Cambodian industrial investment surges past $25 billion amid lower production output

/ February 26, 2026


News Highlights

Cambodian industrial investment surges past $25 billion amid lower production output Cambodia's industrial sector attracted over $25.16 billion in investment in 2025, a 23.03% increase from the previous year, despite a 10.34% YoY dip in total output value to $13.58 billion. The sector saw a significant expansion in infrastructure, with 700 new large factories commencing operations, bringing the national total to 3,083. Employment also grew by 9.38% YoY, reaching over 1.26 million workers, the majority of whom are women. Minister Hem Vanndy emphasized that as Cambodia targets middle-income status by 2050, the strategic focus is shifting from low-cost manufacturing toward high-value-added products, innovation, and international quality compliance to maintain global competitiveness. (Source: Khmer Times)

Cambodia advances in global AI readiness rankings Cambodia significantly improved its global AI readiness, jumping 27 places to rank 118th out of 195 countries in 2025. This progress, reported by Oxford Insights, stems from the Royal Government's commitment to digital transformation, including the development of the Digital Skills Roadmap 2024-2035 and a draft National AI Strategy. Key initiatives include the launch of AI tools like Verify.gov.kh and TranslateKH, alongside plans for a National Data Center and a Khmer large language model (LLM). While Deputy Prime Minister Vongsey Vissoth views AI as a major economic driver for the next two decades, experts warn that maximizing these benefits requires narrowing the digital literacy gap to prevent job displacement and misinformation. (Source: Khmer Times)

MISTI and Vireak Buntham Group explore strategic shift into food production and SME clusters Minister of Industry, Science, Technology and Innovation Hem Vanndy met with the Vireak Buntham Group to discuss its strategic expansion into food production and the establishment of an SME cluster. Shifting from its logistics roots, the firm's new division, "Vireak Buntham Food," aims to strengthen local value chains by leveraging its 1,300-branch distribution network. The initiative features a cooperative model offering local SMEs shared infrastructure, branding, and integrated logistics to reduce costs and substitute imports. Minister Vanndy welcomed the project, urging the group to prioritize ESG standards and technical certification to ensure international competitiveness. He also invited the firm to showcase these innovations at the upcoming FoodTech 2026. (Source: Khmer Times)

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