Investment perks to transform Cambodia’s northeastern economy

Investment perks to transform Cambodia’s northeastern economy

Government aims to incentivise investment in agriculture and agro-industry, particularly in high-value crops, and tourism in the provinces of Kratie, Stung Treng, Ratanakiri, and Mondulkiri.

The Cambodian government aims to spur balanced national development with the launch of a special programme to promote investment in the four northeastern provinces of Kratie, Stung Treng, Ratanakiri, and Mondulkiri—regions rich in potential yet long isolated from the country’s economic hubs.

The initiative, which took effect in April, is to unlock new engines of growth in agriculture, agro-industry, and tourism, while tackling investment barriers and fostering regional integration.

In a video released recently, Sim Vireak, Head of the Secretariat of the Northeast Investment Promotion Working Group, said the programme is built around three core concepts, three priority sectors, and three support measures, reflecting the government’s commitment to creating a more inclusive and sustainable economic landscape in Cambodia’s northeast.

The three concepts focus on transforming the four provinces into economies driven by the three priority sectors of agriculture, agro-industry, and tourism, leveraging their existing strengths; addressing challenges faced by investors in the region; and encouraging synergistic development through regional integration, rather than scattered and disconnected investments.

Crops such as rubber, cassava, cashew, and yellow banana, which together contribute between 20% and 60% of Cambodia’s total production, will play a key part in the transformation of the agriculture sector.

The region’s unique natural and cultural assets, including freshwater dolphins, yellow-cheeked and white-tailed monkeys, Ramsar sites, and indigenous heritage, are expected to support a boost in tourism.

To attract and support investors, the government has introduced three main support measures: Tax and customs incentives—including up to 12 years of income tax exemptions, as well as exemptions from excise duties, withholding taxes, real estate taxes, billboard taxes, and patent taxes—and financial support through low-interest financing provided by the Rural and Agricultural Development Bank and the Small and Medium Enterprises Bank of Cambodia.

Investment procedures for investment will also be simplified for quick facilitation, with a a one-stop service mechanism for domestic investors and SMEs.

Vireak announced that businesses operating in the four provinces that voluntarily register for tax in 2025 will be exempted from fines, penalties, and outstanding tax debts. Furthermore, to promote small and medium enterprises, the government has relaxed the minimum capital requirement from $100,000 for registering qualified investment projects.

Men Kong, spokesman for the Stung Treng Provincial Administration, said that several existing companies in the province have already begun preparing to register under the new initiative. While new investors have yet to finalise projects, many have conducted visits and feasibility studies in coordination with local authorities.

He also noted that infrastructure development in Sesan district, including roads and housing for landless families, has reached 90% completion under a sustainable development programme initiated by Prime Minister Hun Manet.

The special investment programme reflects the government’s commitment to the region’s development, following Cambodia’s withdrawal from the Cambodia-Laos-Vietnam Development Triangle Area in September 2024. The decision was made to prevent political exploitation of the cooperation framework.

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