Phnom Penh, Cambodia – A significant step towards strengthening agricultural trade between Cambodia and Vietnam was recently taken with the formal signing of a Memorandum of Understanding (MoU) between the Cassava Federation of Cambodia and the Vietnam Cassava Association. This landmark agreement aims to enhance various critical aspects of the cassava industry, encompassing improved production methodologies, enhanced processing capabilities, and an overall boost in trade volume between the two neighboring nations.
A primary and ambitious objective of this newly inked MoU is to facilitate a substantial increase in the export of fresh cassava from Cambodia, targeting an impressive annual volume of 9 million tons. This strategic initiative is widely expected to bring considerable economic benefits to Cambodian farmers, agricultural producers, and the wider national agricultural sector, fostering sustainable growth.
The signing ceremony itself was a high-profile event, underscoring the importance of this bilateral agreement. It was notably graced by the presence of Ms. Cham Nimmol, Cambodia’s Minister of Commerce, alongside esteemed representatives from the Vietnamese Embassy in Cambodia. Key financial institutions such as ARDB Bank and SME Bank were also represented, signaling potential financial support mechanisms for this extensive venture. Furthermore, numerous Cambodian and Vietnamese cassava collectors, in addition to several development partners, attended the event, highlighting the collaborative spirit and broad stakeholder engagement driving this important agreement.
Further solidifying the practical commitments stemming from the MoU, the occasion also saw the formalization of specific sales contracts between four Cambodian and Vietnamese cassava collectors. These supplementary agreements specifically outline the purchase of over 3 million tons of fresh cassava from Cambodia on an annual basis, demonstrating immediate and tangible commercial outcomes derived from the broader memorandum of understanding.
According to a recent report from the General Department of Agriculture under the Ministry of Agriculture, Forestry and Fisheries, Cambodia’s dried cassava exports to the international market reached an impressive 13,556,620 tons between January and September of the current year. This figure represents a notable increase of 57.62% when compared to the corresponding period in the previous year. Conversely, fresh cassava exports during the same timeframe amounted to 20,509,000 tons, albeit experiencing a decrease of 16.57%. The new MoU is strategically positioned to address this trend for fresh cassava, aiming for sustained growth in both categories and ensuring a robust future for Cambodia’s cassava industry.
