Cambodia, Japan agree to expand economic ties

Cambodia, Japan agree to expand economic ties

Cambodia and Japan have stressed the importance of expanding and deepening the ‘Comprehensive Strategic Partnership’ between the two countries, including the “co-creation of economic and social development cooperation based on the trust and friendship that both countries have built over the years”.

Prime Minister Hun Manet and Japanese Prime Minister Ishiba Shigeru, during a bilateral meeting held in Tokyo on Friday, also announced the ‘Cambodia-Japan Economic Co-Creation Package’ that aims at improving the business environment in Cambodia, forming public-private partnership projects, and supporting the advancement of telecommunications networks, for industrial enhancement and supply chain resilience.

Writing on his social media, Mr Hun Manet described Japan as a close friend of Cambodia, having played an active role in the search for peace and in supporting Cambodia’s development following the end of the war.

“In this official meeting, His Excellency the Prime Minister of Japan and I reaffirmed our commitment to further strengthening cooperation between our two countries across all sectors, for the mutual benefit of our nations and peoples, Cambodia and Japan,” he said.

The ‘Cambodia-Japan Economic Co-Creation Package’ will be focusing on improving the business environment in the Kingdom by supporting Japanese companies, forming public-private partnership projects, and supporting the advancement of telecommunications networks, for industrial enhancement and supply chain resilience, a joint statement said.

Minister Delegate to the Prime Minister, Jean-Francois Tain at the press conference on Saturday evening, said economy, trade and investment were among the main topics of discussion during Mr Hun Manet’s visit to Japan.

Speaking on the fruitful outcomes of the official working visit to Japan, Tain said that the Cambodian Prime Minister and the Japanese Prime Minister agreed to encourage both the state and private sectors to increase trade exchanges between the two countries and to increase Japanese investment in Cambodia.

The Economic Co-Creation Package aims to provide fresh momentum to Japan’s contribution to Cambodia’s socio-economic development. This initiative encourages both the Japanese and Cambodian governments to actively attract more Japanese companies to invest in Cambodia.

“At the forum, as well as during a courtesy meeting with representatives from 12 Japanese companies, Samdech Prime Minister Hun Manet emphasised to the Japanese private sector that Cambodia maintains liberal investment laws and has established regular consultation mechanisms with foreign investors, continually improving its investment environment, and remains open and welcoming to foreign companies, especially those from Japan,” Tain added.

Earlier, speaking at the 30th Nikkei ‘Future of Asia’ Forum under the theme “Asia’s Challenge in a Turbulent World” in Tokyo, on Friday, Mr Hun Manet said that Asia is facing a myriad of challenges. “Super power rivalry has complicated everything in international relations from politics to trade, supply chain and technology, goals, competitions, regional conflicts and proxy wars remain widespread.”

He said that the trade war undermines a free, open, inclusive and rule-based, multilateral trading systems. “Countries lacking bargaining power are suffering the most disproportionately affecting the most vulnerable.”

The Premier emphasised that in the current situations, Cambodia is taking three actions to maintain peace and people centered developments including sectoral industry readjustment, the industrial recalibrations and revitalising multilateral trade and deepening regional integration.

“There is always an opportunity within a crisis. The current situation offers a chance for Cambodia to upgrade its industrial capacity and promote more diversifications. Cambodia needs to move up the industrial ladders towards more skill based and knowledge-based industries,” said Mr Hun Manet.

He added that in this connection, the government has implemented actively on the automotive and electronic sectors a development roadmap to attract investment. “The Kingdom has also set up special investment programme.”

He said that Cambodia is driving to proactively position itself as an attractive and stable destination for investors, leveraging various FTAs.

Kith Meng, President of Cambodia Chamber of Commerce (CCC) and Chair of ASEAN-BAC Cambodia said at the Cambodia Japan Business Forum in Tokyo on Thursday that Japan stands as one of Cambodia’s largest and most significant investors and trading partners, “contributing substantially to our socio-economic advancement”.

He added that the bilateral trade of both countries has witnessed consistent growth over the years, reaching approximately $2.7 billion in 2024.

“We firmly believe that the economies of Japan and Cambodia complement each other that can drive shared prosperity for both our nations.”

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