destination for industries seeking to benefit from proximity to both export ports and the capital’s workforce.
Also read: How Will the Phnom Penh–Siem Reap–Poipet Expressway Boost Local and Regional Business?
Key Factors Behind Kampong Speu’s Rise
- Geography: Located just an hour from Phnom Penh and a few hours from Sihanoukville, the province acts as a natural industrial corridor.
- Infrastructure: National Road 4, one of the country’s most vital economic highways, cuts through Kampong Speu.
- Industrial Zones: The province already hosts several special economic zones (SEZs) and garment factories.
- Rising Land Costs in Phnom Penh: As land prices in the capital skyrocketed, Kampong Speu became a natural alternative for investors.
Today, land prices in Kampong Speu are beginning to rise, pushing new investors further out into other provinces—like Kampong Chhnang and Pursat—triggering a new wave of industrial decentralization.
2. Kampong Chhnang Province: The Logistics Jewel of Central Cambodia
Once overlooked by travelers heading from Phnom Penh to Battambang, Kampong Chhnang is now on investors’ radar for its logistics potential. Located only 90 kilometers from Phnom Penh, this central province is accessible, affordable, and growing rapidly.
The Logistics Advantage
According to socio-economic researcher Chey Tech, “Kampong Chhnang is ideal for logistics and industrial operations due to its location. It connects easily to major cities and ports.” This accessibility is further enhanced by the expanding rail network and the National Road 5, a 400-kilometer arterial highway that now serves as a backbone for northern and western trade routes.
Also read: What Happens If a Railway Link Connects Cambodia Directly to China?
Industrial Workforce and Demand
The Premier recently revealed that Kampong Chhnang already has factories requiring around 60,000 workers, with a shortage of 20,000—a clear indication of its fast-growing industrial sector.
As factories seek cheaper land and better logistics, Kampong Chhnang has emerged as a natural successor to Kampong Speu, attracting both domestic and international investors.
3. Pursat Province: The “Battery of Cambodia” Becomes an Economic Powerhouse
Pursat has long been recognized for its hydropower capacity, which supplies a significant portion of Cambodia’s electricity needs. This energy reliability makes the province uniquely attractive for energy-intensive industries.
Infrastructure and Connectivity
Pursat’s growth is largely driven by National Road 10 (NR10) and its connectivity with other northwestern provinces, such as Battambang, Pailin, and even Koh Kong. The NR10, together with Cambodia’s expanding rail system, links Pursat with major economic centers and border crossings.
According to Prime Minister Hun Manet, “The interconnected infrastructure will facilitate trade and business, ultimately improving the livelihoods of our people.”
Industrial Pioneers in Pursat
Major international companies such as Ford and Minebea have already established operations in Pursat, demonstrating investor confidence in the province’s potential. The district of Veal Veng, once a battlefield, now symbolizes post-war recovery and economic transformation, with the population growing from 500 families in 1999 to nearly 10,000 today.
This success story is a direct result of the “win-win policy” initiated by former Prime Minister Hun Sen, which ended civil conflict and laid the foundation for stable economic growth.
4. Takeo Province: The Southern Powerhouse with Untapped Potential
Though less frequently spotlighted, Takeo province is emerging as an industrially strategic region thanks to its proximity to Vietnam, robust agricultural base, and increasing connectivity.
The Funan Techo Canal and the New Phnom Penh International Airport are two transformative infrastructure projects that significantly boost Takeo province’s rise as an industrial development hub in Cambodia. The Funan Techo Canal, passing through Kandal, Takeo and Kampot, is set to revolutionize inland waterway logistics by linking Phnom Penh to the Gulf of Thailand, dramatically lowering transportation costs and enhancing trade efficiency. Meanwhile, the New Phnom Penh International Airport, straddling Kandal province and close to Takeo, will serve as a major gateway for cargo and international connectivity. Together, these developments position Takeo as a vital corridor for industrial and logistical expansion, offering investors seamless access to domestic and regional markets. This growing connectivity not only enhances Takeo’s appeal but also supports the broader vision of decentralizing Cambodia’s industrial growth beyond Phnom Penh, aligning with the national strategy of creating multiple regional industrial zones including Kampong Speu, Kampong Chhnang, and Pursat.
Also read: What’s Next for Phnom Penh’s Airport After July?
Strategic Border Position
Takeo’s border with Vietnam’s An Giang province makes it a prime location for cross-border trade and light manufacturing, especially for products destined for export.
The Phnom Den International Border Gate has become a key node in trade between Cambodia and Vietnam. With ASEAN-wide trade policies reducing tariffs and promoting intra-regional commerce, Takeo’s importance is growing.
Agricultural and Agro-Industrial Synergies
Takeo is known for its rice production and other agricultural products. With Cambodia increasingly moving toward agro-industrial processing, the province offers opportunities for setting up processing plants, packaging units, and storage facilities. This makes it ideal for agribusiness investors.
Additionally, the province benefits from infrastructure upgrades, such as the improved NR2 highway and new rural roads connecting it more efficiently to Phnom Penh and other economic hubs.
Also read: What If Pochentong Airport Became a Public Space?
Why These Four Provinces—And Why Now?
Cambodia is no longer just about Phnom Penh or Sihanoukville. The country’s economic strategy is shifting toward decentralization, leveraging regional strengths to boost inclusive development. Here’s a synthesis of why these four provinces are becoming ideal industrial hubs now:
1. Strategic Infrastructure Investments
The Cambodian government has prioritized strategic infrastructure development to enhance trade connectivity:
- National Roads 4, 5, 10, and 2
- Expanded railways
- Border crossings with Thailand and Vietnam
These make logistics more cost-efficient and predictable, a key factor in industrial site selection.
2. Rising Land Costs in Traditional Hubs
Phnom Penh and Kampong Speu are experiencing soaring land and labor costs. Investors are looking for cost-effective alternatives, and these four provinces offer ample land at competitive prices.
3. Government Support and Policy Direction
Under Hun Manet’s leadership, there is a clear political push to promote regional development. This includes:
- Tax incentives for investing in SEZs
- Industrial policy reforms
- Cross-border cooperation
4. Natural Resources and Energy Availability
Pursat offers hydropower. Takeo has agricultural abundance. Kampong Chhnang provides logistical centrality. Kampong Speu bridges trade from coast to capital. These varied advantages allow for sectoral diversification, from manufacturing to agribusiness and logistics.
5. Labor Force Accessibility
Each of these provinces offers access to a young and trainable labor force, many of whom would otherwise have migrated to Phnom Penh or Thailand. Developing local industry helps retain talent and reduce urban congestion.
A Vision of Cambodia’s Decentralized Economic Future
The rise of Takeo, Kampong Speu, Kampong Chhnang, and Pursat is more than just a shift in investor attention—it’s a vision of inclusive, regionally balanced growth. These four provinces are building on their unique strengths while benefiting from improved national connectivity and supportive government policies.
This evolving story of industrial decentralization presents a powerful opportunity: to bring prosperity beyond Phnom Penh, to create jobs in rural and semi-urban areas, and to build a resilient, diversified Cambodian economy.
Final Thoughts: A Golden Era for Cambodia’s Provinces
The transformation of Cambodia’s industrial landscape is no longer speculative—it’s underway. Investors, policy-makers, and entrepreneurs are turning their eyes toward Takeo, Kampong Speu, Kampong Chhnang, and Pursat not just as alternatives, but as the future engines of Cambodia’s growth.
These provinces, once bypassed or underdeveloped, are stepping into a golden era marked by connectivity, competitiveness, and confidence.
What Do You Think?
Do you agree that Cambodia’s provinces are ready to lead the next wave of industrial development? Have you seen changes in these regions firsthand?
Share your thoughts in the comments below.
