PHNOM PENH: Cambodia's Ministry of Industry, Science, Technology and Innovation reported a thriving manufacturing sector, with over 2,125 operational factories by the end of 2023. This marks a 7.21% increase compared to the previous year.

The official report highlights 241 new factories opening in 2023, while 98 closed down. Total investment capital within these factories reached US$18.56 billion, reflecting an 11.24% rise from 2022.

Production volume also witnessed positive growth, reaching US$16.36 billion last year, a 3.35% increase compared to 2022. This translates to an additional US$531 million in total production value.

Minister Hem Vandy, head of the ministry, emphasized the industrial sector's contribution to economic growth, estimating it at 7.7% in 2023. He further projected an even stronger performance in 2024, with potential growth reaching 8.5%. This optimism stems from the anticipated recovery of the garment sub-sector, coupled with ongoing growth in non-garment manufacturing.

Cambodia's garment, footwear, and travel goods industry remains the largest contributor to foreign exchange earnings. This sector comprises roughly 1,300 factories and branches, employing nearly 900,000 workers, predominantly women.