Workers cut granite into slabs at a quarry in Snuol district’s Svay Chhreah commune, in Kratie province. Hong Raksmey
In a remarkable turn of events, Cambodia’s granite and stone slab industry, once on the brink of collapse, has experienced an impressive resurgence.
The revival of the sector has not only saved local businesses but has also propelled Cambodia into the global market as a competitive player in the stone export industry.
In 2023, it was at a critical juncture. Factories were gradually shuttering their doors, and the sector seemed destined for a complete collapse.
For nearly three years, independent efforts to revive the industry had yielded little success, with the market facing substantial challenges, including high export taxes, rising shipping costs and complicated export procedures.
A worker monitors a marble saw in Kratie province’s Snuol. Hong Raksmey
It was then that Prime Minister Hun Manet stepped in, providing the necessary leadership and policy adjustments to prevent the sector from falling apart.
At a key exhibition in Nanning, China, in September 2023, Manet was made aware of the perilous situation the sector was in.
“If the prime minister had not intervened, Cambodia's stone slab business could have faced complete loss, as three years of independent efforts had yielded no results,” recalled Leng Davy, vice-president of the Cambodia Granite Association.
His prompt action – restructuring export tax policies and recognizing sawn stone as a finished product – has been a game-changer for the industry.
A large polished slab of granite is displayed at a factory in Svay Chhreah commune. Hong Raksmey
The prime minister signed a sub-decree authorising the reduction of export tax rates on certain natural stone products to ease the burden on exporters and help Cambodian stone products compete internationally.
The export tax on unprocessed natural stone blocks was reduced from 30 per cent to 10; the tax on unprocessed stone slabs was lowered from 20 per cent to 5; and the tax on processed, polished stone sheets has been reduced to zero.
Since Manet’s intervention, business operations have become more efficient.
Davy, who met with the prime minister at the Nanning exhibition, added, “The revenue from the stone slab business in 2024 increased significantly compared to 2023 – by approximately 400 per cent.”
Leng Davy, vice-president of the Cambodia Granite Association, (center) addresses a press conference. Hong Raksmey
What once seemed like a failing industry has now become one of Cambodia’s most promising sectors, with exports expected to exceed 5 million square metres in 2024, a sharp rise from the 1 million square metres recorded in 2023.
This boost in exports reflects the broader recovery of Cambodia's quarrying industry. Stone slab products, particularly from Kratie province, have emerged as key exports for the country.
“Cambodian stone slabs are shipped to international markets including China, Vietnam, Italy and Canada,” said Davy.
With over 33 factories operating and two more under construction, the stone industry has found new energy, with the Kingdom’s granite increasingly recognised for its quality and diversity in international markets.
While the country has vast stone resources, including black, gray, speckled and waterfall stone, each of the Kingdom’s factories has the capacity to process between 20,000 to 30,000 square metres of slabs per month, with monthly national production reaching about 600,000 square metres.
A single quarry can supply between 10 to 20 factories, while Kratie province’s stone resources could sustain dozens of processing facilities. The two districts with the highest stone slab potential in Kratie are Sambor and Snuol.
With over 70 joint ventures operating in Cambodia, 20 of them in Kratie, the industry has attracted both domestic and international investment.
By streamlining export procedures and offering incentives like tax exemptions and preferential treatment for Qualified Investment Projects (QIPs), Cambodia has made it increasingly attractive for foreign companies to invest in its natural resources.
Kong Sitha, deputy director-general of the General Department of Mineral Resources at the Ministry of Mines and Energy, emphasised how the government is working closely with both local and foreign businesses to ensure the sustainable development of the mining and quarrying sector.
Sitha explained that after discovering mineral resources, licensed companies must conduct drilling to assess whether the resources are sufficient and to determine the level of rock fracturing.
Environmental officials are also required to assess the environmental impact and produce a report to determine whether the effects of mining – both during and after operations – meet national standards.
“Following these assessments, the ministry will issue licenses, accompanied by a proclamation which requires each company to undertake specific tasks,” said Sitha.
“The priority is to facilitate business operations. We recognize that after Covid-19, the global economic situation has been challenging, and the war in Ukraine has affected the European economy, reducing market demand,” he added.
In 2024, the stone slab sector contributed to an increase in non-tax revenues for the mining sector, reaching nearly $90 million. This figure is expected to continue rising in 2025.
