Cambodia and Chinese companies have signed a memorandum of understanding (MoU) to expand exports of Cambodian fruits and vegetables to China's Henan province. The deal is valued at US$30 million over the next two years.
The agreement was signed by Zhengzhou Chen's Sun Fruit and Vegetable Co., Ltd. and Nongde Agricultural Development Co., Ltd, following a meeting aimed at strengthening economic ties. On September 10, Cham Nimul, Minister of Commerce, and Zheng Haiyang, Vice Governor of the People's Government of Henan Province, discussed expanding cooperation in the agricultural sector.
Nimul encouraged Chinese investors to increase business operations in Cambodia, particularly in agriculture and food processing. She also urged the private sectors of both countries to make use of the Regional Comprehensive Economic Partnership Agreement (RCEP) and the ASEAN-China Free Trade Agreement to expand cooperation and reach further agreements.
Chey Tech, a socio-economic analyst, noted that the deal is positive for Cambodian farmers, particularly given the country's supply of cash crops such as mango, longan, and durian. "It will help boost the income and livelihoods of farmers," he said, while questioning whether Cambodia currently has the production capacity, technology, infrastructure, and irrigation systems to meet higher demand.
"Given these, the government needs to assist Cambodian producers to address and strengthen the nation's production capabilities," he said. He also emphasized the need to promote market standards and contract farming to ensure that farmers' products are purchased during harvest.
"This process requires preparation, clear dissemination, and guidance for Cambodian producers and farmers," he said.
Currently, 16 Cambodian agricultural products are allowed to be exported to the Chinese market. Fresh produce on this list includes bananas, mangoes, longans, coconuts, durian, corn, and cashew nuts.
Source: Kiri Post