Last year, Cambodia and Japan elevated their decades-long relationship through a comprehensive strategic partnership, which expanded Japan’s role in supporting the Cambodian government’s development objectives.
Japanese Ambassador to Cambodia Atsushi Ueno said he will sustain that fresh impetus by enhancing bilateral political, economic and cultural ties.
While some challenges remain, Cambodia passed The Law on Investment in 2021, which provided incentives to certain sectors, guaranteed intellectual property protection and allowed for the free movement of foreign currency, as well as other protections.
“This law is designed to turn challenges into opportunities for foreign investors by allowing them to build an economic base tailored to their needs,” said Marisa Haruta, chief representative of the Japan External Trade Organization in Phnom Penh.
In the wake of those changes, the Japanese business community remains very optimistic.
“The current government is proactive in enhancing the experience of foreign investors and addressing the challenges they may encounter,” said Japanese Business Association of Cambodia Chairman Koji Fukuhara.
In the meantime, law firms have come forward to help investors from Japan and the rest of the world navigate the unfamiliar legal landscape.
“The legal framework here poses unique challenges for international businesses. As market competition intensifies, companies need a thorough understanding of local regulations, particularly regarding incorporation and taxation, to make sound strategic decisions,” said Nobuaki Murakami, a lawyer at the Cambodia office of One Asia Lawyers Group.
With the opening of the Cambodian economy, Japanese investment has moved beyond manufacturing and into the services sector.
“We chose Cambodia because of the rising demand for quality health care among the locals, who now have more disposable income thanks to the fast-growing economy,” said Sunrise Healthcare Service Chairman Hironori Matsushita.
Operated by Sunrise Healthcare Service Co. Ltd., Sunrise Japan Hospital provides affordable, high-quality medical services and serves as the first point of contact for Japanese pharmaceutical companies and medical device manufacturers wanting to access the Cambodian market.
One of the country’s largest and most diversified companies, Overseas Cambodian International Corp. recognizes Japan’s pivotal role in advancing Cambodia’s economy.
“As a diversified local investor, we focus on Cambodia’s holistic development across key sectors like technology, finance, real estate, infrastructure and education. Japan’s strategic vision and expertise in these areas are invaluable assets for our progress,” said OCIC Vice President Thierry Tea.
Japanese participation has also flourished in Cambodia’s education sector, as seen by the growing number of partnerships.
“They have been invaluable for NUM’s academic growth. Our partner universities facilitate student exchange programs that foster deeper friendships, while companies like Sumitomo Corporation and AEON 1% Club Foundation, offer scholarships, which align with our vision for academic excellence,” said National University of Management Rector Hor Peng.
Among those schools determined to prepare Cambodian students for the globalized workplace is Mengly J. Quach Education. It offers general education at the American Intercon School, foreign language courses at 24 Aii Language Centers across the country, and Sogo, which organizes study tours and skills training abroad.
For Mengly J. Quach Education, one of Cambodia’s largest education providers, Japan represents a valuable partner in strengthening the education system.
“A nation’s human capital development is grounded in a robust education system. However, Cambodia’s system has yet to reach its potential. There is still much to be done, and we believe private Japanese investors can help bridge the gaps,” said founder, Chairman and CEO Dr. Mengly J. Quach.
Japan’s increased involvement also has the potential to transform Cambodia’s agriculture sector.
“Japanese technology can boost agri-processing efficiency, which can lead to higher yields and lower costs,” said Angkor Green Investments CEO Sopheak Chan.
Alongside these developments, some homegrown brands have started building a global reputation, among them is Sela Pepper, a grower and distributor of world-famous Cambodian black pepper. It supplies Ajinomoto and views Japanese quality as its benchmark.
“We are inspired by the Japanese commitment to excellence. Cambodian pepper is among the best in the world, and we ensure that our processes align with the Japanese philosophy of quality,” said Director Anna Cai, one of the company’s founders.
In Siem Reap, Jaya House River Park has made a huge impact, locally and globally, because of its choice to promote Khmer culture in the property and service, lead community service programs, especially during the COVID-19 pandemic, and commit to sustainable tourism.
“A key aspect of Japanese culture is the close attention to details, which fosters an atmosphere of genuine care. We draw upon these principles, grounding our services in empathy and foresight, enabling us to offer award-winning experiences,” said Jaya House River Park Managing Director Christian de Boer.