Amid rising fuel costs and increasing demand for electric vehicles (EVs), the government led by Hun Manet has announced plans to introduce incentives to support domestic EV manufacturing in Cambodia.

Speaking at a meeting held on April 26th with informal sector trade unions to mark the 140th anniversary of International Labour Day, he stated that although EV demand is rising and supporting infrastructure is being developed, expanding local production remains a priority.

He further added that foreign brands manufacturing vehicles domestically could increase their contribution to the country. To support this, the government is preparing tax incentives and policy measures aimed at enabling locally produced EVs to compete with imports, which may improve affordability for consumers.

He also referred to workforce requirements, stating that investors establishing factories in Cambodia would require both production workers and maintenance technicians. He further added that technology transfer is expected to be a subsequent phase, with Cambodia seeking to attract foreign investment to develop its industrial and technological base, an approach adopted in other countries.

Cambodia's policy direction is guided by the National Policy on Electric Vehicle Development 2024-2030, issued in May 2024, when nearly 3,000 EVs had been registered nationwide.

The policy sets out targets and measures to support EV adoption and industry development, along with a roadmap for implementation by relevant ministries and agencies.

According to Phorn Rim, spokesperson for Cambodia's Ministry of Public Works and Transport, EV demand in the country has increased in recent years. From one EV registered in 2018, the number had risen to more than 16,000 vehicles nationwide as of March 2026.

He stated that EV adoption may contribute to environmental outcomes, economic efficiency, and energy security, while also enabling access to emerging technologies in line with regional and global developments.