AGP Executive Report

Growth Strategy: Cambodia is turning to small-scale manufacturing, technology-led agriculture and MSMEs to counter weaker tourism, high fuel costs and climate risks. The World Bank has cut its 2026 growth forecast to 3.5%. Agri-Processing: At the Cambodia Agriculture Forum and Expo, Industry Minister Hem Vanndy urged investment in processing technology, quality standards, cold storage and packaging to move exports beyond raw commodities and compete in higher-value markets. The three-day event featured about 400 booths. Farm Exports: Cambodia has shipped 15 million tonnes of agricultural products to international markets, while milled rice exports have topped one million tonnes for a record. The government is also working to widen access to European agri-food markets. Manufacturing: Tire exports brought in more than $1.7 billion in the first nine months of 2026, highlighting a bright spot as Cambodia seeks to diversify beyond traditional industries.

Industrial Strategy: Cambodia is looking to small-scale manufacturing and higher-value agriculture to lift growth, which the World Bank has downgraded to 3.5% for 2026. Industry Minister Hem Vanndy urged investment in food processing, cold storage, packaging and quality standards to move beyond raw exports. Agribusiness: Phnom Penh’s three-day agriculture expo features about 400 booths showcasing machinery, digital tools and processing equipment. Officials called for more investment, stronger supply chains and wider market access; rice exports have passed one million tonnes. Business Growth: The government has launched a five-year MSME strategy, while the 2027 budget sets public spending at about US$11.7 billion. Factory Watch: A sportswear factory employing nearly 700 people plans to close in January, citing a lack of orders; older workers face greater difficulty finding new jobs.

Agri-processing: Cambodia’s Agriculture Forum and Expo opened in Phnom Penh with about 400 booths, as Industry Minister Hem Vanndy urged investment in processing, cold storage, packaging and quality standards to help move exports beyond raw commodities. Farm exports: Cambodia reported 15 million tonnes of agricultural exports and a record rice-export year, with milled rice shipments topping one million tonnes; officials are also pushing for better access to European food markets. Small businesses: The government launched a five-year MSME strategy to support growth and improve access to finance, while Hun Manet called small firms key economic partners. Manufacturing: Tire exports earned more than US$1.7 billion in the first three quarters of 2026, even as 8 Star Sportswear announced it will close in January, putting nearly 700 jobs at risk.

2027 Budget: Cambodia’s Cabinet approved a draft public-spending plan of $9.72 billion, with the economy forecast to grow 4.8% next year. Agriculture: The country exported 15 million tonnes of farm products in the first 10 months of 2026. Officials are pushing to meet European market standards and turn SIAL Paris leads into sales. Garments: Phnom Penh’s 8 Star Sportswear factory plans to close in January, putting nearly 700 jobs at risk; workers aged 50 and older may face the toughest search for new work. Exports: Milled-rice shipments topped one million tonnes, a record, while tire exports brought in more than $1.7 billion in the first three quarters. Small Businesses: Cambodia launched a five-year MSME strategy and pledged to improve access to finance, aiming to help small firms grow.

Agriculture: Cambodia exported 15 million tonnes of farm products in the first 10 months of 2026. At the CAFE26 forum, officials called for stronger quality controls and production standards to grow exports. Public spending: The Cabinet approved a $9.72 billion draft budget for 2027, forecasting 4.8% economic growth led by manufacturing, agriculture, tourism and logistics. Garments: 8 Star Sportswear will close in January, leaving nearly 700 workers facing job uncertainty; employees aged 50 and over may have the hardest time finding new work. Market access: Cambodia is helping agri-food exporters prepare for European buyers, with the Netherlands positioned as a gateway to EU markets. Business growth: A national forum on Oct. 27–28 will connect MSMEs with lenders and investors to improve access to finance. Rice exports have topped one million tonnes, while tire exports earned more than $1.7 billion in the first three quarters.

Agrifood Investment: Cambodia’s CAFE26 opened in Phnom Penh today, bringing investors, producers and policymakers together to promote nine priority commodities and build export links. MSME Growth: More than 2,600 locally made products were registered in the first nine months of 2026, up 73.3% year on year. A national forum next week will focus on financing access, while the new 2026–2030 MSME strategy aims to strengthen small businesses. Export Momentum: Rice exports have topped one million tonnes, setting a new annual record, while tire exports brought in more than US$1.7 billion in the first three quarters. Energy Exploration: Angkor Resources received final environmental approval to drill across four sub-basins in onshore Block VIII, subject to further permits from the Ministry of Mines and Energy. Climate Risk: The ADB warns that rising seas, erosion and flooding threaten Cambodia’s coastal ports, fisheries, trade and tourism, underscoring the need for investment in resilience.

MSMEs and Manufacturing: Cambodia launched a five-year strategy to strengthen small businesses, which contribute about 63% of GDP and employ more than 70% of the workforce. Domestic manufacturers registered over 2,600 products in the first nine months of 2026, up 73% year on year, as the government urged producers to improve quality and safety. Food and Agriculture: MISTI and FAO discussed cooperation on food standards, testing and agro-processing to help local producers retain more value and reach export markets. Cambodia also sought FAO support for weather monitoring and early-warning systems to help farmers plan and manage climate risks. Climate Risks: The ADB warned that rising seas, erosion and flooding threaten coastal livelihoods and economic activity, including ports, fisheries, trade and tourism. Exports: Milled rice exports topped one million tonnes, setting a new annual record, while tire exports brought in more than $1.7 billion in the first three quarters of 2026.

MSME Growth: Cambodia launched a 2026–30 strategy to strengthen small businesses through better business conditions, digital adoption and access to finance. MSMEs employ nearly 3 million people and contribute about 63% of GDP. Hiring & Pay: JobNet launched a real-time salary survey covering 21 job functions and more than 180 job titles, giving employers new tools to benchmark compensation. Farm Resilience: Cambodia asked the FAO to help expand agrometeorological networks, early warnings and local expertise to protect farm output from erratic weather. Rice Exports: Shipments topped 1 million tonnes by Oct. 19, a record reached with more than two months left in the year. Electric Vehicles: Cambodia registered nearly 18,000 EVs through September; adoption accelerated as fuel prices climbed.

Investment: Cambodia and Japan renewed their push to improve the investment climate and build Japanese business confidence at the 32nd bilateral committee meeting, with officials and business groups discussing trade and investment barriers. Exports: Cambodia’s rice shipments topped 1 million tonnes by Oct. 19, setting a new annual record with more than two months left in the year. Tire exports also surged, bringing in $1.723 billion in the first nine months, up 77.5% year on year. Electric Vehicles: Cambodia registered 17,972 EVs from 2021 through September, including 7,609 in March–September as fuel prices climbed. Market Access: Cambodian businesses promoted agricultural products and handicrafts at Japan’s Global Festa, while coffee producers used SIAL Paris to seek overseas buyers. Finance: Banking and microfinance associations pledged responsible lending, fair debt collection and case-by-case loan restructuring amid concerns over household debt.

Rice Exports: Cambodia shipped a record 1,014,442 tonnes by Oct. 19, topping its previous annual high with more than two months left in 2026. Digital Economy: Southeast Asia’s online economy is forecast to grow 17% to US$368 billion this year, with AI boosting activity across e-commerce, travel and delivery; Cambodia is among the markets covered. Coffee Exports: Mondulkiri producer Kiri Coffee is courting overseas buyers at SIAL Paris, as local production remains far below domestic demand. Industrial Transition: The IMF says Cambodia needs better jobs, skills, investment reforms and stronger domestic industries to move beyond a low-wage growth model. Market Access: Cambodia used SIAL Paris to connect businesses with European buyers and promote rice and other agricultural products. Farm Resilience: El Niño threatens harvests after drought and floods damaged crops; authorities are urging water conservation ahead of the dry season.

Agro-Exports: Cambodia’s milled rice exports reached a record 1,014,442 tonnes by Oct. 19, surpassing the full-year 2025 total. At SIAL Paris, 16 Cambodian firms showcased export-ready foods, while 12 companies promoted rice and business networking aimed to open more European market opportunities. Climate and Farming: El Niño is expected to persist through February 2027, with drought and floods already damaging rice crops. Authorities urged water conservation as the dry season begins. Cleaner Industry: Cambodia launched a three-year, US$4 million programme to cut methane, black carbon and other potent pollutants across agriculture, waste, energy and transport. Factory Jobs: More than 200 workers lost their jobs after a Kandal glove manufacturer announced its closure; following government intervention, the company agreed to pay outstanding wages and legally required benefits.

Rice Exports: Cambodia’s milled rice exports reached a record 1.014 million tonnes by Oct. 19, surpassing the full-year 2025 total and marking a major gain for the agro-export sector. Food Industry: At SIAL Paris, 16 Cambodian companies are pitching cashews, dried fruit, pepper and other products to international buyers; 12 firms are also showcasing premium rice. Agriculture Risks: With El Niño expected to persist through February, officials are urging water conservation and prioritising household supplies and dry-season crops. Regional Trade: Cambodia and Vietnam are targeting $20 billion in bilateral trade, with plans to link logistics, agro-industry and clean energy through cross-border production networks.

Agricultural Trade: Cambodia and Kazakhstan explored wheat exports, farm processing and investment, with grain, meat and vegetable oil among the products on the table. Cleaner Industry: Cambodia launched a programme to cut methane, black carbon and other super pollutants, supporting its environmental strategy. Trade & Investment: Cambodia-China trade rose 23.8% in the first nine months, while fixed-asset investment projects approved in January–September totalled $5.92 billion. Exports: Bicycle and e-bike exports climbed 23% and key fruit exports 16.4% in the same period. Infrastructure & Enforcement: Cambodia is set to build a long-awaited Mekong bridge linking Phnom Penh with Kandal; meanwhile, inspections in Kratie’s protected areas uncovered 228 offences, including illegal mining and construction.

Gold Exploration: Unity Metals has launched a 3,000-metre drilling campaign at its O’Phlay project, targeting extensions to promising gold finds and new prospects in eastern Cambodia. Trade and Investment: Cambodia and Kazakhstan signed six agreements covering trade, tourism, culture and digital government, and discussed cooperation in agriculture and manufacturing. Separately, Cambodia-China trade rose 23.8% in the first nine months of 2026, while the country registered $5.92 billion in fixed-asset investment projects. Agriculture: Disasters killed 79 people in the first nine months and destroyed 18,000 hectares of rice fields; nearly 400,000 hectares were damaged. Despite the setbacks, key fruit exports rose 16.4% and bicycle and e-bike exports increased 23% year on year. Business Ties: Cambodia and Türkiye renewed a goal of reaching $1 billion in bilateral trade, with leaders identifying trade, investment and energy as areas for closer cooperation. Urban Infrastructure: Officials reviewed engineering plans for household sewer connections in Takhmao, part of a Korean-funded wastewater project.

Kazakhstan Trade: Cambodia and Kazakhstan signed six agreements covering trade, digital government, tourism and culture, and are exploring closer cooperation in agriculture, manufacturing and logistics. Kazakhstan is interested in supplying grain, meat and vegetable oil to Cambodia, while both sides discussed linking transport corridors. Turkey Business: Hun Manet urged companies to deepen trade, which rose 18% to about US$400 million in 2025, with opportunities in manufacturing, agro-processing, renewable energy, logistics and digital technology. Investment and Exports: Cambodia approved US$5.92 billion in fixed-asset investment projects in the first nine months of 2026, while trade with China grew 23.8%. Bicycle and e-bike exports also climbed 23% over the same period. Farmers Under Pressure: Floods and drought destroyed 18,000 hectares of rice fields this year and damaged hundreds of thousands more, as authorities rush aid to affected farming families.

Tourism Links: Cambodia is courting Kazakh visitors through a film production company’s work in the country and proposals to resume flights between Astana and Preah Sihanoukville. Trade and Logistics: During Prime Minister Hun Manet’s Kazakhstan visit, the countries explored cooperation in agriculture, food processing, energy and manufacturing, as well as a transport link connecting the Trans-Caspian route with the China-Laos-Vietnam-Cambodia corridor. Business Ties: Cambodia and Türkiye are seeking to raise annual trade to US$1 billion; trade reached about US$400 million in 2025, up 18%, with both sides promoting opportunities in manufacturing, agro-processing, renewable energy and logistics. Trade Growth: Cambodia’s trade reached US$58.49 billion in the first nine months of 2026, up 22.1% year on year. Trade with China rose 23.8% to US$17.58 billion. Agriculture Risks: El Niño-linked drought and flooding damaged crops this year: drought affected nearly 290,000 hectares of rice fields in July, while September floods inundated about 150,000 hectares and affected nearly 60,000 families.