The Cambodian government is prioritizing the diversification of its industrial sector by transitioning from labour-intensive industries to knowledge-based and high-tech industries. With a 15.7 percent export growth in 2024, the government is positioning Cambodia as a regional production hub.
The economy is projected to achieve a growth rate of approximately 6 percent of GDP in 2024 and around 6.3 percent in 2025, as outlined in the medium-term public finance framework. The industrial sector remains a key driver, contributing about 8.5 percent to economic growth in 2024 and is projected to expand by approximately 8.6 percent in 2025.
Speaking at the closing ceremony of the Annual Review 2024 and 2025 Planning Conference of the Ministry of Industry, Science, Technology & Innovation (MISTI) on Wednesday, Permanent Deputy Prime Minister Vongsey Vissoth, who also serves as the Minister in Charge of the Office of the Council of Ministers, highlighted Cambodia’s increasing economic diversification over the past decade.
He noted that the Kingdom has established more trading partnerships and attracted increasing investments in high-value sectors beyond the garment industry, such as electronic component manufacturing and automobile assembly. As a result, both garment and non-garment manufacturing have become the largest contributors to the country’s economic growth.
“Exports in 2024 grew by 15.7 percent and more Cambodian products are entering regional and international markets,” he said. “In the medium and long-term development process, Cambodia must strengthen and accelerate the development of its industrial sector and adapt and diversify the economic structure and base that have supported growth for more than two decades to suit the current socio-economic situation, so that it can continue to sustain high growth in the long term and become more resilient.”
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Source: Khmer Times
March 02, 2025
