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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Cambodia is entering a new phase of economic development where strengthening domestic production is becoming a national priority. For many years, the country’s economy has depended heavily on garment exports, footwear manufacturing, and agricultural commodities, while a large share of consumer goods and industrial materials continued to come from abroad. Today, government leaders, industry experts, and researchers believe that building a stronger local production base is essential for reducing imports, creating jobs, adding value to local resources, and making the economy more resilient.

The issue has become even more important as global supply chains face growing uncertainty because of geopolitical tensions, trade disruptions, and changing consumer trends. Cambodia is now looking beyond simply producing more goods. The larger goal is to create a modern production ecosystem that is innovative, sustainable, and competitive enough to satisfy local demand while expanding into regional and international markets.

Why Domestic Production Matters More Than Ever?

Consumer expectations are changing rapidly. People are paying closer attention to product quality, food safety, environmental responsibility, and where products come from. This shift is creating new opportunities for Cambodian businesses that can meet these standards while using local resources more efficiently.

By strengthening domestic production, Cambodia can reduce its reliance on imports, lower environmental impacts, encourage innovation, and create products that compete both at home and abroad. Industry experts also point out that responsible sourcing and ethical production practices are becoming increasingly important factors influencing purchasing decisions.

For a country with a strong agricultural foundation and a growing manufacturing sector, investing in local industries is not only an economic strategy but also a path toward long term sustainable development.

Government Policies Focus on SME Growth

At the First Customs SME Forum held under the theme “Supporting and Protecting Small and Medium Enterprises to Promote Domestic Production and Competitiveness,” Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth reaffirmed that small and medium enterprises remain one of the government’s highest priorities.

He explained that promoting SMEs is essential for creating jobs, increasing domestic production, and supporting national economic growth. The government has also encouraged the public to purchase locally made products to reduce import dependence and strengthen economic self reliance.

To support this vision, Cambodia has introduced a broad range of measures, including tax incentives, improvements to the business environment, easier trade procedures, greater access to financing and credit guarantees, entrepreneurship promotion, digital technology adoption, skills development, and higher product standards.

These policies are designed to help Cambodian businesses become stronger and more competitive in an increasingly demanding marketplace.

Building Sustainable Domestic Products

Experts believe Cambodia has already laid the groundwork for expanding its domestic market. The next challenge is improving product quality, strengthening consumer trust, and making local goods more competitive.

President of the Royal Academy of Cambodia Sok Touch recently noted that the country should continue reducing its dependence on imported products by building on the markets it has already created.

“We have created our own markets,” he said.

Touch also stressed that education plays a major role in strengthening the country’s productive capacity. As an agricultural nation, Cambodia should be able to meet more of its own food and agricultural needs while placing greater emphasis on ethical production practices and the quality of processed goods.

Consumer Trust Is the Key to Success

According to Ministry of Commerce spokesperson Penn Sovicheat, national products are those produced and processed locally by Cambodian SMEs and recognized by consumers for their quality, reputation, and market presence.

He believes consumers themselves play an important role in monitoring product quality and encouraging businesses to maintain high standards.

Sovicheat also pointed out that the ongoing boycott of Thai products presents Cambodia with a unique opportunity to strengthen its domestic industries. If local businesses fail to take advantage of this moment, the country could miss a valuable chance to expand its production base.

“To ensure the sustainability of domestic products, first, there must be sufficient goods available. Second, those products must meet market demand. Another key factor is winning consumers’ trust and attention, which means producing distinctive and appealing products. Product packaging must also be attractive,” he said.

He added that packaging should not only look appealing but also provide adequate product information and meet consumer protection requirements, especially regarding food safety.

“As such, ensuring adequate product information, maintaining high quality packaging, guaranteeing product quality, creating strong consumer appeal, securing public support, promoting the presence of local products in the market and ensuring long term stability of local products, are among the key responsibilities of the Ministry of Commerce,” Sovicheat added.

Quality Standards and Cooperation Drive Growth

Officials and researchers agree that regulations alone cannot guarantee the success of domestic products. Strong cooperation between government institutions and private businesses is equally important.

Mao Theara, Deputy Director General of the Ministry of Industry, Science, Technology and Innovation, explained that producers must carefully evaluate raw materials, market demand, pricing, packaging, and production costs before launching a product.

He stressed that maintaining consistent raw materials and following clear standards are essential for stable product quality, especially for food exports that must comply with international Technical Barriers to Trade requirements.

“But whether products are for domestic or international markets, producers must strengthen quality from the beginning. We should not assume that products for the domestic market can be made casually and only improve standards when exporting that approach will not lead to success,” he said.

“As producers, we must have a clear focus. It is not enough to look only at the starting point we must understand where our market is, which country we aim to enter, and study that country’s regulations in order to export successfully.”

Economic researcher Ky Sereyvath from the Royal Academy of Cambodia added that technical assistance and better public awareness are necessary to improve product quality and encourage more businesses to meet national standards.

Agriculture Remains the Foundation

Experts agree that Cambodia cannot build a strong domestic production sector without strengthening agriculture.

Khim Finan, Undersecretary of State and spokesperson for the Ministry of Agriculture, Forestry and Fisheries, said research, innovation, and value chain development are critical to ensuring sustainable production.

The government has already deployed around 1,600 commune agricultural officers to provide technical support to farmers. However, Finan warned that research and development capacity must also improve to support nearly two million farming households.

He also highlighted the challenge of fragmented agricultural markets, where farmers and buyers often work independently, making it difficult to organize production and guarantee stable demand.

To solve these issues, the Ministry of Agriculture is strengthening the agricultural value chain, lowering production costs, improving technical standards, and encouraging agro processing so Cambodia can export more value added products instead of raw materials.

Eight Principles for Long Term Success

Te Taing Por, Chairman of the Federation of Associations of Small and Medium Enterprises of Cambodia, believes domestic products must follow eight essential principles to remain competitive.

These include product quality, reasonable pricing, strong domestic supply chains, innovation, brand building, compliance with regulations, stronger public private partnerships, and the adoption of digital marketing.

“All Cambodians must understand that without standards, consumers will have concerns about our products. We need to produce goods that are both high quality and reasonably priced so that we can compete with imported products. This does not mean producing cheap products at the expense of quality,” he said.

He also urged government institutions to provide greater support for private sector innovation, noting that many businesses struggle with limited financial resources and insufficient assistance for product development.

Mong Reththy Invests in Cambodia’s Agricultural Future

One example of Cambodia’s domestic production strategy in action is the investment by agribusiness tycoon Mong Reththy, who is building a $10 million organic fertiliser plant in Kampong Speu province.

The factory, expected to open before the end of 2026, will produce organic fertiliser using animal waste and by products from palm oil, sugar, and beer factories. The project supports Prime Minister Hun Manet’s call for greater private sector investment in agriculture and agricultural inputs.

Reththy said the factory aims to recycle agricultural and industrial waste while helping farmers lower production costs through locally produced fertiliser.

“Farmers should maximise the use of waste from both farming and livestock activities,” he said, adding that by processing these materials instead of discarding them, production costs could be reduced and profitability improved.

The project, which uses Chinese technology, will source raw materials from local farmers and the company’s own operations, creating new opportunities throughout the agricultural supply chain.

Reththy also stressed that innovation and value added production are essential for improving competitiveness and strengthening Cambodia’s economy.

Conclusion

Cambodia’s future economic growth will depend not only on exports but also on its ability to build a strong and sustainable domestic production base. Government policies, private sector innovation, agricultural modernization, and stronger cooperation among all stakeholders are creating the foundation for a more resilient economy.

By investing in local industries, supporting SMEs, improving product quality, and expanding value added processing, Cambodia has an opportunity to reduce import dependence while creating better jobs and stronger local businesses. If these efforts continue, sustainable domestic production could become one of the country’s most important pillars of long term development.

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Cambodia is stepping up efforts to strengthen its position in the global services economy as the Ministry of Commerce works to improve the country’s trade competitiveness and deepen international integration. On June 10, 2026, the ministry launched a national workshop on Trade in Services for Development in Phnom Penh, bringing together government officials, experts from the World Trade Organisation, and leaders from key institutions. The initiative reflects Cambodia’s growing recognition that services such as finance, logistics, tourism, technology, and professional industries are becoming increasingly important drivers of economic growth.

The three day event is designed to help Cambodia build stronger technical expertise and make better use of global trade data and digital platforms. By enhancing the skills of policymakers and trade specialists, the country hopes to create a more efficient and inclusive services sector that can support long term development and create new opportunities for businesses and investors.

National Workshop Focuses on Building Trade Capacity

The opening ceremony was led by Ministry of Commerce Secretary of State Sok Sophak, who welcomed ministry technical officials, World Trade Organisation experts, and institutional leaders to the workshop. According to the ministry, the programme runs from June 10 to June 12 and is organised in partnership with the WTO to strengthen Cambodia’s ability to navigate the increasingly complex world of international services trade.

During the workshop, participants are studying a range of advanced analytical tools that help governments understand global market trends and competitiveness. These include the Global Services Data Hub, the I TIP Services database, and the Services Trade Restrictiveness Index. The platforms provide valuable information that can guide policy decisions and help Cambodia improve its trade regulations.

Modern Trade Tools Support Better Policy Decisions

As the global economy evolves, access to accurate and reliable data has become essential for effective policymaking. The Trade in Services for Development programme introduces Cambodian officials to digital resources that allow them to compare market conditions and assess how local regulations perform against international standards.

These tools also help policymakers identify barriers to trade and improve regional trade facilitation. By understanding where Cambodia stands in the global marketplace, officials can develop strategies that make the country’s services sector more attractive to foreign partners while supporting domestic businesses.

The ability to analyse international data is particularly important as services trade becomes a larger component of economic growth across developing nations. Stronger policies and better informed decisions can help Cambodia capture more opportunities in emerging global markets.

Services Trade Plays a Growing Role in Economic Development

In his opening remarks, Sok Sophak described services trade as a fundamental pillar of Cambodia’s socio economic development and its broader integration into the international economy. He stressed that expanding a modern and inclusive services sector is just as important as strengthening traditional merchandise exports.

According to Sophak, developing competitive service industries will help Cambodia improve its position in global markets while creating new opportunities for businesses, workers, and investors. Areas such as tourism, digital services, transportation, education, and financial services all have the potential to contribute significantly to future economic growth.

He also expressed appreciation for the World Trade Organisation’s ongoing technical support, which has helped Cambodia strengthen its human resources and build expertise within the multilateral trading system.

WTO Partnership Strengthens Human Resources

International cooperation continues to play an important role in Cambodia’s economic development strategy. The partnership between the Ministry of Commerce and the WTO allows Cambodian officials to gain access to global best practices and technical knowledge that might otherwise be difficult to obtain.

Training programmes such as the Trade in Services for Development workshop help prepare a new generation of trade specialists who can navigate changing international markets and negotiate more effectively within the global trading system. Building these capabilities is expected to support sustainable economic growth and increase Cambodia’s competitiveness in the years ahead.

As the services sector continues to expand across developing economies, investments in knowledge and human capital are becoming just as important as investments in physical infrastructure.

Conclusion

Cambodia’s latest Trade in Services for Development workshop highlights the country’s determination to strengthen its role in the global services economy. By investing in technical expertise, data driven policymaking, and international cooperation, the Ministry of Commerce is laying the groundwork for a more competitive and inclusive services sector. As trade in services continues to grow worldwide, these efforts could help Cambodia unlock new economic opportunities, attract investment, and support long term national development.

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Cambodia and Laos are strengthening their long standing friendship by expanding cooperation in trade, energy, infrastructure, and regional connectivity. During a meeting in Phnom Penh on Monday between Permanent Deputy Prime Minister Vongsey Vissoth and newly appointed Lao Ambassador to Cambodia Sonexay Vannaxay, both sides reaffirmed their commitment to building stronger economic and diplomatic ties that will benefit businesses, investors, and citizens in both countries.

The discussions focused on creating new opportunities for cross border trade, improving transportation links, boosting energy cooperation, and enhancing tourism exchanges. Leaders from both nations believe that closer collaboration will support regional growth, improve market access, and strengthen the role of Cambodia and Laos within the Greater Mekong Subregion.

A Friendship Built Over Generations

Congratulating Ambassador Sonexay on his new diplomatic role, Vissoth highlighted the enduring friendship between the two neighboring nations. He described Cambodia and Laos as trusted partners that have stood by each other through many stages of development and have continued to expand cooperation across multiple sectors.

He noted that the relationship has been carefully nurtured by successive generations of leaders and is now entering a new phase under the governments of Prime Minister Hun Manet and Lao Prime Minister Sonexay Siphandone. This strong political foundation is expected to create even greater opportunities for future economic and regional collaboration.

Expanding Trade and Regional Connectivity

A major focus of the meeting was the importance of improving infrastructure and connectivity between the two countries. Vissoth stressed the need to strengthen links within the Greater Mekong Subregion, particularly through the China Laos Cambodia economic corridor supported by road, railway, and waterway projects.

“The two countries still have many opportunities and potential to further strengthen and expand cooperation in all sectors, both within the bilateral and multilateral frameworks, especially with partner countries such as China within the framework of the Mekong Lancang Cooperation, which is a driving force to promote economic growth in the region to further progress,” said Vissoth.

According to Vissoth, better transportation networks will encourage trade, attract investment, strengthen regional supply chains, and help both countries maximize their strategic geographic advantages. He also reaffirmed Cambodia’s readiness to support Laos in reaching international markets through Cambodian seaports and future opportunities linked to the Funan Techo Canal project.

Energy Cooperation and Agricultural Exports

Energy security was another important topic during the discussions. Both sides emphasized the importance of electricity exports from Laos to Cambodia, reflecting the growing partnership in the energy sector and the need for sustainable regional development.

The meeting also highlighted ongoing cooperation between the agricultural ministries of both countries. Officials are working to facilitate the transit of Cambodian agricultural products through Laos to the Chinese market. This initiative is expected to lower transportation costs, improve logistics, and provide Cambodian farmers with greater access to one of the world’s largest consumer markets.

Laos Praises Cambodia’s Development Progress

Ambassador Sonexay praised Cambodia’s rapid economic progress, especially its achievements in infrastructure development and major connectivity projects. He pointed to the country’s expanding road network, modern airports, and improving transportation systems as positive examples of national development.

The ambassador also expressed admiration for Cambodia’s agricultural potential and growing tourism industry after visiting several provinces across the Kingdom. In addition, he thanked Cambodia for sharing its experience in public financial management reform and digital governance, particularly the successful implementation of the Financial Management Information System, widely known as FMIS.

Tourism and People to People Exchanges

Beyond trade and infrastructure, both countries are looking to strengthen tourism and cultural ties. Ambassador Sonexay reaffirmed Laos’ commitment to expanding cooperation in trade, investment, energy, digital transformation, and human resource development.

He also pledged to encourage more Lao visitors to travel to Cambodia, especially to Siem Reap province, using overland routes that could further boost tourism and local businesses. The meeting explored the possibility of creating stronger subnational partnerships, including a future sister province relationship between Kampong Thom province and Champasak province.

These initiatives are expected to encourage greater people to people exchanges while creating new opportunities for local communities and businesses on both sides of the border.

Conclusion

The latest discussions between Cambodia and Laos reflect a shared vision for deeper economic integration and stronger regional cooperation. By expanding partnerships in trade, energy, infrastructure, agriculture, and tourism, both countries are positioning themselves for sustainable growth and greater prosperity.

As cross border projects continue to develop and regional connectivity improves, Cambodia and Laos are expected to unlock new opportunities for businesses, investors, and citizens while contributing to a more connected and competitive Mekong region.

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