New framework aims to expand food processing, create jobs, strengthen agricultural value chains and boost exports
Cambodia is promoting its new Agri-Food Industrial Park (AIP) Framework as the country seeks to attract high-quality investment into agricultural processing and value-added food production. The initiative was presented to agro-industrial investors and development partners at a meeting led by Deputy Prime Minister and Council for the Development of Cambodia (CDC) First Vice Chairman Sun Chanthol on August 27.
The framework, approved by Prime Minister Hun Manet on May 29, 2026, is built around a private-sector-led and government-linked model. It is intended to encourage investment in modern agri-food industrial parks while improving the competitiveness of Cambodia’s agricultural sector.
Key objectives include increasing value-added processing, creating employment, strengthening agricultural supply chains and supporting the expansion of Cambodian agricultural exports. The framework also establishes eligibility requirements and investment support measures for qualifying projects.
The CDC has identified agro-processing as a priority investment sector, reflecting the government’s broader effort to move Cambodia’s agricultural economy towards higher-value production. Developing dedicated industrial parks could help connect farmers and agricultural producers with processors, logistics providers and export markets.
Agriculture remains an important part of Cambodia’s economy, employing more than one-third of the country’s workforce. Agricultural exports generated more than US$3 billion during the first seven months of 2026, highlighting the sector’s importance to the country’s international trade.
The framework is also receiving support through Cambodia-Australia development cooperation. Australia has been working with Cambodian authorities and other stakeholders since 2022 to support the development of the AIP framework and strengthen the country’s agri-food industry.
The proposed industrial parks are expected to create opportunities for investment in food processing, agricultural technology, logistics, packaging and other supporting industries. By encouraging processing closer to agricultural production, Cambodia aims to capture more value from its domestic raw materials rather than relying primarily on exports of less-processed commodities.
The initiative could also strengthen Cambodia’s position as a regional supplier of processed agricultural and food products. Improved infrastructure, investment incentives and stronger supply-chain integration are expected to help businesses increase efficiency and meet international market requirements.
With the AIP Framework now being promoted to investors, Cambodia is positioning agro-industrial development as an important driver of industrialisation, employment generation and export growth.