US$2.5 Billion-worth Japanese Investment Projects Approved in 25 Years
AKP Phnom Penh, May 29, 2019 —
The Council for the Development of Cambodia (CDC) has approved 137 Japanese investment projects worth about US$2.5 billion between 1994 and the first quarter of 2019.
The figures were shared by Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia in his address at a Seminar on Investment in Cambodia organised in Tokyo, Japan this morning by CDC in collaboration with Japan External Trade Organisation (JETRO) and Mizuho Bank, on the sidelines of the 25th International Conference on the Future of Asia.
Japanese Investment has focused on electrical parts and electronics, auto parts, agro-industrial equipment, food processing, tourism and hotels as well as the hospital and shopping mall sectors, he pointed out.
In addition to these projects, he continued, Cambodia has about 1,700 small and large Japanese businesses operating in many sectors such as banking, aviation and restaurants. In the banking sector alone, there are now six banks with Japanese shareholders operating in Cambodia. Mizuho Bank was the first to open a branch, receiving its commercial banking license on Feb. 1, 2017.
“We have noticed that investments by large Japanese companies attract smaller Japanese companies in supporting industries to invest in various sectors. I am delighted to see many Japanese projects expanding their activities in Cambodia after operating for some time, notably Minebea, Mitsumi, Aeon and Sunrise Japan Hospital. These investment and expansion decisions reflect the strong confidence of Japanese investors in the Cambodian government’s leadership and the country’s potential,” said the Cambodian Premier.
According to Samdech Techo Prime Minister, Japanese business activities in Cambodia represent quality investments, creating value-added jobs and providing good working and living environments for workers. This is in line with the vision of the Royal Government to provide decent work opportunities, maintain economic growth and diversify the industrial base. Such investment not only generates income for investors but also contributes to the long-term stability of Cambodia and the region.
In all aspects of its development, Cambodia needs continued Japanese investment in all areas – especially food processing using domestic raw materials, ecotourism, industries linked to local and regional production chains, and human resource development centers for industry, he underlined.
Samdech Techo Hun Sen laid stress on the key factors such as political and macroeconomic stability, openness to all without discriminating between local and foreign investors, and good cooperation between the Cambodian and Japanese governments which are indispensable for encouraging Japanese to invest in Cambodia.
After the seminar, the Prime Minister witnessed the signing ceremony of a memorandum of understanding on investment promotion cooperation between CDC and JETRO.
By C. Nika