Cambodia’s exports to Japan surged 20 percent in the first eight months of this year compared to the same period last year and reached $924 million, the latest trade data of the General Department of Customs and Excise (GDCE) showed.
The rising exports also ensured that Japan is now the fourth biggest export destination of Cambodia, accounting for 5.3 percent of the Kingdom’s export market.
Japan is also now Cambodia’s fifth biggest trading partner, with the bilateral trade (exports and imports together) reaching $1.4 billion in the first eight months of this year, an increase of 16.9 percent year-on-year.
Cambodia’s imports from Japan during the period reached $480 million, ensuring that the Kingdom maintains a surplus of $444 million in trade with Japan for the period.
The Kingdom’s main exports to Japan are garments, bags, footwear, furniture, cosmetics, paper and office supplies and leather goods. The main imports are machinery, automobiles, electronic items, furniture, fabrics and plastics.
The growing trade between the two countries has also helped strengthen bilateral relations, which is seen in the increased assistance by the Japan International Cooperation Agency (JICA) for various infrastructure development initiatives of the Royal Government.
Among the major projects supported by JICA in the Kingdom include three main bridges (Chroy Changvar Bridge, Kizuna Bridge in Kampong Cham and Tsubasa Bridge linking Kandal Province with Neak Loeung in Prey Veng Province), 26 schools, Cambodia Japan Cooperation Centre and Institute of Technology of Cambodia buildings, six roads (568 km) and eight hospitals.
Most of JICA’s support for Cambodia is people-centric covering sectors such as water supply, public transport, sewerage management, flood mitigation, technical and vocational training and healthcare besides major infrastructure development such as roads, ports and digitalization of the economy.
Japan is also supporting the expansion of Cambodia’s only deep-sea port in Sihanoukville. Currently, the new international terminal at the port is built with a soft loan of $203 million from JICA.
Once operational, the new terminal will help PAS to match the ocean freight cost of the neighbouring countries in the region, or even better them, and this could further boost the trade and economic development of Cambodia.
The project is expected to be completed by mid-2027 and the container handling capacity of the port will then reach 1,250,000 TEUs within one year.
In a recent development, Japan has also agreed to extend support for modernising the transmission and distribution capacity of the power grid in Phnom Penh with a loan amounting to approximately $55 million.
On Monday, the loan agreement was signed by Ros Seilava, Secretary of State at the Ministry of Economy and Finance, and Sanui Kazumasa, JICA Chief Representative in Phnom Penh.
Last year, both countries marked the 70th anniversary of the establishment of diplomatic relations between the two, as well as the 30th anniversary of the establishment of the JICA Cambodia Office.
Cambodia and Japan elevated their relationship to a Comprehensive Strategic Partnership last year which is expected to attract more Japanese investments to Cambodia and open a wider market for the Kingdom’s products in Japan.
Japan is also the fourth biggest source of Foreign Direct Investment (FDI) in Cambodia, after China, Korea and Canada, according to the data of the National Bank of Cambodia for 2023 and it is also one of the biggest development partners of the Kingdom.
(Source: khmertimeskh)