Phnom Penh, August 29, 2025 — H.E. Chea Kok Hong, Secretariat Director of the Cambodia  Coastal Master Plan of the Ministry of Economy and Finance, together with the Cambodia Industrial and Economic Development research institute, co-hosted a Closed-Door Forum on “Navigating Through the Mist: Cambodia’s Journey to Industrial Economic Growth” at Morgan Tower.

The forum explored how Cambodia, amid global supply chain restructuring and shifting market dynamics, can seize new opportunities by diversifying markets and strengthening its comparative advantages through innovation to drive breakthroughs in industrial development.

The event brought together around 80 participants, including H.E. Prak Phannara, Secretary of State of the Ministry of Inspection; Mr. Liu Daozhi, CEO of Bank of China Phnom​ Penh Branch; Mr. Lin Shiqiang, President of the Chinese Chamber of Commerce in Cambodia; Mr. Lim Tai Toon, Executive Director of the Manhattan SEZ; Mr. Ding Yongjun, Chairman of Morgan Group; as well as representatives of industrial parks and SEZs, entrepreneurs, industry experts, delegates from Cambodia’s special economic zones, and provincial chambers of commerce from China.

H.E. Chea Kok Hong emphasized: “Today’s global uncertainty marks a historic opportunity for Cambodia
to rise.” 

Cambodia is strategically located at the intersection of ASEAN and RCEP, directly connecting to a market worth USD 39 trillion and 2.3 billion consumers. With its young workforce, investment-friendly environment and steady growth, the country is rapidly emerging as a vital destination in global supply chain integration.

Despite the U.S. reciprocal tariff of 19%, Cambodia’s total exports to the United States remain strong, growing by 27% in the first seven months of 2025. Since 2018, total exports to the word have doubled to USD 26 billion, and newly approved investment projects surged 88%, reflecting robust investor confidence and relocation trend.

Global industrial relocation has become an irreversible trend, with over 500,000 factories moving production out of China. Cambodia, with its low average wages (around USD 200 per month), competitive land costs, and high growth potential, is rising as a preferred destination. The government offers some of the most generous incentives in Asia: up to 15 years of corporate income tax exemption, VAT and export duty exemptions, and an additional 3-year tax holiday for investments in Preah Sihanouk Province and the Northeastern Provinces. 

Meanwhile, the Royal Government of Cambodia is formulating its Integrated Industrial Initiative (III) Program, which directly connects with China’s supply chains through intergovernmental cooperation, supported by “fast-track landing services.” The initiative targets electronics, auto parts, and
agro-processing, aiming to unlock billion-dollar investment potential and usher in a new wave of growth.

Recently, about one million Cambodian workers have returned from Thailand, easing labor shortages and providing strong human resources support for industrial relocation.

“Even under tariff pressures, Cambodia remains competitive. It has become a key destination for industrial relocation, offering Asia’s best policies, strong government backing, and a young, abundant workforce.
The wave of industrial relocation is unstoppable — those who move in first will seize the advantage. Cambodia is ready — first come, first served!” 

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For further inquiries, please contact:

SAREAM Leakena, PR and Promotion Officer, Coastal Master Plan Secretariat

Tel: 095 506 691
Email: leakena.saream@mpsez.gov.kh