Synopsis: The growth in the number of factories and enterprises is a testament to the trust that both domestic and especially international investors have in the Royal Government.
The number of factories and enterprises in Cambodia has increased by over 5,000 or more than 13 percent in less than two years, according to a report of the Ministry of Labour and Vocational Training (MLVT) published yesterday.
The growth reflects the strength of the Cambodian economy and the confidence that both domestic and international investors have in the Royal Government.
According to the report, the number of factories and enterprises in Cambodia rose by 5,356 over 22 months from August 2023 to June 2025, taking the total from 40,300 to 45,656, representing a growth of 13.29 percent.
The report highlighted that enterprises in the garment sector grew from 1,466 to 1,682, an increase of 216, or 14.73 percent; while the non-garment enterprises rose from 38,834 to 43,974, an increase of 5,140, or 13.24 percent.
In the first half of 2025 alone, the number of enterprises registered with the ministry rose by 858 compared to the same period in 2024, when there were 44,798 enterprises.
Sun Mesa, spokesman for the MLVT, told Khmer Times that the growth in the number of factories and enterprises is a testament to the strength of the Cambodian economy and the trust that both domestic and especially international investors have in the Royal Government led by Prime Minister Hun Manet.
He noted that the MLVT has continuously facilitated and fostered a favourable investment environment. This includes training citizens in technical skills to build a skilled workforce that meets investors’ needs and supports increased productivity.
“Of course, the growth of factories and enterprises has strengthened Cambodia’s economic progress. At the same time, the growth has created a high demand for labour with the country currently needing around 250,000 workers, particularly in the industrial sector, which alone requires between 210,000 and 220,000 workers. The tourism sector also faces a significant need for more workers,” said Mesa.
The spokesperson added that this is a remarkable and proud achievement for the Cambodian people, who should take pride in the government’s leadership. While many regions around the world are plagued by insecurity, conflict, and economic and political instability, Cambodia continues to enjoy steady growth.
“Although the world is facing war and political unrest, Cambodia’s economy continues to progress steadily, offering our people job opportunities, greater employment choices, and improved living conditions. With more factories, more jobs, and more benefits, this is a time when our citizens are truly reaping the rewards of peace, stability, and development,” the spokesman stressed.
Mesa emphasised that the continued growth in investment reflects investors’ trust in Cambodia, which comes from the government’s sound policies and the active contributions of relevant institutions. The MLVT played a key role as both the coordinator of factory operations and the provider of vocational training to meet the workforce needs of factories and enterprises.
“This support helps boost productivity and enhances the competitiveness of Cambodian businesses compared to others in the region.”
The Ministry of Labour spokesperson also called for Cambodians returning from Thailand to take advantage of the many job opportunities available within the country.
Chey Tech, a socio-economic researcher, told Khmer Times yesterday that these achievements are the result of the concerted efforts of the seventh-mandate Royal Government, which has actively mobilised the investors’ approach. He noted that this strategy, along with a series of key reforms, has significantly improved the investment climate in Cambodia.
He added, the number of investments, particularly foreign direct investment (FDI), has steadily increased, along with Cambodia’s production and export capacity. These developments have contributed to Cambodia’s economic recovery, with growth projected at around 5 percent in 2025 and approximately 6 percent in 2026.
“If Cambodia can successfully negotiate a tariff reduction with the United States, bringing it below the current 36 percent, or ideally aligning it with Vietnam’s 20 percent, then more FDI will flow into the country. This would lead to the establishment of more factories and enterprises, creating more job opportunities for our workers. Such progress would undoubtedly accelerate Cambodia’s economic recovery and support the Royal Government’s development vision for 2030 and 2050,” said Tech.
He stated that in the next two weeks, Cambodia hopes to be successful in negotiations by obtaining further tariff reductions from the US.
According to a report from the General Department of Customs and Excise of Cambodia (GDCE), Cambodia exported garment, footwear and travel products (GFT) worth $7.38 billion in the first half of 2025, up 22 percent from the $6.02 billion reported in the same period a year earlier.
It added that garment products accounted for $5,283 million during the January-June period, up 22 percent year on year, read the report.
Footwear represented $1,030 million, up 33 percent from a year earlier, while travel goods accounted for $1,068 million, up 12.6 percent year on year.
