(Phnom Penh): Ministry of Labour and Vocational Training (MLVT) reports over 800,000 Cambodian workers have returned from Thailand as of August 6, 2025, following the border conflict. While not all come from factories, a significant share has hands-on industrial experience in garments, footwear, furniture, electronics assembly, and agro-processing – aligning with Cambodia’s current industrial focus. This is more than a labor influx — it is a time-sensitive competitive edge for investors, offering a unique opportunity to establish or expand operations while low-cost and ready-skill labor availability is at its peak.
Seizing the Advantage: Why Investors Should Act Now
Since 2018, global supply chain restructuring has driven manufacturing relocation from China to Southeast Asia, with Cambodia among the key beneficiaries. Cambodia’s exports have doubled—from around US $12 billion in 2018 to almost US $26 billion in 2025—driven mostly by manufacturing goods bound for the US and EU markets. Investment inflows are also pouring in as in the first seven months of 2025 alone, the Council for the Development of Cambodia (CDC) reported nearly US $7 billion in approved projects, an 88% increase year-on-year.
This rapid expansion has pushed the labor market to its limits, with MLVT spokesperson Sun Mesa confirming the country is “facing a labor shortage in the garment sector and other industries.” With skilled returnees and government fast-track support in place, now is the moment for investors to secure capacity before the market tightens. Four factors that make acting now essential are as follows:
First is mobilization speed. Months are being cut from the usual recruitment and training cycle, as a significant share of returnees already possesses direct factory floor experience in garments, footwear, furniture, electronics assembly, and food processing. Full production capacity can be reached far sooner than typical market timelines, giving early entrants the ability to capture orders and secure clients before competitors are ready.
Second is lower wages with higher initial productivity. Highly competitive unit costs are being achieved from day one, as Cambodia’s wage levels remain below those in Thailand and Vietnam while productivity is boosted by pre-existing industrial skills. Better-than-entry-level performance is being secured without the need to pay premium wage rates — a rare combination in today’s regional manufacturing landscape.
Third is flexible capital deployment. Initial investments are being kept lean, as the availability of skilled labor allows plants to start at smaller scales with limited supervision requirements. Capacity isbeing expanded in phases as orders grow, reducing upfront financial exposure while maintaining readiness for rapid scaling to meet demand.
Fourth is government-enabled rapid setup. Industrial setup processes are being positioned for acceleration under the government’s Integrated Industrial Initiative (III Program), which is being formulated to provide fast-track approvals in designated zones. Through this program, investors can capture skilled returnees and to be matched with suitable sites, assisted in compliance processes, and supported with targeted training or troubleshooting as required.
Locking In the First-Mover Advantage
Timing is critical. The most experienced returnees will be absorbed into factories within 6–12 months. Early entrants will get priority access to these workers, secure the best factory sites near labor catchments and transport hubs, and enjoy lower turnover risk because workers can stay close to their families. Latecomers, on the other hand, will face higher recruitment costs, weaker skill matching, and stiffer competition for talent.
This labor surge will not wait. The combination of a ready workforce, lower costs, rapid setup, and government facilitation is giving early investors a decisive edge. Within months, the prime labor pool will be committed, and the most strategic sites are taken.
In Southeast Asia’s competitive manufacturing race, speed is profit. Cambodia already has your workforce, facilities, and incentives in place. Those who act now will lock in the best talent and locations — and the lowest costs. The choice is clear: secure the advantage today or compete for what’s left tomorrow.
Chea Kok Hong, Secretariat Director, Cambodia Coastal Master Plan
=FRESH NEWS
