MGR Online — Cambodia's Ministry of Labour and Vocational Training has expressed regret over the closure of three factories in Banteay Meanchey province, which have been hit by rising transportation costs and falling orders, while attributing the situation to Thailand's closure of border crossings.
The Ministry of Labour pledged to workers at all three factories that their legal rights would be protected, including the payment of wages and other compensation required under Cambodian labour law, and stated that authorities would assist affected workers in registering for new employment opportunities.
ML Intimate Apparel (Cambodia), which employs 683 workers, and Hi-Tech, which employs 2,532 workers, have already ceased operations, while Nidec Die-casting Cambodia Co., Ltd, which has 724 workers, is scheduled to halt operations this October.
The Ministry of Labour stated that workers at the first two factories have already received their outstanding wages and other benefits, and that the ministry will closely monitor the situation of the third factory to ensure workers receive what they are legally entitled to.
Sun Mesa, spokesperson for the Ministry of Labour, described the factory closures as deeply regrettable and linked them to rising transportation costs, which he attributed to Thailand's unilateral closure of the border.
"The Ministry of Labour and Vocational Training deeply regrets that three factories in Banteay Meanchey province have been forced to shut down due to a significant increase in transportation costs. This rapid rise in costs occurred following the border closure imposed by the Thai side through its invasion of the sovereignty of the Kingdom of Cambodia and our people," Sun Mesa stated.
The ministry spokesperson further said that before the Thai side's border incursion, transporting goods from factories in Banteay Meanchey province into Thai territory took only about one to two hours to reach manufacturing facilities. However, costs have now increased by tens of times, as goods must now be shipped by sea from Cambodia before entering Thailand, routed through a second country before entering Thailand, or sometimes transported by air, causing freight costs to rise sharply to a level that investors can no longer bear.
He stated that in light of these impacts, the Ministry of Labour guarantees workers' rights and the payment of various benefits in accordance with the country's labour laws, and reassured workers that officers from the employment bureau, together with officials from provincial labour agencies, will work together to create employment opportunities for affected workers.
In addition, the Ministry of Labour called on workers from all three factories, as well as all Cambodians, not to worry about employment opportunities, citing the fact that factories and businesses across the country continue to grow in number. It stated that in the first six months of 2026, more than 845 new factories and businesses had been established, generating approximately 120,000 new job opportunities for Cambodians.
