PHNOM PENH: Cambodia’s manufacturing sector is experiencing significant growth, driven by increased foreign investment and a rise in exports. As of June 2024, the country boasts over 44,417 factories, employing a staggering 1.79 million workers, according to H.E. Katta Orn, Secretary of State and Spokesperson of the Ministry of Labor and Vocational Training.
“There are 1,538 enterprises working in the textile, garment, footwear and travel products and bag manufacturing industries and a total of 913,017 workers with an annual salary of approximately 2.97 billion US dollars,” H.E. Secretary of State Katta Orn highlighted, emphasizing the garment sector’s continued importance.
The non-garment sector is also flourishing, with 42,879 enterprises and a workforce exceeding 879,000. These positive developments align with the Royal Government’s economic goals under Prime Minister Hun Manet’s leadership, aiming to transform Cambodia into a high-income nation by 2050.
This growth is mirrored in a recent World Bank report, indicating a clear correlation between rising exports and expanding manufacturing employment. After a brief period of softening in 2023, manufacturing jobs have rebounded significantly.
“The manufacturing sector added 50,578 new jobs, reaching 1.058 million (18.1 percent of nonfarm employment) in March 2024 or a 5.0 percent y/y increase, as goods exports accelerated,” the report states.
This trend is further solidified by Cambodia’s impressive export figures. According to the Ministry of Commerce, garment, footwear, and travel goods exports reached US$6.246 billion in the first half of 2024, a remarkable 16.5% increase compared to the same period last year. Garment exports alone witnessed an 18.4% surge, reaching US$4.569 billion.
Cambodia’s manufacturing sector is demonstrably thriving, creating jobs, and propelling economic growth. With continued government efforts and positive global market conditions, this sector is poised for even greater success in the years to come.