Cambodia is stepping up its efforts to expand international trade and attract new investment opportunities by pursuing deeper economic cooperation with Eurasian nations. During the Russia ASEAN Commemorative Summit held in Kazan, Russia, from June 17 to 18, 2026, Prime Minister Hun Manet led a Cambodian delegation in a series of high level meetings focused on strengthening bilateral relations, boosting trade and investment, and exploring broader economic integration. The discussions came as ASEAN and Russia celebrated 35 years of partnership, providing a timely platform for Cambodia to advance its economic diplomacy agenda.

At the center of the visit was Cambodia’s proposal to pursue a Free Trade Agreement with the Eurasian Economic Union, a regional bloc comprising Russia, Kazakhstan, Belarus, Kyrgyzstan, and Armenia. The initiative reflects the Kingdom’s ongoing strategy to diversify export destinations, reduce dependence on traditional markets, and position itself as a gateway connecting Southeast Asia with emerging markets across Eurasia.

Cambodia and Russia Reaffirm Growing Partnership

Prime Minister Hun Manet met with Russian President Vladimir Putin on the sidelines of the summit, where both leaders reviewed the progress of Cambodia Russia relations and discussed opportunities for future cooperation. According to the Prime Minister’s Spokesperson Unit, the two leaders expressed satisfaction with the steady development of ties across multiple sectors and reaffirmed their commitment to expanding collaboration in areas of mutual interest.

During the meeting, Hun Manet thanked Russia for its longstanding support of Cambodia’s socio economic development. He acknowledged the Russian Federation’s valuable contributions over the years and emphasized the importance of maintaining strong relations as both countries seek new opportunities amid changing global economic conditions.

Expanding Cooperation Across Key Economic Sectors

The discussions between the Cambodian and Russian leaders covered a wide range of sectors with significant growth potential. Both sides exchanged views on strengthening cooperation in trade, investment, energy, agriculture, education, tourism, culture, and people to people connectivity.

As global economic conditions continue to evolve, the two countries also explored new areas where collaboration could deliver mutual benefits. The talks highlighted a shared interest in creating stronger economic links and encouraging greater exchanges between businesses, institutions, and citizens from both nations.

Cambodia Pushes for a Free Trade Agreement with the EAEU

One of the most significant outcomes of the visit was Cambodia’s renewed push for a Free Trade Agreement with the Eurasian Economic Union. The proposal was discussed during a working meeting between Prime Minister Hun Manet and Bakytzhan Sagintayev, Chairman of the Board of the Eurasian Economic Commission, the executive body responsible for regulating the EAEU.

The discussions focused on ways to increase bilateral trade and evaluate the feasibility of launching formal negotiations for a future trade agreement. Both parties examined how closer economic integration could create new opportunities for businesses, investors, and exporters on both sides.

Cambodia Positions Itself as a Regional Trade Gateway

During the talks, Hun Manet highlighted Cambodia’s growing importance as a regional trade and investment destination. He emphasized that the Kingdom offers investors access not only to the domestic market but also to broader regional opportunities through its participation in ASEAN, the Regional Comprehensive Economic Partnership, and several bilateral trade agreements.

“Cambodia serves as a strategic gateway to regional and international markets,” Mr Hun Manet said, underscoring the potential benefits an FTA could bring to both sides.

The Prime Minister explained that Cambodia’s strategic location and extensive trade network make it an attractive partner for Eurasian economies seeking greater access to Southeast Asia. By strengthening economic ties with Cambodia, EAEU member states could gain valuable entry into one of the world’s fastest growing regional markets.

Seeking Russia’s Support for the Trade Initiative

Recognizing Russia’s influential role as a founding member of the Eurasian Economic Union, Hun Manet also sought President Putin’s support for Cambodia’s proposal. He argued that a future agreement would create mutual advantages by connecting Eurasian economies with ASEAN’s vast consumer base and dynamic business environment.

Cambodia believes that closer engagement with the EAEU could unlock new opportunities for trade expansion, investment flows, and industrial cooperation. The proposal aligns with the government’s broader goal of building diversified economic partnerships that enhance long term growth and resilience.

Positive Response from Eurasian Economic Leaders

Bakytzhan Sagintayev welcomed the progress made in relations between Cambodia and the Eurasian Economic Union over the past decade. He acknowledged that significant untapped potential remains for deeper economic cooperation and expanded commercial engagement.

Both sides agreed that continued discussions toward a future Free Trade Agreement could serve as an important catalyst for increasing trade volumes, attracting investment, and strengthening economic ties. Their shared commitment reflects growing confidence in the benefits of closer collaboration between Southeast Asia and Eurasia.

Cambodia’s Broader Economic Vision

The meetings in Russia underscore Cambodia’s broader strategy of strengthening international partnerships and expanding its presence in global trade networks. By actively engaging with emerging markets and regional economic blocs, the Kingdom aims to create new opportunities for businesses, attract foreign investment, and enhance economic competitiveness.

As Cambodia continues to diversify its trade relationships, initiatives such as the proposed Free Trade Agreement with the Eurasian Economic Union demonstrate the country’s ambition to serve as a bridge between Southeast Asia and the wider Eurasian region, creating benefits for businesses and consumers alike.

Conclusion

Cambodia’s participation in the Russia ASEAN Commemorative Summit highlights its determination to expand economic opportunities beyond traditional markets. Through discussions with Russian leaders and Eurasian officials, Prime Minister Hun Manet advanced the Kingdom’s vision of deeper trade integration and stronger international partnerships. If successful, a future Free Trade Agreement with the Eurasian Economic Union could open new pathways for trade, investment, and economic growth while reinforcing Cambodia’s role as a strategic gateway to Southeast Asia.

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Cambodian consumers are increasingly turning toward products made at home, creating new opportunities for local businesses, farmers, manufacturers, and exporters. Across the Kingdom, a growing preference for Cambodian goods is reshaping purchasing habits and fueling what many see as a broader movement of economic patriotism.

The shift comes at a critical time as Cambodia works to build a more resilient economy capable of withstanding external shocks while creating stronger opportunities for domestic producers. What began as a simple effort to support local businesses has evolved into a nationwide movement influenced by changing regional trade dynamics, geopolitical uncertainties, and a renewed sense of confidence in Cambodian products.

From rice and cashew nuts to processed foods and household goods, consumers are increasingly choosing locally produced alternatives. The trend is encouraging policymakers, business leaders, financial institutions, and agricultural stakeholders to explore how Cambodia can strengthen its domestic economy while capturing more value from its own resources.

A Growing Confidence in Cambodian Products

For many years, Cambodian products competed quietly against a large volume of imported goods that dominated supermarket shelves, restaurants, and households. Today, however, public attitudes are changing.

Recent campaigns promoting Cambodian made products have gained momentum nationwide. The movement has also been reinforced by periodic regional border trade disruptions, which highlighted the risks associated with excessive dependence on imports.

As a result, many consumers now view their purchases as more than simple transactions. Buying local products is increasingly seen as a way to contribute directly to national development, support local jobs, and strengthen Cambodia’s economic independence.

This growing sentiment closely reflects Prime Minister Hun Manet’s vision of expanding domestic production and creating a more self reliant economy. He has repeatedly encouraged citizens to trust Cambodian products while urging businesses to invest in local manufacturing and processing industries.

The Prime Minister has also emphasized the importance of reducing imports of products such as milk, sugar, instant noodles, and fertilizers so that more economic value can be generated within Cambodia.

“We strive to produce, we support to consume, and our nation will prosper,” PM Hun Manet said.

Behind the patriotic message lies a practical economic goal. Cambodia has long exported large quantities of raw agricultural commodities while importing finished consumer goods. This pattern has limited the amount of value retained within the domestic economy and reduced opportunities for industrial growth.

Today, the government aims to reverse that trend by encouraging local processing, strengthening supply chains, and promoting greater domestic consumption.

2026 Declared the “Year of Harvest”

The Ministry of Agriculture, Forestry and Fisheries has designated 2026 as the “Year of Harvest,” signaling a broader transition from fragmented small scale farming toward more coordinated and market oriented agricultural production.

The initiative reflects a growing recognition that agriculture remains one of Cambodia’s greatest economic strengths. Industry leaders believe the country has the resources and market access needed to expand production and increase exports, but significant challenges remain.

Agriculture continues to play a central role in the Cambodian economy. In 2025, the Kingdom produced approximately 40 million tonnes of agricultural output, including more than 15 million tonnes of rice.

While those figures demonstrate strong production capacity, experts argue that improving what happens after crops are harvested will be essential for unlocking greater economic value.

Rice Industry Faces Post Harvest Challenges

Speaking at a seminar on Advancing Future Ready Farm to Market Connectivity for Cambodian Products organized by the Ministry of Commerce in Phnom Penh on June 13, Cambodia Rice Federation President and City Rice Import Export Co Ltd Chief Executive Officer Lay Chhun Hour highlighted both the opportunities and challenges facing the rice sector.

“The rice sector has strong potential with production sufficient for domestic consumption and exports. However, our major challenge is not production itself but post harvest infrastructure,” Chhun Hour said.

He explained that many local rice mills still lack adequate drying facilities and specialized storage systems needed during peak harvest periods. As a result, farmers often face grain losses and unstable prices.

According to Chhun Hour, greater government support for modern milling facilities and agricultural cooperatives would help improve product quality and strengthen competitiveness across the country.

“We also need stronger quality certification mechanisms and greater access to financing for strategic agricultural products such as rice and cashew nuts,” he said.

His comments highlight a broader issue affecting Cambodia’s agricultural sector. Producing crops is only one part of the value chain. Without sufficient infrastructure to preserve, process, and market those products, farmers lose opportunities to maximize returns.

Retailers See Rising Demand for Local Goods

The increasing popularity of Cambodian products is already visible in the retail sector.

Un Sothea, Board Director of Aeon Cambodia Co Ltd, said the company has spent more than a decade working alongside local producers and government agencies to improve product standards and expand market access.

“Currently, around 60 percent of products on Aeon shelves are Cambodian products, which reflects significant progress,” Sothea said.

The figure demonstrates how far local producers have come in meeting the quality and supply requirements of major retailers.

Sothea added that Aeon plans to continue supporting Cambodian businesses and creating opportunities for local agricultural products to reach international markets.

The trend suggests that consumer confidence in Cambodian products is steadily growing, creating stronger incentives for businesses to invest in domestic production and innovation.

Logistics Remain a Major Obstacle

Despite the positive momentum, logistics continue to present significant challenges.

Transporting agricultural products from rural provinces to urban markets remains one of the most expensive parts of the domestic supply chain. Rising fuel prices and operating costs have added further pressure.

Chhur Ang, Chief Operating Officer of VET Agriculture Import Export, said insufficient cold storage facilities and refrigerated transportation systems are contributing to higher costs and product losses.

“Agriculture is highly time sensitive. Fuel costs and limited cold storage infrastructure significantly increase the final market price of local products,” Ang said.

He noted that improved transport coordination and expanded cold storage centers in agricultural regions would help reduce inefficiencies and improve product quality.

Ang also urged policymakers to simplify cross border logistics procedures to strengthen regional trade connectivity and improve competitiveness.

Strengthening Cambodia’s Logistics Network

Logistics experts note that Cambodia still faces challenges compared with regional neighbors such as Vietnam and Singapore in the World Bank’s Logistics Performance Index.

The index evaluates customs efficiency, infrastructure quality, shipment affordability, logistics service competence, shipment tracking capabilities, and delivery reliability.

Recognizing the importance of logistics to economic growth, the Council for the Development of Cambodia has been working to strengthen the sector and position the country as a competitive logistics hub within the region.

Officials have also sought guidance from World Bank experts to better understand global logistics trends and identify policy reforms that could improve Cambodia’s performance.

Improving logistics infrastructure is increasingly viewed as essential for supporting local industries, reducing business costs, and expanding export opportunities.

Financing Becomes a Key Growth Driver

Access to affordable financing remains another important issue for Cambodia’s agricultural sector.

Leang Meng, Co Founder and Chairman of the Board of Directors of Chip Mong Bank, said financial institutions are becoming more willing to support agriculture despite the risks traditionally associated with climate conditions and market fluctuations.

He explained that government efforts to formalize agricultural production through cooperatives and structured farming arrangements are helping reduce lending risks.

“When farmers operate as organised entities with formal agreements and recognised structures, banks have greater confidence in extending financing,” Meng said.

Greater access to financing could help farmers invest in modern equipment, improve productivity, and strengthen the overall competitiveness of Cambodia’s agricultural sector.

Building Stronger Production Ecosystems

The Ministry of Commerce views the growing preference for Cambodian products as a major opportunity for long term economic development.

Secretary of State and ministry spokesperson Penn Sovicheat said local consumer support is creating new possibilities for domestic producers.

“The public’s support for Cambodian products has created an important economic opportunity for local producers to strengthen their presence in the domestic market,” Sovicheat said.

The ministry is working with stakeholders to address logistical challenges, improve market access, and strengthen food safety standards.

At the same time, officials are promoting Geographical Indication products such as Kampot pepper, Kampong Speu palm sugar, and Kampong Thom cashew nuts to increase product value and support farming communities.

Cambodia Chamber of Commerce Vice President Lim Heng believes the country must go beyond small scale production if it wants to fully benefit from its expanding network of free trade agreements.

“With Cambodia expanding market access through multiple trade agreements, the country requires a stronger and more sustainable production chain,” Heng said.

He stressed the need for stronger processing industries, better infrastructure, and specialized industrial zones designed to support small and medium sized enterprises.

Digital Commerce Opens New Opportunities

Digital transformation is becoming an increasingly important part of Cambodia’s economic strategy.

The Ministry of Commerce has encouraged businesses to use CambodiaTrade.com, an online marketplace designed to help small and medium enterprises reach customers both domestically and internationally.

The platform serves as a centralized channel for Cambodian businesses seeking to expand sales opportunities and participate in the country’s growing digital economy.

The ministry has also launched a two year project focused on strengthening digital capabilities and promoting Cambodian products in international markets through the platform.

Meanwhile, the recently established Cambodia Trade Enterprise is expected to help develop export markets for agricultural and processed products while encouraging higher value production throughout the Kingdom.

The initiative is supported by partnerships with financial institutions and logistics providers aimed at improving financing access and distribution networks for businesses.

Conclusion

Cambodia’s growing preference for locally produced goods represents more than a consumer trend. It reflects a broader economic transformation driven by national confidence, strategic policy direction, and a desire for greater self reliance.

From agriculture and manufacturing to logistics, finance, and digital commerce, stakeholders across the economy see significant opportunities to strengthen domestic industries and retain more value within the country. Yet long term success will depend on overcoming structural challenges such as post harvest infrastructure gaps, logistics inefficiencies, financing barriers, and production capacity limitations.

As consumers continue embracing Cambodian made products, the Kingdom has an opportunity to build a stronger, more resilient economy that supports local businesses, creates jobs, expands exports, and positions Cambodia for sustainable growth in an increasingly competitive global marketplace.

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Cambodia is taking another step toward expanding its industrial economy as Kampong Thom province joins forces with Royal Group Phnom Penh Special Economic Zone to establish a new special economic zone in the heart of the country. The agreement was signed on June 15, 2026, during the Cambodia Investment Forum 2026 in Osaka, Japan, with the goal of attracting more domestic and international investors while accelerating the province’s economic transformation.

The new Kampong Thom SEZ is expected to become a strategic investment gateway for central Cambodia. By combining the province’s rich agricultural resources with the management experience of Phnom Penh SEZ, the project aims to create jobs, strengthen local industries, and provide businesses with a modern platform for long term growth.

A Strategic Partnership for Industrial Growth

The joint venture agreement was signed on the sidelines of the Cambodia Investment Forum 2026 at the Osaka Chamber of Commerce and Industry. The signing ceremony was witnessed by Kampong Thom Governor Nuon Pharath, PPSEZ Chief Executive Hiroshi Uematsu, and government advisor Dr. Mey Kalyan, reflecting strong public and private sector cooperation.

The partnership represents an important milestone in Kampong Thom’s development strategy. Provincial leaders have been working to attract more investment while encouraging industries that can add value to local agricultural products. The new SEZ is expected to help turn these ambitions into reality by providing investors with a dedicated business environment and modern industrial infrastructure.

Unlocking the Potential of Agriculture

Kampong Thom is one of Cambodia’s key agricultural provinces, known for producing large quantities of rice and cashew nuts. Officials believe these resources create a strong foundation for expanding agro processing and food processing industries, sectors that are expected to become the backbone of the new economic zone.

Instead of exporting raw agricultural products, the province hopes to encourage businesses to process and add value locally. This approach could increase farmers’ incomes, strengthen local supply chains, and create new business opportunities for Cambodian entrepreneurs and foreign investors alike.

More Than an Industrial Estate

According to Hiroshi Uematsu, the Kampong Thom SEZ is designed to be much more than a traditional industrial park. The project aims to provide a complete business platform that supports investors throughout every stage of their operations.

Drawing on the successful experience of Phnom Penh SEZ, the development will offer assistance with market entry, factory establishment, administrative procedures, human resource management, infrastructure, and day to day operations. This comprehensive support system is expected to make investment in Kampong Thom more attractive and efficient.

The focus on providing long term business services reflects Cambodia’s broader effort to improve the investment environment and create conditions that encourage sustainable industrial growth.

Attracting Japanese and International Investors

Officials expect the new SEZ to appeal particularly to Japanese and other foreign small and medium sized enterprises looking to expand into Cambodia’s provincial markets. Kampong Thom’s central location and strong agricultural base provide competitive advantages for companies seeking new manufacturing and processing opportunities.

The Cambodia Investment Forum in Osaka also served as a platform to showcase the province’s potential to international business leaders. By presenting Kampong Thom as an emerging industrial destination, the province hopes to attract high quality investment that can contribute to long term economic development.

A New Hub for Cambodia’s Economy

Government advisor Dr. Mey Kalyan said the project highlights the enormous untapped potential that exists in Cambodia’s provinces. He noted that once the special economic zone becomes operational, it will help create employment opportunities, improve supply chains, and establish Kampong Thom as a new center for industrial expansion.

The project is expected to benefit not only investors but also local communities by creating new jobs and encouraging supporting industries to develop around the economic zone. As businesses grow, the province could experience wider economic benefits through increased trade, services, and infrastructure development.

Conclusion

The creation of the Kampong Thom Special Economic Zone marks an important step in Cambodia’s effort to expand investment beyond major urban centers. By building on the province’s agricultural strengths and combining them with world class SEZ management expertise, the project has the potential to transform Kampong Thom into a dynamic industrial and investment hub.

If successful, the new economic zone will not only attract foreign businesses but also create opportunities for local enterprises, strengthen agricultural value chains, and contribute to Cambodia’s broader economic growth strategy for the years ahead.

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Cambodia has taken another major step toward strengthening its economy with the official launch of the Cambodia Trade Enterprise, or CTE, by the Ministry of Commerce. Announced in Phnom Penh on June 12, 2026, the initiative marks an important transformation in the country’s state led trade strategy, aiming to help local businesses reach international markets while creating stronger support systems for the private sector. The move also reflects the government’s broader vision of modernising key institutions and boosting the competitiveness of Cambodian products around the world.

What is Cambodia Trade Enterprise (CTE)?

The Cambodia Trade Enterprise (CTE) is a state owned trade institution established by the Ministry of Commerce to help expand Cambodia’s exports and strengthen the country’s private sector. Officially launched in June 2026, the CTE is a modernized transformation of Green Trade, a government enterprise that has supported Cambodia’s food security and market stability for nearly 30 years.

The newly established CTE is more than just a new organisation. It is the result of a strategic rebranding and transformation of Green Trade, a state enterprise that has spent nearly three decades serving Cambodia through periods of economic uncertainty and national challenges. By building on that experience, the government hopes to create a more flexible institution capable of connecting producers, traders, investors, and global buyers.

A New Identity Built on Three Decades of Experience

The official launching ceremony brought together senior government officials, representatives from ministries and institutions, foreign ambassadors, development partners, and many leaders from Cambodia’s private sector. The event highlighted the importance of collaboration between public institutions and businesses in driving long term economic growth.

During the ceremony, H.E. Kem Sithan, Permanent Secretary of State of the Ministry of Commerce, reflected on the important role Green Trade has played over the past 30 years. The organisation was instrumental in maintaining food security and market stability during some of the country’s most difficult periods, including the COVID 19 pandemic and times when support was needed for displaced communities.

The transformation into the Cambodia Trade Enterprise is intended to preserve those achievements while expanding its mission to meet the demands of a rapidly changing global economy. More information about the Ministry’s trade initiatives can be found through the official Ministry of Commerce channels.

Building Markets Instead of Competing with Businesses

Government leaders stressed that the purpose of the CTE is not to replace or compete with Cambodia’s private sector. Instead, it is designed to become a trusted partner that helps businesses discover new opportunities and overcome barriers to growth.

“The establishment of the CTE is a flexible and long term response, and this establishment is not for the purpose of competing or replacing the role of the private sector, but the CTE will act as a ‘Dynamic Strategic Partner’ to pave the way for new business opportunities, help develop markets, and create favorable conditions for the Cambodian private sector,” he said.

This approach reflects a growing understanding that strong partnerships between the public and private sectors are essential for increasing exports, attracting investment, and helping Cambodian enterprises compete in international markets.

Expanding Opportunities for Cambodian Agriculture

Rice remains one of Cambodia’s most important strategic products, and the CTE will continue supporting the sector. However, its mission will go much further by creating international market opportunities for a wider range of agricultural goods.

According to the Ministry of Commerce, the enterprise will actively promote other promising agricultural products, including organic produce and processed agricultural goods. By encouraging value added production inside the country, the initiative aims to generate higher incomes for farmers, strengthen local industries, and increase Cambodia’s export capacity.

The expansion of export opportunities could also help diversify Cambodia’s economy by reducing dependence on a limited number of commodities while opening doors for emerging agricultural sectors.

Rice Industry Welcomes the Initiative

The business community has responded positively to the launch of the Cambodia Trade Enterprise. Among the strongest supporters is the Cambodia Rice Federation, which believes the new institution will help strengthen the country’s position in global markets.

Mr. Lay Chhun Hour, president of the Cambodia Rice Federation, expressed confidence that the modernisation of Green Trade into the CTE will create important opportunities for the rice sector and beyond.

“The CTE will bridge the gap between smallholder farmers, traders and buyers, ensuring that the reputation of Cambodian premium rice and other potential agricultural commodities continues to grow,” he said.

His comments underline the importance of creating stronger links throughout the supply chain, allowing farmers and producers to connect more efficiently with domestic and international buyers.

Stronger Financial and Logistics Support for Traders

The launch ceremony also included the signing of several Memorandums of Understanding between the CTE and banking institutions as well as transport companies. These agreements represent another important milestone in improving Cambodia’s trade infrastructure.

Access to financial services and efficient logistics networks remains one of the biggest challenges for many producers and exporters. By working closely with banks and transport providers, the CTE hopes to simplify business operations, reduce costs, and make it easier for Cambodian products to reach both local and overseas markets.

The agreements are expected to create a more supportive business environment that benefits farmers, manufacturers, traders, and investors alike.

A Vision for Cambodia’s Future Trade Landscape

The creation of the Cambodia Trade Enterprise reflects the country’s ambition to build a stronger, more competitive economy that is better connected to the global marketplace. Rather than acting as a competitor, the CTE is positioned to become a strategic partner that helps businesses grow, encourages innovation, and promotes Cambodian products internationally.

By combining decades of experience with a modern and flexible approach, the enterprise could play a key role in shaping the future of Cambodia’s trade sector while creating new opportunities for entrepreneurs, exporters, and local communities across the Kingdom.

Conclusion

The official launch of the Cambodia Trade Enterprise marks an important milestone in Cambodia’s economic development journey. Through the transformation of Green Trade, the government is creating a modern institution designed to strengthen exports, expand market access, and support the private sector. With stronger partnerships, improved logistics, and a focus on value added agriculture, the CTE has the potential to become a driving force behind Cambodia’s future trade and investment growth.

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