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Cambodia: Manufacturing factories up 28.4% to 1,962 in five years
The number of active manufacturing factories in Cambodia was 1,962 by 2022, a 28.4 percent increase from 1,528 factories in 2018, the Ministry of Industry, Science, Technology, and Innovation said in a report.
In the five-year period, job creation increased from 973,129 in 2018 to 1.04 million in 2022.
The ministry said that manufacturing output hit $15.8 billion in 2022, a remarkable increase of 83 percent year on year.
The investment value of manufacturing factories increased by 56.28 percent to $15,953 million by 2022, increasing from $10,280 million registered in 2018.
Lim Heng, vice-president of the Cambodia Chamber of Commerce, attributed the increase in investment in manufacturing sectors to the geographical location of the country, potential investment under the new investment law, free trade agreements, mega-regional pact, and trade preferences.
“The new investment law, with free preferences – Cambodia-China FTA and Cambodia-Korea FTA, RCEP – are giving a big impetus in attracting investment to the Kingdom,” Heng said.
The ministry said the manufacturing sector was estimated to have contributed about 40 percent to the country’s Gross Domestic Product (GDP) in 2022.
The garment, footwear and travel goods industry was the largest foreign exchange earner for Cambodia last year.
Exports of Cambodia’s non-garment manufacturing products, including electronic components, bicycles, auto parts, furniture, leather, plastic and other industrial products also rose last year.
Cham Prasidh, Minister of Industry, Science, Technology and Innovation, attributed the rise in industrial output to the government’s successful policy to counter the Covid-19 pandemic. The quick resumption of socio-economic activities was the main reason for the revival of the manufacturing sector.
“The industrial sector remained stable last year after facing the effects of Covid-19 in the previous years that led to disruption of factory operations and reduction of export orders,” Prasidh said at a meeting last week.
Source: https://www.khmertimeskh.com/501253568/manufacturing-factories-up-28-4-to-1962-in-five-years/