Cambodia Reports Surge in Industrial Growth and Global Standard Compliance
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 (MISTI) reported on February 24, 2026.
Speaking at the ministry's annual review, H.E. Minister Hem Vanndy highlighted that women comprise more than 71 per cent 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 kilometres.
The minister also noted Cambodia’s increasing alignment with international benchmarks. In 2025, the country achieved full membership in the International Organisation for Standardisation (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. Hem Vanndy 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 Cambodian government’s digital platform, granting them access to structured benefits and support systems.
Looking ahead to 2026, MISTI 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.
MISTI'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," the minister added. "We must turn these challenges into opportunities by building robust institutions that deliver tangible results for the nation."
