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Cambodia Exporter Guide - Ho Chi Minh City - Cambodia - 05!03!2021
Cambodia Exporter Guide - Ho Chi Minh City - Cambodia - 05!03!2021
Report Highlights:
The report serves as a practical guide for U.S. exporters wishing to enter Cambodia market and provides
the latest update on market situations, local business customs, import regulations and procedures, and
consumer preferences and trends. The COVID-19 pandemic negatively affected Cambodia's economy
and GDP growth contracted by 3.1 percent in 2020. However, Cambodia remains a potential market for
U.S. agricultural products thanks to its young population, a growing middle-income class, and rising
demand for high-quality imported products.
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF
AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY
Market Fact Sheet: Cambodia
Exports of U.S. consumer-oriented products to Cambodia have expanded over the past five years from
$11.6 million in 2014 to $29 million in 2019, an increase of 150 percent. After decades of civil conflict
and economic stagnation, Cambodia is transitioning from an aid-based to a commercial economy. The
country’s economy has averaged 7.7 percent annual growth over the last two decades, leading to a
significant reduction in poverty.
As of 2020, the country has a population of 16.7 million, of which, four million live in major cities.
Cambodia’s population is young, with half the country under the age of 26. Modern retail, restaurants,
and fast-food outlets continue to open in key cities.
A serious downturn occurred in Cambodia’s economy in 2020 due to COVID-19. Although Cambodia
handled the pandemic effectively in 2020, some of the main economic sectors, including tourism,
manufacturing exports, and construction, which contribute over 70 percent of the country’s growth, were
hit the hardest. As a result of the pandemic, Cambodia’s GDP per capita dropped 3 percent to $1,572 in
2020. However, the World Bank projects the country’s GDP per capita to recover to $1,752 in 2021,
assuming economic activity normalizes.
Cambodia’s energetic tourism industry and the growing foodservice, retail, and e-commerce sectors offer
the best opportunities for U.S. exporters of high-value foods and beverages. Consumers of U.S. products
are likely to be young and higher-income Cambodians, expatriates working for non-profit organizations
(NGO), and tourists. In general, U.S. food and beverage products are highly regarded for their quality
and safety. However, Cambodia’s transport and logistics infrastructure, particularly cold chain systems,
are still underdeveloped and can be a challenge to most imports and exports.
Advantages Challenges
One of Asia’s fastest-growing economies, The market is small when compared to more
Cambodia GDP rates averaging 7.7 percent developed Southeast Asian countries, such as
growth from 1998 and 2019. the Philippines and Thailand. Importers are
usually unable to buy products by the
container load directly from the United States.
Continued growth of the tourism sector and There is a limited and underdeveloped cold
western-style fast-food chains, and modern chain infrastructure and distribution systems
food retail chains, bakeries, restaurants, and for perishable products and products that
hotels drive demand for high-quality food require chilled or frozen handling.
products. Consequently, poor handling and storage
might affect the quality and freshness of
products.
Familiarity with U.S. products and Limited number of importers and distribution
established importers of U.S. goods. options.
U.S. food and beverage products have a Cambodia is a member of the Association of
strong reputation for quality and safety Southeast Asian Nations (ASEAN), which
relative to many Asian competitors. has many FTAs with Australia, New Zealand,
Japan, and other countries importing quality
products. As a result, U.S. products often
face a price disadvantage due to higher
shipping costs and import duties.
Cambodian shoppers are becoming more Most local consumers continue to shop at
conscious of food safety and healthy products. traditional wet markets.
Imported products are common in modern
trade channels. As shopper demographics
shift and income per capita increases, there is
a growing trend towards supermarkets,
convenience stores, and online shopping.
The United States has a wide variety of food Cambodian buyers are now sourcing U.S.
products, including fresh and processed items. products from Asian suppliers due to lower
import costs.
Obtaining general information from the Royal Government of Cambodia, both on and off-line, can be
challenging and cumbersome. Corruption and lack of transparency also remain issues of concern. Post
recommends potential exporters conduct a market assessment prior to entry. Although COVID-19
created opportunities for potential investors to enter the Cambodia market, it has also resulted in an
unprecedented level of uncertainty. Opportunities for success in entering the Cambodia market depend
on the ability to innovate and adapt to the current business environment. Working with an established
local partner, such as a supermarket that imports or an importer, and consulting with a local firm on
strategic and contingency plans are the most effective ways to access the market. A local partner can
facilitate and expedite entry by using market knowledge and established networks.
Due to the relatively small size of the market, only a few supermarkets and a limited number of importers
can import directly from the United States. Most retailers and importers choose to source U.S. and other
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imported products from Thailand, Malaysia, Vietnam, and Singapore. By importing from these nearby
markets, supermarkets and importers can bring in a wider range of products via smaller quantities than
container loads and benefit from lower transportation cost and import duties. An alternative to direct
shipments to Cambodia is to work with an exporter of U.S. products in these third-country markets.
Like many other countries in Asia, business relationships in Cambodia have their foundations in personal
relationships. Cambodians are open, approachable, and friendly. It is recommended that you approach
potential business contacts with a prior introduction or personal reference. Potential partners and
customers in Cambodia are generally more receptive if you arrive with an introduction or letter from a
known government official or business contact. Although not absolutely required, small gifts with a
company logo are appreciated, as are luncheon or dinner invitations.
The market for U.S. food products in Cambodia is still small and underdeveloped compared to
neighboring countries due to a limited infrastructure and low consumer buying power. The primary
purchasers of U.S. foods are expatriates and high-income Cambodians who value U.S. food products for
their quality and safety. For most Cambodians, U.S. food products are too expensive and even middle-
and upper-income Cambodians, will often opt for cheaper imported products from China or Thailand. In
Phnom Penh, where government and industry are centered, prices are higher, and branded products are
more popular.
Cambodians generally spend more than half of their income on food. Two staple foods in Cambodia are
rice and fish. Processing for fruit and vegetables is not widespread as most Cambodians prefer fresh
produce. There is almost no food canning and very limited frozen food production in the country. Bread
and pastries are popular in urban areas.
Dairy consumption in Cambodia is still well below the 20 kilogram per person level that exists in
neighboring Thailand and Vietnam, and almost all dairy products are imported or reconstituted in the
country. As a result, there is opportunity for growth in this market, especially as mass consumption of
dairy in Cambodia is only growing quickly. Dairy market segments include fresh milk, ultra-high-
temperature (UHT) milk, condensed milk, yogurt, and premium products. Moo Moo Farms of Khmer
Fresh Milk, Cambodia’s first dairy farm, was founded in 2015 in the Kandal province.
Market trends
Despite existing market limitations, eating habits in urban areas are changing due to (1) increasing
incomes, (2) growing awareness and concern about nutrition, quality, hygiene, and food safety, (3)
popularity of western lifestyles, (4) and modern advertising and promotions.
For example, Cambodian consumers, especially in urban areas, are increasingly enjoying meat in their
diet. Driven by demand for frozen red meat and poultry, imports of meat and meat products increased
from $29 million in 2015 to $123 million in 2019. According to the Ministry of Agriculture, Forestry
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and Fisheries (MAFF), the decline in family livestock operations and the growing demand for food, has
forced the country to import substantially larger meat quantities to fill shortages.
The growth in coffee shops in Cambodia is another sign of the change of urban consumer preferences.
The number of coffee shops has increased in Phnom Penh and other major cities and includes well-
known U.S. gourmet coffee brands, such as Starbucks and The Coffee Bean and Tea Leaf. Local brands
are also improving their reputation for higher quality and value. Despite the high saturation of coffee
shops in Phnom Penh, the market continues to embrace new concepts from abroad that focus on serving
coffee and food.
U.S. goods and services are well-regarded in Cambodia. As such, Cambodian firms are increasingly
interested in becoming agents of or distributors for U.S. companies. However, most U.S. products are
currently imported from Singapore, Malaysia, Thailand, and other Southeast Asian countries, without
distribution or representation agreements.
U.S. companies should conduct due diligence on potential local partners to ensure they have the
necessary credentials and qualifications to conduct business. U.S. companies should also ensure that any
partnership agreements comply with Cambodian law, thoroughly documenting the rights and obligations
of each party and clearly stipulating dispute resolution procedures.
Cambodia’s trade volume has increased significantly since the country’s accession to the ASEAN in
1999 and to the World Trade Organization (WTO) in 2004. Since its WTO accession, Cambodia
developed trade-related laws and regulations to comply with WTO obligations and has eliminated most
non-tariff barriers to trade. In 2006, the United States and Cambodia signed a Bilateral Trade and
Investment Framework (TIFA). Several rounds of TIFA discussions have been held to promote trade and
investment between the two countries to help monitor and support Cambodia’s efforts to implement its
WTO commitments and to address bilateral issues.
As a member of the ASEAN free trade agreement, combined with the country’s improving infrastructure
and growing skilled workforce, Cambodia has tremendous economic potential. Currently, Cambodia has
FTAs through ASEAN with Australia, New Zealand, China, India, Japan, and South Korea. At of the
time of this report, Cambodia is also negotiating FTAs with South Korea and the Eurasian Economic
Union. The recently signed Cambodia-China FTA and the Regional Comprehensive Economic
Partnership (RCEP) have offered potential access to the markets of China, India, Australia, and New
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Zealand. Cambodia continues to follow its ASEAN commitments, as these FTAs are seen to facilitate
exports.
Cambodia has yet to develop many of its own food and agricultural regulations, instead basing food
safety regulations on CODEX standards. In addition, Cambodia uses harmonized standards from the
ASEAN region. With support from the United Nations Food and Agriculture Organization (FAO),
Cambodia is in the progress of finalizing a draft of its first food safety law. The following are relevant
Cambodian Government regulations regarding food safety:
Prakas 868 provides the legal framework for food safety control and regulates the role and
responsibilities of line ministries, including the Ministry of Agriculture, Ministry of Health,
Ministry of Commerce, Ministry of Tourism, Ministry of Industry, and Ministry of Finance.
The Ministry of Industry and Handicraft issued Prakas 169 and 170 (June 15, 2015) on the
Contamination of Dirt and Toxicity in Food and Food Additives to ensure food quality and
safety. Thus, exporters must follow Cambodian Standards (CS) 078:2012 and CS 193:2011,
respectively.
The Ministry of Health issued Prakas 165 (March 15, 2016) on the Issuance of Certificates to
Permit Selling Food Products and Hygiene of Food Products, which applies to both imported
and exported products.
The Ministry of Health issued Prakas 649 (August 4, 2017) on Issuance of Free Sale
Certificates and Hygiene Certificates of Food Products for products sold in the Cambodian
markets.
The Ministry of Industry and Handicraft issued Prakas 166 (September 10, 2018) on the
Management and Safety Requirements for Prepared Food Products.
The Ministry of Industry and Handicraft issued Prakas 220 (December 19, 2018), announcing
a revision on Food Addictive regulations from CS 093:2012 to CS 093:2012, Rev.1:2018,
The Ministry of Commerce issued Prakas 263 (September 12, 2019) on Inspection Procedures
for Imported Food. An unofficial translation of the Prakas 263 can be found in Attachment 1.
Food registration is conducted on a voluntary basis. In another development, the Ministry of Health
recently drafted a law to control the sale and consumption of alcohol within Cambodia that is currently
under review by relevant ministries. Post will continue to monitor and report on these developments.
There are three major ports for importing goods into Cambodia: Sihanoukville Autonomous Port (or Port
Autonome de Sihanoukville), Phnom Penh Autonomous Port, and Phnom Penh International Airport. As
procedures differ for each port, please refer to http://www.customs.gov.kh for more details on import
requirements for these locations.
According to the Council for the Development of Cambodia, Cambodia has 54 special economic zones
(SEZ), with heavy investment from Thailand, Vietnam, China, Japan, Belgium, Hong Kong, Malaysia,
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Singapore, the United States, and the Philippines. Importing products through an SEZ offers many
advantages, including tax incentives and trade facilitation by the government. As a result, companies
who want to export directly to Cambodia may face competition from exporters of U.S. products in other
ASEAN countries.
Although it is generally easy to import products to Cambodia, difficulties in strict documentation can
occur. Therefore, importers should ensure to prepare required documents to avoid problems.
Furthermore, exporters might experience difficulties due to a lack of transparency. Therefore, U.S.
exporters should consult closely with their Cambodian importers prior to shipment to determine the latest
developments in import regulations and procedures.
Cambodia adopted a new Customs Law in June 2007 to conform with the terms of the General
Agreement on Tariffs and Trade and WTO Codes on Customs Valuation. The General Department of
Customs and Excise of Cambodia (Customs) requires importers and exporters to file declarations.
Documents required for importing goods into Cambodia include:
All food products imported into Cambodia require a pre-arrival assessment authorization by the
Directorate General of Consumer Protection, Competition, and Fraud Repression. In addition, food
products must receive a health certificate from the Ministry of Health’s Food Safety Bureau of the
Department of Food and Drugs prior to import.
According to Prakas No. 3525 on April 25, 2017 on the Requirements of Import of Live Animals,
Animals, and Animal Products, MAFF approval is required for all animals (live or dead) and animal
products imported into Cambodia.
All imports of plants and plants products, including fresh fruits and vegetables, frozen fruits and
vegetables, and dried fruits and vegetables require a phytosanitary certificate from MAFF and the
Ministry of Health. Please refer to here for more information on goods subject to a sanitary and
phytosanitary check.
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For information on health certificates for food imports to Cambodia, please refer here.
Please refer to here for more information on official Cambodia government guidance on importing and
exporting.
MAFF conducts sanitary and phytosanitary inspection services (SPS) for imported products and on
October 11, 2013, the ministry officially recognized imports of U.S. meat and poultry products. Under
this protocol, imports of U.S. meat and poultry products are required to enter with the U.S. Department of
Agriculture’s Food Safety and Inspection Service (FSIS) form 9060-5. This official recognition by the
Cambodian government provides transparency for traders and the potential for increased sales of U.S.
meat and poultry products, as well as greater U.S. food promotion efforts in the Cambodia market. For
imported meat products, inspections must occur at a location in the country of export and can be time-
consuming.
Cambodia follows CODEX/ASEAN Standards for MRL requirements. For information on Cambodian
Standards, please refer to the Institute of Standards of Cambodia’s website.
Retail
Although traditional markets still dominate Cambodia’s retail sector, rising disposable income, a large
expatriate NGO workforce, and a strong tourism industry have contributed to the growth of modern retail
outlets, including shopping malls, mini-marts, convenience stores, and supermarkets. Within the past
few years, Cambodia’s retail sector has undergone a major transformation, as Cambodians are slowly and
steadily shifting from traditional markets to modern markets due to better hygiene, quality, and variety.
Correspondingly, the grocery market industry in Cambodia is predicted to reach $9.3 billion by 2023,
according to UK-based Institute of Grocery Distribution. From 2015 to 2019, total retail space in
Cambodia had doubled, from approximately 174,000 to 370,000 square meters. This amount of available
retail space was estimated to reach 478,000 square meters by the first quarter of 2020, a 29 percent
increase from 2019, as forecasted by the Coldwell Banker Richard Ellis (CBRE) group.
A wide variety of U.S. products can be found in modern retail outlets and include a number of famous
brands, such as Post cereals, Blue Diamond Growers’ non-dairy milk, Kraft’s products, General Mills’
cereals, Bragg Organic Raw Apple Cider Vinegar, Heinz’s products, Bob’s Red Mill’s products, Costco’s
Kirkland Signature’s products, Hunt’s tomatoes and sauces, Uncle Ben’s rice, Norbest Turkey, Lamb
Weston frozen French fries, Washington apples, Hormel luncheon meats, Ocean Spray fruit juice,
Campbell canned soup, Hershey’s chocolate, Kellogg’s cereals, Betty Crocker cookies and cereals, Jim
Beam bourbon, and certain California wines.
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Phnom Penh, Siem Reap, and Sihanoukville have become hot spots for Cambodian retailers, with new
supermarkets and shopping malls sprawling in these cities. Convenience store chains are also increasing
in popularity and 7-Eleven is set to open its first store in Phnom Penh in 2021, offering international
beverages and food products along with ready-to-eat meals designed for local tastes. Moreover, mega-
malls such as the Phnom Penh Mega Mall and Chip Mong 271 Mega Mall are set to open in 2021 and
2022, respectively.
The Lucky Market Group, Cambodia’s leading retail chain, currently operates 11 Lucky supermarkets,
nine Lucky Burger fast-food operations, and six Guardian pharmacies, and has plans for further
expansion. Lucky imports a number of products directly from the United States, such as frozen potatoes,
in addition to other products through consolidated shipments from Singapore. DFI Lucky Private
Limited is a joint venture between Dairy Farm International (DFI), Hong Kong (70 percent) and Lucky
Market Group (30 percent).
The Japanese retailer AEON opened a large hypermarket mall in 2014, attracting 15 million visitors in its
first year. AEON opened its second hypermarket (AEON 2) in 2018 and plans to open a third
hypermarket (AEON 3) in 2023. Although AEON imports many of their products from Japan, Thailand,
and Singapore, these hypermarkets also carry some U.S. brands.
Other food retailers that offer imported products include: Bayon Markets, Thai Huot Supermarkets,
Makro, Veggy's, Super Duper, Grocerdel (online retailer), DeliShop (online retailer), and
GroceryDelivery (online retailer). Super Duper and DeliShop currently source their U.S. products from
one supplier. Although most modern retail outlets are in Phnom Penh, there is an increasing number in
Siem Reap, including Angkor Market, Lucky Market, Thai Huot Market, Makro, and Asia Market.
Modern retailers in Phnom Penh often import from foreign suppliers, while smaller supermarkets in Siem
Reap position themselves as distributors, sourcing products from importers based in Phnom Penh.
Retailers, such as DFI Lucky and Thai Huot, also service the HRI trade through their retail stores and
wholesale operations.
E-commerce
Cambodia’s e-commerce sector continues to expand. According to a forecast by Statista, there were
approximately 4.8 million e-commerce users in Cambodia in 2020, a 20-percent increase from the
previous year and this growth is projected to increase by 17 percent in 2021 to 5.6 million total users.
Three driving factors of online shopping behaviors include the value-added from online shopping,
convenience, and access to a diverse range of goods. According to Statista, the five segments of
Cambodia’s e-commerce market are (1) electronics and media, (2) fashion, (3) food and personal care,
(4) furniture and appliances, and (5) toys, hobbies, and “do-it-yourself.” Although the food and personal
category was the smallest of the above segments in 2019, it is projected to become the third largest
between 2020 to 2024.
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The top five online destinations for grocery shopping in Cambodia are Delishop, Cambo Market, Aeon
Online, Grocery Delivery, and Grocerdel. Except for Delishop, which operates solely as a web-based
platform, the four other online stores have both a web-based and a mobile application platform. Some of
the existing “physical” retailers, such as AEON, are also starting to offer their services online. Local
delivery apps (like Uber-Eats) include Nham24, Meal Temple, and Muuve. International ordering apps,
such as FoodPanda and EGetS, are also increasingly popular among both locals and the expatriate
community.
Food service
Cambodia’s food and beverage industry has rapidly transformed in recent years, with new international
brands entering the market aiming to become part of this thriving industry. According to Euromonitor,
there were over 2,000 restaurants in Cambodia by 2019.
Cambodia’s growing urban middle class, supplemented by a large expatriate community, has led to
strong demand for international food products along with an increased desire to try new food and
beverage products. Local eateries emulating U.S.-style fast-food restaurants are increasingly popular. In
2005, Thailand’s “The Pizza Company” became the first international standard pizza operation in
Cambodia and the company continues to perform well. Swensen’s and KFC opened their first outlets in
2008 and continue to expand throughout the country. Dairy Queen and Burger King entered the
Cambodian market in 2013. The Hard Rock Café opened franchises in Siem Reap and in Phnom Penh in
2014 and 2017, respectively. Starbucks entered the Cambodian market in 2015. Under the TH F&B Co.
Ltd., U.S. franchises, such as Carl’s Jr. and Cold Stone Creamery, also opened their first outlets in 2016.
The above are just a few examples of incoming international brands, with many more chains expected to
come.
Express Food Group Co., Ltd., a subsidiary of RMA Group, is one of Cambodia’s biggest restaurant
chain operations and is the franchise owner for Swensen’s, The Pizza Company, Krispy Kreme, Texas
(Church’s) Chicken, and Dairy Queen. The group manages more than 60 chain restaurants of different
concepts in five provinces. Meas Development Holdings is also a prominent player in the food and
beverage industry, operating 30 outlets in Cambodia, including The Hard Rock Café, Blue Pumpkin, and
Yoshinoya. The Royal Group, one of the largest investment companies in Cambodia, signed a joint
venture deal with the Malaysian QSR Brands and Rightlink Corporation for the KFC franchise in
Cambodia in 2008. In addition to international outlets, new local restaurants and bakeries are also
increasing.
Tourism is a major factor in the above growth of food outlets. Menus can be very broad and often
include both Western and Asian dishes. Also, as the country modernizes, Cambodians are eager to
discover new flavors, concepts, and products. In recent years, there has been an increase in the number
of northeast Asian restaurants due to the influx of northeast Asian and ASEAN tourists and cultures.
Coffee and bubble tea are also popular among younger generations; hence, brand engagement and
innovation are crucial to stay competitive. Bars and pubs are growing, especially in major touristic areas.
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Although fish remains the staple food of Cambodia, there has been an increase in meat consumption,
mostly in urban areas.
Export opportunities to Cambodia’s HRI sectors may not be readily apparent, as many hotels and
restaurants still prefer to source local products due to their regular availability (such as abundant local
fish for domestic Khmer cuisine), and the competitive prices of local food and beverage products.
However, as there is limited local production for processed food products, HRI outlets must source other
innovative food products to serve customers. Therefore, growing demand for new and high-quality
products offers opportunities for U.S. exporters to enter this market.
Although a few hotels import consolidated containers of products themselves, most imported products for
HRI are purchased from local importers. A small number of food importers service both HRI and the
retail sector, including LSH Cambodia Pte Ltd., Thai Huot Trading Co, Ltd, DFI Lucky Private Ltd,
AusKhmer, Ostra Fine Foods, Annam Group, Lee’s Frozen, Veggy’s, Hung Hiep, and Celliers d’Asie
(wines and spirits).
Food Manufacturing
Cambodia’s food manufacturing industry is still in its infancy and relatively small. Although the number
of multinational food manufacturers is low compared to those in neighboring countries, the food and
agri-processing sectors are gradually expanding and MAFF reports greater volume of exports of
processed food and agricultural products.
The food manufacturing industry faces several constraints and weaknesses, including a lack of capital,
processing facilities, food processing technology and skills, market analysis and marketing information,
and sanitation and hygiene knowledge. Additional challenges include poor infrastructure, unreliable
supply of raw materials, a lack of competitiveness for locally-produces products due to high operating
costs, and a relatively small domestic market.
Based on trends in export trade data from 2015 to 2019, the best prospects for U.S. products include non-
alcoholic beverages (367 percent increase from 2015), dairy products (266 percent increase from 2015),
beef and beef products (253 percent increase from 2015), processed foods (202 percent increase from
2015), and fresh fruits (76 percent increase from 2015).
According to local sources, demand for processed pork, beef, and poultry is also increasing in Cambodia,
forcing the country to import meat due to insufficient domestic production. Meat imports are expected to
grow at an annual rate of 11 percent, from 15,000 tons in 2018 to 37,000 by 2030. Fruit and vegetable
imports are also expected to increase at an annual rate of 5 percent, reaching 48,000 tons by 2030.
Although Cambodia has a domestic dairy industry, imports are expected to increase at an annual rate of 6
percent, reaching 2,000 tons by 2030.
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As noted earlier, caution should be exercised when determining whether to export to Cambodia. High-
quality U.S. agricultural products face stiff competition from Thai and Vietnamese products that are
cheap and commonly available in the market, as well easier to source logistically. Post notes that, with
recent market growth and increasing demand for high-quality products, there are a number of
supermarkets that are looking to form relationships with U.S. West Coast grocery wholesalers and
consolidators to import consolidated shipments of U.S. food and beverage products.
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SECTION VI. KEY CONTACTS AND FURTHER INFORMATION
U.S. Officials:
Attachments:
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