ESTABLISHING AN AGRI-FOOD
INDUSTRIAL PARK
IN CAMBODIA
Cambodia’s economy has experienced high growth for the past few decades, growing as much as 7% per
annum in 2019 (before the COVID-19 pandemic) and returning to above 5% growth in 2022. Agriculture
accounts for over 22% of gross domestic product, and the Royal Government of Cambodia (RGC) has made it
one of its priority sectors. This makes Cambodia an attractive investment destination for agricultural
businesses.
Currently up to 90% of major crops are exported unprocessed, presenting significant opportunities for
agri-food processing industries in country. The RGC is committed to the development of the agri-food
processing industry, as evidenced by its recently released Pentagonal Strategy, and is actively encouraging
private investment.
The establishment of Cambodia’s first Agri-food Industrial Park (AIP) is a key example of this commitment, and
it is already receiving international attention and support. Other incentives to stimulate investment in the
agriculture sector include:
•
Fiscal and non-fiscal initiatives designed to
make agribusiness more competitive
•
Necessary infrastructure and connectivity,
including clean water, power, roads and
telecommunications infrastructure
•
One-stop shop for business registration and
related services
•
Trade facilitation for exports
•
Particular attention on women-led SMEs
In August 2022, the RGC conducted a
comprehensive feasibility study that found that an
AIP would potentially:
•
Contribute an additional US$5.1 billion to
the Cambodian economy by 2045
•
Employ over 100,000 people (56,000
women)
•
Lift over 20,000 people out of poverty each
year and contribute to a post-COVID-19
economic recovery in Cambodia
Early in 2023, an AIP committee was established to support the effort and ensure that the AIP is functional and
sustainable. Its membership included representatives from 10 government agencies. Under a "call for proposals"
process, the committee provides support packages to qualifying AIP private developers interested in this
exciting investment opportunity.
01
STEP
Expression of
Interest (EOI)
02
STEP
Assessment on EOI and
selection for potential
AIP developer(s)
03
STEP
Call for proposal(s) from
potential AIP
developer(s)
04
STEP
Assessment and
evaluation on summitted
proposal(s)
Cambodia is a promising investment destination for agriculture businesses. With its strong economic growth,
government support and attractive incentives, the country is well-positioned to become a major player in the
global agri-food market.
With its booming agricultural sector, Cambodia has conducted a value
chain assessment to identify six anchor commodities for the first AIP.
Cambodia is among the top 10 raw
cashew producers in the world.
Over 400,000 tonnes of
mangoes (annual production)
are recognised as top grade
with consistent quality and
strong potential for fresh and
dried fruit exports.
On average 830,000 tons of raw
cashews are exported annua�y
(2019-2022).
Only 5% of raw cashews are
processed in-country. There is a
strong potential for value added
exports.
Cambodia is among the top 10
cassava producers in the world.
There is an exce�ent
opportunity to derive added
value from fresh fruit reject
grades as puree and frozen
chunks.
Over 200,000 tonnes of banana
are commercia�y produced
each year.
3.23 mi�ion tonnes of cassava
were exported in 2022 , and
39% of exports were processed.
Almost 100% of bananas are of
suitable quality for table fruit
exports.
There is scope for scale and
higher value adds.
Cambodian premium fragrant
rice won the World’s Best Rice
Award for the fi�h time in 2022.
There is huge potential to
develop other product lines,
including pureeing rejected
fruits.
6 to 7 mi�ion metric tonnes of
mi�ed rice are produced
annua�y.
There is substantial opportunity
for consolidating rice mi�ing by
processing products including
husk, bran and broken rice into
rice bran oil, rice noodles and
rice crackers.
65% of vegetables are
imported.
There is significant
potential to grow this
sector, including strong
interest in greenhouse
farming through both
foreign and local
investment.
Investment opportunities: AIPs in Cambodia
Agri inputs
AIP-related
infrastructure
Machinery and
technology for
agri-food processing
Processing and
export
Gender equality,
disability and social
inclusion and
capacity building
For more information: Dr Chhau Somethea: sometheac@yahoo.com | Ms Cheu Ponleu: ponleu.cheu@capred.org