Billions in Wages Disbursed by Cambodian Businesses and Factories

In a significant announcement made by Prime Minister Hun Manet yesterday, it was revealed that businesses and factories registered with the ...

In a significant announcement made by Prime Minister Hun Manet yesterday, it was revealed that businesses and factories registered with the Ministry of Labour and Vocational Training (MLVT) disbursed a staggering $5.18 billion in wages last year. This substantial sum, a testament to the country's economic activity, underscores the vital role played by the labor force in Cambodia's growth trajectory.

During the ministry’s annual meeting held at the Sokha Phnom Penh Hotel and Residence, Prime Minister Hun Manet highlighted the remarkable contribution of 49,075 registered firms. Employing over 1.7 million individuals in 2023 alone, these entities formed the backbone of Cambodia's workforce, driving productivity and economic prosperity.

While the reported figure is impressive, Prime Minister Hun Manet emphasized that the total wages earned by workers could be even higher when factoring in earnings from the informal sector and remittances from Cambodian workers abroad. This broader perspective underscores the multifaceted nature of Cambodia's labor market and its interconnectedness with the global economy.

Acknowledging the pivotal role of the Ministry of Labour and Vocational Training, the Prime Minister urged stakeholders to prioritize the enhancement of working conditions and labor rights. Furthermore, he underscored the importance of vocational training programs aimed at upskilling the workforce, ensuring their competitiveness in an evolving job market.

"The government remains steadfast in its commitment to fostering a conducive working environment and safeguarding labor rights," affirmed Prime Minister Hun Manet. This unwavering dedication reflects the administration's proactive stance toward promoting social welfare and economic stability.

Highlighting the pivotal role of the garment, footwear, and travel goods industry, Prime Minister Hun Manet noted its status as the country's largest export earner. With approximately 1,300 factories employing predominantly female workers, this sector continues to drive Cambodia's export-led growth strategy.

In addition to the garment sector, Cambodia's non-garment manufacturing industry witnessed remarkable growth, with exports of electrical machinery and equipment soaring by 56 percent last year. This diversification underscores the resilience and adaptability of Cambodia's economy amidst evolving global trade dynamics.

Addressing the influx of new investment projects, Prime Minister Hun Manet expressed optimism regarding the country's investment landscape. With 172 new projects approved between August last year and January 2024, amounting to a total investment value of $3.86 billion, Cambodia continues to attract investor confidence, signaling robust economic prospects ahead.

In conclusion, the substantial wages disbursed by Cambodian businesses and factories underscore the vital role of the labor force in driving economic growth and prosperity. As the government and stakeholders continue to prioritize labor rights and vocational training, Cambodia remains well-positioned to capitalize on emerging opportunities and navigate global challenges effectively.