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 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.

MOST VIEWED

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Ministry mulls ASEAN+3 travel bubble

    The Ministry of Tourism plans to launch a travel bubble allowing transit between Cambodia and 12 other regional countries in a bid to resuscitate the tourism sector amid crushing impact of the ongoing spread of Covid-19, Ministry of Tourism spokesman Top Sopheak told The Post on

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • PM asks India for vaccine help

    Prime Minister Hun Sen is seeking assistance from India for the provision of Covid-19 vaccines as the country has produced its own vaccine which is scheduled to be rolled out to more than 300 million Indians this year. The request was made during his meeting with

  • One million Chinese Covid-19 jabs to start rolling in from February

    The government has confirmed that Covid-19 vaccines from China are set to begin arriving in Cambodia by February. This came as the Ministry of Health recorded two imported cases of Covid-19 on January 18. While calling on people to remain vigilant against the pandemic, ministry spokeswoman