Cambodia Investment Proposal
Cambodia Investment Plans and Opportunities |
The Proposal
Agriculture remains a crucial pillar of Cambodia's economy, contributing 22 percent to the country’s GDP in 2022 and employing 2.6 million people. To drive further growth, the Royal Government of Cambodia (RGC) has launched the Pentagon Strategy Phase I (2023–2028) for Growth, Employment, Equity, Efficiency, and Sustainability. This long-term socio-economic strategy, set to unfold over the next 25 years, focuses on five key areas, including resilient, sustainable, and inclusive economic development, with agriculture identified as a priority by the Prime Minister of Cambodia. The sector is set to receive significant support from the government, particularly aimed at attracting more investment.
In parallel, the National Agricultural Development Policy (2022–2030) complements the Pentagon Strategy by outlining a vision to transform Cambodia’s agrifood sector. The policy aims to make the sector more competitive, inclusive, resilient, and sustainable, ultimately boosting incomes, prosperity, and the wellbeing of farming families.
Under the Hand in Hand Initiative, led by the Ministry of Agriculture, Forestry and Fisheries (MAFF), three priority agricultural value chains—rice, cashew, and cassava—have been identified as needing targeted investment to unlock their full economic potential.
Total Investment | 22.4 Million USD |
IRR Value | 14.0% |
NPV Value | 1.7 Million USD |
Direct Beneficiaries | 0,0 |
Indirect Beneficiaries | 0,0 |
Total Beneficiaries | 20,971 |
Per capita income increase | 122USD/year |
ExACT TOOL | -624 tCO2-e |
Total Investment | 22.6 Million USD |
IRR Value | 23.0% |
NPV Value | 5.4 Million USD |
Direct Beneficiaries | 0,0 |
Indirect Beneficiaries | 0,0 |
Total Beneficiaries | 18,648 |
Per capita income increase | 524 USD/year |
ExACT TOOL | -1,266 tCO2-e |
Total Investment | 68.4 Million USD |
IRR Value | 24.5% |
NPV Value | 15.4 Million USD |
Direct Beneficiaries | 0,0 |
Indirect Beneficiaries | 0,0 |
Total Beneficiaries | 24,793 |
Per capita income increase | 320 USD/year |
ExACT TOOL | -1,600 tCO2-e |
Cambodia Typologies
Poverty
Potential
Efficiency
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Agro-informatics connects information technology with the management, analysis and application of agricultural data to design more accurate and targeted agricultural interventions. The use of new technologies and techniques in agriculture, such as satellite imagery, remote sensing, and geographic information systems, enable the transformation of data into actionable information.
Government of Cambodia: Investment cases in Cambodia
Cambodia Investment Cases and Interventions
Premium Rice22.4 Million USD20,971 Beneficiaries |
Premium Rice
Rice is Cambodia’s staple crop, covering 3.5 million hectares of land and producing 11.62 million metric tons of paddy rice annually. It serves as the primary source of income for rural farmers and is Cambodia’s largest agricultural export, valued at USD 1 billion. Currently, 67 percent of the crop is exported as paddy rice, while only 33 percent is exported as milled rice. China is the largest importer of Cambodian milled rice (45 percent), followed by Europe (32 percent) and other global markets (23 percent). Most of the paddy rice is exported to neighboring countries.
Cambodia has significant potential to increase the export of milled rice, thanks to its 6.29 million metric tons of surplus production and a focus on organic or unique rice varieties, such as Phka Romdoul and Sen Kro Ob, both recognized globally, with Phka Romdoul being named the World’s Best Rice Variety in 2022. Fragrant and organic fragrant rice varieties are in high demand in global markets, offering a strong opportunity for growth. Key areas for investment include enhancing resilient and sustainable rice production, establishing agricultural cooperatives, expanding rice storage and milling capacity, and promoting milled rice exports to international markets.
Cashew22.6 Million USD18,648 Beneficiaries |
Cashew
Cashew production in Cambodia has grown rapidly, making the country the third-largest cashew producer in the world. Currently, 435,733 hectares are under cultivation, with an annual output of 508,283 metric tons. Production is projected to increase by 23 percent over the next five years, as an additional 104,558 hectares of planted area mature. Currently, around 90 percent of Cambodia’s cashew crop is exported unprocessed, largely due to past investments that focused on production rather than processing.
Given the scale of cashew production and the limited in-country processing capacity, investment in Cambodia’s cashew sector offers significant economic potential. This can be achieved by establishing agricultural cooperatives for sustainable, deforestation-free production and increasing the number of cashew processing factories. Enhanced financial investment in the cashew value chain would boost Cambodia’s ability to supply premium processed cashew products to global markets, supporting the country’s goal of becoming a leading producer and exporter of high-quality cashew products worldwide.
Cassava68.4 Million USD24,793 Beneficiaries |
Cassava Production
Cassava production in Cambodia has seen remarkable growth, increasing nearly four times from 202,303 hectares in 2010 to 758,607 hectares in 2023. With an annual production of 17.7 million metric tons (fresh root), Cambodia is now the ninth-largest cassava producer in the world. Cambodia’s favorable geography and agricultural ecosystem have enabled cassava cultivation in various geographic and highland regions, supporting a continuous harvest cycle of 7-9 months, which is ideal for efficient starch processing industries. Cambodian cassava starch is highly regarded by many buyers for its premium quality, making it suitable for human consumption and as an input for products such as cosmetics, capsules, alcohol, and sweeteners.
Currently, around 90 percent of Cambodia’s cassava is exported as fresh roots and dry chips to neighboring countries for processing and reexport. Only a small portion of the crop is processed into ethanol and starch for domestic consumption (100,000 metric tons) and export (30,000-70,000 metric tons annually).
There are significant opportunities for value addition and processing within Cambodia for both domestic and export markets. Investing in high-quality cassava starch processing, along with climate-smart agriculture practices and climate change adaptation, offers substantial returns for investors, value chain actors, and local economies.
Republic of Korea: Hand-in-hand from strength to strengthCambodia and four other countries in the Asia-Pacific region presented their prioritized agrifood investment proposals at a forum held in June in the Republic of Korea, ahead of the HIH - IF 2024 planned from 15-17 October at headquarters. Read more... |
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