​Finance minister praises Japanese contribution to Kingdom’s economy

Workers in a garment factory in Cambodia. Japan is an important market for Cambodian exports. Supplied

Minister of Economy and Finance Aun Pornmoniroth has lauded Japan’s contributions to building Cambodia’s economic infrastructure, as well as supporting its economic integration into the regional and global economy.

Pornmoniroth met with Japanese Minister of Finance Kato Katsunobu and Japanese ambassador Ueno Atsushi at the finance ministry headquarters on January 10.

In his opening remarks Pornmoniroth expressed his gratitude to the Japanese government and people for their active participation in the peace-building process and their support for Cambodia’s economic and social development. The strategic partnership and cooperative relations between the two countries have been continuously strengthened and expanded, he added.

He noted that Japanese financial assistance – through both loans and grants – has always responded promptly to Cambodia’s needs, which are prioritised by the Cambodian government. The finance ministry will continue to strengthen financial cooperation and development between the two nations, in line with phase one of the seventh-mandate government’s Pentagonal Strategy.

“Japan’s financial support has significantly contributed to building infrastructure to promote economic growth and improve the living standards of the Cambodian people. Furthermore, Japan’s contributions have helped connect Cambodia internally and integrate the country’s economy into the regional and global economy,” he said.

He also highlighted how the Cambodian government has prioritised the private sector, recognising it as a key driver of economic growth, with the government serving as a strategic facilitator.

Kato remarked on the strong ties between the government and the private sectors of both countries. 

He added that, in addition to diplomatic cooperation, the Japanese government has focused on increasing investment from Japanese companies in Cambodia, which plays a crucial role in supporting Cambodia’s economic growth and sustainable development.

According to the General Department of Customs and Excise (GDCE), total trade between Cambodia and Japan in 2024 reached $2.16 billion, marking a 20.1% increase compared to 2023. Of this amount, Cambodian exports were valued at $1.41 billion, up 19.8%, while Japanese imports amounted to $752.56 million, up 20.7%. The trade balance showed a surplus of approximately $656.12 million for Cambodia.

Japan is Cambodia’s fifth-largest trading partner, following China, the US, Vietnam and Thailand. Bilateral trade volume between the two countries represented 3.95% of Cambodia’s total international trade in 2024, which amounted to $54.74 billion.

Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on January 15 that Japan is a major market for Cambodian products, with hundreds of millions of dollars in annual exports. The Kingdom’s key exports to Japan include garments, electronics and agricultural products. He believed that exports will continue to grow, as more Japanese investors are establishing factories in Cambodia to supply Japanese manufacturers.

He noted that both countries are members of the Regional Comprehensive Economic Partnership (RCEP), which allows members to trade under special tariff exemptions and other preferential conditions.

“Japan is an industrially developed country, so Cambodia has many opportunities to export its products, especially industrial and agricultural goods,” he said.

In addition to trade, there is increasing Japanese investment in Cambodia, particularly in sectors such as finance, construction, hotels, insurance, electronics manufacturing, retail and food services.

The Council for the Development of Cambodia (CDC),  reported that in 2024, 414 investment projects were approved, with a total investment capital of approximately $6.9 billion USD. Japanese companies ranked seventh in terms of investment, contributing about 0.58% of the total investment amount.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}