Cambodia and Australia Launch Agri-Food Industrial Park Framework to Drive Value-Added Investment
The CDC and the Australian Embassy introduce the Agri-Food Industrial Park Framework, providing tailored incentives to modernize Cambodia’s agro-processing sector.
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PHNOM PENH — The Council for the Development of Cambodia (CDC) and the Australian Embassy in Cambodia have officially showcased investment opportunities under the newly established Agri-Food Industrial Park (AIP) Framework, aimed at accelerating agricultural industrialisation and boosting high-value food processing.
The investment framework, approved by Prime Minister Hun Manet on May 29, 2026, establishes a “Private Sector-Led and Government-Linked” business model designed to attract high-quality foreign direct investment (FDI), strengthen agricultural value chains, and expand export competitiveness.
Economic Impact and Investment Incentives
The high-level presentation session was presided over by H.E. Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the CDC, alongside Australian Ambassador to Cambodia Derek Yip.
Key components of the initiative include:
- Substantial Economic Projections: According to research funded by the Australia-backed Cambodia Australia Partnership for Resilient Economic Development (CAPRED), establishing a single Agri-Food Industrial Park could generate up to $5.1 billion in economic value over 20 years and create over 100,000 jobs.
- QIP Plus Support Packages: Eligible park developers and processing operators can access the AIP Qualified Investment Project (QIP) Plus Support Package, offering targeted tax incentives, regulatory facilitation, and streamlined administrative procedures.
- Producer-to-Processor Linkages: Creating integrated physical infrastructure that connects local farmers directly with modern processing facilities, reducing post-harvest losses and logistics costs.
Enhancing Resilience in Global Agricultural Trade
Agriculture remains a pillar of Cambodia’s economy, employing over one-third of the national workforce and generating more than $3 billion in export revenue in the first seven months of 2026 alone.
Deputy Prime Minister Sun Chanthol stated that the framework represents a strategic milestone in transitioning Cambodia from exporting raw agricultural commodities to producing high-value processed food products.
Australian Ambassador Derek Yip emphasized that Australia’s collaboration on the framework since 2022 aims to enhance food security, support rural household livelihoods, and position Cambodian agro-food products competitively within global supply chains.
