JETRO opened in Cambodia in 2010

Japanese trade office officially opened in Cambodia to boost bilateral Trade and Investment

Japan External Trade Organization (JETRO) on March 10 officially opened in Phnom Penh capital in the purpose of speeding up the bilateral trade volume between the two countries after growing interests by the Japanese businesspeople and investors toward investment in the Kingdom in rapid upward trend.

“With this office here, we hope to increase our bilateral trade and investment between the kingdoms,” said senior minister and Commerce Minister Cham Prasidh said at the opening remark at the Hotel Le Royal in Phnom Penh.

“JETRO permanent office in Phnom Penh will serve the Japanese investors the reliable sources about investing in the country and would bridge the business partnership between the local investors and the Japanese businesspeople,” H.E Prasidh added. All business stakeholders have to use all maximum capacities and resources to push up the trade, investment and mutual benefits and the JETRO will help train human resources for us and help produce the quality product for exporting to foreign countries,” he stresses.

At the same time, Mr. Kayotaka Doho, the representative of JETRO to Cambodia said in the launching ceremony that we support Japanese firms that are interested in investment to Cambodia by providing information on investment climate or business environment in this country. “We also will provide briefing or researches on specific issues for those who are expanding their business in Cambodia and provide services to firms with business –related –difficulties in the foreign markets,” Mr. Doho said.

“For the Cambodia firms and organizations that are interested in trade, investment and technology partnerships with Japanese firms. We, JETRO Phnom Penh, will provide services and information in order to expand their business opportunities,” Mr. Doho emphasized. We promise that that JETRO Phnom Penh makes efforts for expanding trade and investment between Japan and Cambodia through valuable services and support and I hope that all of you make the best use of JETRO Phnom Penh’s facilities and services. We also have the open business library inside the office that have a variety of reference on investment environment,” he added.

H.E Cham Prasidh reminded that Cambodia and Japan signed in July 2008 the Memorandum of Understanding (MOU) on the protection and promotion of Japanese investment in the Kingdom. Samdech Techo Prime Minister Hun Sen, during his visit in Japan in October last year, called Japanese Prime Minister to encourage JETRO to open the office in Phnom Penh. “Cambodian cheaper labor cost compared to China and Thailand is another factor that encouraged the Japanese trade group turned to look into Cambodia as their investment radar in the region,” Japanese and Cambodian officials. “The Cambodian low labor cost and the long term political stability are attracting not only the Japanese investors, but others too,” commerce minister Cham Prasidh told reporters at the ceremony. “So in the future if Japanese investor will not be leading foreign investment in Cambodia, it would be the second large investment here,” said Prasidh.


JETRO, which is a Japanese government-related organization established in 1958 for the main purpose of trade and investment promotion and economic cooperation, has 38 offices in Japan including the Tokyo headquarters and has another 72 overseas offices in 55 countries including in Cambodia,” the report from the launching ceremony added.

“JETRO in Cambodia becomes the 72nd office, the statement from the ceremony said; adding that JETRO Phnom Penh will provide its services from April this year and its office location is inside ATTWOOD Trade Center along Boulevard Federation of Russia.

Additionally, Yasuo Hayashi, Chairman and CEO of JETRO, said “we will use the newly opened JETRO as a base for pro-actively providing Japanese businesses with information about the advantages of investing in Cambodia.” The Cambodian geography and human resources are also intriguing the Japanese trade office to set up in Phnom Penh.

Both sides said that the establishment of the China-ASEAN free trade area (FTA)—which went into effect began January 1, 2010 under which most goods traded between China and the 10-member Association of Southeast Asian Nations (ASEAN) attach zero or little tariff—also lured Japanese investors to see Cambodia as centre location for exporting to the region. “Cambodia is situated in the centre of the southern economic corridor linking Bangkok to Vietnam’s Ho Chi Minh and is rich in hard-working and excellent human resources.” Hayashi said “because of this, we expect that interest in Cambodia will further grow as a base for labor-intensive manufacturing and exports.” He said Japanese investment, which is now ranked far below among the foreign direct investment (FDI) at between 10th- 15th, would increase in the long-term given the country’s investment potential and political stability. The number of Japanese companies increased to 57 as of January this year from 36 in April, 2008.

Mr.Hayashi said the Japanese investment in Cambodia was recorded so far was $4.76 million, which is a low level in the total amount of approved investment in Cambodia. Japan has invested another more than $6 million in the Cambodian Special Economic Zone (SEZ). For investment projects in the future, “we have high expectations for further entry of Japanese businesses into the SEZ in Phnom Penh and Sihanoukville Port to be completed in 2011 by Japanese loan,” said Hayashi. “With the advantages of Cambodia in investment environment and its pro-Japanese people, it can be expected that both large and small sized Japanese companies will come to the Cambodian market,” Hayashi said at the opening ceremony.

Cambodian cheaper labor cost compared to China and Thailand is another factor that encouraged the Japanese trade group turned to look into Cambodia as their investment radar in the region,” Japanese and Cambodian officials. “The Cambodian low labor cost and the long term political stability are attracting not only the Japanese investors, but others too,” commerce minister Cham Prasidh told reporters at the ceremony. “So in the future if Japanese investor will not be leading foreign investment in Cambodia, it would be the second large investment here,” said Prasidh.


Hayashi said that the total two-way trades between the two Asian nations have greatly increased to $255 million last year from only $104 million in 2000. Japan exports to Cambodia in 2009 declined by 39.4 per cent year on year to $112 million due mainly to the impact of the financial crisis. But our imports from Cambodia grew by 18.3 per cent to $143 million, while Japan’s export and import with the whole world decreased in general. Japan’s main exports to Cambodia are vessels, machines and transportation equipment and Tokyo’s key imports are footwear and sewn products from Cambodia. “Aided by the recovering world economy, the trade between Japan and Cambodia is expected to enjoy a substantial growth in 2010,” he added. in fact, the number of member Japanese companies in Cambodia increased from 36 in April 2008 to 57 as of the end of January 2010, a growth of over 20 members in the less than two years. Cambodia has received 98 percent items tax exemptions for exporting products to Japan.

“We hope these activities will contribute to the establishment of a virtuous growth cycles in Cambodia, that is, accumulating labor intensive industries, expanding these industries into machine industries and other processing and assembling business and finally raising the level of industries and realizing an expansion of market,” he noted. “With help and assistance, we hope we can contribute to the development of country and to reinforcement of economic relation between Japan and Cambodia,” he added.
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