Cambodia and Vietnam seal mega deal for cassava exports!

Cambodia and Vietnam seal mega deal for cassava exports!

Relations between Cambodia and Vietnam have received a major boost. On October 23, 2025, a crucial Memorandum of Understanding (MoU) was signed in Phnom Penh to massively increase Cambodia's cassava exports. Cambodia's Trade Minister H.E. Cham Nimal expressed optimism about the agreement, which aims to boost exports to a whopping 9 million tonnes per year. This development will not only benefit local farmers, but also improve rural living conditions and contribute to national economic growth, as construction-property.com reports.

The signing took place in the presence of representatives of the Cambodian and Vietnamese cassava associations, as well as other trade representatives, who highlighted the importance of this cooperation. At a time when fresh cassava export figures had fallen in the first nine months of 2025, this MoU shows a response to the challenge experienced by the agricultural sector. El Chhin, president of the Cambodian Cassava Farmers Association, commented that the agreement will increase public confidence in the cassava industry.

Stronger cooperation and trade agreements

As part of the initiative, four Cambodian-Vietnamese companies have signed contracts guaranteeing the purchase of over 3 million tons of fresh cassava per year. This collaboration focuses on the production, processing and marketing of cassava to improve efficiency and sustainability. This sets a whole new standard in the industry that supports both Cambodian and Vietnamese farmers, as kampucheathmey.com reports.

However, Ngin Chhay, director-general of the General Directorate of Agriculture, warned of a decline in export numbers as farmers increasingly switch to dried and powdered forms of cassava, which offer longer shelf life and higher value. Current prices for fresh cassava fluctuate between 250 and 280 riel per kilogram, while the dried variants are as high as 500 to 700 riel per kilogram. Despite the challenges, Cambodia generated a total of $513 million from cassava exports in 2025 – a decrease of 12.41% compared to the previous year. In total, there were 3.4 million tons of cassava exports, including 2.05 million tons fresh and 1.35 million tons dried, an increase of 57.62% in dried products.

Positive prospects for the future

Minister Cham Nimal emphasized the importance of this agreement in strengthening economic ties between the two neighbors. The successful discussions that took place in advance during a trade mission to Vietnam in September 2025 have significantly influenced this progress. It is a clear signal that Cambodia and Vietnam are committed to building a resilient economic partnership and promoting agricultural productivity.

The willingness to cooperate and create a sustainable trading environment is likely to benefit the cassava industry in Cambodia in the long term. The emerging companies in both countries appear to have a good knack for meeting the needs of the market and meeting the challenges of the sector.