Cambodia Pursues Economic Growth Through Australia-Backed Agri-Food Parks

Cambodia is embarking on an ambitious initiative to modernize its agricultural sector through the introduction of the Agri-Food Industrial Park (AIP) Framework, backed by Australia. This framework aims to attract significant investment, potentially generating up to $5.1 billion in economic value and creating more than 100,000 jobs over the next two decades, according to the Council for the Development of Cambodia (CDC).

The AIP Framework was approved by Prime Minister Hun Manet on May 29, 2026, as part of the government’s broader strategy to enhance agricultural processing and boost export competitiveness. The initiative was recently presented to investors, agribusinesses, and industrial park developers during an information session held on August 27, organized by the CDC and the Australian Embassy.

“The AIP Framework represents an important milestone in Cambodia’s efforts to modernize its agricultural economy.”Sun Chanthol, Deputy Prime Minister

Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the CDC, emphasized the framework's role in supporting inclusive economic growth and modernizing agricultural value chains. He noted that the AIP Framework represents an important milestone in Cambodia’s efforts to modernize its agricultural economy, strengthen value chains and create an enabling environment for private sector investment.

According to a study funded by the Australian government, establishing a single agri-food industrial park could contribute significantly to Cambodia’s economy, with estimates indicating a potential $5.1 billion boost over 20 years. This aligns with the Cambodian government's focus on agro-processing as a priority investment sector, aiming to capture more value from agricultural products before they are exported.

Australian Ambassador to Cambodia, Derek Yip, remarked on the importance of the framework, stating it could foster responsible investment while enhancing connections between Cambodian farmers and processing businesses. He mentioned that as Cambodia navigates a complex global market environment, strengthening domestic processing can help build a more competitive and resilient agri-food sector. This approach is expected to support rural livelihoods and food security while creating new market opportunities.

“Strengthening domestic processing can help build a more competitive and resilient agri-food sector.”Derek Yip, Australian Ambassador to Cambodia

Currently, agriculture employs more than one-third of Cambodia’s population. The proposed industrial parks are designed to bring together producers, processors, logistics companies, and supporting services in designated areas, which could lower production costs and improve access to export markets.

The Australian government has been involved in supporting the development of this framework since 2022, collaborating with various stakeholders including the CDC and the Ministry of Economy and Finance. This partnership reflects a growing commitment to enhance Cambodia’s agricultural sector and its overall economic landscape.