Non-Garment Manufacturing Sector Skyrockets by 172% in First Half of 2023, Amid Surging Foreign Investment

• 22 September 2023
• Local News
• 2128 Views

Despite the prevailing global financial uncertainty, Cambodia has experienced a remarkable influx of foreign direct investment (FDI) in the first semester of 2023, with an astounding growth rate of approximately 41.6%. The real standout, however, is the non-garment manufacturing sector, which has seen an explosive expansion, surging by an impressive 172%. These encouraging statistics were unveiled in an official press release following a government meeting by Samdech Thipadei Hun Manet, Cambodia’s Prime Minister.

This significant surge in foreign direct investment marks a substantial increase of 41.6% in the first semester of 2023, in stark contrast to the mere 0.4% growth recorded in 2022.

Delving into specific sectors, the agricultural industry experienced an anticipated growth of 0.9%. Meanwhile, the hotel and restaurant sector exhibited a remarkable recovery rate of 41.5%. Simultaneously, the non-garment manufacturing sector has achieved an impressive growth rate of approximately 11.7%, largely propelled by the export of solar panels, particularly to lucrative U.S. markets. The non-garment manufacturing subsector, in particular, has witnessed an astonishing 172% surge in foreign direct investment.

This positive economic trend has prompted the government to prepare reports on Cambodia’s macroeconomic and public finance status and major policy directives for 2023. These reports illustrate the nation’s economic trajectory and lay the groundwork for necessary government intervention measures.

• Economy and Finance