Cambodia targets $2 billion cassava surge through Vietnam ties

Cambodia targets $2 billion cassava surge through Vietnam ties

The Trade Attaché of the Cambodian Embassy in Vietnam has facilitated a strategic meeting between the Tay Ninh Tapioca Starch Producers Association and the Ministry of Commerce to accelerate the implementation of a landmark memorandum of understanding.

The high-level session, held on Wednesday, focused on modernising the value chain and reducing logistical bottlenecks to secure sustainable growth for the Kingdom’s agricultural exports.

The meeting was co-chaired by Var Rotsan and Lim Louk Piseth, Secretaries of State at the Ministry of Commerce, who hosted a delegation from the Vietnam Cassava Association. Senior officials, including undersecretaries of state and directors general, attended the consultative session to address critical challenges in price stability and production efficiency.

The discussions emphasised the need to test high-yield cassava varieties to secure better market pricing and to streamline border-checkpoint procedures to reduce overheads for local exporters.

Recent developments indicate that the Vietnamese association has been instrumental in raising the price of fresh cassava roots from 370 riel per kilogram to 650 riel per kilogram. This price correction has directly stabilised farmers’ incomes and bolstered rural livelihoods across the country. Furthermore, an export volume of approximately 5 million tonnes to Vietnam, supported by rapid border clearance, underscores a strengthening supply chain and deepening bilateral trust.

The association stated its commitment to supporting Cambodian smallholders by maintaining price floors and aiming to increase productivity from 20 tonnes per hectare to 25 tonnes per hectare. Achieving these targets could propel Cambodia to an annual production capacity of 20 million tonnes, potentially generating over $2 billion in national revenue. This expansion is expected to attract significant foreign direct investment and stimulate the growth of domestic processing facilities.

Notably, Vietnamese investors have outlined plans to establish at least two large-scale processing plants in Cambodia, contingent on export volumes exceeding 15 million tonnes annually. This move would mark a transformative step towards positioning the nation as a premier cassava production hub in Southeast Asia.

Officials from Cambodia’s Commercial Office in Ho Chi Minh City pledged to remain a vital bridge between the private sector and government institutions, ensuring transparent, mutually beneficial cooperation. By prioritising infrastructure and fair trade, both nations aim to solidify a resilient agricultural partnership that serves as a model for regional economic integration.

khmertimeskh