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Cambodia’s industrial parks and special economic zones (SEZs) are entering a critical period as the country prepares for the loss of key trade preferences and seeks to attract higher-value manufacturing investment, according to government officials, developers and industry leaders gathered at EuroCham Cambodia’s Industrial Parks & Special Economic Zones Forum 2026 in Phnom Penh on June 9 [S-104].
The discussions come as Cambodia continues to position itself as a regional manufacturing destination, supported by competitive labour costs, relatively affordable industrial land and strong export growth. However, speakers warned that maintaining momentum will require significant improvements in infrastructure, workforce skills, energy reliability and industrial planning [S-104].
The state of the sector
Presenting an overview of the sector, Virak Ouproum, Deputy Director General of the Directorate General of Industry at MISTI, said Cambodia had 3,266 operating factories as of April 2026, employing more than 1.31 million workers. Women account for approximately 70 percent of the country’s industrial workforce [S-104].
Within Cambodia’s network of special economic zones:
- 33 operational SEZs host 642 factories employing more than 200,000 workers
- 20 additional industrial parks accommodate roughly 150 factories and over 90,000 employees
- $13.8 billion in cumulative investment across more than 8,300 hectares of active industrial land [S-104]
The LDC graduation challenge
Despite the sector’s growth, Cambodia’s upcoming graduation from Least Developed Country (LDC) status in 2029 was highlighted as a major structural challenge [S-104].
The transition will gradually reduce access to several preferential trade arrangements that have underpinned Cambodia’s export-led manufacturing expansion, including the European Union’s Everything But Arms (EBA) scheme and certain U.S. trade preferences.
To remain competitive, speakers argued Cambodia must accelerate its move into higher-value industries — electronics, automotive manufacturing, precision engineering and agro-processing — while continuing to invest in logistics infrastructure, energy systems and workforce development [S-104].
Industrial rents and occupancy: the numbers
Kim Kinkesa, Managing Director of APS Cambodia (formerly CBRE Cambodia), presented market data showing Cambodia continues to offer a significant cost advantage relative to regional competitors [S-104]:
| Metric | Cambodia | Vietnam (North & South) |
|---|---|---|
| Ready-built factory rent (per sqm/month) | ~$3.05 | ~$4.70 |
| Long-term industrial land lease (50-year avg) | ~$69.25/sqm | Higher |
Occupancy rates vary sharply by location. Sihanoukville’s industrial zones have reached approximately 90 percent occupancy, while some emerging locations, including Banteay Meanchey, remain under 50 percent [S-104].
Kinkesa said Cambodia’s next phase of industrial development depends on more than cost competitiveness:
“However, the next phase of industrial development will require a much more coordinated ecosystem — from national zoning and reliable logistics networks to skilled labour, energy efficiency, sustainability, transparency and investor confidence.” [S-104]
Post-LDC industrial strategy
A panel discussion involving representatives from the Cambodian Investment Board, MISTI and eco-industrial park specialists focused on how Cambodia can strengthen its industrial offering as global investor requirements evolve.
Key takeaways:
- SEZs continue to provide advantages for export-oriented manufacturers through streamlined customs procedures, investment incentives and shared infrastructure
- Non-SEZ industrial parks remain attractive for businesses focused on domestic markets due to greater operational flexibility and potentially lower costs
- Eco-industrial parks are increasingly viewed as a way to attract multinational manufacturers seeking stronger ESG credentials across their supply chains [S-104]
François Magnier, International Director and Design Director of IDEC Group Asia, presented examples from industrial projects across 22 countries, highlighting how logistics integration, sustainability standards and purpose-built infrastructure influence long-term tenant demand [S-104].
The execution gap
Ross Wheble, Vice-Chairperson of EuroCham Cambodia’s Real Estate & Construction Committee and Country Head of Knight Frank Cambodia, captured the consensus:
“What came through clearly this afternoon is that the fundamentals are there: land availability at competitive rates, access to labour, conducive trade frameworks, and the continued growth in exports and expansion of the manufacturing ecosystem despite disruptive external factors. But the gap between Cambodia’s potential and its realisation as a serious industrial destination comes down to forward planning and execution.” [S-104]
Industry leaders concluded that stronger coordination between government agencies, developers, logistics providers and construction firms will be essential if Cambodia is to successfully move beyond its traditional manufacturing strengths and establish itself as a higher-value industrial hub in Southeast Asia.
What this means for property investors
For investors tracking Cambodia’s property market, the industrial and SEZ sector offers a fundamentally different risk profile from the residential condo or borey markets:
- Industrial land leases ($69.25/sqm for 50-year terms) represent a comparatively stable institutional-grade asset class, underpinned by export demand rather than speculative foreign buyer flows
- Occupancy divergence between Sihanoukville (90%) and Banteay Meanchey (under 50%) mirrors the broader pattern of demand concentration around established logistics and port infrastructure
- The LDC graduation timeline (2029) creates both urgency and opportunity — zones that adapt to higher-value manufacturing and ESG standards are likely to outperform those that compete purely on labour cost
The full EuroCham Cambodia Industrial Parks & SEZs Forum was organised by EuroCham’s Real Estate & Construction Committee and sponsored by Sika, Standard Construction & Engineering and Menard [S-104].
Sources
[S-104] Cambodia Investment Review — “Cambodia Faces Post-LDC Test as Industrial Parks and SEZs Seek Next Growth Phase, EuroCham Forum Hears” (June 12, 2026) https://cambodiainvestmentreview.com/2026/06/12/cambodia-faces-post-ldc-test-as-industrial-parks-and-sezs-seek-next-growth-phase-eurocham-forum-hears/