Trade, Investment &
Enterprise Development

Cambodia aims to become an upper middle-income country by 2030, having achieved lower middle-income status in 2015. The Royal Government of Cambodia has embraced economic and market diversification and integration as a pathway to this prosperity. The Cambodia Trade Integration Strategy 2019­­–2023 of the Ministry of Industry, Science, Technology and Innovation establishes a strong link between trade and poverty reduction, gender equality and inclusivity.

Trade

CAPRED helps the Royal Government of Cambodia to leverage existing and upcoming free trade agreements, including the Regional Comprehensive Economic Partnership, the world’s largest free trade agreement. Cambodia also has free trade agreements with China and the Republic of Korea, and takes part in the Association of Southeast Asian Nations (ASEAN) and the World Trade Organization.

CAPRED is working with firms along the value chain to promote Cambodia’s exports. We are assisting with export and branding strategies and identifying priority investments.

CAPRED supports Cambodia to develop a national quality infrastructure policy and strengthen quality infrastructure systems in the agriculture and food export sector. We are building capacity in the public and private sectors to implement standards, accreditation, metrology and conformity assessments. We also advocate to streamline and reduce costs and promote private sector participation.

Investment

Cambodia’s growth has been heavily reliant on foreign direct investment, particularly from China. As investment capital becomes scarcer, Cambodia must look at other streams, such as green finance.

CAPRED focuses on supporting national-level policies and legal and regulatory frameworks. Other investments are in our main work areas such as agriculture, climate resilience and infrastructure services.

The 2021 Investment Law offers incentives such as income tax and customs duties exemptions and will significantly engage women, people with disability and marginalised groups in trade and investment. CAPRED provides technical support to develop an implementation roadmap and increase awareness of the new law on investment.

CAPRED continues to support the Agri-Food Investment Desk (AFID) to develop proactive investment strategies and target investors. In 2023, CAPRED facilitated a successful AFID study visit to Australia. CAPRED also works to prepare small and medium-sized enterprises (SMEs) for investment readiness and opportunities.

CAPRED is building capacity in data collection on agriculture, particularly for the evidence base or business case for gender equality, disability and social inclusion (GEDSI) in agro-processing, trade and investment.

Enterprise development

CAPRED is working with local SMEs to upgrade their investment readiness, strengthen their business governance and financial compliance, and match them with potential investors and investment funds through AFID.

Read about the recent visit we coordinated with one of Australia’s biggest agribusinesses

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CAPRED is also supporting the Royal Government of Cambodia to develop a user-friendly online process to streamline business registration. Nearly 90% of Cambodian enterprises are micro, small and medium-sized enterprises. While these estimated 500,000 enterprises generate 70% of all employment, only 5% are formally registered. The process for registration is costly and complicated, with ongoing fees and licencing requirements. Registration is necessary, however, to access loans and import and export licences, and to establish a brand.

Latest resources

See our latest resources from across the CAPRED program.

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Australia champions climate action in Cambodia. Australia has taken strong action to decarbonise our economy and partner with countries in the region to address climate change impacts. We are supporting Cambodia’s clean energy transition through our flagship economic development program, the Cambodia Australia Partnership for Resilient Economic Development (CAPRED). Australia was proud to be the official partner of the Cambodia Climate Change Summit 2023 (CCCS23). The summit examined the country’s climate change challenges and highlighted government and private sector commitments to climate action. Watch the CCCS23 recap video to learn more.

CAPRED Strategy

This document outlines the strategy for implementing the Cambodia Australia Partnership for Resilient Economic Development (CAPRED) Facility, a five-year initiative (2022-2027) with a possible three-year extension. CAPRED is Australia’s flagship economic development program in Cambodia, building on a long history of support. It represents Australia’s commitment to Cambodia’s long-term development, transitioning from direct aid delivery to a partnership-based approach. Funded by the Australian Government with a budget of AUD87 million, CAPRED is implemented by Cowater International. Its focus is on resilient, inclusive, and sustainable economic development for Cambodia.

CAMBODIA AND UNLOCKING GLOBAL MARKETS by Leveraging Free Trade Agreements

The Royal Government of Cambodia has taken several steps to promote global trade, including the launch of the Rectangular Strategy - Phase 4 of the National Assembly, which focuses on economic development through diversification and competitiveness.

Australia champions climate action in Cambodia

CAPRED Strategy

Cambodia and Unlocking Global Markets by Leveragin...

Latest news & stories

Read our latest news & stories to find out more about CAPRED’s interventions.

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Gender Equality, Disability and Social Inclusion

Gender Mainstreaming Policy in the Agriculture Sec...

Infrastructure Development

Water Development Fund, Accelerating Access to Cle...

Agriculture and Agro-Processing

Supporting Cambodia’s sustainable and innovative a...