Cambodia Prime Minister Firmly Rejects All E-Cigarette Investment: What It Means for the Global Vape Industry

Date: May 7, 2025
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In a move that sends a strong message to the global vape industry, Cambodian Prime Minister Hun Manet has made it unequivocally clear: Cambodia will not allow any form of E-cigarette manufacturing investment, regardless of whether products are intended for export or domestic consumption. This hardline stance was announced during the launch of the “National Cancer Prevention Plan 2025–2030” on May 5th, reinforcing the country’s long-standing ban on vapor products, including Fruit Flavored Vapes and other nicotine-based alternatives.

This decision, which rejects a foreign company’s proposed plan to establish an E-cigarette factory in Cambodia, raises broader questions for the Southeast Asian vapor market, cross-border investment, and public health policy in the region.

Prime Minister Hun Manet’s Public Denouncement of E-Cigarette Investment

During the high-profile national event, Prime Minister Hun Manet did not mince words. He explicitly stated that Cambodia does not welcome any investment related to vape production, even if the manufacturing facility would solely target export markets.

“There are many other areas for investment,” said Hun Manet. “The prohibition on E-cigarette production will not affect Cambodia’s economic growth. We welcome all lawful and compliant investments—except those related to E-cigarettes.”

The Prime Minister also confirmed that a recent proposal submitted by a foreign investor to build an E-cigarette manufacturing plant had been denied by the Ministry of Commerce, following discussions between the investor and Minister Cham Nimul.

This decisive rejection comes in the context of Cambodia’s ongoing concern over youth vaping, especially among students and minors, which Hun Manet described as a “dangerous social trend”.

Cambodia’s History of Anti-Vape Regulation

Cambodia has maintained a firm anti-vaping stance since 2014, when it enacted a blanket ban on the importation, trade, and use of:

E-cigarettes
Hookahs and shisha
Heated Tobacco Products (HTPs)
Vapor devices containing nicotine

This prohibition makes Cambodia one of the strictest countries in Southeast Asia concerning vapor products. The law applies to both local and international brands, with penalties including fines, product seizures, and potential imprisonment.

This rigid approach stands in contrast to countries like Vietnam, Malaysia, and Thailand, where regulation has been either inconsistent or trending toward legalization and taxation of vape products to eliminate black market activity.

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Vape
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The Economic Argument: A Rebuttal to Foreign Investors

Many investors view Southeast Asia as an emerging frontier for vape and E-cigarette manufacturing, given the region’s:

Affordable labor costs
Favorable export logistics
Growing demand for Fruit Flavored Vape products among adult users

However, Prime Minister Hun Manet dismissed the notion that turning away vape manufacturing would negatively impact Cambodia’s economy. Instead, he emphasized the country’s focus on:

Sustainable industries
Clean manufacturing
Public health-compliant investment

“We have a duty to protect our young generation. Vaping is not a symbol of status or sophistication, especially among students. They should be competing in academics, not in who smokes more E-cigarettes,” Hun Manet said.

Health Concerns Drive the Policy

The Cambodian Prime Minister used the event to raise alarms about the increasing prevalence of vape use among youth, including underage students. In a passionate address, he framed vaping as a public health crisis, particularly when linked to flavored vapor products that attract young users.

“Fruit Flavored Vapes, marketed with names like mango ice, cotton candy, or grape punch, may seem harmless—but they are engineered to hook children and teens.”

Hun Manet directed government agencies to:

Intensify surveillance and enforcement on vape distribution
Launch educational campaigns discouraging youth vaping
Strengthen penalties for illegal vapor product sales

Regional Impact on the Vape Supply Chain

The implications of Cambodia’s stance ripple far beyond its borders. For vape exporters, component manufacturers, and logistics companies, Cambodia could have been a promising manufacturing hub with access to:

Vietnamese ports
Thai trucking routes
Chinese supply chains

But with this policy, the nation has drawn a hard line that isolates itself from the vapor industry’s Southeast Asian supply ecosystem.

Countries like Malaysia and Indonesia—both with large, growing vapor markets—are likely to benefit instead. Some Chinese vape firms have already shifted assembly operations to Malaysia due to less restrictive laws and growing local demand.

What This Means for International Vape Brands

If you are an independent seller or vape brand owner looking to expand production or source new suppliers, Cambodia is not an option.

Here are key takeaways for businesses in the vape and E-cigarette industry:

1. Reassess Manufacturing Strategy

Avoid targeting Cambodia for any form of E-cigarette production, even for export-only use.
Focus on compliant nations like Malaysia, Vietnam, or Philippines, where the legal climate is more flexible or evolving.

2. Stay Informed on Regulatory Changes

Cambodia may serve as a bellwether for future crackdowns in countries with ambiguous vape policies.
Monitoring governmental signals is essential for compliance and supply chain security.

3. Adapt Marketing and Messaging

For digital campaigns, emphasize adult smoking cessation benefits.
Avoid promoting Fruit Flavored Vapes in countries with strict advertising bans.

⚠️Recommendations & Actions

Avoid Use: Teens, pregnant women, and non-smokers should avoid all nicotine products, including vapes.
Know the Risks: Educate yourself and others about the health risks of nicotine and E-cigarettes.
Get Help: If you or someone you know is struggling with nicotine addiction, seek medical advice or use certified quit-smoking resources.

By following expert warnings, we can reduce addiction risks and protect public health.

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