Cambodia Reinforces 10% Foreign Worker Limit to Boost Local Employment and Skills Transfer

Cambodian Prime Minister Hun Manet has reiterated the stipulation of the labor law that factories and companies must employ a maximum of 10% foreign workers, aiming to boost local employment and facilitate skills transfer. During the official inauguration ceremony of the assembly and installation factory of THC Automotive Manufacturing and the GAC brand automobile production line in Kampong Tralach district, Kampong Chhnang province, on September 17, 2026, the Prime Minister stated, "Cambodia's labor law stipulates that a factory or company must have 90% local employees and only 10% from abroad. It is not permissible for a factory or company to have more foreign workers than Cambodian workers." He pointed out the concern that if foreign workers are employed in excessive numbers, their expertise and skills may not be transferred to the country upon their return home. "We demand a maximum of 10% for those coming from abroad, as per our law, although there may be exceptions for certain specialized skills that we do not yet possess," the Prime Minister explained. "This is to provide opportunities for our Cambodian youth to learn practical skills directly through their work in factories or companies." He further suggested that foreign investors are unlikely to want to bring 1,000 or 500 foreign workers to work in Cambodia, as it would be financially burdensome. Instead, they would prefer to hire local staff. He emphasized that when establishing factories in Cambodia, the vast majority of employees must be Cambodian to comply with Cambodian law and to provide opportunities for Cambodians to learn how to work in factories or companies. The Prime Minister also reaffirmed that this is a key principle and objective for fostering skills development linked with practical work. He added that while diplomas and certificates are obtained from school, it is hands-on experience that expands human capacity and proficiency. "We may solve equations given by teachers in school, but in real-world situations, we will certainly need to use that foundation to solve new experiences," he concluded. Source: AKP Khmer