Cambodia Eyes Industrial Growth Amid Global Supply Chain Shifts

PHNOM PENH, Cambodia (Sept.03, 2025) — Chea Kok Hong, secretariat director of the Cambodia Coastal Master Plan under the Ministry of Economy and Finance, co-hosted a closed-door forum on Cambodia’s industrial development strategy alongside the Cambodia Industrial and Economic Development Research Institute.

Held at Morgan Tower, the forum which has held on August 2029 — titled “Navigating Through the Mist: Cambodia’s Journey to Industrial Economic Growth” — explored how Cambodia can capitalize on global supply chain restructuring and shifting market dynamics by diversifying exports and leveraging innovation to strengthen its industrial base.

The event drew about 80 participants, including senior officials, business leaders, and representatives from special economic zones and provincial chambers of commerce. Attendees included Prak Phannara, secretary of state at the Ministry of Inspection; Liu Daozhi, CEO of Bank of China Phnom Penh Branch; Lin Shiqiang, president of the Chinese Chamber of Commerce in Cambodia; Lim Tai Toon, executive director of the Manhattan SEZ; and Ding Yongjun, chairman of Morgan Group.

“Today’s global uncertainty marks a historic opportunity for Cambodia to rise,” Chea said.

Cambodia’s strategic location at the intersection of ASEAN and the Regional Comprehensive Economic Partnership (RCEP) connects it to a market of 2.3 billion consumers and $39 trillion in economic output. With a young workforce, competitive land costs, and an investment-friendly environment, the country is positioning itself as a key player in global supply chain integration.

Despite a 19% reciprocal tariff from the United States, Cambodia’s exports to the U.S. grew 27% in the first seven months of 2025. Since 2018, total exports have doubled to $26 billion, and newly approved investment projects surged 88%, signaling strong investor confidence.

Global industrial relocation continues to accelerate, with more than 500,000 factories shifting production out of China. Cambodia’s low average wages — around $200 per month — and generous government incentives, including up to 15 years of corporate income tax exemption and additional tax holidays in Preah Sihanouk and northeastern provinces, have made it an increasingly attractive destination for manufacturers.