A transparent and consistent wage adjustment mechanism is becoming one of Cambodia’s distinctive advantages in attracting foreign investment. On September 17, the Cambodian government announced that starting in 2026, the minimum wage for the textile, footwear, and travel goods industries will increase to USD 210 per month.
Labor unions have voiced support for the decision, viewing the moderate increase as a balanced response to rising living costs while preserving Cambodia’s competitiveness in regional manufacturing.
According to Kim Chansamnang, President of the Cambodian Labor Rights Confederation, the wage adjustment “remains within investors’ acceptable range” and will not disrupt the business environment. On the contrary, the policy’s stability may attract more capital inflows, generate new job opportunities, and encourage some overseas workers to return. Predictable annual wage negotiations—rather than sudden, large hikes—allow businesses to plan their mid- and long-term operations with greater certainty, enhancing Cambodia’s investment appeal.
A representative from Manhattan Special Economic Zone (MSEZ) noted, “The USD 2 increase reflects the government’s cautious approach in balancing worker welfare and corporate competitiveness. Such gradual adjustments place minimal burden on investors while supporting steady business growth.” Compared with neighboring countries, Cambodia continues to maintain a clear edge in labor costs. Its workforce is young, motivated, and quick to learn—providing a reliable foundation for labor-intensive industries.
Despite the wage rise, MSEZ’s comprehensive infrastructure and cost-efficient services help enterprises manage overall operational expenses effectively. The zone offers one-stop administrative support, stable utilities, and efficient logistics, all of which reduce hidden costs and strengthen its role as a competitive manufacturing hub in the region.
As the global manufacturing landscape continues to evolve, Cambodia is steadily refining its investment environment. With moderate wage policies, a young labor force, and improving industrial infrastructure, the country is shaping itself into a resilient and increasingly attractive destination for investors.