KNN Automotive Breaks Ground on $28 Million Vehicle Assembly Plant in Kandal

• Proeksa Meas
• 1 August 2026
• Construction Focus
• 1011 Views

Cambodia’s industrial sector took another major step toward high-value manufacturing as KNN Automotive, a subsidiary of KNN Group, officially broke ground on a $28 million vehicle assembly plant in Ksach Kandal district, Kandal province. The groundbreaking ceremony held on July 26, 2026, was presided over by Chea Vuthy, Secretary General of the Cambodian Investment Board at the Council for the Development of Cambodia. Spanning a total area of 10 hectares, the state-of-the-art facility will assemble JETOUR vehicles, with full production lines scheduled to begin operations in early 2027.

Highlighting the significance of the initiative, KNN Group is a 100% Cambodian-owned and managed enterprise, reflecting the increasing capacity of local private capital to drive major industrial ventures. During the ceremony, Chea Vuthy noted that the project demonstrates strong investor confidence in Cambodia’s peace, political stability, favorable business climate, and long-term economic trajectory. He emphasized that the Kingdom is steadily evolving into a new regional production hub for the automotive and supporting industries, fueled by an influx of assembly plants, automotive tire factories, and specialized component manufacturers.

According to the Council for the Development of Cambodia, the ongoing expansion of the automotive sector brings substantial economic benefits beyond vehicle output. The establishment of these manufacturing hubs plays a key role in creating skilled employment opportunities, accelerating technology transfer, developing human capital, and strengthening Cambodia’s positioning within global supply chains.

The new assembly plant builds upon Cambodia’s sustained positive investment momentum. In 2025, the Council for the Development of Cambodia registered 630 investment projects with a total capital investment of nearly $10 billion. This strong performance carried into 2026, with 276 investment projects totaling approximately $4.7 billion approved during the first half of the year.

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• Assembly plant