Cambodia’s 2026 Better Factories Plan Prioritizes Digital Wage Payments, Stronger Labor Standards

PHNOM PENH (Nov. 27, 2025) — Cambodia’s Better Factories Programme will prioritize digital wage payments, workplace safety and stronger labor standards in 2026 as the government and its partners move to modernize the garment and manufacturing sectors and reinforce trust among global brands.

The priorities were outlined Nov. 26 during a progress review of the Better Factories Cambodia (BFC) Programme 2023–2027, chaired by Heng Sour, minister of Labour and Vocational Training.

Representatives from the Ministry of Commerce, the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC) and the International Labour Organization (ILO) joined as signatories to the programme’s memorandum of understanding.

The ministry said the 2026 plan will focus on occupational safety and health, stronger social dialogue between employers and unions, advancing gender equality and accelerating digital wage systems. Officials said the shift to digital payments is expected to improve transparency, reduce wage disputes and expand financial inclusion for hundreds of thousands of factory workers.

Heng Sour praised progress to date, noting that cooperation among the Ministry of Commerce, TAFTAC, the ILO and factory partners has improved working conditions and boosted Cambodia’s competitiveness in global supply chains.

He said the programme has strengthened Cambodia’s credibility as a responsible sourcing destination for international brands, particularly in the garment, footwear and travel goods sectors. The minister also underscored the role of employer associations and trade unions in sustaining the sector.

He added harmonious industrial relations, combined with continued training for managers, administrators and union leaders, are essential to maintaining stability and productivity across the industry.