Cambodia’s Notable Factory Boom, 241 New, Amid Nearly 100 Closures in 2023

• 21 February 2024
• Local News
• 1987 Views

A considerable swell in Cambodia’s industrial landscape has been seen through 2023—a year marked by both substantial growth and notable challenges. According to the latest findings from the Ministry of Industry, Science, Technology, and Innovation (MISTI), the kingdom celebrated the launch of 241 new factories. Yet, it grappled with the closure of 98 industrial units, underscoring a complex narrative of development and economic adjustment.

The total tally of factories reached 2,125 as the year concluded, which is a significant 7.21% rise from the preceding year. This uptick in the industrial count parallels the 11.24% increase in total investment, now proudly standing at a formidable US$18.56 billion, advancing the industrial production value to a considerable US$16.36 billion—an impressive 3.35% growth from the previous year.

At the heart of this industrial renaissance is Cambodia’s stout commitment to economic diversification. HE Hem Vandy, Minister of MISTI, presiding over the annual assembly on 20 February, underscored that the industrial sector significantly fuelled the economy’s 7.7% growth in 2023.

“Looking forward, 2024 appears ripe with promise for this Southeast Asian economy. The anticipation of a robust rebound in the garment sub-sector, coupled with the persistent vigor in non-garment manufacturing, sets the stage for an estimated 8.5% growth trajectory,” said HE Vandy.  As HE Hem Vandy prophetically articulated, “The industrial sector is braced for continued elevation, harnessing the vigor of forthcoming recoveries and sustained expansions.”

• Projects Development
• Economy and Finance