Major Japanese consulting firm urged to back expansion of SEZs

Major Japanese consulting firm urged to back expansion of SEZs

The Council for the Development of Cambodia (CDC) has placed a proposal before the Japan Development Institute (JDI) to support the establishment of a new Special Economic Zone (SEZ) with a special focus on attracting Japanese investments and businesses.

The proposal was made on Friday, during a discussion at the CDC headquarters between Chea Vuthy, Secretary-General of the Cambodian Investment Board (CIB) under the CDC, and a visiting delegation from the Tokyo-based JDI, led by Chief Executive Officer Dr Shoichi Kobayashi. Representatives from the Belt Road Capital Management also attended the meeting.

Welcoming the delegation, Vuthy expressed his gratitude to JDI for its interest in Cambodia’s investment landscape, particularly in the ongoing development of SEZs.

He shared the historical context of Cambodia’s SEZ programme, initiated in 2005 under the leadership of former Prime Minister Hun Sen—now President of the Senate—with the goal of diversifying industrial activities alongside attracting varied sources of investment capital.

Highlighting the progress of the initiative, Vuthy noted that SEZs had successfully drawn new industries to Cambodia, including vehicle assembly, tyre manufacturing, bicycle production, furniture manufacturing, and electronics.

However, he pointed out a recent slowdown in fresh Japanese investments, despite continued expansion by existing firms.

“In recent years, the momentum of new investments by Japanese companies in Cambodia has slowed, despite the continued expansion of existing Japanese investment activities,” he observed.

To reverse that trend, he urged the JDI delegation to support the creation of a new SEZ that would appeal to Japanese firms and their suppliers.

Dr Kobayashi thanked the Secretary-General for the warm welcome and detailed his overview of Cambodia’s investment climate. Acknowledging Cambodia’s achievements in SEZ development, the JDI delegation pledged to promote the concept of a new Japanese-focused SEZ, saying: “We will strive to promote investments towards establishing an SEZ to attract more Japanese investment to Cambodia.”

JDI is a Japanese consulting firm with more than 30 years of experience in supporting nation-building projects globally. The institute specialises in SEZ development, viewing it as a strategic tool for investment attraction, job creation, and broader socio-economic development.

Last week, Chea Vuthy made a similar proposal to a delegation representing Yazaki, a Japanese electrical component manufacturer with operations in Cambodia and China. The meeting was attended by Yazaki’s Deputy CEO, Yoshimoto Ito, along with representatives from Guangdong Dongfang Investment Co Ltd, Yazaki’s Chinese investment partner.

Yazaki has been operating in Cambodia for over a decade, running a factory in the Neang Kok Koh Kong Economic Zone. According to the CDC, the company has maintained operations in China’s Guangdong Province for more than 40 years.

Vuthy expressed appreciation for Yazaki’s long-standing commitment to Cambodia and its plans for further expansion. He advised the company to carefully select the site for its next investment and encouraged it to consider establishing or joining a Special Economic Zone—an initiative he said could help draw even more Japanese firms to the country.

Ito, in response, thanked Vuthy for his support and reaffirmed the company’s interest in deepening its presence in Cambodia.

The Royal Government of Cambodia is actively promoting investments in SEZs as part of its broader industrial development strategy, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association (CCCA) said.

Speaking to Khmer Times, Vichet emphasized that the government’s policy is strategically designed to attract both local and foreign investors to establish factories and industrial operations within SEZs across the country. “These zones form a key component of efforts to accelerate industrial growth, boost exports, and create employment opportunities for Cambodians.

“Provinces and cities with Special Economic Zones include Phnom Penh, Bavet, Preah Sihanouk, Koh Kong, and several others,” Vichet said, noting that the government is committed to building a strong investment environment through targeted infrastructure development and investor-friendly policies.

Vichet particularly highlighted the rising significance of Preah Sihanouk Province, where recent investments align with the government’s vision of transforming the area into a multi-purpose SEZ. “This transformation encompasses not only industrial facilities but also logistics, tourism, and digital services.

“In addition, investors are increasingly drawn to Preah Sihanouk due to its strategic location and access to a deep-water port, which facilitates imports and exports.” He added that SEZs offer comprehensive support for investors, including access to essential infrastructure such as reliable water and electricity supplies, transportation networks, and a growing pool of skilled labour.

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