Cambodia’s Kampong Thom SEZ Hints Agri-Industrial Boom with Agreement

On June 12, Royal Group Phnom Penh SEZ Plc. signed a Joint Venture Agreement (JVA) with the Kampong Thom provincial administration to establish the Kampong Thom Special Economic Zone (KTSEZ). The agreement comes after months of both parties studying the Kampong Thom Province’s agricultural, industrial, and commercial capabilities, outlined in a memorandum of understanding (MoU). Positioning itself as a Farm-to-Factory Agro-Processing Zone, the project aims to promote Cambodia’s import substitution and export-oriented industries by developing value-added agricultural supply chains. The KTSEZ project will cover 300 hectares and sits in the largest province dedicated to cashews in the country.

However, Cambodian SEZs face new and demanding expectations as the country seeks to shift away from its Least Developed Country status in 2029. The transition will reduce state access to several preferential trade agreements that have helped expand its export-led manufacturing, including the European Union’s Everything But Arms (EBA) scheme and U.S. trade preferences. As such, to maintain its market competitiveness, Cambodia must transition its industries into secondary markets, including electronics, automotive manufacturing, precision engineering, and agro-processing—all while continuously investing in updated logistics infrastructure, energy systems, and workforce development to keep up with the industrial shift.

Nonetheless, expansions like the launch of the Kampong Thom Entrepreneurship Support Program support the province’s rapid development to meet the industrial shift. With a more industry-ready and entrepreneurial workforce, KTSEZ’s competitive ecosystem can support domestic manufacturing for both local consumption and export markets while providing manufacturers with more reliable, higher-quality local suppliers. Furthermore, inspections by Minister of Commerce Cham Nimul and visits by Chinese and Vietnamese delegations highlight continued state interventions and interests by international stakeholders in expanding investments and operations. As KTSEZ begins to open a new market for agribusinesses and manufacturers, its rapid development signals growing confidence as an emerging and favorable agro-industrial hub.