Cambodia’s industrial base keeps expanding. The number of large factories operating in the Kingdom is now approaching 3,300, according to recent government data reported by Khmer Times — the latest milestone in a manufacturing expansion that has defined Cambodia’s economy over the past several years. For companies weighing a market entry into Cambodia, the trend line is hard to ignore: this is now one of the fastest-growing large-scale manufacturing bases in Southeast Asia.
A Multi-Year Growth Story, Not a One-Off Spike
The climb toward 3,300 large factories didn’t happen overnight. It’s the continuation of a trend that has been building steadily:
- 2020: roughly 1,860 large factories
- End of 2023: around 2,100
- End of 2024: roughly 2,425
- End of 2025: 3,083 large factories, according to the Ministry of Industry, Science, Technology and Innovation (MISTI) — a jump of 658 factories, or 27%, in a single year
- Mid-2026: approaching nearly 3,300
That’s close to a 75% increase in large-factory count in just five years — a pace that puts Cambodia’s industrial growth well ahead of most regional peers. Notably, this growth has continued even as the sector absorbed the closure of dozens of factories each year (42 closures in 2025, versus 26 in 2024), underscoring that the net expansion reflects genuine new investment rather than simple churn.
Where the Factories Are Concentrated
Cambodia’s industrial footprint remains centered around a handful of key provinces, which matters for any company scouting sites:
- Phnom Penh — the largest concentration, with several hundred large factories
- Kampong Speu — the second-largest hub, benefiting from proximity to the capital and major transport corridors
- Kandal
- Svay Rieng — anchored by border-adjacent special economic zones
- Preah Sihanouk — driven by port access and SEZ development
- Takeo
Smaller but growing clusters also exist in Kampong Cham, Kampong Chhnang, Kampot, Banteay Meanchey, Battambang and Kampong Thom, pointing to gradual industrial spread beyond the traditional Phnom Penh–Sihanoukville corridor.
Beyond Garments: A Diversifying Industrial Base
For years, Cambodia’s manufacturing story was almost synonymous with garments, footwear and travel goods (GFT). That’s changing. While GFT still anchors the sector and remains the country’s largest source of foreign exchange, large factories are increasingly active in:
- Leather processing
- Paper and paper products
- Food processing
- Electrical equipment
- Rubber and plastic products (including a fast-growing tyre manufacturing cluster)
- Furniture and timber goods
- Non-metallic mineral products
- Vehicle and EV assembly
This diversification is a meaningful signal for investors: Cambodia is no longer solely a low-cost cut-and-sew destination. It’s gradually moving up the value chain into higher-complexity manufacturing, supported by government policy aimed at economic diversification ahead of the country’s planned graduation from Least Developed Country status by 2029.
Why Manufacturers Keep Choosing Cambodia
Several structural factors continue to drive this growth, and they’re worth understanding for anyone evaluating Cambodia against other Southeast Asian manufacturing destinations:
Competitive, predictable labour costs. Cambodia’s garment-sector minimum wage sits around $210 a month in 2026 — competitive with Vietnam and clearly below China, Thailand and Indonesia. Recent annual increases have also moderated, giving manufacturers better long-term cost visibility than in years past.
Lower statutory labour burden. Employer social security contributions in Cambodia run around 5.4% of wages — far below Vietnam’s roughly 22.5% — a hidden cost advantage that adds up at scale.
Trade access. Free trade agreements with China and South Korea, plus participation in the Regional Comprehensive Economic Partnership (RCEP), give Cambodian-made goods preferential access to major regional markets.
Infrastructure investment. The new Techo International Airport and the planned Funan Techo Canal are aimed squarely at cutting logistics costs and opening new trade corridors — both relevant to manufacturers thinking about export logistics.
Political and macroeconomic stability, which industry groups such as the Cambodia Chamber of Commerce continue to cite as a key reason foreign investors keep choosing Cambodia over other frontier markets.
Tariff dynamics. With ongoing shifts in US tariff policy affecting several Asian exporters, some manufacturers are actively relocating or expanding capacity in Cambodia to diversify supply chains away from single-country exposure.
What This Means for Market Entry
For companies considering setting up manufacturing operations in Cambodia, the growth in large factories signals a market that is:
- Maturing — moving from single-sector dependency toward a broader industrial base
- Competitive for talent and site selection — popular provinces like Phnom Penh and Kampong Speu are filling up, making earlier-stage exploration of secondary hubs (Kampot, Battambang, Kampong Thom) increasingly worthwhile
- Backed by active government facilitation — via the Council for the Development of Cambodia (CDC), digital tools like the Investment Project Management System (cdcIPM), and expanding special economic zones
- Not without friction — labour demand is intensifying alongside factory growth, and companies should factor workforce availability and training into site-selection and timeline planning
The headline number — nearly 3,300 large factories — is a useful shorthand for a much larger story: Cambodia’s industrial base is scaling quickly, diversifying beyond garments, and drawing sustained investor confidence even amid regional economic headwinds.
This article is based on reporting from Khmer Times and data from Cambodia’s Ministry of Industry, Science, Technology and Innovation (MISTI). Companies exploring manufacturing investment in Cambodia can contact our team for guidance on site selection, incorporation, and regulatory requirements.
Frequently Asked Questions
How many large factories are operating in Cambodia in 2026? Cambodia’s large factory count is approaching nearly 3,300, up from 3,083 at the end of 2025 and roughly 2,425 at the end of 2024, according to government data.
Which provinces have the most factories in Cambodia? Phnom Penh has the largest concentration, followed by Kampong Speu, Kandal, Svay Rieng, Preah Sihanouk and Takeo.
Is Cambodia’s manufacturing sector still garment-focused? Garments, footwear and travel goods remain the largest segment, but the sector is diversifying into electrical equipment, tyres, vehicle assembly, food processing and other categories.
Why are manufacturers moving to Cambodia? Competitive labour costs, a low statutory social security burden, free trade agreement access (including RCEP), improving infrastructure, and political stability are the most commonly cited drivers.
