Japanese Auto Giant DENSO Sees Cambodia as Future Hub for Automotive Parts Manufacturing

PHNOM PENH, Mar. 5, 2026 (KPT) – Japanese automotive supplier DENSO has identified Cambodia as a potential hub for automotive parts manufacturing in Southeast Asia, citing its strategic location and skilled workforce.

Speaking at the Cambodia–ASEAN Business Summit in Phnom Penh, Masao Suematsu, Senior Vice President of DENSO International Asia, said the company has expanded production in Cambodia since entering the market in 2013 and now employs about 12,000 workers producing engine components.

DENSO, one of the world’s largest automotive parts manufacturers, has shifted part of its production from Thailand to Cambodia, exporting components to regional markets including Thailand, Indonesia, India and Malaysia.

Suematsu said Cambodia could become an ideal location to consolidate internal combustion engine (ICE) parts production as Thailand increasingly focuses on electric vehicle manufacturing. He highlighted Cambodia’s position between Thailand and Vietnam, as well as the strong performance of Cambodian workers in precision manufacturing.

However, he stressed the need for continued investment in technical and vocational training, particularly in digital technologies, robotics and mechatronics, to support the development of smart factories.

Deputy Prime Minister Sun Chanthol responded that Cambodia is prioritizing industrial diversification, including training more than 1.5 million students under a national technical and vocational education and training (TVET) program launched in 2023.

“We are ready to support the development of the automotive industry in Cambodia,” he said, adding that expanding high value manufacturing will be essential for the country to achieve its Vision 2050 goal of becoming a high income economy.