Cambodia’s manufacturing sector is estimated to have recorded 8.5% growth in 2025, while the country’s overall economic expansion for the year is projected at around 5 percent, according to the National Bank of Cambodia (NBC).
The central bank noted that manufacturing growth moderated compared to 2024, when the sector expanded by 11.6%, reflecting softer global demand and sector-specific challenges.
Within manufacturing, garment production, a key pillar of Cambodia’s export economy is estimated to have grown by 7.1% year-on-year in 2025, down sharply from 15.8% growth in 2024. In contrast, non-garment manufacturing showed stronger momentum, expanding by an estimated 10%, up from 6.9% growth the previous year.
NBC also pointed out that armed clashes along the Cambodia–Thailand border disrupted operations for factories and enterprises located near the affected areas, adding pressure to industrial activity during the year.
Despite these challenges, policymakers view the manufacturing sector as a continued driver of economic stability, supported by diversification into non-garment industries and ongoing efforts to attract investment into higher-value production.
