TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

stream (one that is 20–30 m wide) and 100 m of
forest on each side of a smaller stream to ensure
the sustainable use of water and protection of the
environment. The real practice is that companies
leave around 10 m of forest on each side of the
stream. Villagers also mentioned the frequent
transportation of timber at night to Viet Nam.
Infrastructural impacts: there is evidence of
road construction, but no school buildings or
pagodas have been built. New roads have been
built mainly for the company’s use and not for
the public, who are not allowed to intrude on the
company’s property.
6.3 Overall assessment
Overall, based on the authors’ preliminary
examination, the costs of FDI projects seem to
outweigh the benefits to an extent that is hard to
estimate. Foreign direct investment projects have
both positive and adverse effects. On the positive
side, some projects have created significant
employment for local communities and for
communities in nearby provinces. However, others
TABLE 9
Profiles of ELCs in Kbal Damrey Commune, Sambour District, Kratie Province
No. Company Year of
approval
1 Great Island Agricultural
Development Co., Ltd
2 Global Agricultural
Development Co., Ltd
3 Asia World Agricultural
Development Co., Ltd
4 Great Asset Agricultural
Development Co., Ltd
5 Great Wonder Agricultural
Development
6 Tong Ming Group
Engineering
7 Agri-industrial Crops
Development
8 Carmadeno Venture
Limited
Duration of
contract
Part 4: Business models for agricultural
investment: Impacts on local development
have not. Land conflict is quite common across
ELC projects, given the lack of a sound system of
land tenure and limited consultation with local
communities prior to the granting of ELCs. In
addition, some ELC projects involved in clearing
the forest eliminate major sources of community
income, such as collection of non-timber forest
products and hunting. The filling in of streams
was also evident in some projects, which could
lead to water shortages.
Notably, Cambodia has not experienced a
food deficit during the past decade. Paddy rice
production and the total area under cultivation
have grown quite favourably, with average growth
rates of 9.4 percent and 2.7 percent, respectively,
between 2004 and 2009. In 2009, the total
rice cultivated area reached just over 2.7 million
hectares, generating total production of 7.6
million tonnes and a surplus of 3.5 million tonnes
(Table 10). Therefore, at first glance, and from a
short- to medium-term perspective, Cambodia
does not seem to have grave concerns related to
food security. It is more important to note that
the drastic rise in the size and total number of
ELC projects does not seem to threaten national
Size
(ha)
Purpose of
investment
2006 70 years 9 583 Teak plantation and processing
factory
2006 70 years 9 800 Tectona/teak plantation and
processing factory
2006 70 years 10 000 Teak plantation and processing
factory
2006 70 years 8 985 Pistacia Chinasis Bunge and
other tree plantation
2006 70 years 8 231 Pistacia Chinasis Bunge and
other tree plantation
2007 70 years 7 465 Rubber, acacia, jatropha plantation
and processing factory
Nationality
American
American
Chinese
Chinese
Chinese
Chinese
2008 70 years 7 000 Rubber and acacia plantation Chinese
2009 70 years 7 635 Sugar cane plantation Indian
Source: Interview with deputy chief of Kbal Damrey Commune April 2011; MAFF ELC profiles 2011
(http://www.elc.maff.gov.kh/profiles.html)
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CAMBODIA