Cambodia and Japan have pledged to further strengthen economic, trade and investment cooperation, with a focus on improving the business environment, addressing investors’ concerns and boosting their confidence. Bilateral trade between the two countries exceeded $2.2 billion in the first nine months of 2026.
The commitment was made at the 32nd meeting of the Cambodia-Japan Joint Committee under the Agreement between Cambodia and Japan for the Liberalisation, Promotion and Protection of Investment, held in Phnom Penh on October 21. The meeting was co-chaired by Sun Chanthol, first vice-chairman of the Council for the Development of Cambodia (CDC), and Japanese ambassador to Cambodia Ishizuki Hideo.
The meeting was attended by Cambodian officials, members of the Business Co-creation Team (BCT), representatives of the Japanese Business Association of Cambodia (JBAC), the Japan International Cooperation Agency (JICA), the Japan External Trade Organization (JETRO) in Cambodia and the ASEAN-Japan Economic and Industrial Cooperation Committee (AMEICC).
It served as a platform for the Cambodian government and Japanese private sector to discuss challenges and seek practical solutions to facilitate business operations and attract additional investment.
The CDC described
“The 32nd Meeting serves as an effective official dialogue mechanism and a strategic platform between the Royal Government of Cambodia and the Japanese private sector to respond in a timely manner to requests as well as to address various business barriers,” said the CDC.
“Through this meeting, the Royal Government of Cambodia reaffirmed its strong commitment to continuously improving the investment climate, ensuring transparency and predictability to attract and retain Japanese investors, while building greater confidence for doing business in Cambodia sustainably and progressively,” it added.
During the meeting, newly appointed Japanese ambassador Ishizuki Hideo highlighted investment opportunities for Japanese investors in Cambodia, as well as several challenges that require cooperation among relevant stakeholders to resolve.
In addition to discussions between the two sides, the meeting reviewed a report on cooperation between AMEICC and the BCT, as well as updates on the activities, achievements and future work plans of JICA and JETRO in Cambodia.
For Cambodia, strengthening ties with Japan is important not only for expanding export markets but also for promoting technology transfer, upgrading workforce skills and developing domestic production capacity, provided that new investments are linked to local supply chains and businesses.
The joint committee meets twice a year under the Agreement for the Liberalisation, Promotion and Protection of Investment. The mechanism serves as a platform for discussing business challenges and promoting economic cooperation between the two countries.
According to the General Department of Customs and Excise of Cambodia (GDCE), bilateral trade between Cambodia and Japan reached nearly $2.24 billion in the first nine months of 2026, up 19.5 per cent from the same period in 2025.
Exports to Japan were valued at $1.45 billion, an increase of 24.1 per cent, while imports totalled approximately $791.39 million, up 11.9 per cent.
The growth in bilateral trade reflects the continued expansion of economic relations between the two countries. Japan is Cambodia’s fourth-largest trading partner, after China, the US and Vietnam.
Cambodia’s main exports to Japan include garments, footwear, travel goods, agricultural products and certain industrial goods. Imports from Japan include machinery, vehicles, spare parts and equipment used in manufacturing.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on October 22 that political stability, geographical location, investment laws, a skilled workforce and transport infrastructure were among the key factors helping Cambodia attract investment.
He said Cambodia needed to work harder to establish itself as an attractive investment destination while expanding the number of markets willing to purchase its goods.
“Discussions aimed at improving the investment climate and making it more favourable are very important for attracting more Japanese and other foreign investors to invest directly in Cambodia,” he said.
“Improving infrastructure, reducing transportation costs and making business procedures more efficient can help Cambodian products become more competitive in international markets,” he noted.