Wednesday, October 7, 2009

Cambodia and Vietnam Cooperate to Create a Company for Rice Export to International Markets – Tuesday, 6.10.2009

Posted on 7 October 2009
The Mirror, Vol. 13, No. 633

(Post by CAAI News Media)

“Phnom Penh: The Minister of Commerce and Senior Minister, Mr. Cham Prasidh, said that many private companies in Cambodia still do not have the ability to buy up paddy rice from farmers and to mill it for export to international markets. Therefore, the cooperation between Khmer and Vietnamese companies now is to help Cambodia to create a modern rice milling house to produce rice for export to international markets in the future.

“Mr. Cham Prasidh said that even though Vietnam can export rice of more than 6 million tonnes per year, it has to pay taxes for the exports while Cambodia, a poor country among 49 other similar countries in the world, is allowed by 27 European countries not to pay taxes on exports. Before 1 September 2009, the export quota of Cambodia was still valid, and it allowed Cambodia to export only 6,000 to 7,000 tones of rice to Europe, but now, Cambodia can export up to one million, if it intends to, without paying export taxes. Thus, a Vietnamese company that invests in Cambodia will surely bring great benefits.

“Mr. Cham Prasidh said so on 5 October 2009 while he presided over a signing ceremony between Cambodian and Vietnamese companies to create a new company, the Cambodia-Vietnam Food Company (Cavifoods), to buy paddy rice from Khmer farmers to be milled to produce rice for export to international markets. Mr. Cham Prasidh added that there are very few irrigation system issues that Cambodia needs to address – it is the buying and selling and export problems which are challenges to be solved at present and in the future, because there needs to be much capital to be spent to buy paddy rice from farmers.

“Mr. Cham Prasidh expressed his satisfaction to see that Vietnamese investors had deiced to invest to also create a fertilizer factory in Neak Loeang [Prey Veng], a good strategic location, since Cambodia does not need fertilizer only for rice agriculture, but also for many other crops. Recently, there was also fertilizer imported from Vietnam, but that was no-quality fertilizer, imported by dishonest people, making Khmer farmers to spend double, to have the fertilizers they need, and this affects the friendships between the people of both countries. Thus, establishing a fertilizer factory in Cambodia is a great opportunity, as it will help Cambodia to increase its potential to export more agricultural products.

“Vietnam said that Vietnamese companies have prepared US$200 million to buy paddy rice from Cambodian farmers, and it ensures there will be no shortage of capital to buy paddy rice. This is good news for Cambodian farmers.” Koh

Santepheap, Vol.42, #6771, 6.10.2009
Newspapers Appearing on the Newsstand:
Tuesday, 6 October 2009

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