Commerce ministry secretary of state Tekreth Kamrang and ARDB CEO Kao Thach sign the cooperation MoU on December 3. ARDB
The Cambodian government is striving to enhance productivity in the agricultural sector to meet domestic demand and boost exports to international markets. Towards this effort, two state institutions have signed a memorandum of understanding (MoU) to strengthen agricultural cooperation and promote exports.
Tekreth Kamrang, secretary of state at the Ministry of Commerce, and Kao Thach, CEO of the Agricultural and Rural Development Bank (ARDB), signed the MoU at the ministry on December 3.
The ceremony was attended by commerce minister Cham Nimul, along with representatives from the Cambodia Rice Federation (CRF), the Cassava Federation of Cambodia (CFC), rice millers, exporters, cassava and cashew nut processing companies, as well as various ministries, institutions and other stakeholders.
According to ARDB, the MoU aims to foster partnerships by fostering cooperation in the development of agriculture and commerce. This includes promoting the use of the bank’s products and services, implementing the Law on Secured Transactions, providing market price index data, supporting local product processing and facilitating exports through the provision of low-interest financing by ARDB.
Kamrang highlighted that the agreement represents a collaborative effort between the two state institutions, supporting the government's policies to enhance efficiency in the agricultural and commercial sectors.
Thach stated, “This cooperation will become a sustainable driving force to promote agricultural and commercial development through providing financing to all actors in the agricultural value chain and adding value to agricultural products by connecting local markets to export opportunities with the support of the commerce ministry.”
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on December 4 that as an agricultural country, Cambodia must explore every means to increase farming productivity, yields, quality and market reach to satisfy both domestic demand and international exports.
He added that the agreement would play a significant role in supporting and promoting the agricultural sector. He noted that, as an institution providing financing for agriculture, ARDB has consistently offered concessional loans to farmers and investors to boost productivity. He explained that the ministry acts as a bridge between domestic markets and international export destinations.
Vanak expressed strong support for such collaboration, emphasising that market challenges and price volatility often create difficulties for farmers and agricultural investors, particularly during harvest seasons.
He noted, “Farmers work hard in cultivation, but the lack of markets and stable prices often leaves some in debt to financial institutions or creditors, making it difficult for them to recover.”
However, he also pointed out that the bank’s funding is limited as it primarily depends on government resources, which constrains the extent of its financial support to farmers and agricultural investors.
At a recent forum, Khim Finan, spokesperson for the Ministry of Agriculture, Forestry and Fisheries, noted that majority of the $3.4 billion worth of agricultural exports from January to October were raw or unprocessed, resulting in lost revenue for the country.
“If we can find ways to process and add value to our agricultural products before exporting them, the potential for added value in the agricultural sector is enormous,” he said.
He explained that products such as cashew nuts, rice and cassava are largely sent overseas in raw form. Exporting these products after they have been processed would bring huge benefits to the national economy through job creation and tax revenue.
“If we can do this, Cambodia could better control its economic future,” he added.
