"Three Banteay Meanchey factories close; Labour ministry pledges to support workers", 18 August 2026

The Ministry of Labour and Vocational Training has expressed regret over the closure of three factories in Banteay Meanchey province, which it said were affected by high transportation costs and declining orders following border disruptions with Thailand.

The ministry has assured workers at the three factories that their legal benefits will be protected, including the payment of wages and other compensation required under Cambodia’s Labour Law. It is also helping affected workers register for new employment opportunities.

ML Intimate Apparel (Cambodia), which employed 683 workers, and Hi-Tech, which employed 2,532 workers, have closed, with the ministry noting that all workers have been paid their wages and any other owed benefits.

Nidec Die-casting Cambodia Co., Ltd, which employs 724 workers, is scheduled to cease operations in October. The ministry said it will monitor the situation closely to ensure workers receive all legally required payments.

Ministry spokesman Sun Mesa described the closures as “regrettable”, linking them to a sharp increase in transportation costs following Thailand’s unilateral border closure and what he described as its aggression against Cambodia’s sovereignty.

He noted that before the border disruptions, goods from factories in Banteay Meanchey could reach production facilities in Thailand in about one to two hours. Transportation costs have now increased “dozens of times” because goods must be shipped through Cambodian sea routes before entering Thailand.

“Transport has to go through a second country before entering Thai territory, and sometimes goods even have to be transported by air. This has caused transportation costs to rise sharply, to the point that investors cannot bear them,” Mesa said…