Cavifoods allowed to open rice mill in Nom Benh by Hoon Xhen?

Cavifoods firm opens rice-milling facility

April, 02 2012
VNS (Hanoi)

PHNOM PENH — The Cambodia - Viet Nam Foods Company (Cavifoods) on March 30 opened a rice-milling plant in Phnom Penh that is expected by May to have the largest capacity and best product quality of any milling plant in the country.

When the plant opens its second production line in May, it will become fully operational, with a total capacity of 40,000 tonnes, according to Doan Anh Sang, Cavifoods chairman.

Cavifoods has three shareholders, Viet Nam's Cambodia Investment and Development Company (IDCC), Viet Nam Southern Food 2 Corp (Vinafood2) and the local company Green Trade, which represents 33 per cent, 37 per cent and 30 per cent, respectively, of the nearly US$8 million in charter capital.

The company targets exporting 250,000 tonnes per year by 2015, which would represent 25 per cent of rice exports from Cambodia, according to Tran Bac Ha, chairman of the Association of Vietnamese Investors in Cambodia and chairman of the Bank for Investment and Development of Viet Nam, a major shareholder in IDCC.

Big Brother Vietnam to help Little Brother Cambodia export its rice

VN food firm forms joint venture for rice export in Cambodia

Sunday, Jan 24, 2010
Saigon Giai Phong (Viet communist party)

The Southern Food Corporation (SFC) has established a joint stock company with two Cambodian firms to produce and export rice, said Chairman of the Vietnam Food Association Truong Thanh Phong.

The new joint venture, called the Vietnam-Cambodia Food Joint Stock Company (Cavifoods), is headquartered in Phnom Penh.

The company has a chartered capital of US$8 million, with 37 percent owned by SFC, 30 percent by the Green Trade Company, and 33 percent by the Cambodian Investment and Development Company.

Cavifoods’ operations include producing, processing, storing and exporting rice.

The area of paddy farms in Cambodia is equivalent to that in Vietnam. In the past, merchants bought much rice, especially aromatic rice, from Cambodia to export, said Chairman Phong, adding that the joint venture in rice production and export has been approved by both countries’ governments.

At present, the company is building a processing factory, a warehouse, an instance noodle mill, a bread mill, and a network for purchasing rice.

Vietnamese companies use Cambodia as a stepping stone for tax exempt food export?

Vietnam food firm ties up with Cambodian partner for EU export

Thu, Oct 8, 2009
Saigon Gia Phong (Viet Communist Party)

The Southern Food Company (Vinafood 2) has set up a joint stock company with a Cambodian firm to process and export rice to the European Union to take advantage of the tax exemption the EU has offered to Cambodia from September 1.

The EU has classified Cambodia in a list of the world’s 49 poorest countries and waived tariffs on its exports to block members.

The new joint stock company, Cavifoods, has a capital of US$17 million.

Last year Vinafood 2 set up Saigon Food (Pte.Ltd) in Singapore to capitalize on the advantages Singaporean firms in negotiations with companies around the world, especially in Africa.

The Vietnam Food Association also said that it is determined to keep rice export prices at not lower than $400 per ton. Since the beginning of the year foreign buyers have pressured Vietnamese companies to lower prices to up to $360.

Undercutting by Vietnamese exporters has helped the buyers as the exporters regularly negotiate with them to sell the grain at prices lower than regulated by the association.

At the beginning of this month foreign importers agreed to a price of $400.

In the first nine months Vietnam exported 4.975 million tons worth $2.2 billion.

It has signed deals to export 5.798 million tons this year, with high-quality rice making up 38 percent of this, a 78 percent increase over last year.

The major markets are Asia -- including the Middle East -- who account for 61.3 percent of the exports, followed by Africa with 27.7 percent.

Two more Viet companies to operate in Cambodia

Vietnam, Cambodia enterprises jointly establish food, fertilizer companies

10/06/2009
VNA/VOVNews (Hanoi)

Four Vietnamese and Cambodian companies signed official contracts on the establishment of the Cambodia-Vietnam Foods Company and the Cambodia Five-stars International Fertiliser Company in the Cambodian capital of Phnom Penh on October 5.

These companies include the Investment and Development Company of Cambodia (IDCC) and its partners, the Vietnam Southern Food Corporation (Vinafood II), the Green Trade Company and the Five-stars International Group Company (Five-stars).

The signing ceremony was attended by Cambodian Senior Minister of Commerce Cham Prasidh, Senior Minister cum Secretary General of the Council of Development of Cambodia Sok Chanda and representatives from the Vietnamese embassy.

The Cambodia-Vietnam Foods Company (Cavifoods), has an initial registered capital of US$8 million, of which IDCC will contribute US$2.64 million, Vinafood II, US$2.96 million and Green Trade, US$2.4 million.

Once operational, the company will specialise in production, procurement, transportation, processing, preservation, storage, trading, import and export and other services related to food in Cambodia and other countries.

This year, Cavifoods plans to build a rice processing factory with modern technology, which will be supplied by rice bought from Cambodian farmers starting this season for export. At the same time, a system of food purchasing agents and a bread and instant noodle factory will be setup to meet domestic and foreign demand.

The Cambodia Five-stars International Fertilizer Company, established by IDCC and Five-stars, is planned to conduct investment, manufacturing and business activities in the fertilizer industry in Cambodia.

Its initial registered capital is US$15 million, of which, IDCC will contribute US$1.5 million, and Five-stars, US$13,5 million.

The company is planning to invest in a nitrogen-phosphate-potassium (NPK) fertilizer factory with a capacity of 350,000 tonnes per year, and a main fertilizer warehouse while conducting import-export activities with a total investment capital of up to US$65 million.

Vietnamese investment ties: A tight noose around Cambodia's neck?

Vietnam, Cambodia tighten investment ties

08/20/2009
VOV News/VNA (Hanoi)

Vietnamese and Cambodian companies have agreed 13 cooperation deals worth around US$400 million in total, said the Cambodian Development Council.

The agreements include the establishment of a joint venture between the International Five Star Cambodia and Vietnam’s International Five Star Group and the provision of foodstuff and adding value to export farm products between VinaFood of Vietnam and the Green Trade Company and the Investment and Development Joint Stock Company of Cambodia (IDCC).

The Tran Thai Company also signed a deal with Cambodia’s Gold Foison Company to manufacture MDF plank.

Under the new deals, plants to manufacture sugar, ethanol products, power and NPK fertlizer will be built in Cambodia.

The Banks for Investment and Development of Vietnam and Cambodia have pledged to provide preferential credits to Vietnamese and joint venture companies to invest in Cambodia.

Vietnamese companies to control rice price in Cambodia?

Vietnam, Cambodia mull rice venture to steady prices

17/08/2009
VietNamNet/Thanh Nien/ Bloomberg

VietNamNet Bridge – Vietnamese and Cambodian officials met this week to discuss setting up a state-owned joint rice mill project to control prices, a local association said.

An official from the Vietnam Food Association said Thursday that the Southern Food Corporation (Vinafood 2) and the Bank for Investment and Development of Vietnam would be the Vietnamese partners, representing a 60 percent stake in the Cambodia-based joint venture.

The first rice venture between the two countries would combine the rice processing experience of the Vietnamese partners with Cambodia’s rice production sector, which has been largely untapped for exports, said the official.

Vietnam is the world’s second biggest rice exporter, having shipped nearly US$1.7 billion worth of rice in the first seven months this year.

Cambodian rice yields have been increasing and its government has encouraged businesses to process for export, according to the association.

About 1 million tons of Cambodian rice was ready for export, said the association. The competition, as well as a high summer-fall yield in Vietnam, was pushing prices down, according to local officials.

The new venture is expected to help prevent prices from falling, the association said.

The association aims to prevent price drops by asking members to buy 400,000 tons of the grain from farmers in order to increase its rice stockpiles.

Regional association

A Thai official said Saturday that five Southeast Asian nations may set up a rice-trade association next year to cooperate in stabilizing rice prices.

Thailand, Vietnam, Cambodia, Laos and Myanmar will also cooperate on other issues related to food security and production, said Chiya Yimvilai, a spokesman at a meeting of ASEAN economic ministers in Bangkok. The countries would also work together on developing rice products, he said.

“It won’t be like OPEC,” said Chiya, speaking at a press briefing. “Our objective is to help prevent prices from falling too much, but we won’t jointly set the prices.”