PHNOM PENH, Nov. 12 (Xinhua) -- Cambodia and Vietnam have agreed to build a new industrial processing factory aimed at boosting the two countries' agricultural exports, national media reported Wednesday.

    The factory will promote cooperation between the two largely agricultural countries and raise quality standards on export goods such as beans, corn, palm sugar and cashew nuts, the Phnom Penh Post said.

    Officials say the products would be aimed at the local and export markets.

    "The factory will be constructed near the border between both countries in order to capitalize on each country's resources," HorNamhong, Cambodian Minister of Foreign Affairs and International Cooperation, was quoted as saying.

    News of the partnership follows Prime Minister Hun Sen's return from a state visit to Vietnam, where he signed a trade agreement to increase cross-border commerce.

    Trade between Cambodia and Vietnam reached 1.7 billion U.S. dollars through the first eight months of this year, Hor Namhong said, up from 1.19 U.S. dollars billion in 2007.

    "Vietnam has more modern technology, capital and human resources than Cambodia, so (the new factory) will offer a significant tool to develop our economy," he said.

    Le Bien Cuong, the commercial counselor at the Vietnamese embassy in Cambodia, said hopes were high that the factory would be completed soon, and that the plant would raise the quality of local products to international export standards.