Economic Land Concession (ELC) is a long-term lease of state private land granted by the Royal Government of Cambodia (RGC) to private entities for commercial agricultural development. ELCs have been given access to a wide range of activities, including large-scale plantations, animal husbandry, and the construction of agricultural processing factories. Concessions have also been granted for mining, port and fishing operations, and tourism. These concessions aim to increase investment, create jobs, and stimulate economic growth, especially in rural areas. The granting of an ELC in Cambodia is subject to specific conditions to ensure compliance with legal and environmental standards. These conditions include the requirement that the land be registered and classified as state-private land, and its use must align with the land use plan approved by the Provincial-Municipal State Land Management Committee. The environmental and social impact assessments must be completed, and resettlement issues must be addressed with viable solutions. Furthermore, public consultations with local authorities and residents in the affected area are mandatory to ensure transparency and community involvement in the decision-making process.1 However, they have been linked to significant challenges in governance, environmental sustainability, and social equity.
Development of Economic Land Concession (ELC)
During the 1990s, the Cambodian government launched a reform agenda to promote sustainable economic and social development, introducing a range of investment incentives. Agricultural development was identified as a key priority, with objectives to ensure food security, support sectoral growth, supply raw materials for the processing industry, boost exports, and generate employment. This focus attracted numerous companies seeking forestry and land concessions, resulting in demand that quickly surpassed available supply. In 1994, the Law on Investment was enacted, and the Cambodian Investment Board subsequently approved 85 projects under Article 16, which stipulated, “Use of land shall be permitted to investors, including long-term leases of up to 70 years.”2 However, concerns regarding the social and environmental impacts of these concessions began to surface. Human rights organizations started receiving complaints about violations occurring on concession lands. Additionally, the Cambodian Development Resource Institute documented the procedures for granting land concessions that were in place before the adoption of the 2001 Land Law.3
Legal framework
ELCs are governed by the 2001 Land Law, which provides the legal foundation for allocating state land to private companies. Article 29 states that the land concession areas shall not be more than 10,000 hectares, with a maximum duration of 99 years.4 Sub-decree no. 146 on Economic Land Concessions issued in 2005 aims to determine the criteria, procedures, mechanisms, and institutional arrangements for initiating and granting new ELCs, which comply with Land Law 2001.5 The granting of ELCs requires environmental and social impact assessment, public consultations, and approved development plans. In 2012, the government announced a moratorium and reviewed all ELCs, and those that were not compliant with the law were canceled following the protests and pressure from rights groups.6 The policy update in 2015 downgraded the duration of the ELC to 50 years of operation only which was previously given between 70 and 99 years.7 The policy update would help the government better manage such concessions, but strict law enforcement is also needed.8
ELC projects in Cambodia
The Cambodian government granted over two million hectares of land as economic land concessions to the investors.9 A total of 290 projects have been granted as economic land concessions (ELCs), with 33 subsequently revoked by the government, according to Open Development Cambodia (ODC). The data from LICADHO showed that the government has provided 330 ELC projects.10
The Cambodian government grants land to both national and international investors. Cambodia investors have received a total of 112 investment projects. Among international investors, Vietnam leads with 47 projects, followed by China with 37 projects, South Korea with 10 projects, Thailand with 9 projects, Malaysia with 7 projects, and other countries.
Land conflicts resulting from ELCs
Economic Land Concessions (ELCs) in Cambodia have been a significant source of land conflicts, leading to extensive displacement, environmental degradation, and social disturbance. Despite a government-imposed moratorium on new ELCs in 2012, recent developments indicate a recovery of such concessions, intensifying pressures between local communities, authorities, and private enterprises. Between 2003 and 2012, human rights organizations estimated that approximately 400,000 Cambodians were affected by land grabs, the majority of which were linked to ELCs. Between 2001 and 2022, more than 773,000 hectares of forest were lost within the 2.25 million hectares allocated for ELCs.11 The rapid expansion of ELCs has been identified as a major driver of deforestation, directly accounting for up to 40% of forest loss in Cambodia, with additional indirect impacts resulting from encroachment into rural community lands.12
In March 2022, the Cambodian government granted a new ELC covering over 5,000 hectares of forest land in Stung Treng province to Horizon Agriculture Development Co., Ltd. This decision marked the first approval of an ELC in nearly a decade, raising concerns among civil society organizations (CSOs) about the potential for renewed land disputes and environmental harm. Residents in the affected area reported that the company began deforesting the land, leading to conflicts with more than 60 local families who relied on the forest for their livelihoods.13 The return of ELCs has also led to increased deforestation and environmental degradation. A 2023 report highlighted that from 2001 to 2015, Cambodia lost a third of its primary forests, with ELCs being the main driver of this deforestation. The continuation of such concessions threatens the remaining forested areas and the biodiversity they support.14 The situation in Botum Sakor National Park demonstrates the adverse impacts of ELCs on local communities. In 2008, the government awarded a 36,000-hectare concession within the park to the Chinese developer Union Development Group (UDG), displacing approximately 1,333 families. Despite promises of employment opportunities and improved infrastructure, residents have yet to see these benefits happen. Instead, they have faced prolonged land disputes and inadequate compensation, leading to significant economic and social challenges.15
Civil society organizations argue that the lack of transparency and inadequate consultation with affected communities have led to widespread human rights violations and environmental harm from the ELCs. The Cambodian League for the Promotion and Defense of Human Rights (LICADHO) has documented numerous cases where ELCs have resulted in forced evictions, loss of livelihoods, and social unrest.16
Related to economic land concessions
References
- 1. Royal Government of Cambodia, “Sub-decree 146 on Economic Land Concessions,” 27 December 2005.
- 2. Royal Government of Cambodia, “Law on Investment of the Kingdom of Cambodia,” 5 August 1994.
- 3. United Nations Cambodia Office of the Hight Commissioner for Human Rights, “Land concessions for economic purpose in Cambodia: A human rights perspective,” November 2004.
- 4. Royal Government of Cambodia, “Land Law 2001,” 30 August 2001.
- 5. Royal Government of Cambodia, “Sub-decree 146 on Economic Land Concessions,” 27 December 2005.
- 6. Rina Chandran, “Women lead sugar fight as Cambodia sours on land deals,” Reuters, 9 November 2017.
- 7. Save Cambodia’s Wildlife, “Impact of economic land concessions on project target communities living near concession areas in Virachey National Park and Lumphat Wildlife Sanctuary, Ratanakiri province,” November 2016.
- 8. Hean Socheata, “Government shortens lease time on land concessions,” VOA Khmer, 15 September 2015.
- 9. Open Development Cambodia, “Profile page: Economic land concessions,” accessed on 3 February 2025.
- 10. LICADHO, “Land concession,” updated on 30 July 2024.
- 11. Gerald Flynn, “Calls grow to repurpose land squandered in Cambodia’s concession policy,” Mongabay, 08 November 2023.
- 12. Pauly, M., Crosse, W. & Tosteson, J., “High deforestation trajectories in Cambodia slowly transformed through economic land concession restrictions and strategic execution of REDD+ protected areas,” 2022.
- 13. Jack Brook and Sorn Sarath, “Government Approves New Economic Land Concession Despite Moratorium, Conflict Ensues,” CamboJA, 16 January 2023.
- 14. The Star, “Doom for forests: fears over new Cambodia land grants,” 22 December 2023.
- 15. Gerald Flynn and Meng Kroypunlok, “Cambodian conglomerate sparks conflict in Botum Sakor National Park,” Mongabay, 20 July 2023.
- 16. LICADHO, “Statement: New economic land concession leads to conflict, raises questions,” 16 January 2023.
