A Chinese company has been given the go-ahead to set up a $40 million plantation in Kompong Speu province, Agriculture Ministry officials said Wednesday.
Haining Group signed the agreement with the Cambodian government last week, according to Agriculture Undersecretary of State Chan Tong Yves.
The project, which has been approved by the Council for the Development of Cambodia, will include palm oil, sugar cane, and dairy cow raising, said Kith Seng, director of the ministry’s investment planning department.
A 70-year contract has been signed with Haining for a plantation that will cover 20,000 hectares, he said. The project will not begin, however, until after land surveys are completed later this year.
Kith Seng said the project was approved to improve the agriculture industry, where foreign investment has lagged behind other sectors, such as garment manufacturing.
“We welcome this project very much and hope Cambodia’s agriculture sector will develop,” he said. “Cambodia is short of foreign investors who are interested in agriculture because they think it is not so profitable.”
Haining has already begun to import sugar cane and palm oil plants for the project, he said.