Cambodian Government Set to Launch Incentive Policy for Domestic Assembly Production

• 19 March 2025
• Local News
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The Government of Cambodia is on the verge of introducing a groundbreaking incentive policy aimed at boosting domestic assembly production and significantly reducing imports. Prime Minister Hun Manet announced this initiative during the 2nd annual conference of the Cambodian Oknha Association, where he outlined the government’s 2025 economic plans.

The forthcoming policy is designed to encourage private sector investment in local production chains, to cut imports from abroad by 100%. Prime Minister Hun Manet emphasized the need for Cambodia to adapt its production landscape in light of shifting global trade dynamics, particularly in response to recent economic policies from the United States.

Highlighting Cambodia’s reliance on exports, the Prime Minister stated that enhancing domestic production capabilities is essential. He urged businesses to explore partnerships that would foster local production chains, particularly in areas that supply the export industry.

As part of this effort, the government will also introduce special incentives for investment projects, notably in fabric production. Currently, Cambodian garment factories import a significant portion of their materials to create finished products. This new policy aims to decrease imports by approximately 20-40% through localized production.

With these measures, the Cambodian government is poised to strengthen its economy and reduce dependency on imports while bolstering the local manufacturing sector.

• Economy and Finance
• Policy and Strategy