Cambodia’s government has announced a two-year exemption from a five per cent special tax, applied to the country’s cement industry. The exemption applies from the start of 2025 until the end of 2026.
It also urged producers to meet their obligations to train local staff and transfer technical skills to improve the sector’s skill base.
“This exemption is intended to bolster the growth of the local cement sector,” said Minister of Economy and Finance, Aun Pornmoniroth. The measure underlines the government’s commitment to support the cement sector and see it as a part of the country’s broader economic development.
Cambodia’s Prime Minister, Hun Manet, said during a meeting with officials from the Cambodian Cement Manufacturing Association (CCMA) last month that investment in Cambodia’s cement industry had topped US$1.2bn, significantly boosting the economy and creating more than 2700 jobs.
In addition to the tax break, the MEF is also working with the Ministry of Mines and Energy to explore additional measures to enhance competitiveness and promote the continued growth of the cement industry.
“Currently, domestic cement production meets 80 per cent of the nation’s annual requirements, with output expected to increase further in 2025,” CCMA secretary-general Puth Chandarith told Khmer Times after the group meeting with Mr Hun Manet last month. In the 11M24 Cambodia’s cement plants produced 7.4Mt of cement, up 10 per cent YoY.
Cement demand is expected to increase by 7.3 per cent annually between 2026-28, driven by considerable government spending on major infrastructure projects. In 2024 cement demand expanded by 5.8 per cent and for 2015 demand is set to advance by 6.8 per cent.
