Cambodia registered 366 new factories during the first nine months of 2026, bringing the total number of operational factories to 3,417 as the country continues to expand its manufacturing base and attract industrial investment. According to the Ministry of Industry, Science, Technology and Innovation (MISTI), registered industrial investment capital has reached nearly $29 billion, while the sector employs more than 1.35 million workers and increasingly connects manufacturing with domestic agricultural production.
Key Facts
New factories: 366 registered during the first nine months of 2026
Total operational factories: 3,417
Registered industrial investment capital: Nearly $29 billion
Manufacturing employment: More than 1.35 million workers
Industry’s GDP contribution: Increased from 12.6% in 1993 to 43.2% in 2025
Responsible ministry: Ministry of Industry, Science, Technology and Innovation
Minister: Hem Vanndy
Key priorities: Industrial diversification, value-added manufacturing, local supply chains and business-environment reform
Cambodia’s Operational Factory Base Reaches 3,417
Cambodia’s industrial sector continued to expand during the first nine months of 2026, with 366 new factories registered, according to a report released by MISTI on Monday.
The additions brought the country’s total number of operational factories to 3,417, reflecting the continued expansion of its manufacturing capacity.
The ministry also reported that registered industrial investment capital had reached nearly $29 billion, highlighting the scale of investment accumulated across the sector.
Manufacturing remains an important source of employment and export activity in Cambodia. The sector employs more than 1.35 million workers and contributes to job creation, export growth and broader economic development, according to the ministry’s report.
The figures indicate the scale of Cambodia’s industrial base, although the report excerpt does not provide a breakdown of the 366 factories by industry, province, ownership or investment value.
Industrial Diversification Beyond Traditional Manufacturing
Cambodia is seeking to diversify its industrial base and expand production beyond traditional manufacturing activities.
The country’s manufacturing ecosystem has increasingly included non-garment industries such as electronics, tyre production and vehicle assembly, alongside established sectors.
The Newbustar tyre manufacturing plant in Kratie province, highlighted in the source report, illustrates this broader industrial development.
Diversification can help expand the range of goods produced domestically and create opportunities for businesses to participate in different manufacturing supply chains. It may also support the development of technical capabilities and additional industrial services.
However, the source report does not provide a sector-by-sector breakdown of factory registrations or establish how much of the nearly $29 billion in registered industrial investment is attributable to newer manufacturing industries.
Industry’s Contribution to GDP Reaches 43.2%
MISTI reported that industry’s contribution to Cambodia’s gross domestic product increased from 12.6% in 1993 to 43.2% in 2025.
The figures highlight the sector’s growing role in Cambodia’s economic transformation over more than three decades.
Industrial development has become a central part of the government’s efforts to increase domestic production capacity, create employment and strengthen the country’s competitiveness in regional and international markets.
The government has prioritised higher-value manufacturing and industrial diversification through strategic frameworks, including the Cambodia Industrial Development Policy.
These priorities aim to modernise production, diversify export markets and support longer-term economic development.
The reported GDP figures refer to industry’s contribution as presented by MISTI. The source excerpt does not provide a detailed breakdown between manufacturing, construction, utilities and other industrial activities.
Minister Highlights Links Between Manufacturing and Agriculture
Industry Minister Hem Vanndy has emphasised the importance of strengthening connections between Cambodia’s industrial sector and domestic agriculture.
Speaking at the second Cambodia Agriculture Forum and Expo in Phnom Penh on Saturday, Vanndy said industrial expansion was creating greater opportunities to connect manufacturing with locally produced agricultural raw materials.
“The growth increases demand for agricultural raw materials for food production,” he said.
He also called for continued industrial diversification through greater value addition and more efficient use of locally available raw materials.
“Cambodia has to continue diversifying its industrial sector by increasing value addition and using raw materials more efficiently,” he said.
Stronger links between agriculture and manufacturing could create opportunities for food-processing businesses to source inputs domestically rather than relying entirely on imported materials.
For agricultural producers, demand from local processors may provide additional market opportunities. For manufacturers, reliable domestic supply chains can help connect production with local farming and processing activities.
The extent of these benefits will depend on factors including the consistency of agricultural supplies, product quality, processing capacity and the commercial requirements of manufacturers.
Food Processing Offers Opportunities for Value Addition
The minister’s remarks highlight the potential role of food processing in Cambodia’s industrial diversification strategy.
Rather than exporting only raw or minimally processed agricultural products, businesses can seek to develop processed goods for domestic consumption and international markets.
Depending on the commodity, this may involve processing, drying, storage, packaging and other activities that prepare products for commercial distribution.
Developing these capabilities can create opportunities across agricultural supply chains, from farmers and aggregators to processors, packaging companies and logistics providers.
However, the source report does not identify specific food-processing investments announced at the forum or provide estimates of additional demand for agricultural raw materials.
The opportunity therefore remains linked to the broader policy direction of expanding value-added production and strengthening connections between Cambodia’s agricultural and industrial sectors.
Government Reforms Aim to Improve the Business Environment
Alongside industrial expansion, MISTI is implementing reforms intended to make the business environment more efficient and predictable.
According to the ministry, these reforms include simplifying regulations and digitalising public services.
The stated objectives are to improve transparency, reduce administrative burdens and minimise businesses’ reliance on intermediaries when accessing government services.
Such changes are relevant to industrial investors because factory establishment and operation can involve multiple administrative procedures. More accessible services and clearer requirements may help businesses manage compliance and investment processes.
The reforms form part of wider government efforts to attract domestic and foreign investment and improve the efficiency of public administration.
The source report does not specify which procedures have already been digitalised, how much processing time has been reduced or what measurable savings businesses have achieved.
Cambodia’s Industrial Development Policy Supports Higher-Value Production
The government’s industrial strategy places emphasis on modernising production, diversifying exports and strengthening the domestic industrial base.
The Cambodia Industrial Development Policy provides a strategic framework for these objectives, while current reforms seek to improve the operating environment for businesses.
Moving towards higher-value manufacturing involves more than increasing the number of factories. It also requires investment in technology, workforce capabilities, quality management, supplier development and access to markets.
For Cambodia, expanding the range of manufactured products and increasing local participation in supply chains could support the development of a more diversified industrial economy.
The results will depend on whether new investment generates sustainable production, creates employment and strengthens the capacity of domestic businesses to supply manufacturers.
Angkor Times Analysis: The Next Challenge Is Industrial Depth
Cambodia’s registration of 366 new factories in nine months, alongside nearly $29 billion in registered industrial investment capital, points to the scale of the country’s industrial base. Yet the number of factories alone does not reveal how much domestic value the sector generates or how deeply local businesses participate in manufacturing supply chains.
Three areas will be important to the next phase of industrial development.
First, Cambodia needs stronger domestic supplier networks. Connecting manufacturers with local agricultural producers, processors and other businesses could help retain more economic activity within the country. Food processing offers one potential route, provided domestic suppliers can meet buyers’ requirements for quality, volume and consistency.
Second, industrial diversification needs to translate into higher-value production. Expanding into sectors such as electronics, tyres and vehicle assembly can broaden manufacturing activity. Long-term gains will also depend on technology adoption, workforce development and the development of supporting industries.
Third, business-environment reforms should produce measurable improvements. Regulatory simplification and digital public services can support investment when they reduce delays, clarify requirements and improve access to government services. Transparent performance indicators would help demonstrate the practical impact of these changes.
The increase in operational factories is an important measure of industrial scale, but further data would be needed to assess investment flows during the period, factory capacity utilisation, export performance, productivity and the distribution of employment across industries.
For policymakers and investors, the broader objective is to ensure that industrial expansion generates durable economic value through productive investment, skilled employment and stronger domestic supply chains.
Frequently Asked Questions
How many new factories did Cambodia register in the first nine months of 2026?
Cambodia registered 366 new factories during the first nine months of 2026, according to MISTI.
How many operational factories does Cambodia have?
The ministry reported a total of 3,417 operational factories.
How much registered industrial investment capital has Cambodia accumulated?
MISTI reported nearly $29 billion in registered industrial investment capital. This figure should not be interpreted as the amount of new investment received during the first nine months of 2026.
How many workers does Cambodia’s manufacturing sector employ?
The sector employs more than 1.35 million workers, according to the ministry’s report.
What share of GDP did industry contribute in 2025?
MISTI reported that industry contributed 43.2% of Cambodia’s GDP in 2025, compared with 12.6% in 1993.
Which manufacturing sectors are expanding beyond traditional textiles?
The source report highlights non-garment activities such as electronics, tyre manufacturing and vehicle assembly.
How does industrial development support agriculture?
Manufacturing, particularly food processing, can create demand for agricultural raw materials and provide opportunities to develop more value-added products using locally available inputs.
What reforms is MISTI implementing?
The ministry says it is simplifying regulations and digitalising public services to improve transparency, reduce administrative burdens and make government services more accessible to businesses.