(Post by CAAI News Media)
Wednesday, 07 October 2009 15:00 May Kunmakara
CAMBODIA’S Green Trade Co signed an agreement Tuesday to set up the first joint venture rice company with Vietnam, Cambodia-Vietnam Foods Company (Cavifoods).
Thon Virak, director general of Green Trade, said the new company with Vina Food II and Investment Development Company of Cambodia (IDCC), both Vietnamese-owned operations, plan to start building a factory and processing plant to produce high-quality milled rice for export by the end of 2009.
“[Cambodia] will gain … more experience in buying and the export process,” Thon Virak said, adding that planning was still under way to set up operations.
This first cooperation on rice production between the two ASEAN neighbours has a total registered capital of US$8 million, said IDCC representative Duong, who only gave his family name.
IDCC holds a 33 percent stake in the new company, with registered capital of $2.64 million, Duong added, with Vina Foods II claiming 37 percent and the Cambodia partner holding the remaining 30 percent.
Vina Foods II was unavailable for comment Tuesday.
Thon Virak said that Cavifoods plans to spend $200 million to start buying rice from farmers in November.
“With this capital, we plan to buy 200,000 tonnes of high-quality unmilled rice from local farmers to process for export by the end of the year,” Thon Virak said, adding that the company would use Green Trade’s Phnom Penh facilities while the new plant was being built.
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