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PROJECT “NETWORK FOR AGRICULTURE AND RURAL DEVELOPMENT
THINK-TAKS FOR COUNTRIES IN MEKONG-SUB REGION” (NARDT)

Cambodian rice millers and traders to add value, export, and create employment
locally (IFC, 2015). With this, the Royal Government of Cambodia implements in the
Rectangular Strategy Phase 4, to focus on vigilant macro-economic management,
reduction of the cost and time for establishing new businesses according to the types
and locations and strengthening of trade facilitation. Cambodia is expecting that,
by 2030, the National Federation will be active in promoting the rice sector, and
advocating policies further, to support the formation of rice exporting businesses.
The branding of rice is another issue that impacts Cambodia’s rice market. The
majority of Cambodian rice is currently under other countries’ brands, with processing
and packaging is under processed by countries with strong branding and processing
chain, as in Thailand or Viet Nam cases. Since the Rectangular Strategy Stage II, the
Royal Government had promoted the quantity and branding of Cambodian milled rice
in the global market, but, because of the limitation in milling facilities, most of the milled
rice in Cambodia is traded domestically, having a little impact to the global market.
With the rising development in the rice value chain in recent years, it is expected that
Cambodia brand rice will represent 50% of trade in the international market.

The insufficient information coverage in Cambodia is one of the main factors
that decrease the ability of marketing for Cambodian rice. Reported in 2018, currently,
Cambodia still lacks a mechanism providing agricultural market information linking,
slowing the transition from exporting paddy rice to exporting processed rice. Also,
young enterprises focusing on exporting rice will be discouraged to participate in the
rice market as insufficient information to make key decisions. As a part of promoting
young entrepreneurs and enterprises, disseminating market information broadly and
timely is a focus factor that the Royal Government is aiming at the current stage of
Rectangular Strategy. It is expected, by 2030, 80% of farmers and enterprises will
adopt and use the information technology, adapt to global and domestic market
demand, and price.

The final issue with Cambodia is the lack of a market structure that links
Cambodian rice producers, farmer organizations to the rice market. Currently, rice
producers and farmer organizations are accessing the rice market through traders
and enterprises, leaving with little options to sell the products, and create added value
to the products. Especially, many traders are from other countries due to the better
output of paddy rice. Promoting the establishment of market infrastructure will help
farmers and farmer organizations to access the rice market more direct and removes
the middle actors. By 2030, Cambodia is expected to see 100% of cooperatives have
improved access to market infrastructure.

3.3.2. Lao PDR
After the announcement of basic food security of nature by the sufficiency of rice
production per capita since 2020, the government promotes rice commercialization
in the country in order to ensure rice availability and sufficiency in all parts of the
country, as well as export to potential markets. According to the ADS 2025, the
government promotes rice commercialization and enhances the exportation of rice to
neighboring and specific markets, particularly an increase of goods exports to China,
including rice (MAF, 2015).
Apart from this, decree no. 114/GOV and order no. 12/PM are the main policies
that supported the facilitation of goods movement, imports, and exports. Order no.

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