The 2025 Industrial Policy (IDP) policy report states the share of industrial sector in Cambodia’s GDP is expected to increase by 30 percent by 2025, of which the manufacturing sector will increase to 20 per cent. The country’s export of non-textile products will reach 15 per cent of the total export volume by 2025, boosting the export of agricultural processed goods to 12 per cent of total exports.

The report shows that the industrial sector ratio in terms of GDP has increased from 27.7per cent in 2015 to 32.6 per cent in 2018, beyond the target set in 2025. However, the share of garment and footwear exports has declined steadily from 71.6 percent of total exports in 2015 to 69.2 per cent in 2018 as the country diversifies export products as set out in its 2015-2025 industrial development policy (IDP).

Approved by the Office of the Council of Ministers, the IDP draft last report said, during three year of its implementation, the three main goals of the policy were fully implemented by relevant ministries, institutions and sub-national administrations.

Though the European Union (EU) partially suspended the Kingdom’s annual $7 billion garment and textile sector from 12 August, the new law will help Cambodian government to diversify its production line beyond the garment sector.