Danong Development Group: Pioneering a US$12.7bn Agro-Industry Revolution Across Six Cambodian Provinces

• 14 August 2023
• Local News
• 43425 Views

In a landmark move poised to redefine Cambodia’s agricultural landscape, China’s Danong Development Group has unveiled a visionary investment initiative, setting its sights on a colossal investment of over US$12.7 billion spanning six strategic provinces. The announcement, unveiled during an exclusive press conference by BDN TV online on 14 August marks a monumental leap forward in Cambodia’s economic growth trajectory.

With a strategic footprint spanning Sihanoukville, Kampot, Battambang, Pursat, Siem Reap, and Kampong Thom provinces, the expansive nature of this project necessitates approximately 750,000 hectares of agricultural land. The Dancing Development Group is poised to catalyze a revolution in the agricultural sector, fortifying the nation’s position on the global trade stage.

Mr. Doung Dara, Secretary of State of the Council of Ministers, lauded this strategic collaboration, stating, “Danong Development Group’s expertise in modern and smart agricultural industries makes them an exemplary partner for Cambodia. Their involvement will undoubtedly accelerate our agricultural sector’s growth, positioning Cambodia as a beacon of agro-industrial development.”

Mr. Zhao Shuje, President of Danong Development Group, highlighted the venture’s comprehensive approach, emphasizing investments in livestock and agricultural products. The focus includes grass planting for animal feeding, corn breeding, cassava cultivation, and pig and cow breeding and raising. These critical components will form a robust supply chain, incorporating advanced processing facilities and innovative livestock farming practices.

The cornerstone of this transformative initiative is its export-oriented approach. Mr. Zhao Shuje underscored the significance of Cambodia becoming a vital food warehouse, catering to China’s surging demand due to its rapid economic expansion.

With a central business hub planned for the multipurpose special economic zone in Sihanoukville, Danong Development Group envisions a dynamic ecosystem comprising food stock centers, multi-service, and supply centers, and an advanced logistical network across a sprawling 15-square-kilometer expanse.

Recognising Cambodia’s finite available land for concessions, the investment strategy will adopt a multi-faceted approach. It encompasses land rental for investment, co-investment initiatives, and land acquisition at appropriate market prices.

This visionary investment project, took shape following PM Hun Sen’s visit to China in February 2023, during which the PM called for more interest from Chinese investors.

Beyond its financial magnitude, this initiative holds the promise of stimulating growth across sectors, leaving an indelible impact on the nation’s economy. The investment’s astounding value of over US$12.7 billion parallels almost half of Cambodia’s 2021 GDP, cementing its potential to shape the nation’s economic trajectory.

• Agriculture and Aquaculture Project