Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam renews duty-free tobacco quota for 2021

Vietnam renews duty-free tobacco quota for 2021

Content image - Phnom Penh Post
Cambodia exported a total of 5,820.82 tonnes of dried tobacco leaves last year, down 14.02 per cent from 6,769.97 tonnes in 2019. POST STAFF

Vietnam renews duty-free tobacco quota for 2021

Vietnam extended its 3,000-tonne duty-free quota for Cambodian dried tobacco leaves for 2021 to meet market demand, Ministry of Commerce spokesman Seang Thay confirmed to The Post on March 23.

Thay said the extension was part of the renewal process of the Bilateral Trade Facilitation Agreement for 2021-2022 reached by the 18th Cambodia-Vietnam Joint Commission meeting on December 22 and yet to be formally ratified, with retroactive benefits for exports.

“In order to extend the validity of this agreement, both sides must prepare internal procedures and the Vietnamese side will notify Cambodia when theirs are completed,” he said, adding that the accord also stipulates a 300,000-tonne duty-free quota for milled rice for 2021.

Cambodia and Vietnam inked the agreement in October 2016 to drop import tariffs on dozens of products in an effort to boost bilateral trade and have renewed it every two years since. The goods covered in the deal, however, are determined on a yearly basis.

The Kingdom exported 1,377 tonnes of dried tobacco leaves to Vietnam last year valued at $4,197,500, down 34.37 per cent by volume from 2,098 tonnes in 2019, according to data from the ministry.

No Ry, a tobacco farmer in Tbong Khmum province, told The Post that the wholesale market price of dried tobacco leaves remained on par with last year’s levels, hovering at around 10,000 riel ($2.46) per kilogramme on March 23.

“The tobacco market is rather robust, no matter how many tonnes are in stock, they’re all bought, though the price may not be different from last year,” she said, adding that she expects a three-to-four-tonne yield this year.

Data provided by Minister of Agriculture, Forestry and Fisheries Veng Sakhon shows that Cambodia exported a total of 5,820.82 tonnes of dried tobacco leaves last year, down 14.02 per cent from 6,769.97 tonnes in 2019.

The outbound shipments were worth $17,462,460, down 28.34 per cent compared to 2019’s $24,371,874.72.

The minister listed the buyers of the leaves as Vietnam, Indonesia, Hungary, the UAE, Belgium, South Africa, Greece, Singapore and Germany.

Last year, the area under tobacco cultivation was 5,175ha, of which 4,875ha were harvested, producing 6,132 tonnes, representing a one per cent drop from 2019.

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Phnom Penh governor: Show Covid-19 vaccination cards, or else

    Phnom Penh municipal governor Khuong Sreng late on October 5 issued a directive requiring all people aged 18 and over and the parents of children aged 6-17 to produce Covid-19 vaccination cards when entering schools, markets, malls, marts, eateries and other business establishments that have been permitted