Kampong Thom and Royal Group Sign MoU to Study Creation of an Agro-Industrial Park

On January 7, 2026, the provincial administration of Kampong Thom and Royal Group Phnom Penh Special Economic Zone Plc. signed a Memorandum of Understanding (MoU) to launch a feasibility study aimed at establishing an agro-industrial park in the province.

This project, designed to complement the future cashew nut processing park, will focus on the processing of a wide range of agricultural products—excluding cashews—across an area of approximately 300 hectares.

Strategic Context of the Project

The MoU, signed by Governor H.E. Nuon Pharath and Mr. Uematsu Hiroshi, CEO of Royal Group Phnom Penh SEZ, aligns with Prime Minister Hun Manet’s vision to strengthen the local economy. The governor emphasized that this agro-industrial development would serve as a key driver of sustainable growth, improving local livelihoods through the diversification of products such as rice, rubber, and cassava.

Kampong Thom, which produces 220,000 tonnes of cashew nuts annually—accounting for 25% of national output—has strong agricultural potential. However, the province has faced delays in investment incentives for the planned 400-hectare cashew park.

The Pivotal Role of Royal Group

Royal Group, a major player in Cambodia’s special economic zones, has committed to working closely with provincial authorities and the Royal Government to boost the local economy. Mr. Uematsu expressed strong optimism about the project’s success, welcoming the planned incentives in customs, taxation, water, and electricity, which are expected to enhance international competitiveness.

This partnership also aims to curb the outflow of investments to northeastern provinces such as Kratie and Ratanakiri, often driven by delays in obtaining Qualified Investment Project (QIP) status.

Agricultural and Economic Stakes

In 2025, Cambodia exported 1 million tonnes of raw cashew nuts, generating USD 1.5 billion in revenue. However, limited domestic processing continues to constrain value addition. This agro-industrial park, together with AVC Investment’s USD 25 million mixed-processing plant—scheduled to begin operations in June 2026 and focused on cassava—promises job creation, higher productivity, and a strengthened value chain.

Prospects for Sustainable Development

Backed by the National Cashew Policy, which targets 25% domestic processing by 2027, this project could unlock Kampong Thom’s full potential and position Cambodia as a regional agro-industrial hub. Stakeholders are hoping for swift implementation to drive inclusive and sustainable growth.