CAC News

PHNOM PENH, August 6, 2026 — The Cashew Nut Association of Cambodia (CAC) led a delegation of member companies to participate in the technical meeting of Government-Private Sector Forum (G-PSF) Working Group "C" on Thursday, where the CAC called for urgent government action to accelerate investment and strengthen financing for Cambodia's growing cashew processing industry.

The meeting was co-chaired by H.E. Hem Vanndy, Minister of Industry, Science, Technology and Innovation, and Oknha Te Taing Por, Vice President of the Cambodia Chamber of Commerce. A total of 13 agenda items were discussed, including two proposals submitted by the Cashew Nut Association of Cambodia.

Call for Faster QIP Approval

One of CAC's key proposals focused on delays in approving Qualified Investment Projects (QIPs) for large-scale cashew processing investments.

According to the CAC, most investor applications involving investments exceeding US$5 million have been placed on hold, as investors are being asked to wait until the Royal Government establishes the Cashew Industrial Park (CIP). However, the timeline for the completion of the industrial park remains uncertain.

CAC warned that prolonged delays in expanding domestic processing capacity could result in annual economic losses estimated at US$500 million to US$600 million, while further weakening Cambodia's competitiveness in the global cashew market in the years ahead.

The CAC therefore requested that the Royal Government consider granting QIP status to eligible cashew processing projects before the completion of the Cashew Industrial Park, enabling investors to move forward with their investments and respond to increasing market demand.

In response, representatives from the Council for the Development of Cambodia (CDC) explained that the government is taking a strategic approach to ensure that investments within the Cashew Industrial Park are profitable, sustainable, and well-planned. While acknowledging that this process requires additional time, CDC officials said investors can now begin applying to join the Cashew Industrial Park, noting that the project is expected to commence soon as infrastructure development is already underway.

Addressing Capital Constraints

CAC also highlighted the industry's limited access to financing as a major obstacle to expanding Cambodia's cashew processing capacity.

Silot Uon, president of CAC, noted that rising raw cashew nut prices, combined with insufficient working capital across the supply chain, have constrained the growth of domestic processors. As a result, Cambodia continues to process only a small proportion of its annual cashew production locally.

To address the challenge, CAC urged the Royal Government to introduce financing mechanisms that would provide additional capital to Small and Medium Enterprises (SMEs), particularly those operating in the cashew processing sector. Silot said improved access to affordable financing would enable processors to increase production capacity, add greater value to locally produced cashew nuts, and strengthen Cambodia's position in international markets.

The proposals form part of CAC's ongoing efforts to promote investment, expand domestic processing, and support the Royal Government's vision of transforming Cambodia into a competitive cashew processing hub in the region.