More Japanese firms eye investments in Cambodia
PHNOM PENH (Kyodo) — More Japanese firms are looking to Cambodia this year either to invest or to learn about the investment environment in the country, participants in an economic forum were told Friday.
Sok Chenda, secretary general of the Council for the Development of Cambodia, told the forum in Phnom Penh for Japanese investors that the government is improving as quickly as possible the investment environment, human resources and infrastructure.
More than 65 Japanese representing various institutions and companies attended the meeting.
Yoshihisa Kainuma, president of Minebea Co., said some challenges remain in Cambodia such as incomplete infrastructure and the high cost of electricity, but his company decided to invest there because of low labor costs, strong support from the government and a location close to Thailand where his company had already invested.
Statistics provided by the council showed that in the first 10 months this year, 16 Japanese companies invested $67.6 million in Cambodia, up sharply from only six companies that invested $35.3 million in all of last year.
In addition, nine more Japanese companies have applied in the first 10 months this year to make investments worth another $53 million, the statistics showed.
The investments cover a variety of industrial sectors, including shoemaking, garments, motorcycles and packaging, as well as beach and island development.
Japanese investments in Cambodia since 1994 through October this year totaled $250.6 million.
Since 1994 through November, China has invested $8.8 billion, South Korea $4 billion and Malaysia $2.6 billion.
(Mainichi Japan) December 17, 2011