Cambodia Accelerates Green Industrial Growth Ahead of LDC Graduation

Cambodia Accelerates Green Industrial Growth Ahead of LDC Graduation

Phnom Penh, October 30, 2025 โ€” Cambodia is intensifying its efforts to build a greener, more circular, and technology-driven industrial base as the nation prepares to graduate from Least Developed Country (LDC) status, Minister of Industry, Science, Technology and Innovation H.E. Hem Vanndy said at the 2025 World Green & Sustainability Summit in Phnom Penh.

Speaking to a gathering of regional policymakers, investors, and development partners, Minister Vanndy emphasized that Cambodiaโ€™s industrial future must align with both global market expectations and environmental responsibility.

โ€œThe challenge before us is not whether to industrialise, but how to industrialise sustainably โ€” ensuring that innovation and environmental stewardship advance hand in hand,โ€ he said.

Pushing Forward with Green Policies

The Minister highlighted several key policy frameworks driving Cambodiaโ€™s green transition, including the National Energy Efficiency Policy 2022โ€“2030 and the Circular Strategy on Environment 2023โ€“2028. These initiatives aim to promote decarbonisation, resource efficiency, and industrial competitiveness as core components of the countryโ€™s economic strategy.

He reaffirmed that the governmentโ€™s direction is clear:

โ€œWe will build industrial competitiveness through sustainability and innovationโ€”by advancing smart factories, strengthening automation, and integrating emerging technologies such as artificial intelligence into production lines.โ€

Investment Momentum in Green Manufacturing

Minister Vanndy pointed to growing investment in green manufacturing and new energy vehicles (NEVs), with notable progress in Phnom Penh and the Sihanoukville Special Economic Zone (SSEZ).

He also acknowledged the contributions of international partners such as UNIDO, SWITCH-Asia, and the Asian Productivity Organization (APO) in helping Cambodian factories cut emissions, reduce operational costs, and enhance workplace safety and skills development.

Preparing for Post-LDC Transition

Cambodiaโ€™s expected graduation from LDC status in December 2029 will bring new opportunitiesโ€”and new challenges. According to Minister Vanndy, the transition demands that Cambodian industries evolve to meet โ€œhigher-value, lower-carbonโ€ global value chain standards.

This shift, he said, will require stronger frameworks for standards, traceability, and human capital development, ensuring that Cambodian producers can compete globally in a sustainable, high-tech environment.

Regional Collaboration for a Sustainable Future

The 2025 World Green & Sustainability Summit, held in Phnom Penh for the first time, convened government leaders, business executives, multilateral agencies, and sustainability experts from across the Asia-Pacific region.

The summit provided a platform for dialogue on climate-smart development, circular economy investment, decarbonisation, and the future of sustainable industrialisation in the region.

Cambodiaโ€™s active participation in these initiatives reflects its growing commitment to green growth, industrial innovation, and inclusive economic transformation โ€” setting the stage for a resilient and competitive post-LDC future.

Disclaimer:
This article is for informational purposes only. OrkunSantepheap.com is not affiliated with the Ministry of Industry, Science, Technology and Innovation or the 2025 World Green & Sustainability Summit.