Phea Phimex Group, local Cambodian company, and Chinese Farm Corporation Group signed a cooperation agreement for eucalyptus plantation and paper plant in Monday afternoon in Intercontinental Hotel in Phnom Penh.

Prime Minister Hun Sen and Chinese Ambassador Ling Fucui attended the signing ceremony.

The two companies will operate the plantation of eucalyptus and develop a paper plant on the concession land of 300,000 hectares in Kompong Chhnang and Pursat provinces, western Cambodia.

"This is a new step toward the progress of the private sector for its investment in agro-industry," Secretary of State for Ministry of Agriculture, Forestry and Fisheries Chan Tongyves said at the ceremony.

The Royal Government of Cambodia has engaged the long-term policies and strategies for developing agriculture which is the main sector of the national economy and household economy of the 85% of the country population, he added.

(Xinhua 12/25/2000)