Cambodia Aims for Automotive Hub Status as PM Hun Manet Inaugurates New Assembly Plant

KAMPONG CHHNANG, Sep 17, 2026 (KPT) — Prime Minister Samdech Thipadei Hun Manet on Thursday issued a strong call for Cambodia to position itself as a competitive player in the automotive industry, as he inaugurated the country’s newest vehicle assembly plant. Speaking at the launch of the TH Automotive Manufacturing facility in Kampong Chhnang province, Samdech Thipadei said Cambodia must strengthen its domestic supply chain to ensure locally assembled vehicles are affordable and competitive. He urged assembly plants to partner with Cambodian factories to produce components, reducing reliance on imports and lowering costs. “If we want these vehicles to have affordable prices so our people can buy them, we have to ensure both price and quality,” Samdech Thipadei Hun Manet said. He stressed that government support should cover the industry as an integrated package, not just assembly, and pledged to consider incentives for both vehicle assembly and component production. Samdech Thipadei said Cambodia’s goal is to give consumers greater access to new vehicles at reasonable prices while allowing them to choose freely between new and used cars. He noted that reduced taxes on imported electric vehicles are temporary measures designed to balance the interests of manufacturers, sellers and consumers. He warned that if imported vehicles remain significantly cheaper, local assembly would lose competitiveness. The government therefore needs to strike a balance between supporting domestic manufacturers, maintaining affordable prices and ensuring opportunities for sellers. He also highlighted after‑sales service and warranties as areas where locally assembled vehicles can compete with imported used cars. The TH Automotive Manufacturing plant represents an investment of about $19.3 million. It employs 250 local workers alongside two foreign technicians and has an annual production capacity of 20,000 units, assembling GAC and Chevrolet vehicles. Ninety percent of output is intended for the domestic market, with 10 percent for export. Trial operations began in March, producing 213 vehicles before the official launch. Industry data presented at the ceremony listed 13 automotive assembly plants established between 2011 and 2026, with combined investment of about $245.7 million. Facilities are located across Koh Kong, Svay Rieng, Pursat, Banteay Meanchey, Kampong Speu, Kandal, Phnom Penh, Preah Sihanouk and Kampong Chhnang. The automotive expansion comes amid broader growth in Cambodia’s manufacturing sector. By July 2026, the country had 3,357 registered factories employing 1.36 million workers, with total investment exceeding $28 billion. Manufacturing output reached $9.83 billion in the first half of 2026, up 65 percent from a year earlier. Samdech Thipadei Hun Manet’s remarks underline Cambodia’s ambition to move beyond simple assembly and become a regional automotive player by building stronger supply chains, reducing costs and enhancing competitiveness.