Logo of Phnom Penh Post newspaper Phnom Penh Post - Agro fair sows seeds for future investment

Agro fair sows seeds for future investment

Agro fair sows seeds for future investment

A major international agricultural fair that brought over 800 Chinese companies to the capital wrapped up yesterday with none of the expected investment agreements signed as Chinese investors appeared cautious about setting up agro-processing facilities in the Kingdom, organisers said.

The inaugural International Agriculture Products and Expository kicked off on June 25, drawing some 800 investors from China and 200 local firms to a four-day expo aimed at showcasing the investment potential of Cambodia’s agricultural sector.

Chea Heng, president of the Cambodia-China Development Friendship Alliance (CCDFA), one the expo’s local organisers, said several major memoranda of understanding (MoUs) had been expected during the fair, but none materialised.

However, he said he was aware of several private agreements signed during the event, including an agreement for CCDFA to act as a local agent for a Hong Kong-based distributor of Chinese processed agricultural products.

“So far we have not had any big MoUs with the Chinese side yet,” he said. “But we [CCDFA] have already signed on rights to import Chinese products to sell in the Cambodian market.”

Heng said Chinese investors were interested in establishing processing factories in Cambodia for local agricultural products, but had insisted on due diligence before committing to the projects.

“Chinese investors still intend to set up processing factories but they need first to go down and check locations for their potential agricultural products,” he said.

Heng added that he was confident that some “major deals” would be inked in the future.

Lim Heng, vice president of the Cambodia Chamber of Commerce, said that while the expected investment agreements were not signed during the expo the attendance of over 800 Chinese companies signified a huge potential for future investment in agricultural processing facilities.

“I think there is a lot of potential for investors, especially Chinese investors, to set up processing factories here as we produce a lot of agricultural products but most of them end up [being processed] in neighbouring countries,” he said. “It would add more value to the products if the processing factories were established here and investors could export directly to their market at a high profit.”

MOST VIEWED

  • Stock photo agencies cash in on Khmer Rouge tragedy
    Stock-photo companies selling images from S-21 raises ethics concerns

    A woman with short-cropped hair stares directly into the camera, her head cocked slightly to the side. On her lap is a sleeping infant just barely in the frame. The woman was the wife of a Khmer Rouge officer who fell out of favour, and

  • US think tank warns of China's 'ulterior motives'

    A US think tank on Tuesday warned that spreading Chinese investment in the Indo-Pacific follows a pattern of leveraging geopolitical influence at the expense of the nations receiving investment, including Cambodia. The report looks at a sample of 15 Chinese port development projects, noting that the

  • Defence Ministry denies weapons in smuggling case came from Cambodia

    After a Thai national was arrested last week for allegedly smuggling guns from Cambodia to Thailand, Cambodia's Defence Ministry has claimed the weapons seized during the arrest are not used in Cambodia, despite the fact that both types of rifle seized are commonly found in

  • More than three tonnes of ivory reportedly bound for Cambodia seized in Mozambique

    A total of 3.5 tonnes of ivory reportedly bound for Cambodia was seized by authorities in Mozambique late last week, according to the NGO Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES' information was based on a report from the