(Tboung Khmum): Cambodian Prime Minister Hun Manet announced a government initiative aimed at enhancing the cashew sector by establishing industrial clusters for cashew processing factories and facilitating free land provision for investment projects.
The prime minister articulated the significance of this initiative as a strategic move to cultivate high-value local markets and ensure the production of finished products for direct export.
He spoke during the inauguration ceremony of the Rubber Manufacturing and Processing Factory by Kims Rubber (Cambodia) Co., Ltd., along with Wang Wenbin, Chinese Ambassador to Cambodia, held on Wednesday morning (May 27) in Tboung Khmum province.
Prime Minister Hun Manet underlined that the government would initially pilot a cashew industrial park project in Kampong Thom province, rather than implementing a nationwide expansion simultaneously. He emphasised the government’s commitment to this initiative through tax incentives and the allocation of free land for investors.
Furthermore, the prime minister urged operators of special economic zones to consider reducing rental costs for companies that invest in cashew processing facilities.
The prime minister also noted that a dedicated government working group has spent the past year developing this initiative, although border tensions had hindered progress. The primary objective of establishing the cashew processing industrial park is to create stable, high-value markets for local farmers by fostering domestic supply chains and attracting local buyers.
The prime minister added that developing processing facilities in Cambodia will allow investors to purchase cashew nuts from farmers at more favourable prices while also benefiting from reduced tax obligations. He added that enhancing agro-industrial chains would facilitate the export of finished products directly to international markets, rather than relying on transporting unprocessed cashew nuts through neighbouring countries.
This policy aims to ensure inclusive growth, benefitting both factory owners and farmers while increasing local value-added production.
According to the Cashew Nut Association of Cambodia (CAC), the country exported approximately 831,179 tons of raw cashew nuts to Viet Nam during the first four months of 2026, generating around USD 1.44 billion in revenue, representing a 24.17 per cent increase compared to the same period in the previous year.
Currently, Cambodia has about 740,000 hectares dedicated to cashew plantations nationwide, with expectations to produce between 800,000 and 1 million tons of cashew nuts in the 2026 harvest season, encouraged by expanded cultivation areas and favourable weather conditions.
The CAC’s report indicated that Cambodia earned USD 1.5 billion from the export of 1 million tonnes of raw cashew nuts in 2025, representing a 27 per cent increase compared to 2024.
=FRESH NEWS
