In addition, the investment value of manufacturing factories increased by 56.28 per cent to $15,953 million by 2022, which is up from $10,280 million in 2018, as per the report.
The rise in investment in manufacturing sectors can be attributed to Cambodia's geographic location, potential investment under the new investment law, free trade agreements, mega-regional pact, and trade preferences, according to Lim Heng, vice-president of the Cambodia Chamber of Commerce.
“The new investment law, with free preferences—Cambodia-China FTA, Cambodia-Korea FTA, RCEP—are giving a big impetus in attracting investment to the kingdom,” Vietnamese media reports said quoting Heng.
The manufacturing sector is estimated to have contributed about 40 per cent 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 in the previous year, as per the ministry.
Cambodia's exports of non-garment manufacturing products, including leather and other industrial products, also increased last year. Cham Prasidh, the 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.
ALCHEMPro News Desk (DP)
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