Vietnam-Cambodia joint venture to boost rice shipments

Vietnam and Cambodia signed an agreement on Monday to form a food
processing joint venture focused on boosting Cambodian rice shipments.

Cavifoods, with a registered capital of US$8 billion, will build a rice
processing mill this year and then another factory to make bread and
instant noodles.

The Southern Food Corporation, one of Vietnam's two biggest state-owned
food companies, will have a stake in the Cambodia-based joint venture.

The Vietnam Food Association said last month that a joint venture with
Cambodia is necessary because it would shield Vietnam from tough
competition against the neighboring country in future rice exports.

Also on Monday, Five Stars International Joint Stock Company, a Ho Chi
Minh City-based fertilizer producer, set up a joint venture to
manufacture and distribute fertilizer in Cambodia.