Phnom Penh, July 25 — Bilateral trade between Cambodia and Japan in the first half of 2025 has witnessed a significant surge, reaching over $1.22 billion — a 28.7% increase compared to $950.28 million in the same period of 2024. The figures underscore the growing strength of economic ties between the two nations, with Japan firmly positioned as Cambodia’s fifth-largest trading partner after China, the US, Vietnam, and Thailand.
According to the General Department of Customs and Excise, Cambodian exports to Japan from January to June totaled $753.55 million, up 19.9% year-on-year, while imports from Japan climbed sharply by 46.1% to $469.72 million. Despite a slight narrowing in the trade balance, Cambodia still recorded a trade surplus of $283.82 million in the first six months of 2025, compared to $307.08 million during the same period in 2024.
Driving Forces Behind the Growth
Economist Hong Vanak of the Royal Academy of Cambodia commented on July 24 that the positive trajectory in trade is fueled by complementary economic needs. Japan continues to supply Cambodia with high-tech goods including vehicles, machinery, electronics, and other advanced consumer products. In return, Cambodia exports labor-intensive and value-added goods such as garments, bags, shoes, electronics components, furniture, cosmetics, and agricultural produce.
“As Cambodia expands its industrial base and continues to attract investment in manufacturing, exports to Japan are expected to rise further,” Vanak said.
He emphasized the significance of both countries being part of the Regional Comprehensive Economic Partnership (RCEP), a 15-member free trade agreement that includes ASEAN nations alongside China, Japan, South Korea, Australia, and New Zealand. RCEP provides preferential tariffs and facilitates smoother trade, enhancing Cambodia’s export potential to major economies like Japan.
Rising Japanese Investment and Strategic Engagement
Complementing trade growth is the rising interest from Japanese investors in Cambodia. According to the Ministry of Commerce, between January and November 2024, 88 Japanese companies registered in Cambodia, a 20.55% increase over the same period in 2023.
The ministry attributes this rise to strong bilateral cooperation and Cambodia’s improved investment environment. In 2024 alone, Cambodia and Japan engaged in multiple bilateral meetings and dialogues, including discussions on carbon credit markets and investment opportunities — part of wider efforts to position Cambodia as a climate-resilient economy.
“In implementation of phase one of the seventh-mandate government’s Pentagonal Strategy, the ministry has achieved notable success in market diversification, product expansion, and the adoption of digital trade mechanisms,” the ministry noted in a statement. These efforts have helped ensure a wider range of Cambodian-made products reach international markets, including Japan.
Strengthening Diplomatic and Economic Ties
In a high-level meeting with Cambodian Prime Minister Hun Manet in November 2024, Japan’s Deputy Minister of Foreign Affairs, Eri Arfiya, reaffirmed her country’s commitment to strengthening political and economic cooperation.
“The partnership and cooperation, along with the trust-building between the Japanese and Cambodian governments, will not only be maintained but further strengthened and expanded,” she stated.
Her remarks reflect the broader diplomatic momentum between the two countries, as they continue to deepen ties in trade, investment, and development collaboration.
Looking Ahead
With both nations committed to regional economic integration and sustainable growth, the outlook for Cambodia–Japan trade remains promising. The continuing rise in exports, combined with targeted investment promotion and favorable trade policies under RCEP, suggests that bilateral trade could surpass previous records by the end of 2025.
Cambodia’s proactive stance in strengthening trade infrastructure, embracing digital commerce, and engaging strategic partners like Japan highlights its ambitions to become a competitive player in Asia’s evolving economic landscape.
Also read, Cambodia Strengthens Carbon Credit Market with Japanese Tech Collaboration
