Phnom Penh (FN), Feb. 8 – Hem Vandy, Minister of Industry, Science, Technology, and Innovation (MISTI), reported that Cambodia’s industrial sector grew by approximately 8.5 per cent in 2024 and is projected to grow by 8.6 per cent in 2025.

This growth aligns with an increase in the number of large industrial factories, despite some closures. In 2024, 326 new large factories opened, particularly in the second half of the year, as some production facilities relocated from China, bringing in an investment of approximately USD 20 billion.

Vandy spoke on 6 February 2025 during a comprehensive briefing on the 2024 achievements, key challenges, and future directions with the Senate’s 9th Committee.

By the end of 2024, Cambodia had 2,425 operational large industrial factories. However, 26 factories including solar panel manufacturers, closed during the year. Meanwhile, the number of special economic zones increased by 30, and industrial parks grew by 20.

In 2024, goods produced for domestic and export supply amounted to approximately USD 15 billion.

The minister also underlined that Cambodia's anticipated graduation from Least Developed Country (LDC) status in 2029 may pose challenges for the industrial sector. The loss of preferential tariffs could lead to increased competition, stricter regulatory requirements, a shortage of skilled labor, rising transportation and logistics costs, higher energy expenses, and the need for advanced technology. In response, the ministry is developing new strategies to address these challenges.
=FRESH NEWS