More than 80% of Cambodian population is living at rural areas and is based on agriculture farming. Cambodia is adopting agriculture development as its priority and this sector shares a big percentage in Gross Domestic Product among garment and textile industry, tourism sector, and construction. Fertile land, water resources in Tonle Sap basin and Mekong delta are potential for agriculture development and anyway, the government also provides incentives to investors who invest in agriculture which in turns employ Cambodian workforces and increase productivity. More importance is the low tariff rate obtained from China for Cambodia to export agricultural products. Based on this situation, I think that it is right time from now on for those who wish to invest in agriculture. What are other reasons should they invest in this sector?

Natural resources, investment incentives and low tariff rate for Cambodia to export its agricultural products to China are reasons to invest in this sector. However, there are more favorable factors encouraging this investment.

Tourism sector of Cambodia is growing and is expected to reach 5 million tourists in the year 2015. The more tourists mean the more demand of agricultural products as well to supply tourists at hotels, restaurants, etc. The more tourists means more income generated by workers and more demand as well. According to gradual development of tourism within Cambodia and among Asia countries, it is predicted that tourism will never go back or turn into worse situation.

Population growth is at 2.5% annually. The more people the more demand, and the more demand the more opportunity for investment, particularly in agriculture sector. People’s food are made from this sector.

Economic growth has had experiences double digit in this last four years, 2004-2007. The growth has made more income and then demand and purchasing power of Cambodians. Their consumption behavior has been changed so far as they experience with globalization and foreign culture. People tend to consume more than before.

The economy is growing thanks to increase in investment, foreign direct investment, which in turns generate higher income. Some types of investment has made real estate price hike. This makes farmers have more income for more spending.

On the other hand, the Cambodia’s government has laid down infrastructure throughout the country and rural infrastructure is going better from day to day. The infrastructure development has open market opportunity for production and transportation of agricultural products. Along with this, irrigation system, the main source for development of agriculture, is also upgrading.

This rural development tendency has providing incentives for micro-finance be placed at rural areas. It is a fact of market forces. Micro-finance institutions have seen business opportunities there and will provide credit for more capital to invest in agriculture, employing high technology. Then, agriculture will be gradually diverted from extensive to intensive, results in higher production with the same areas of land.

As of today, the government and its development partners are studying Cambodia’s competitiveness for export, because Cambodia is small country. The competitiveness will open space for specialization and perfection for export.

Inflation in food and fuel in the world tells that agricultural products are needed to satisfy the world demand. While it is reported that the price of staple crops and food is not expected to decrease while demand in the world is still increasing, the world markets for agriculture is still hopeful.

In conclusion, I think that the right time for investment in agriculture in Cambodia. The thing to do is to have land and invest in technology. You have to study what kind of sub-sector of agriculture will you invest in.