AKP Phnom Penh, February 24, 2026 --

Cambodia’s industrial sector saw significant expansion in 2025, with the number of operational large-scale factories reaching 3,083 and providing jobs for over 1.26 million people, the Ministry of Industry, Science, Technology & Innovation reported on Tuesday.

Speaking at the ministry's annual review, Minister H.E. Hem Vanndy highlighted that women comprise more than 71 percent of the industrial workforce. The figures underscore the sector’s resilience as a primary engine for Cambodia’s economy.

Beyond manufacturing, the Ministry reported substantial progress in utility coverage and quality infrastructure. Clean water connections rose to over 1.57 million – an increase of 131,000 from 2024 – supported by a distribution network spanning 40,565 kilometers.

The Minister also noted Cambodia’s increasing alignment with international benchmarks. In 2025, the country achieved full membership in the International Organisation for Standardization (ISO) after 35 years and became an associate member of the International Electrotechnical Commission (IEC).

To bolster export readiness, Cambodia adopted 129 ASEAN harmonised standards and 81 national standards last year.

Addressing the challenges of global supply chain volatility, H.E. Minister emphasised the need for domestic self-reliance.

"A country that does not produce cannot fully protect its own resilience," he said. "The national movement to support Cambodian products is a strategic opportunity to accelerate local production capacity and ensure our businesses can compete both at home and abroad."

The Royal Government has also made strides in formalising the "informal economy." By the end of 2025, approximately 270,000 informal workers had registered on the Royal Government’s digital platform, granting them access to structured benefits and support systems.

Looking ahead to 2026, the Ministry is pivoting toward a more stringent global trade environment. H.E. Hem Vanndy warned that as trade preferences phase out, Cambodian exporters must prepare for stricter compliance and higher demand for local raw materials.

The Ministry’s 2026 roadmap prioritises: Implementing Environmental, Social, and Governance (ESG) principles to meet market expectations; Accelerating digital adoption for Small and Medium Enterprises (SMEs); Modernising public service delivery and strengthening national quality infrastructure.

"The world is becoming increasingly uncertain," H.E. Minister added. "We must turn these challenges into opportunities by building robust institutions that deliver tangible results for the nation."

By K. Rithy Reak