Sign up | Log in



Home  >>   Daily News  >>Cambodia>>Investment>>Charting changes in Japanese FDI
NEWS UPDATES Asean Affairs     August 2,  2016  

Charting changes in Japanese FDI

Japan’s investment in Cambodia continues to grow and its investors are playing a leading role in developing and diversifying the Kingdom’s light industrial sector. The Post’s Hor Kimsay sat down with Yasuhara Hiroto, head of the Japan Desk at the Council for the Development of Cambodia (CDC), to discuss what is drawing Japanese investors to Cambodia, and where they are directing their capital.

Japan was the first country to set up its own department at the Council for Development of Cambodia, called CDC-Japan Desk. Why?

Japanese companies that are interested in investing in Cambodia found difficulties communicating in this country. It is not only the language, but also how to access the correct information about investment laws and the procedures for starting a business. There are also obstacles for getting and submitting the right paperwork for QIPs (Qualified Investment Projects). So, with the Japan Desk, investors can communicate easier.

What is attracting Japanese FDI and where is it being directed?

Japanese companies see Cambodia as a promising market, and that is why we have seen many investments towards the service industry so far this year. Most of this investment is in the second Aeon mall project, the new Starts hotel, an All Nippon Airways (ANA) direct flight between Phnom Penh and Tokyo, as well as a Japanese hospital. However, at the same time, Cambodia is receiving less investment into its manufacturing sector.

What is causing Japanese investment into manufacturing to slow down?

Cambodia used to be considered as a low-wage country, but the minimum wage has been increasing gradually. We understand that higher salary is needed for the people to improve their lives, but at the same time it causes Cambodia to lose its advantage as an attractive place for investment. Plus, there is the high cost of electricity that Japanese investors always complain about and the administrative complexity of the infamous unofficial payment requests that are demanded.

There is also the high cost of logistics that include a forwarding charge and transportation charge. According to new data from Japan International Cooperation Agency (JICA), the forwarding charge of goods in Cambodia totals $540 per TEU (twenty-foot equivalent unit, the size of a standard container), while in Thailand it is just $200 and for Vietnam $250.

Lastly, Vietnam is also a member of Trans-Pacific Partnership (TPP), which has made it quite attractive for Japanese companies.

What are your expectations on the flow of investment for the rest of this year?

I think it will slow down because manufacturing investment is very low. Surprisingly, we haven’t seen any Japanese investment at Phnom Penh SEZ for the first half of this year.

However, I expect that with the rebound of Thailand’s economy, we could see more Japanese investment going to Poipet in the second half of this year.

How are the economic changes in Japan affecting companies that are considering investing Cambodia?

The Japanese yen has appr

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           August  2,, 2016 Subsribe Now !
• Charting changes in Japanese FDI Subcribe: Asean Affairs Global Magazine
• Deciphering the Economic Policy Statement of the Myanmar Government - Some random reflections 
• Southeast Asian countries to share efforts to promote tourism
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• AFRENCH publication company l’Essentiel des relations internationales is setting its sights on the fast-growing ASEAN reg
• National financial switching system set for Myanmar
Asean Analysis                  Jully 22, 2016
• Asean Analysis July 22, 2016
Singapore-U.S. Relations to Set Pace for Twenty-first Century U.S. Engagement in Southeast Asia
Advertise Your Brand

Asean Stock Watch   August 1, 2016

• Asean Stock Watch-August 1, 2016
The Biweekly Update
• The Biweekly Update  July 22, 2016

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand