Cambodia’s Agricultural Exports Are Booming. Can Financing Keep Up?
Cambodia’s agricultural sector has quietly become one of Southeast Asia’s most compelling growth stories. Over the past three years, exports of its flagship crops such as rice, cashew nuts, cassava, and mangoes have surged to historic highs. From fragrant milled rice bound for China and Europe to mountains of cassava heading to Vietnam and Thailand, the Kingdom is feeding rising global demand with remarkable momentum.
By 2024, agricultural shipments had reached record levels. Strong harvests, improved logistics, and growing international interest all played a part. Rural households have benefited, export earnings have climbed, and agriculture now stands alongside garments and tourism as a key pillar of the national economy.
However, behind the impressive trade numbers sits a persistent challenge. Exporters still struggle to finance procurement, processing, and shipping while they wait for overseas buyers to settle their invoices. As Cambodia’s agricultural footprint expands, the country must ensure that financing can keep up. The rise of supply chain finance, especially receivables financing, offers a practical solution.
This article explores the growth of Cambodia’s four leading agricultural exports, the financial bottlenecks exporters face, and how receivables financing can unlock the next phase of expansion.
A Harvest of Success: Rice, Cashew, Cassava, and Mango Exports Soar
Cambodia’s crop exports have grown far faster than most expected. Official data shows strong increases across the country’s most important commodities. Four products in particular stand out.
Rice: A Steady Climb Toward One Million Tons
Rice remains the star of Cambodian agriculture. In 2024, the country exported around 650,000 tons of milled rice. This brings it closer to the government’s long-stated target of one million tons. Export earnings also rose sharply, with nearly one billion dollars generated in the first half of 2024.
China continues to be Cambodia’s top buyer, followed by the European Union and several regional markets. The popularity of fragrant Cambodian rice varieties and stronger milling capacity helped drive a 16 percent annual increase in volume. With surplus paddy and expanding production, the sector is well positioned for continued growth.
Cashew Nuts: Cambodia Emerges as a Global Powerhouse
Cashews have been an extraordinary success story. In 2024, Cambodia became the second-largest producer of raw cashew nuts in the world. Exports reached 815,000 tonnes, an increase of 24 percent from the previous year. Revenue rose to 1.15 billion dollars, reflecting a 31 percent increase in value.
More than 97 percent of these nuts are shipped to Vietnam for processing. Although this highlights the lack of domestic capacity, it also reveals a major opportunity. With the right investment, Cambodia could process far more cashews at home and retain more value locally. For now, the rapid rise in raw exports shows how important cashews have become for rural livelihoods and how critical working capital is during harvest season.
Cassava: A Quiet Giant Reaches the Global Stage
Cassava has transformed from a domestic crop into one of Cambodia’s largest export earners. By May 2024, cassava exports were seven times higher than the year before. For the full year, shipments reached 4.47 million tonnes and generated 728 million dollars.
Cambodia now ranks among the world’s top cassava exporters. Most of the crop is exported raw or semi-processed to Vietnam, Thailand, and China. More than 3.4 million tonnes of fresh cassava and nearly one million tonnes of dried chips were shipped in 2024.
Although more than 95 percent of output leaves the country unprocessed, the potential to build local starch, ethanol, or feed industries is significant. Even without this added value, cassava has become a vital income source for farmers. The challenge for exporters is having enough cash to buy and store large volumes during harvest.
Mangoes: From Local Favourite to Global Commodity
Mangoes have become a breakout export success. Better market access, particularly to China, South Korea, and the European Union, helped fresh mango exports double in early 2024. By year-end, Cambodia shipped more than 220,000 tonnes worth over 140 million dollars. This marks a 24 percent increase from 2023.
China has quickly become a major destination after Cambodia secured new export protocols. At the same time, processing capacity has grown. Large factories in Kampong Speu now dry tens of thousands of tonnes of mangoes each year. These facilities help stabilise prices for farmers and reduce waste during peak harvest.
Mango exports were a tiny niche just a few years ago. They have now become a major source of foreign income.
Across all four commodity groups, the pattern is clear. Demand is strong, supply is rising, and Cambodia has become a significant regional exporter. In the first ten months of 2025 alone, agricultural shipments reached 11.89 million tonnes, an increase of 28.5 percent year-on-year. Export revenues reached 4.18 billion dollars. Agriculture is no longer a supporting sector. It is central to the country’s economic story.
This growth, however, places pressure on exporters to maintain steady cash flow. Many struggle to do so.
The Cash Crunch: Why Exporters Struggle with Working Capital
Every export shipment requires money long before it generates income. Exporters must buy crops, process them, package them, cover logistics, and ship the goods. Payment from foreign buyers often arrives only after 30, 60, or 90 days.
This delay creates a working capital gap that is difficult for many firms to manage.
Agricultural exporters feel this pressure at an even greater scale. Harvest seasons require a rush of spending. Exporters often must buy large volumes over a short timeframe, then wait weeks or months for payment. Many simply do not have enough cash reserves to keep up.
Several structural issues make the gap worse.
Limited Access to Bank Credit
Banks in Cambodia typically require land titles or buildings as collateral. Many exporters, especially SMEs, do not have such assets. As a result, they rely on internal funds. This is consistent with regional surveys showing that most trading firms in the Mekong rely on self-financing.
High Interest Costs and Short Loan Tenors
Loans, when available, may come with high interest rates or short repayment periods. These conditions are often unsuitable for agricultural cycles that require flexibility.
Dependence on Informal Financing
Exporters often rely on family loans, supplier credit, or postponed payments to collectors. These arrangements help but are rarely enough for larger export volumes.
Long Buyer Payment Terms
Small exporters rarely have the bargaining power to demand advance payment from overseas buyers. Even with a letter of credit, payment generally only arrives upon shipment or after a fixed period. This does not solve pre-shipment financing needs.
The result is simple. Exporters cannot fully meet demand. They reduce volumes, decline orders, or delay purchases from farmers. The national export capacity then falls short of its true potential.
Supply chain finance offers a promising way to address this.
From Farm to Market Faster: How Receivables Financing Can Help
Receivables financing allows exporters to turn outstanding invoices into immediate cash. Instead of waiting 60 days for payment, an exporter can receive most of the invoice value shortly after shipment. When the buyer finally pays, the financing provider releases the remaining balance minus a small fee.
This approach offers several major benefits.
Faster Cash Flow
Exporters get paid quickly. They can pay farmers, buy more stock, and take on larger orders without delay.
No Need for Property Collateral
Financing providers focus on the value of the invoice and the creditworthiness of the foreign buyer. This is ideal for SMEs that lack fixed assets. The banking industry in Cambodia now recognises factoring as a useful option for such businesses. In early 2024, the Association of Banks in Cambodia, supported by IFC, published a Factoring Handbook to promote this form of financing.
More Flexibility
Receivables financing is often faster to arrange than traditional loans. Exporters can choose which invoices to finance based on their needs. This fits well with the seasonal nature of agriculture.
Better Terms When Selling to Strong Buyers
If the buyer is a large international company, the financing risk is lower. This can reduce the cost of financing for the exporter.
For Cambodia’s agricultural exporters, this could be transformative. A mango exporter with a shipment worth 100,000 dollars could access 80,000 dollars immediately. Farmers get paid faster. Staff and logistics providers receive their wages on time. Production can expand without cash flow interruptions.
The impact at scale could be significant across rice mills, cassava traders, cashew collectors, and mango exporters.
Harvesting the Opportunity: Linking Strong Exports with Smart Finance
Cambodia has shown that it can produce and sell high-demand agricultural products in increasingly large volumes. To maintain and build on this momentum, the country must strengthen the financial systems that support exporters.
Government initiatives such as ARDB credit lines and CGCC guarantees are helpful. However, traditional lending alone cannot meet the needs of a rapidly expanding export sector. Receivables financing and other supply chain finance tools offer a practical way to keep cash flowing through the agricultural economy.
These tools benefit more than exporters. They support farmers, encourage investment in processing, and help Cambodia move up the value chain. They also attract new investors who see reduced risk and stronger cash flow discipline.
Cambodia is now at a pivotal moment. Global demand for its crops is rising. Local businesses are proving they can deliver. By pairing strong agricultural performance with modern financing tools, Cambodia can ensure that working capital never becomes a barrier to growth.
The harvest is abundant. With the right financial support, the country is well positioned to fully benefit from its agricultural success.
If you are an exporter looking to strengthen your cash flow or a buyer seeking more stable and scalable sourcing from Cambodia, now is the time to explore modern financing options. Receivables financing can help you unlock immediate working capital, take on larger orders, and grow with confidence. To learn how these solutions can support your business, connect with us at Convergence Capital and our team will be glad to guide you through the next steps.
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