Hun Manet Unveils Plan to Transform Cambodia into Green Industry Hub
Hun Manet Unveils Plan to Transform Cambodia into Green Industry Hub
PHNOM PENH, March 4, 2026 — Cambodia is shifting from a low-cost manufacturing base toward becoming a green manufacturing hub in Southeast Asia, Prime Minister Hun Manet said on Wednesday as the country seeks to attract higher-value investment and adapt to evolving global sustainability standards.
Speaking at the ASEAN–Cambodia Business Summit 2026 in Phnom Penh, Hun Manet said Cambodia is moving beyond its traditional role in labor-intensive industries toward greener and more advanced manufacturing sectors.
“Cambodia is evolving beyond low-cost production to become ASEAN’s green manufacturing hub,” the prime minister said, noting that multinational corporations are increasingly required to comply with environmental, social and governance (ESG) standards and the European Union’s Carbon Border Adjustment Mechanism (CBAM).
Hun Manet said 62% of Cambodia’s energy mix currently comes from renewable sources, a figure the government aims to increase to 70% by 2030.
He added that integrating clean energy into special economic zones is helping Cambodia create an ecosystem capable of attracting electronics and automotive manufacturing industries.
Cambodia’s Council for the Development of Cambodia approved about $10 billion in investment projects in 2025, a 45% increase from the previous year, Hun Manet said. Investment has increasingly shifted from garment manufacturing to higher-end production, agro-industry and infrastructure development.
The summit, held in Phnom Penh over two days under the theme “ASEAN Transformation: Innovation, Integration and Industrial Evolution,” brings together regional business leaders and policymakers to discuss economic cooperation and investment opportunities in Southeast Asia.
Cambodia’s strategy reflects a broader effort to modernize its economy and align with global sustainability standards while strengthening its position within regional supply chains.
