So... here's how it works...
The meristematic cells are comparable to the stem cells in animals. They can basically become anything at all. At some point during development, they are determined to be vascular cambium. The vascular cambium can give rise to, as said above, the secondary xylem and secondary phloem.
Think of it like in animals: embryonic stem cells (totally undifferentiated) --> (after gastrulation) one layer is the ectoderm --> can develop into integument, nervous system, retina, etc. etc.
Plants: meristematic cells --> vascular cambium --> can develop into secondary xylem or secondary phloem
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