Cambodia Launches Plastic Bottle Recycling Factory

Cambodia has taken a significant step towards greener industry with the launch of a new factory dedicated to recycling used plastic bottles into PET material for food and beverage packaging. The project, led by A1-Plastic, was formally inaugurated on 19 January in Pursat’s Special Economic Zone, Krakor district.

The groundbreaking ceremony was attended by Keo Rattanak, Minister of Mines and Energy, alongside A1-Plastic’s chief executive Deborah Lee and senior government officials. The factory is expected to strengthen Cambodia’s domestic packaging supply chain while reducing reliance on imported materials, marking a milestone in the country’s sustainability drive.

The announcement comes amid a surge in foreign direct investment. Figures from the Council for the Development of Cambodia show that in 2025 alone, 630 projects worth around $10 billion were approved. China accounted for more than half of this capital, followed by Cambodia, Singapore and Vietnam.

Economist Hong Vanak of the Royal Academy of Cambodia said the growth reflects investor confidence in the country’s stability and opportunities. “Before deciding to invest in any country, investors carefully study many factors such as investment laws, labour force, export markets, sources of raw materials, and transportation infrastructure. The growth in direct investment confirms that Cambodia has made improvements in all areas,” he explained.

Cambodia’s rise as an investment destination has been recognised internationally. In 2024, the country topped the FDI Standouts Watchlist, and in 2025 it ranked first in the Asia-Pacific region and ninth globally in the Greenfield FDI Performance Index.

For A1-Plastic, the new factory is both a business expansion and a statement of intent. By turning discarded bottles into PET, the company aims to support Cambodia’s packaging industry while contributing to environmental protection. For policymakers, it signals how industrial growth and sustainability can be aligned—an increasingly important message as Cambodia positions itself as a leading emerging market.

-2026-01-20