Cambodia unlocks new gates for investments in northeastern provinces

Cambodia unlocks new gates for investments in northeastern provinces

While Cambodia’s economic progress could be ahead of others in the region, the growth is essentially centred in the country’s main growth corridors; not the whole of Kingdom. The Royal Government has now earmarked four Northeastern Provinces — Kratie, Stung Treng, Mondulkiri, and Ratanakiri — to transform them into the country’s fifth economic pole. According to a top government official, these provinces boast fertile soil, a favourable climate, and diverse natural resources that have long supported the cultivation of strategic crops. Beyond agriculture, the area’s cool climate, clean air, and preserved natural landscapes support a strong potential for ecotourism. Khmer Times looks into the government’s earnest push to create a more investor-friendly environment that could mark a turning point for Cambodia’s northeastern region. Going by the government’s seriousness and determination, this new growth bloc, in the years to come, will substantially boost the Kingdom’s overall economic progress

In a bid to unlock the untapped potential of Cambodia’s northeastern provinces, the Royal Government has launched the Special Programme to Promote Investment in the Four Northeastern Provinces (SPIN Programme) 2025-2028. Designed to drive inclusive economic growth in Kratie, Stung Treng, Ratanakiri, and Mondulkiri, the programme aims to attract private investment and integrate these remote provinces into the broader national development agenda.

The programme focuses on three key sectors: agriculture, agro-industry, and tourism — areas where the region holds natural advantages. With fertile land, a favourable climate, and rich biodiversity, the northeast is a major contributor to Cambodia’s agricultural output and offers strong potential for ecotourism.

For decades, however, these provinces have remained largely disconnected from the country’s main growth corridors. The new initiative seeks to change that by offering targeted incentives, streamlining bureaucratic procedures, and lowering entry barriers for investors. Under the new policy, the minimum capital requirement has been reduced to $100,000, and a dedicated SPIN Working Group has been established to act as a one-stop service for investment approvals, permits, and licenses.

SPIN programme

Structured around the government’s ‘3.3.3’ concept—three visions, three sectors, and three types of incentives—the programme goes beyond traditional investment frameworks to offer expanded benefits, even to non-qualified projects in general sectors.

Outlining the broad contours of the programme, Prime Minister Hun Manet emphasized the government’s broader vision for regional inclusion: “This initiative aims to broaden the economic foundation of provinces distant from growth centres, while ensuring greater resilience and inclusivity.”

Speaking at the launch event in Phnom Penh on April 9, 2025, he said, “We are offering incentives beyond those outlined in the Law on Investment and expanding their scope beyond Qualified Investment Projects (QIPs) in priority sectors to include general sectors and QIP expansions.”

In the official report for the SPIN Programme 2025-2028, Mr Hun Manet reaffirmed the Royal Government’s commitment to inclusive and sustainable development, outlining initiatives to accelerate investment and growth in Cambodia’s northeastern provinces.

He credited past successes under the Triangle Strategy and the Four-Phase Rectangle Strategy for transforming Cambodia across multiple sectors.

“The achievements of the previous Royal Government through the successful implementation of these strategies have significantly changed the face of Cambodia. Numerous socio-economic indicators have improved, and we can take pride in our progress,” he stated.

He also noted that Cambodia has gained international recognition not only for domestic economic development but also for its contributions to regional peace building and sustainability.

“These are nation-building legacies that the Royal Government of the 7th Legislature of the National Assembly is determined to preserve and enhance. With the launch of the First Phase of the Pentagonal Strategy, we aim to lead Cambodia toward greater prosperity and happiness in line with Cambodian Vision 2050.”

Acknowledging the challenges of equitable development, the Prime Minister pointed out that limited resources have hindered uniform progress nationwide. He stressed the urgent need for targeted intervention in remote areas, particularly the northeastern provinces.

“The Northeast is rich in arable land and natural resources, yet remains far from the country’s major economic poles. In previous mandates, the Royal Government prioritized infrastructure development to better connect the region with national and cross-border trade flows,” he said.

To further unlock the region’s economic potential, the Prime Minister officially announced the launch of the Special Programme to Promote Investment in the Four Northeastern Provinces (2025-2028).

Initiated in August 2024, the programme was developed under the leadership of Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, who also chairs the Economic and Financial Policy Committee (EFPC). It is the result of extensive research and consultations with stakeholders at both national and sub-national levels, including private sector actors and local communities.

The programme identifies agriculture, agro-industry, and tourism as priority sectors, aligning with the region’s inherent strengths. It offers a range of incentives and support mechanisms to attract investment.

“This programme outlines clear incentives for the private sector, including affordable financing, lower production costs, streamlined procedures, and active government support,” the Prime Minister said.

He expressed “deep appreciation” to Pornmoniroth and all relevant ministries and institutions for their roles in shaping the initiative. “I also thank all parties who helped ensure this programme is realistic, targeted, and implementable,” he added.

The SPIN Programme is expected to serve as a catalyst for sustainable economic development, job creation, and improved livelihoods in some of Cambodia’s most underdeveloped provinces.

Unlocking economic potential

The four northeastern provinces possess strong economic potential due to favourable conditions supporting agriculture, agro-industry, and tourism. Strategic crops in the region include rubber, cashew, cassava, pepper, mango, and yellow banana, all of which have strong potential for both domestic and export markets.

The region’s rich natural and cultural assets—including a favourable climate, clean air, abundant natural resources, forests, and wildlife sanctuaries—also make it ideal for nature-based and eco-tourism.

Nevertheless, the region continues to face structural challenges that require sustained government intervention to fully unlock its economic potential and promote balanced provincial development.

The northeast provinces are on the cusp of transformation as the government officially launches the SPIN Programme 2025-2028. This ambitious initiative aims to tap into the region’s agricultural, agro-industrial, and tourism potential, spurring economic growth and improving livelihoods.

At the launch event on April 9, 2025, Pornmoniroth emphasized the natural advantages that make the northeast a prime destination for investment: “These provinces boast fertile soil, a favorable climate, and diverse natural resources that have long supported the cultivation of strategic crops.”

In 2024, the four provinces accounted for between 20-60 percent of national yields for key crops—an indicator of their agricultural strength. Beyond agriculture, the area’s cool climate, clean air, and preserved natural landscapes support strong potential for eco-tourism.

One of the programme’s goals is to promote “Unique Identity Tourism”—highlighting the region’s cultural, natural, and historical assets. This approach aims to attract visitors while supporting local communities and preserving the environment.

Yet challenges remain. Infrastructure gaps, limited access to finance, and bureaucratic hurdles have hindered development. The government is actively addressing these issues to create a more investor-friendly environment.

Under the leadership of Prime Minister Hun Manet, the SPIN Programme offers a suite of incentives including tax and customs exemptions, affordable financing, and streamlined procedures aimed at lowering production costs.

“This programme is built on three pillars: transforming the northeast’s economy through agriculture, agro-industry, and tourism; addressing urgent challenges to quickly stimulate investment; and encouraging clustered developments to maximize economies of scale,” the Deputy Prime Minister explained.

Eligible projects include new QIPs, expansions of existing QIPs, and ventures in modern agricultural communities and tourism businesses launched between 2025 and 2028.

The government hopes this initiative will ignite a new wave of economic activity in the northeast, driving infrastructure improvements, job creation, and long-term sustainable growth.

Growth prospects

Cambodia’s efforts to transform the northeastern region into a dynamic investment zone and the country’s fifth economic pole was greeted with a great degree of optimism by the private sector.

Noun Rithy, Chairman of the Board of KFA Group, told Khmer Times that the government is taking proactive measures to create distinct investment opportunities through regional clustering.

He noted that the grouping of the four provinces allows for a targeted strategy that aligns with Cambodia’s broader economic development goals.

“Through the SPIN Programme, the government is leading efforts to attract both domestic and international investment into the northeast,” Rithy said. “This clustering approach enables policymakers to focus on critical areas such as human resources, technology, transportation, electricity, and infrastructure.”

Over the past few years, infrastructure in these provinces has seen significant improvements, particularly in transportation networks and telecommunications. According to Rithy, the enhanced road systems and proximity to neighbouring countries such as Laos and Vietnam make the region an attractive location for agro-industrial development, especially in crop cultivation and food processing for export.

“The geographical advantages and logistical improvements make it easier for investors to access international markets,” he said. “In addition, the region hosts several large hydropower plants that ensure a stable energy supply, which is key to lowering production costs.”

According to Rithy, each of the four provinces is contributing unique strengths to the SPIN cluster. Mondulkiri, with its cooler climate and rich natural resources, is emerging as a hotspot for both eco-tourism and real estate. Property prices remain relatively stable, but the market has begun to show fluctuations as new housing projects, entertainment venues, and industrial zones are being developed.

Ratanakiri has experienced rapid infrastructure growth over the past five years. The province is benefitting from newly built roads and increasing public and private investments, which have improved accessibility and logistics.

Stung Treng, on the other hand, is now being positioned as a national energy hub. With a 400-megawatt power supply being fed into the national grid, the province is playing a key role in stabilizing electricity prices—an important factor in drawing industrial investors.

Kratie is also showing strong potential, particularly in tourism and infrastructure development. With its riverside setting and improving transport links, the province is attracting more interest from both real estate developers and tourism operators.

“These four provinces have immense potential for agro-industrial and infrastructure-based investments,” Rithy said. “With strong government support and favorable conditions in place, the northeast is well on its way to becoming a major contributor to Cambodia’s future economic growth.”

He emphasized that investors should view the SPIN Programme not just as a government initiative, but as a long-term opportunity to be part of a rising regional economy that balances development across Cambodia.

Speaking to Khmer Times, Sam Soknoeun, President of SAM SN Group, said the Royal Government of Cambodia is ramping up efforts to attract investment in the northeastern provinces of Ratanakkiri, Mondulkiri, Stung Treng, and Kratie through the newly announced Special Programme to Promote Investment in the Four Northeastern Provinces (SPIN Programme) 2025–2028.

Strategic focus on Northeast

The SPIN Programme aims to unlock the untapped economic potential of the region, particularly in agriculture, tourism, and infrastructure development, in a bid to spur balanced regional growth and encourage private sector participation.

Soknoeun welcomed the initiative, highlighting the government’s strategic focus on the northeast as a sign of long-term development planning. “These four provinces are considered by the government to have strong potential for investment and development. Among them, agriculture holds the most promise, as it is a sector the government is actively promoting,” he said.

Sam pointed to Mondulkiri and Ratanakiri as standout provinces, rich in eco-tourism resources and fertile land. He noted that both sectors—agriculture and tourism—are high on the government’s development agenda.

“Importantly, we should not overlook the tourism potential of all four provinces,” he stressed.

The SPIN Programme is expected to facilitate infrastructure improvements—roads, electricity, water systems, and digital connectivity—that will make the provinces more attractive to investors.

The government’s push aligns with broader strategies to reduce regional disparities and promote sustainable economic growth across the country.

“At present, the government is making significant efforts to improve infrastructure in these northeastern provinces. I believe these areas will also evolve into commercial hubs, as regions with growing agricultural and tourism sectors tend to attract business investment,” Soknoeun added.

The northeastern region, often described as Cambodia’s “green frontier,” has long been underdeveloped due to its remote location and limited infrastructure. However, with rising attention from policymakers and a series of investment-friendly reforms, interest is steadily growing.

“Recently, I’ve noticed that the government is increasingly encouraging investment in these provinces by creating favorable conditions for investors,” Soknoeun observed.

While agriculture and tourism stand out as primary areas of focus, real estate is also drawing attention. According to Soknoeun, real estate in these provinces presents an interesting long-term opportunity.

“There is profit potential. Property prices are currently affordable, making them attractive for investment. However, short-term profits are unlikely, as the real estate sector is still in a recovery phase,” he noted.

The SPIN Programme complements other national strategies, including the government’s digital and green development policies, and is aligned with Cambodia’s broader vision of becoming a high middle-income country by 2030.

As the programme rolls out, industry experts and investors will closely watch how policy implementation unfolds, especially in terms of ease of doing business, regulatory support, and infrastructure delivery.

If successful, the SPIN Programme could mark a turning point for Cambodia’s northeastern region—unlocking economic opportunities for local communities while attracting sustainable private investment.

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