Prime Minister Hun Sen yesterday called for more investment from Japan as he delivered a speech at the 25th International Conference on the Future of Asia in Tokyo.
For in depth analysis of Cambodian Business, visit Capital Cambodia
Addressing hundreds of Japanese and international business representatives and potential investors, Mr Hun Sen praised the quality of Japanese investment and its positive impact on the Cambodian economy and society.
“To further the country’s industrial development, Cambodia needs more Japanese investments on food processing, eco-tourism, manufacturing, and human resources,” Mr Hun Sen said.
“Japanese businesses and investment in Cambodia are renowned for their quality. They add value to local goods, generate jobs and help improve the living standards of Cambodian workers, which is in line with the vision and mission of the Royal Government of Cambodia.”
He noted that the number of Japanese firms doing business in the Kingdom increases every year.
“Their decision to invest and expand their operations in the Kingdom signals strong confidence on the Cambodian government and in our investment environment,” Mr Hun Sen told his audience.
From 1994 to the first quarter of 2019, the Council for the Development of Cambodia registered 137 projects by Japanese companies, with a total investment of $2.5 billion.
Most of these projects were in the energy, assembling of electronic components, auto spare parts, agro-industry, food processing, hospitality, health, and retail sectors.
There are now 1,700 businesses run by Japanese people in Cambodia, Mr Hun Sen noted.
Lim Heng, vice president of the Cambodia Chamber of Commerce, told Khmer Times that Cambodia’s favourable investment environment attracts a growing number of Japanese firms every year.
“Cambodia is rich in raw materials but lacks funds, which makes our market small.
“Japanese investors have plenty of room, and opportunities, to come and invest here, particularly in agro-industry and food processing for export,” Mr Heng said.
In his speech, Mr Hun Sen announced that the government has plans to eliminate the minimum tax to help businesses.
“The minimum tax will be removed to make the business sector more competitive and promote the expansion of the Cambodian economy,” Mr Hun Sen said.
From 1992 to 2018, Japan provided Cambodia $2.8 billion in concessional loans, around 15 percent of total assistance by development partners.