Cambodia-Japan economic package set to boost investment

Cambodia-Japan economic package set to boost investment

The economic package is expected to support collaboration in key sectors like infrastructure, logistics, technology, manufacturing, and human capital development.

Japan Monday reiterated its commitment to deepening economic cooperation with Cambodia through the newly launched Cambodia-Japan Economic Co-Creation Package, which is expected to serve as a platform to attract more Japanese investors and strengthen bilateral trade and investment.

The commitment was highlighted during a meeting between Prime Minister Hun Manet and Nagashima Akihisa, Member of Japan’s National Assembly and Special Advisor to the Japanese Prime Minister, held at the Peace Palace on July 1, according to a statement issued by the Prime Minister’s Spokesperson Unit.

The Economic Co-Creation Package, launched in late May 2025, has been described as a new mechanism designed to promote closer collaboration between the two countries’ public and private sectors.

The initiative was introduced during Mr Hun Manet’s recent official visit to Japan and involves 20 line ministries and government institutions, forming a comprehensive framework to facilitate trade, investment, and joint development projects.

According to the statement, “The Japanese side welcomed the launch of the package and saw it as a significant step to create investment opportunities in Cambodia’s emerging economy. The package is expected to support collaboration in key sectors such as infrastructure, logistics, technology, manufacturing, and human capital development.”

The Cambodian side emphasised that all relevant ministries and institutions are ready to work closely with Japanese counterparts to effectively implement the cooperation mechanism. The aim is to streamline processes, remove barriers, and encourage long-term Japanese engagement in Cambodia’s development.

A separate statement released by the Ministry of Foreign Affairs and International Cooperation (MFAIC) on Monday also underlined the importance of the Economic Co-Creation Package as one of the major outcomes of the Prime Minister’s Japan visit.

It noted that the agreement provides a clear roadmap for future economic engagement and reflects both governments’ intention to elevate their Comprehensive Strategic Partnership.

The MFAIC statement reaffirmed that, “Japan continues to play a vital role in Cambodia’s development, particularly through support in trade, investment, education, and tourism. The Cambodian side welcomed Japan’s commitment to encouraging more companies to explore business opportunities in Cambodia, viewing the package as a timely response to current global economic shifts.”

The two statements together underscored a shared ambition to strengthen economic ties through sustained high-level dialogue and practical cooperation. By building on longstanding bilateral trust, the Cambodia-Japan Economic Co-Creation Package is expected to drive a new wave of Japanese investment and serve as a model for public-private partnership in the region.

According to a document from the Ministry of Foreign Affairs of Japan, the newly signed Japan-Cambodia Economic Co-Creation Package sets out nine strategic pillars, focusing on key sectors including human resource development, digital transformation, green energy, logistics infrastructure, and cross-border cooperation.

At the heart of the agreement is a commitment to cultivating high-skilled talent through joint training programs involving universities and private companies. This includes the expansion of the Cambodia-Japan Digital Manufacturing Center and increased support for vocational education, aimed at meeting the rising demand for advanced industrial skills.

Infrastructure development also remains a top priority, with Japan pledging support to enhance Cambodia’s railway network and improve cross-border logistics coordination among Mekong countries.

Additionally, both nations have committed to advancing renewable energy initiatives such as rooftop solar projects and carbon-neutral roadmaps under regional frameworks like the Asia Zero Emission Community (AZEC).

The package also encourages the development of Special Economic Zones, strengthens cooperation on cybersecurity, and promotes the digitalisation of public administration. Through combined efforts by the public and private sectors, the initiative embodies a shared vision for inclusive and sustainable economic growth.

Economists say the initiative comes at a strategic time, as regional supply chains are being restructured and companies are seeking stable, cost-effective production hubs in Southeast Asia. The package is expected to support business-matching efforts, facilitate technology transfer, and promote collaboration between Cambodian and Japanese enterprises, including through joint ventures.

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