The ministry’s supporting document for preparing a draft Law on Finance for Management 2026 also projects an average industrial growth rate of 7.4 per cent from 2026 to 2028.
Cambodia’s industrial sector may grow by 7.1 per cent in 2026—slower than 2025’s 7.8 per cent, the Ministry of Economy and Finance has said.
Its supporting document for a draft Law on Finance for Management 2026 also projects an average industrial growth rate of 7.4 per cent from 2026 to 2028.
The garment sector is projected to continue expanding, though still below its pre-pandemic growth trajectory.
The industrial sector’s gradual slowdown is mainly linked to weaker performance in the garment and non-garment manufacturing segments, both of which continue to face external headwinds ranging from tariff-related pressures to subdued demand in major markets, according to the document.
However, supporting sub-sectors—particularly food and beverage manufacturing and construction activities tied to industrial development—are expected to help sustain overall sectoral momentum in the medium term, a domestic media outlet reported.
The garment sector is projected to continue expanding, though still below its pre-pandemic growth trajectory.
The implementation of the ‘Cambodia Garment, Footwear and Bag Industry Development Strategy 2022–2027’ has led to improved investment conditions and higher sector-wide productivity, it noted.
Fibre2Fashion News Desk (DS)
