Vietnam Extends Quota for Cambodian Leaf

Vietnam has extended its 3,000-ton duty-free quota for Cambodian dried tobacco leaves for 2021, reports the Phnom Penh Post, citing Ministry of Commerce spokesman Seang Thay.

The extension is part of the renewal process of a bilateral trade facilitation agreement for 2021–2022 reached by the 18th Cambodia-Vietnam Joint Commission meeting on Dec. 22 and yet to be formally ratified, with retroactive benefits for exports.

Cambodia and Vietnam inked the agreement in October 2016 to drop import tariffs on dozens of products to boost bilateral trade and have renewed it every two years since. The goods covered in the deal, however, are determined on a yearly basis.

The kingdom exported 1.38 million kg of dried tobacco to Vietnam last year valued at $4.2 million, down 34.37 percent by volume from 2019, according to ministry data.

Minister of Agriculture, Forestry and Fisheries data shows that Cambodia exported a total of 5.82 million kg of dried tobacco leaves last year, down 14.02 percent from 2019.

The outbound shipments were worth $17.46 million, 28.34 percent compared to 2019’s value.

The primary destinations for Cambodian leaf are Vietnam, Indonesia, Hungary, the United Arab Emirates, Belgium, South Africa, Greece, Singapore and Germany.

Last year, the area under tobacco cultivation was 5,175 ha, of which 4,875 ha were harvested, producing 6,132 tons, representing a 1 percent drop from 2019.