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Logo of Phnom Penh Post newspaper Phnom Penh Post - Japanese FDI flows in roads, bridges it built

Japanese FDI flows in roads, bridges it built

Japanese investors have sunk over $800 million into the Cambodian economy over the past two decades, with much of this investment coming on the back of concessional aid directed to develop and strengthen the country’s trade and industry capacities, according to data provided on Friday by the Japanese Embassy.

The data show Japan’s official development assistance (ODA) net disbursements totalled over $2.4 billion between 1993 and 2014, including $190 million in loans, $1.4 billion in grants and $798 million in technical cooperation.

A separate report cites figures from the Council for the Development of Cambodia (CDC) that show Japan’s total FDI in Cambodia was $801 million between 1994 and 2015.

In Channy, chairman of the Cambodia-Japan Business and Investment (CJBI) group, said yesterday that Cambodia has experienced a wave of Japanese investment since 2012, with heavy investment in the garment and electronics manufacturing sectors.

The FDI has followed Japanese loans and grants that were funnelled into developing infrastructure, such as roads and bridges that paved the way for better supply chain logistics.

“Japan has helped us to develop infrastructure that they recognise as beneficial for connecting Cambodia to international markets because they see us as a central country for regional trade,” he said.

Cambodia enjoys a strategic geographic location in the heart of ASEAN, which holds 600 million consumers, while benefitting from preferential trade access to the European and US markets, Channy explained.

“We also provide good facilities for FDI by offering 100 percent foreign ownership as well as tax exemptions on exports, which are the key ingredients for attracting investment,” he said.

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