Cambodia has invited leading Japanese automotive supplier Yazaki Group to explore investment opportunities in developing Special Economic Zones (SEZs) as a strategy to attract more Japanese investors to the Kingdom. The proposal comes amid a strong trade performance between Cambodia and Japan, with bilateral trade surpassing $832 million in the first four months of 2025.
Yazaki Considers SEZ Expansion in Cambodia
Yoshimoto Ito, Deputy CEO of Yazaki Corporation, held discussions with H.E. Chea Vuthy, Secretary-General of the Cambodian Investment Board (CIB) under the Council for the Development of Cambodia (CDC), during a high-level meeting on May 12. The Yazaki delegation included representatives from Guangdong Dongfang Investment Co., Ltd., a joint venture partner in China’s Guangdong province, where Yazaki has had a long-standing presence.
During the meeting, H.E. Vuthy acknowledged Yazaki’s decade-long operations in the Neang Kok SEZ in Koh Kong province and welcomed the company’s interest in further expanding its footprint in Cambodia. He recommended the establishment of a new SEZ, which would not only accommodate Yazaki’s expansion but also attract a broader base of Japanese investors.
“We encourage Yazaki’s leadership to explore the development of a new SEZ, which could serve as a hub for future Japanese investment in Cambodia,” Vuthy said.
In response, Yoshimoto expressed appreciation for the CDC’s continued support and affirmed Yazaki’s intention to conduct a feasibility study for establishing an SEZ in Cambodia.
Yazaki’s Presence in Cambodia and China
Yazaki has been operating in Cambodia for more than 10 years, focusing on electric wire components manufacturing at its factory in the Neang Kok Koh Kong SEZ. In China, the company has maintained a production base in Guangdong for approximately four decades, leveraging regional trade linkages and industrial capacity.
Cambodia–Japan Trade Sees 29.7% Surge in Early 2025
According to the General Department of Customs and Excise (GDCE), trade between Cambodia and Japan reached $832.29 million from January to April 2025, marking a 29.7% increase year-on-year. Cambodian exports to Japan totalled $523.49 million (up 19.8%), while imports from Japan rose to $308.8 million (up 50.6%). Cambodia registered a trade surplus of $214.69 million during this period, slightly lower than the $231.81 million surplus recorded in the same timeframe in 2024.
SEZs Crucial for Attracting Japanese Investment
Sam Soknoeun, Chairman of SAM SN Group, noted that SEZs play a pivotal role in attracting investment, particularly from Japanese firms, which often seek the presence of fellow Japanese companies before committing to new markets.
“If a large Japanese company like Yazaki establishes operations in a new SEZ, it will signal confidence and likely draw additional Japanese investors to Cambodia,” Soknoeun said.
He highlighted Cambodia’s favourable investment environment, citing political stability, progressive investment laws, modern infrastructure, and international market access as key advantages.
Japanese Investment in Cambodia Continues to Grow
The Ministry of Commerce reported that between January and November 2024, 88 new Japanese companies registered in Cambodia, a 20.55% increase compared to the same period in 2023. Japanese investments in Cambodia span a range of sectors, including:
- Automotive assembly and components
- Construction and real estate
- Hotels and tourism
- Agro-industry and food processing
- Electronics and electrical components
- Retail and supermarket chains
- Agricultural cultivation and exports
Strategic Outlook
Yazaki’s potential investment in a new SEZ underscores Cambodia’s growing attractiveness as a regional manufacturing and logistics hub. By encouraging SEZ development, the Cambodian government aims to build structured industrial ecosystems that can support diversified foreign investment, job creation, and value-added exports.
As Cambodia deepens economic cooperation with Japan, initiatives like this could set the stage for a new wave of industrial investment led by globally recognised Japanese corporations.
