KNN Breaks Ground on New Auto Plant in Cambodia

PHNOM PENH, July 27, 2026 (KPT) – KNN Automotive has broken ground on a new vehicle assembly plant in Kandal province, marking a major step in Cambodia’s bid to become a regional automotive hub, officials said Sunday.

Chea Vuthy, secretary‑general of the Cambodian Investment Board at the Council for the Development of Cambodia (CDC), presided over the ceremony in Khsach Kandal district.

KNN Automotive, a subsidiary of KNN Group, is building the facility as the government pushes to diversify industry beyond garments and attract investment in higher‑value sectors.

“The company’s decision reflects confidence in Cambodia’s peace, political stability, business environment and long‑term economic potential,” Vuthy said.

He added that Cambodia is emerging as a new base for automotive and supporting industries, citing rising investment in vehicle assembly, tire factories and component manufacturing.

Officials say the sector’s expansion will boost diversification, jobs, technology transfer and integration into global value chains.

The project comes as Phnom Penh rolls out its Automotive and Electronics Sectors Development Roadmap, which identifies the industry as a priority for growth. The plan targets $500 million in additional exports and 10,000 new jobs by 2027, alongside measures to strengthen skills, infrastructure and trade facilitation.

CDC figures show Cambodia approved 630 projects worth nearly $10 billion in 2025. In the first half of 2026, another 276 projects valued at $4.7 billion were registered, expected to generate about 160,000 jobs.