Kampong Speu Province

Kampong Speu demonstrates how proximity to a capital city creates industrial overflow zones. Located 56 kilometers southwest of Phnom Penh, the province captured manufacturing investment that outgrew the capital's capacity—423 factories now operate here, including 30 new facilities in H1 2024 alone, generating over 200,000 jobs. Between September 2023 and August 2024, Kampong Speu received 95 new investment approvals from the CDC, the highest of any province. Chinese investors account for 90% of operations.

The garment sector dominates this industrial landscape as it does Cambodia's economy. Of 385 surveyed factories, 191 produce textiles, garments, and footwear, employing over 140,000 workers including 100,000 women. Cambodia's garment exports earned nearly $12 billion in 2024—45% of total export income—and Kampong Speu captures a significant share. Workers earn approximately $240-250 monthly with benefits, up from $40 minimum wage in 1997. Yet the province now faces labor shortages: nearly 10,000 unfilled positions as of 2024, with deficits expected to grow as new factories open.

This pattern—capital city reaches capacity, industrial production migrates outward, labor follows then becomes scarce—repeats across developing economies. Kampong Speu is now second only to Phnom Penh in factory count, transforming from agricultural province to manufacturing corridor within two decades. By 2026, the province will either solve its labor constraints through automation, wage increases, or migrant recruitment—or watch investment flow to provinces where workers remain available.