Cambodia Opens Car Assembly Plant, Signaling Industrial Upgrade

On the morning of Thursday, September 17, 2026, Prime Minister Samdech Thipadei Hun Manet presided over the official inauguration ceremony of the "GAC Car Assembly Plant" by TH Automotive Manufacturing Co., Ltd., located in Kampong Tralach district, Kampong Chhnang province. Addressing the attendees, Samdech Thipadei stated that this new car assembly plant is a 100% Cambodian-owned investment and operation. It has the capacity to assemble approximately 20,000 vehicles per year in CKD (Completely Knocked Down) format, supplying 90% to the domestic market and 10% for export. The presence of this factory reflects another successful step by the government in transforming Cambodia's industrial sector from a labor-intensive industry to one that utilizes capital, technology, and high-level expertise. Samdech Thipadei emphasized that the success of the industrial sector is not measured solely by the number of factories opened, but by the capacity of those factories to survive, grow, and maintain resilience and sustainability. In this regard, Samdech Thipadei instructed the Council for the Development of Cambodia (CDC) and relevant institutions to examine the balance and proportion between domestic market demand and the number of car assembly plants, with the goal of ensuring the growth of existing factories. This is aimed at guaranteeing the investment environment and maintaining the confidence of foreign investors in Cambodia. Samdech Thipadei also added that the policies and tax incentives implemented are intended to support the "entire sector" and not provide exclusive benefits to any single company, aiming to ensure a business environment characterized by transparency, fairness, and equal competition. Concurrently, Samdech Thipadei raised the direction of promoting "backward linkages." The government will introduce incentive policies to encourage major car assembly companies to collaborate with local Small and Medium Enterprises (SMEs) in producing various automotive components. This aims to reduce reliance on foreign imports and propel Cambodia to become a part of the automotive production supply chain in the ASEAN region, following the approach of "assembly, component manufacturing, engineering skill creation, technology development, and export." Samdech Thipadei considered investment in this sector a national pride and a tangible technology transfer for Cambodian human resources, enabling them to acquire knowledge, skills, and experience in utilizing modern technologies. Source: CEN Cambodia