Cambodian PM Warns Business Closures Harm National Prestige, Urges Stable Investment Climate

Prime Minister Hun Manet has warned that companies established in Cambodia and subsequently closing within a short period can damage the nation's prestige. He emphasized the need to stabilize the investment environment and support companies to operate sustainably. Speaking at the inauguration of the GAC vehicle assembly plant by THAM Company in Kampong Chhnang province on September 17, 2026, the Prime Minister stated that the cycle of companies opening and then closing can affect Cambodia's reputation regarding its business environment and opportunities. "If 100 companies are established, but only 50 remain after five years, it means a 50% failure rate, which turns into a risk for doing business in Cambodia," the Prime Minister remarked. He expressed concern that if companies, especially international brands, repeatedly close their operations, it could negatively impact Cambodia's investment climate and market, as firms assess market conditions and success prospects before investing. In this regard, the Council for the Development of Cambodia (CDC) is paying close attention to this issue and examining market demand in each sector to avoid excessive competition. The Prime Minister cited the cement industry as an example, stating that with production capacity already meeting domestic demand, further factory establishment might be unnecessary. He also noted that the beer industry has factories capable of meeting market demand and exporting, thus focusing on strengthening existing companies is advisable. The Prime Minister stressed that excessive competition should be avoided, as it can lead to price wars and quality degradation, posing risks to businesses. Currently, Cambodia has a total of 15 vehicle assembly plants, with 10 operational, two not yet operational, and three having applied for investment registration and are under construction. As of July 2026, the Ministry of Industry, Science, Technology, and Innovation has registered 3,357 factories across all 25 provinces and cities, employing approximately 1.36 million workers with a total investment of over 28 billion US dollars. Source: CPP Cambodia