Cambodian PM Prioritizes Industry Stability Over Expansion in Automotive Sector

Prime Minister Samdech Moha Bovor Thipadei Hun Manet has called for a strategic shift toward long-term sustainability in Cambodia’s automotive assembly sector, urging economic planners to prioritize the survival and growth of existing factories before approving additional projects. Speaking at the inauguration of TH Automotive Manufacture (GAC) in Kampong Chhnang province this morning, the Prime Minister directed the Council for the Development of Cambodia (CDC) to assess market demand and capacity before expanding the sector. Cambodia’s total vehicle assembly capacity currently stands at approximately 35,000 units annually. "Should we accelerate or slow down to maintain the resilience of this sector?" Samdech Thipadei asked, warning that securing high numbers of investment licenses is counterproductive if factories subsequently fail or close. "The priority must be ensuring our existing investments survive, grow, and remain sustainable before we push for further expansion," he added. Cambodia currently counts 15 automotive assembly projects representing nearly US$248 million in capital investment and supporting 2,774 jobs. Of these 15 facilities, 10 are fully operational, two are nearing production, and three remain in the planning or construction phase. By Heng Panha