Cambodia Extends Tax Incentives for Domestic Cement Industry to Bolster Growth and Competitiveness
Prime Minister Hun Manet announces a two-year extension until the end of 2028 emphasizing that local business success acts as the ultimate advertisement for foreign investment
In a decisive move to strengthen national infrastructure and support industrial self-reliance, the Cambodian government has officially extended its tax incentive package for domestic cement manufacturers for an additional two years. The extension, which ensures the tax relief will remain in effect until the end of 2028, was disclosed during a meeting between Prime Minister Hun Manet and representatives from the Cambodia Cement Manufacturing Association on June 23, 2026. Under this ongoing policy, the government will continue to bear the tax obligations of domestic cement enterprises as a state burden, a relief mechanism that has successfully cushioned the local sector for several years.
During the discussions, Prime Minister Hun Manet underscored the strategic importance of nurturing homegrown industrial capabilities. He pointed out that the tangible success and operational stability of existing enterprises within Cambodia serve as the most potent promotional tool for attracting fresh capital and prospective international investors. By creating a predictable and highly supportive fiscal environment, the government aims to position the kingdom as a safe and lucrative hub for manufacturing.
To maintain this upward trajectory, the Prime Minister called upon the Cambodia Cement Manufacturing Association to remain vigilant in monitoring production standards, expanding product quality, and ensuring fair, stable pricing structures. These measures are considered essential to elevate the sector’s regional competitiveness against imports while solidifying long-term trust and loyalty among Cambodian consumers.
According to broader industrial benchmarks, member companies of the association have collectively injected approximately $1.2 billion into the domestic market, establishing a combined annual production capacity of roughly 12 million tonnes of cement. The sector currently satisfies the vast majority of local infrastructure demands by supplying between 8 and 9 million tonnes annually, with an impressive 85 percent of all required raw materials being sourced directly within the country. This robust domestic supply chain highlights the critical role the cement sector plays in sustaining Cambodia’s ongoing infrastructure boom. (read more)
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