Chinese Investment Surge in Cambodian Agriculture

• 20 January 2025
• Local News
• 1503 Views

The agricultural sector in Cambodia is experiencing a significant influx of interest from Chinese investors, particularly from Henan province. The Hernan Agriculture Investment Group has expressed intentions to invest in agricultural processing and fertiliser production in the Kingdom of Cambodia following a productive meeting with representatives from the Ministry of Agriculture on 15 January 2025.

During the meeting, the Chinese delegation thanked the ministry for providing valuable insights into Cambodia’s agricultural landscape. They emphasized their commitment to conducting further research to facilitate a smooth entry into the agricultural sector, focusing on product processing and fertiliser manufacturing.

In response, HE Kong Chanveasna, Secretary of State of the Ministry of Agriculture, reaffirmed the Royal Government of Cambodia’s open-door policy toward foreign investors, particularly in agriculture. He highlighted the sector’s immense growth potential and importance for export processing, noting the government’s strong encouragement for investment.

Furthermore, HE Chanveasna urged Chinese companies to consider developing agro-industrial parks in Cambodia, a project the Royal Government plans to announce soon. These parks are expected to offer increased incentives for establishing facilities to process agricultural goods for export.

Reflecting on recent trends, the Council for the Development of Cambodia reported approving 414 investment projects in 2024, marking a remarkable increase of 146 projects or 54%. These projects brought in an impressive investment capital of USD 6.9 billion, up by USD 1.973 billion or 40% compared to the previous year. Notably, the agriculture and agro-industry sector accounted for eight projects with a total investment exceeding USD 121 million, which, while only 2% of the total, signifies growing interest in this vital economic sector.

As Cambodia positions itself as a burgeoning agricultural hub, collaborating with Chinese companies could pave the way for enhanced agricultural productivity and export capabilities.

• Agriculture and Aquaculture Project