Industry News

1、 Core driver of market demand
Rapid growth in the construction industry
In 2024, Cambodia's steel imports surged by 69.6% (reaching 631 million US dollars), and the recovery of the construction industry drove the expansion of demand for building materials. The demand for light steel keel as a foundation material for partition walls and ceilings was strong.
The government led "National Road Network Upgrade Plan" and the construction of the new capital are driving infrastructure investment. The construction industry is expected to grow at an annual rate of 7.3% from 2026 to 2028, and the application scenarios of light steel keel will continue to expand.
Policy dividends and influx of foreign investment
The New Investment Law (2021) simplifies the procedures for foreign investment, allowing for 100% control and free remittance of profits. The import tariffs for building materials are lower than those of neighboring ASEAN countries, and some equipment is exempt from taxes.
The adjustment of US tariff policy (imposing a 145% tariff on Chinese goods by 2025) has led to a shift in manufacturing orders to Cambodia, resulting in a 50% surge in US single enterprise orders and driving demand for industrial plant construction.
Climate adaptability advantage
High temperature and rainy environments require building materials to have corrosion resistance. Light steel keel can be adapted to humid and hot climates after galvanizing treatment, especially in coastal hotels and resorts where the demand is prominent.

2、 Current situation and challenges of supply chain
Serious shortage of local production capacity
About 300 local building materials companies have outdated technology, and high-end light steel joists rely on imports. China accounts for 62% of the total steel imports.
Basic materials such as color coated rolls need to be imported from China, and the incomplete supporting industrial chain restricts localized production.
Accelerated localization of foreign investment
Chinese enterprises set up factories in industrial zones to avoid trade risks:
Case 1: Hualanlong Hardware has established a light steel keel processing plant in Cambodia and integrated its local distribution network.
Case 2: Yonggang Group exports wire rods to Cambodia to support the upgrading of manufacturing industries such as automotive parts.
The Sihanouk Port Special Economic Zone has attracted 180 enterprises to settle in, forming a "group going global" industrial chain ecology.
Cost and infrastructure bottlenecks
The industrial zone experiences two power outages per week, and the unstable power supply increases production costs by 5-8%.
The logistics system is weak, transportation efficiency outside core areas such as Phnom Penh is low, and raw material imports rely on port transshipment.

3、 Competitive landscape and admission strategy
Market participant layout
Local enterprises: dominate the low-end market, but have weak technology (such as building hardware accessories).
Chinese enterprises: Seize market share through cost-effectiveness and localized production capacity, and enter high-end projects through technology output (such as corrosion-resistant coatings).
Distribution channels: Focused on traditional building materials markets (such as Phnom Penh distribution center) and chain supermarkets Mitra 10, the dealer network is key.
Core access barriers
Certification compliance: It is required to pass the Cambodian CR mark or international standards (such as EN 13501-2 fire certification).
Policy risk: The dynamic adjustment of anti-dumping duty policies (such as the proposed imposition of tariffs on Chinese hot-rolled coil steel in 2025) requires anticipation of changes in trade policies.