China provides important assistance to Cambodia's agricultural modernization

At the invitation of Premier Li Keqiang of the State Council, Prime Minister Hun Sen of the Kingdom of Kamboja paid an official visit to China from February 9th to 11th. A reporter from the Economic Daily conducted an exclusive written interview with the visiting Cambodian Minister of Agriculture, Forestry and Fisheries, Dundina.

Reporter: How much does agriculture account for in the Cambodian economy? How has it developed in recent years?

Dundina: Before the outbreak of the new crown epidemic in 2020, Cambodia's economy performed very well. The GDP has maintained an average annual growth rate of around 7% for more than 20 consecutive years. In particular, the industrial and service industries performed strongly, providing many high-income employment opportunities for the people. Correspondingly, the share of agriculture in the country's GDP will drop from 26.6% in 2015 to 22.8% in 2022. Nevertheless, agriculture is still one of the pillars of Cambodia's socio-economic development and one of the priority industries. Moreover, it provides employment for more than 30% of the population.

In addition, agriculture also plays an important role in Cambodia's food security. In recent years, the Cambodian government has been actively promoting agricultural modernization, striving to improve infrastructure, increase financing channels and promote exports. The government also invests in education and training programs to help farmers increase productivity and adopt new technologies. These efforts have paid off, and in 2021, Cambodia's agricultural exports will reach US$4.96 billion. Among them, China, the Amerika Serikat and the European Union are the largest markets.

Reporter: In recent years, more and more Cambodian agricultural products have entered the Chinese market. What impact does this have on Cambodian agriculture and farmers?

Dundina: Cambodian farmers are very happy to be able to supply high-quality products such as rice, cassava, corn, cashew nuts, bananas, mangoes and longan to the Chinese market. China can also import delicious Cambodian freshwater fish products. This has also attracted some Chinese investors to invest in agricultural and processing facilities in Cambodia.

The special feature of China-Cambodia relations lies in the close ties between people, especially entrepreneurs. Chinese investors and Cambodian farmers can cooperate well to produce more and better quality products for the Chinese market. We hope that high-quality agricultural products such as Cambodian black pepper, bird's nest, coconut, durian, jackfruit, and pineapple will appear in the Chinese market in the near future. I am confident that we will work together to achieve this goal.

Reporter: In addition to trade, what kind of cooperation does the two countries have in agricultural research and development? What are your plans for the future?

Dundina: Cambodia and China are strengthening their partnership in many aspects of agricultural development.

The Cambodian government has proposed a vision to become a middle-income country by 2030 and a high-income country by 2050. To achieve these visions, the Cambodian government is pursuing an agenda to modernize the agricultural sector to make the sector more competitive, inclusive, climate-resilient and sustainable, thereby increasing farmers’ incomes and bringing lasting benefits to all Cambodians.

Accordingly, the government passed the National Agricultural Development Policy 2022-2030 to achieve the goal of agricultural modernization. Our primary policy objective is to increase value added by 3% per annum. In this regard, we are pleased to take this opportunity to thank the Ministry of Agriculture and Rural Affairs of China for its technical assistance in assisting Cambodia in formulating a master plan for agricultural modernization. Experts from both countries are currently working closely together to make this master plan a reality. It is expected that outstanding Chinese experts will help Cambodia formulate an overall plan, on the one hand, provide an overall plan for agricultural development, and focus on promoting R&D; on the other hand, promote the establishment of a platform for Cambodia and China to further deepen bilateral agricultural R&D cooperation and partnership.

Reporter: During Prime Minister Hun Sen's visit to China, what agreements will the two countries reach in the field of agriculture? What impact will these agreements have?

Dundina: During this visit, in the field of fishery, Cambodia and China will sign the "Protocol on Health and Quarantine Requirements for Cambodia's Export of Edible Aquatic Animals to China". The protocol will allow Chinese entrepreneurs to import live fish from Cambodia to the Chinese market. It is believed that this visit will also speed up the process of negotiations on technical agreements and sanitary and plant quarantine on the import of bird's nest, coconut, durian, jackfruit and pineapple and other products. These initiatives will increase investment opportunities in Cambodia's commercial crop plantations, agricultural product processing plants, cold chain facilities, warehouses and logistics systems, thereby supporting the promotion of Cambodia's agricultural value chain.

Reporter: For Chinese investors, what areas do you think are worthy of investment in Cambodian agriculture and the agricultural product market? What are the advantages and preferential policies of Cambodia?

Dundina: There are several areas worth investing in in the Cambodian agriculture and agricultural product market, including rice production, animal husbandry, fruit and vegetable production, and aquaculture. Cambodia also has a series of advantages and preferential policies, including that Cambodian agricultural products can enter the EU market on preferential terms, enter the ASEAN market as a member state, and enjoy tax reduction and exemption import policies, etc.

In addition, the free trade agreement between Cambodia and China in 2021 offers clear advantages for agricultural investment, especially in the development of plant-based value chains. Many items related to grains, fresh produce and plant-based foods will enjoy zero import duties, creating opportunities to increase value addition in the agricultural value chain.

The Cambodian government expects Chinese investors to consider and explore more investment opportunities, including the establishment of agricultural processing plants, cold chain facilities, warehouse development and related logistics systems, as well as investment in agricultural planting, feed, seeds, fertilizers and agricultural processing industries.

Reporter: Have you ever visited China? How do you view China's economic and social development?

Dundina: I have had the honor to visit China many times. China is a great country with splendid history and civilization. China has achieved huge and rapid economic development results. Under the leadership of the Communist Party of China, hundreds of millions of people have been lifted out of poverty. China has become a major economic power in the world and the engine of world economic growth.

Most admirable is that China respects the sovereign values of its partners in other countries. China never interferes in the internal affairs of partner countries. Cambodian leaders attach great importance to the friendship and partnership between Cambodia and China, which is in the common interests of the two countries and the two peoples.