Industry Overview
Q: How much of Cambodia’s GDP is the industry sector accounted for? What is the industry’s contribution to Cambodia’s GDP?
A: The industry sector accounts for 34.2% of Cambodia’s GDP. Industries in Cambodia is mostly within the garment, light manufacturing, agricultural, construction, and tourism sectors, with a nascent emerging mining and exploration industry.
Q: What drives Cambodia’s industry sector? What is the industry sector in Cambodia?
A: Industries in Cambodia are mostly within the garment, light manufacturing, agricultural, construction, and tourism sectors, with a nascent emerging mining and exploration industry.
Q: What is the growth of the Industry sector in Cambodia?
A: The contribution of the services sector to the country’s GDP has remained around 40% since 2000, while the contribution of the agriculture sector has been declining, in favour of the industry sector.
Click here to read more about Industry Sector in Cambodia.
Construction, Engineering and Building Safety
Q: How is the construction sector in Cambodia?
A: Cambodia experienced a boom in the construction and real estate industry since 2000, but construction activities and real estate prices defied reality particularly from 2016 to 2019.
Q: How many construction projects have been approved/are there in Cambodia?
A: Between 2000 to 2018 alone, Cambodia’s Ministry of Land Management, Urban Planning, and Construction (MLMUPC) approved 43,136 construction projects with an estimated investment value of USD 43.3 b.
Q: Is there building safety and construction management in Cambodia?
A: Unfortunately, building and workers’ safety lagged behind the frenetic pace of construction activities as unauthorized projects launched by opportunistic developers rushing to capitalize on rising real estate prices were pushed ahead.
Q: Are there / what are the government measures on building safety?
A: The government amended the Law on Construction in November 2019, including stricter requirements on safety measures at work sites, mandating building safety inspections, and further strengthening permit requirements.
Q: What is the / is there a high demand for commercial buildings, high-end offices and residential projects?
A: The residential, commercial, and industrial segments accounted for about 46-50%, 30-35%, and 14-15% share of new projects respectively.
Q: Is there any impact from covid on Cambodia’s construction sector?
The slowdown in the global economy in 2019 was weighed down further by the Covid pandemic which caused severe disruption in the global supply chain and lockdowns/restrictions on international travel. As foreign investors/buyers accounted for 60-70% of sales in the real estate and property market in Cambodia, external demand for the excess supply of condominiums, apartments, commercial offices, and other mixed development projects was likewise interrupted. This was exacerbated by the lack of supply (and rising prices) of construction materials, labour, and funds. Many projects such as FDI-financed property investment, especially in high-rise development projects in Phnom Penh and Sihanoukville, were suspended.
Q: How has Cambodia’s real estate price evolved? What is the real estate price in Cambodia?
With excess supply and lower foreign investor/buyer appetite to invest in property development projects, the value of approved construction permits has also plummeted, contracting by as much as 63% in 2020. Most observers and experts in the real estate industry expect supply and average property prices to slip further before a slow and gradual recovery.
Click here to read more about Construction, Engineering and Building Safety in Cambodia.
Manufacturing
Q: What are the main manufacturing products in Cambodia?
A: Garment, footwear, and travel goods manufacturing are important components of the manufacturing industry and are considered the main engines of growth for the Cambodian economy.
Q: What is the size of the Cambodian workforce in the manufacturing sector?
A: Garment manufacturing alone accounts for 80 percent of Cambodia’s exports and employment of more than 600,000 workers, mostly women.
Q: What are the top exports of Cambodia’s manufactured products?
A: Clothing, footwear and travel accessories are the top exports of Cambodia’s manufactured products.
Q: How has tariff exemption programs such as GSP and EBA contributed to the growth of the manufacturing sector in Cambodia? Are there tariff exemption programs for Cambodia?
A: There is an opportunity for manufacturers to take advantage of the tariff exemption programs that have been accorded to Cambodia by the US (under GSP), the EU (under the EBA), as well as under the provisions of various FTAs that Cambodia has signed with China and South Korea
Q: What is the contribution of the manufacturing sector to Cambodia’s GDP?
A: Garment, footwear, and travel goods manufacturing are important components of the manufacturing industry and are considered the main engines of growth for the Cambodian economy.
Click here to read more about Manufacturing in Cambodia.
