Cambodia shifts to MSME manufacturing and high-tech farming to revive growth

Cambodia is redirecting its development strategy toward small-scale manufacturing and high-impact, technology-driven agriculture, officials said during the Cambodia Agriculture Forum and Exhibition 2026. Industry, Science, Technology and Innovation Minister Hem Vanndy warned that most agricultural exports remain raw or semi-processed, leaving producers vulnerable to price swings, and urged a shift to quality agri-food processing.

The country faces a slowdown caused by weak tourism, high diesel and petrol prices, geopolitical tensions and a closed Cambodia-Thailand border, leading the World Bank to cut its 2026 growth projection to 3.5%. Prime Minister Hun Manet launched the National Strategy for MSME Development 2026-2030, targeting better business conditions, technology adoption and financing for the sector that accounts for about 63% of GDP and over 70% of non-agricultural jobs.

The agriculture sector, contributing roughly 16% of GDP, will receive support for modern drying, cold-storage, packaging and agro-industrial clusters, as well as smart tractors and drones for fertilizer application. Around 400 exhibitors are showcasing these initiatives at the Diamond Island Convention and Exhibition Centre until Oct 25.