1. Cambodia-Japan Association (JCA) Action Plan to Boost Investment
During a recent official visit to Japan, Cambodian Prime Minister Hun Manet met with Takahashi Fumiaki, Chairman of the Japan-Cambodia Association (JCA). The JCA outlined a three-pronged action plan to enhance Japanese investment in Cambodia:(Khmer Times)
- Support for SMEs and vocational training
- Investment in agro-processing industries
- Development of digital industrial parks(Fresh News Asia)
Prime Minister Hun Manet welcomed these initiatives and proposed exploring the establishment of an Exclusive Special Economic Zone (ESEZ) dedicated to Japanese small and medium-sized enterprises (SMEs) in Cambodia. This aligns with Cambodia's broader strategy to attract targeted foreign investment and promote industrial diversification.(Khmer Times)
The focus on agro-processing and digital infrastructure reflects Japan's interest in leveraging its technological expertise to add value to Cambodia's agricultural sector and support the country's digital transformation. These efforts are consistent with Cambodia's Industrial Development Policy 2015–2025, which aims to increase the industrial sector's contribution to GDP to 30% by 2025 .(CDC Cambodia)
2. Chinese Enterprises Explore Investment Opportunities in Cambodia
Approximately 40 Chinese companies are currently assessing investment opportunities in Cambodia, focusing on sectors such as energy, construction, manufacturing, real estate, and transportation. This interest was highlighted during a recent business meeting between the Cambodia Chamber of Commerce and the China International Chamber of Commerce.(Construction & Property News)
The discussions underscore China's ongoing commitment to infrastructure development in Cambodia, including projects like the Phnom Penh-Bavet Expressway and the Funan Techo Canal . These initiatives are part of broader efforts to enhance regional connectivity and support Cambodia's economic growth.(AP News)
3. Cambodian Government Approves $154 Million Investment Projects in Preah Sihanouk Province
On May 28, 2025, the Cambodian government approved 10 new investment projects in Preah Sihanouk province, totaling $154 million. These projects span various sectors, including manufacturing, commercial real estate, education, hospitality, and logistics, and are expected to create approximately 1,200 jobs .(The Star)
This approval is part of the "Special Investment Promotion Program in Preah Sihanouk Province," which has, to date, endorsed 297 projects with a combined investment of $7.03 billion, generating over 53,000 jobs. The program aims to revitalize the province's economy, particularly by addressing stalled construction projects and attracting new investments.(LinkedIn)
The government's proactive approach includes offering tax incentives and administrative support to investors, reflecting a commitment to improving the business environment and sustaining economic momentum in the region.
Analysis and Outlook
These developments indicate a strategic effort by Cambodia to diversify its investment sources and sectors:
- Japan's involvement focuses on enhancing value-added industries and digital infrastructure, aligning with Cambodia's goals for industrial modernization.
- China's interest remains centered on large-scale infrastructure and energy projects, reinforcing its role in Cambodia's physical and economic connectivity.
- Domestic initiatives, such as the investment promotion program in Preah Sihanouk, demonstrate the government's commitment to regional development and job creation.(B2B Cambodia)
Collectively, these efforts suggest a positive trajectory for Cambodia's economic development, provided that challenges related to governance, environmental sustainability, and equitable growth are effectively managed.