Cambodia Emerging as Key Automotive Assembly Base with Growing Parts and Assembly Plants

Cambodia is steadily evolving into a promising manufacturing base for the automotive industry and its supporting sectors, with the number of automotive parts manufacturing plants and vehicle assembly factories continuing to grow. Chea Vuthy, secretary-general of the Cambodian Investment Board (CIB) of the Council for the Development of Cambodia (CDC), highlighted the Kingdom’s expansion in the sector during the groundbreaking ceremony for an automobile assembly plant owned by KNN Automotive Co., Ltd., in Khsach Kandal district, Kandal province, on the morning of July 26, 2026. Vuthy said the company’s decision to invest in Cambodia reflects its confidence in the country’s peace, political stability, business environment and long-term economic potential. He noted that Cambodia has maintained strong investment momentum. In 2025, the CDC registered 630 investment projects with a total investment value of nearly $10 billion. During the first half of 2026, another 276 investment projects, worth approximately $4.7 billion, were approved and registered. He also highlighted the success of Cambodia’s special economic zones (SEZs) and their vital role in diversifying the country’s industrial base while attracting high-quality, high-value-added investment. “Cambodia is evolving into a manufacturing hub for the regional automotive and supporting industries, driven by the continuous growth in investments in vehicle assembly plants, tyre manufacturing factories and automotive parts production facilities. These investments contribute to job creation, technology transfer and human resource development, and strengthen Cambodia’s participation in global value chains,” he said. According to Vuthy, the CIB will continue working closely with investors to facilitate the smooth implementation of new projects, in line with the government’s vision of making the Kingdom a highly competitive, sustainable and attractive investment destination for investors from around the world. Earlier this month, Japan’s leading automotive manufacturer, Toyota Tsusho Manufacturing (Cambodia), officially inaugurated its assembly plant for the new Toyota Hilux Travo model. Minister of Industry, Science, Technology and Innovation Hem Vanndy noted that as of early July 2026, Cambodia had 11 vehicle manufacturing, assembly and production facilities with a combined annual production capacity of around 37,900 vehicles. To date, a total of 173,473 vehicles have been assembled domestically, all of which have been serving the local market. In addition to vehicle manufacturing and assembly plants, Cambodia is also home to several tyre manufacturing factories and a growing number of automotive technology and component manufacturing facilities.