Cambodias rice exports are on a steepupward trajectory, benefiting from import duty preferencesand new investments in rice mills and polishing factories.Cambodia’s major export competitors are Thailand andVietnam. Thailand is a main competitor for fragrant rice,exporting itself ca 2.65 million tons of aromatic rice(including brokens) in 2010/2011. Vietnam is the principalcompetitor for the nonaromatic white rice markets such asthe Philippines and Indonesia. Pakistan and Burma arecompeting with Cambodia for low-grade white rice marketsmainly in Africa. The government needs to intensify itsexport facilitation efforts to increase its rice exports.Cambodia has reduced its milling costs but more needs to bedone to improve competitiveness of its rice export. Thecapacity of Cambodia’s logistics system from mills to portsis inadequate to accommodate large-scale volumes. All ofCambodia’s rice exports are shipped in containers from PhnomPenh and Sihanoukville ports. Unless the government obtainsa transit access to Saigon Port via the Mekong River forun-containerized milled rice, it is unlikely that Cambodiawill export even 500,000 tons by 2015.