The Cambodian government is laying the groundwork for the establishment of specialized economic zones focused on Japan, aiming to bolster direct investments from the Asian powerhouse. In a strategic move to fortify economic ties, an inter-ministerial meeting was convened on Monday, spearheaded by Deputy Prime Minister Sun Chanthol, to deliberate on the conceptual framework for these zones.
The assembly saw the participation of key figures including Keo Rattanak, Minister of Mines and Energy; Hem Vandy, Minister of Industry, Science, Technology, and Innovation; and Phan Phalla, Secretary of State of the Ministry of Economy and Finance, among others. The discourse centered on crafting a conducive environment for Japanese enterprises to expand their footprint in Cambodia.
Lim Heng, Vice President of the Cambodia Chamber of Commerce, highlighted the strategic significance of the Cambodia-Japan Special Economic Zones. He pointed out the myriad benefits such as enhanced job creation, skill development for the local workforce, and economic upliftment through increased exports.
The initiative gains momentum following Prime Minister Hun Manet’s advocacy for Japanese investment during his December 2023 visit to Japan. The Prime Minister’s efforts underscored the potential of these zones to serve as a magnet for Japanese businesses, leveraging Cambodia’s access to expansive markets through trade agreements and the Regional Comprehensive Economic Partnership (RCEP).
Japan’s role as a pivotal investor and trading ally for Cambodia is well established, with significant ventures spanning various sectors. These include advanced manufacturing facilities like Minebea (Cambodia) Co Ltd, automotive assembly plants, Aeon Malls, and agricultural engagements, illustrating the diverse spectrum of Japanese investment in the nation.
The dialogue concerning the Special Economic Zones (SEZ) initiative previously emerged in discussions between the Council for the Development of Cambodia (CDC) and Japanese Ambassador to Cambodia Ueno Atsushi. It aligns with Prime Minister Hun Manet’s vision, as articulated at the inaugural event of the Special Program to Promote Investment in Preah Sihanouk Province 2024.
This innovative approach to SEZs, focusing on investors from a single country, represents a novel paradigm aimed at enhancing the effectiveness of these zones. The Prime Minister emphasized the complementary nature of this model to existing SEZ frameworks, ensuring a synergistic rather than competitive relationship.
The conversation also touched upon the critical need for skill development initiatives to prepare the workforce for high-tech investments. Such training programs are essential for attracting sophisticated ventures and sustaining their operations within the country.
To date, the CDC has green-lit 149 Japanese investment projects, channeling approximately $2.9 billion into key sectors like garments, electronics, and automotive components. Despite a slight dip in trade figures in 2023, with total trade volume reaching $1.8 billion, the foundation for robust economic collaboration remains strong, paving the way for a prosperous partnership between Cambodia and Japan.
Source: Khmer Times
