Silk deal signed with Chinese company

A memorandum of understanding (MoU) was signed between a Cambodian and Chinese company to cultivate mulberry plantations. Cambodia will breed silk worms and build a factory to ship the raw product to China.

The MoU was signed between Cambodia's Tanimex Company Ltd and Chongqing Wintus (New Star) Trade Development Ltd, which lists Liangping Wintus Silk & Textile Ltd as its subsidiary partner.

Chongqing Wintus will assist in setting up commercial mulberry farms to breed and raise the silk worms in the southern coastal province of Kampot, about 180 kilometres south-west of the capital. The aim is for a Cambodian factory to process the silk cocoons for export. The factory for processing the cocoons will be set up within a very short span of time.

Chongqing Wintus has been operating the same business in neighboring Laos, Thailand and Vietnam for the past six years, but the success of the One Village One Product initiative finally enticed it into Cambodia. The project is expected to boost local employment opportunities, cutting down the need for villagers to move to the city in search of work and boosting the local economy. Chongqing is a municipality in China's central Sichuan province with a population of around 32 million people and a thriving textile industry. Cambodian silk production is currently limited but the quality is world renowned

Cambodia’s rapid economic growth is endangered by its narrow economic base and alternative industries such as garments and construction must be established to reinforce the domestic economy against possible global trends.