The latest briefing from the International Rice Research Institute (IRRI) has described Cambodia as the “hidden heavyweight in the global rice trade”, noting that the forthcoming Funan Techo Canal will be a catalyst for increased exports to world markets.
In the October IRRI Rice Market Brief, the institution highlighted how the Kingdom’s rice exports have surged over the past decade, reaching more than five million metric tonnes (MMT) of paddy trade in 2025. Notably, Cambodian fragrant rice has earned global recognition, winning the World’s Best Rice award multiple times over the last decade.
The report said the kingdom’s national strategy has shifted from raw paddy exports to domestic milling, certification and branding, ensuring more export value is captured within Cambodia.
Vietnam was the single largest destination by volume for Cambodian rice in 2024. About 5 MMT of paddy went to Vietnamese mills, representing roughly 83% of Cambodia’s total rice exports. This situation skews official “milled rice export” figures, since much of Cambodia’s rice ultimately reaches world markets under Vietnamese export statistics, according to the report.
“The government is pivoting from raw paddy exports to higher-value milled rice, investing heavily in local milling capacity so that more of Cambodia’s crop is processed and packaged domestically. Cambodia is also focusing on its award-winning fragrant rice varieties (Phka Rumduol) to differentiate its exports, aiming to fetch higher prices and gain loyalty in international markets,” it added.
According to the report, the largest challenge facing the Cambodian rice sector is logistics, but high hopes have been placed on the Funan Techo Canal (FTC). With construction planned for completion in 2028, the 180km canal will reduce transportation times and cost by directly shipping goods from the Mekong to the sea, without depending on Vietnam as a gateway.
“Cambodia is poised to remain on a strong growth trajectory in rice exports through 2025 and beyond. Cambodia’s ever-improving road system and dedication to progress, are key factors worth closely watching,” it said.
It added that the FTC, once in operation, could substantially increase its direct rice exports – potentially aiming for 5–6 MMT annually by the early 2030s, assuming production keeps pace and milling capacities catch up.
“This would firmly entrench Cambodia among the world’s top exporters,” it said.
The Ministry of Commerce released their iTrade Bulletin for September today, October 2, showing the rice export situation in Cambodia. It said that in 2024, Cambodia exported 5.1 million tonnes, with a total value of $1.496 million, 95% of it, mostly unmilled paddy rice, to Vietnam.
France, China, Malaysia, The Netherland and the UK were the top importers of milled Cambodian rice, while Indonesia, the Philippines, Saudi Arabia and the US were suggested as huge potential markets for high-quality milled rice exports in the future.
Cambodia was the world’s 10th largest rice producer, 9th largest exporter of semi-milled or whole rice, and the largest paddy exporter in 2024.
Among the many awards won by its fragrant varieties were the “World’s Best Rice” in 2012, 2013, 2014, 2018, 2022 and 2024, at the World Rice Conference.
