ARDB, ADBC join forces to support agri development

ARDB, ADBC join forces to support agri development

The Agricultural and Rural Development Bank (ARDB) of Cambodia and the Agricultural Development Bank of China (ADBC) Friday agreed to strengthen their partnership in banking services to support agricultural development, promote investment, and facilitate the export of Cambodian agricultural products to the Chinese market.

Both sides signed a Memorandum of Understanding (MoU) to the effect in Beijing, China, in the presence of Kao Thach, Chairman of the Royal Government Delegate in Charge and CEO of ARDB, and Zhan Dongsheng, President of ADBC, said an ARDB press release.

The MoU signing event was attended by senior leaders from both financial institutions, highlighting the significance of this partnership in fostering economic growth and trade relations between the two nations.

“The MoU aims to foster a partnership through cooperation in banking services for agricultural development, promote investment in Cambodia, and support the export of Cambodian agricultural products to the Chinese market through specialized banking services, particularly trade finance.

“Additionally, it facilitates the exchange of experiences and best practices between the two banks to enhance socio-economic development,” the statement said.

Furthermore, the two banks will collaborate to promote green finance, contributing to the fight against climate change. They will also engage in joint research within the framework of the APRACA Centre of Excellence – Green Finance for the Agricultural Sector.

Both banks emphasized their commitment to supporting Asia-Pacific Rural and Agricultural Credit Association (APRACA) initiatives and strengthening institutional capacity through joint training programs, staff exchanges, and study visits.

Under this MoU, the two banks will develop a joint action plan to enhance banking services for agricultural and rural development by sharing expertise and exchanging information.

Thach recently stated that ARDB, a commercial and policy bank, is financed by the Royal Government of Cambodia under a special financing program designed to support all participants in the agricultural and agro-industrial production chain.

“The program provides low-interest financing as both investment and working capital to enterprises, including small and medium-sized businesses engaged in rice production, vegetable and fruit farming, animal husbandry, and aquaculture.

“Its goal is to create jobs, enhance competitiveness, expand local production capacity, and boost exports,” he said.

As of December 2024, the government-funded ARDB had a total loan portfolio of $493 million, reflecting an average annual increase of 30 percent over the past five years (2019–2024), according to ARDB’s report. Of this total, loans in the rice sector accounted for the largest proportion—approximately 42.3 percent of the portfolio.

ARDB’s total assets grew significantly, from $2.5 million in 1998 to approximately $575 million by 2024.

Additionally, ARDB maintains a nationwide network of 16 mobile offices serving provinces such as Banteay Meanchey, Oddar Meanchey, Preah Vihear, Siem Reap, Stung Treng, Ratanakkiri, Kratie, Tbong Khmum, Prey Veng, Takeo, Kampong Cham, Kampong Chhnang, Kampong Thom, Pursat, Kampong Speu, and Svay Rieng, according to Thach.

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