In 2018, Cambodian exports to Japan soared 27.3 per cent while imports grew by 17.8 per cent. The country is improving its production chain to provide added value to its textile products exported to Japan. Potential products for export from Cambodia to Japan are clothes, footwear and electronics. Of Cambodia’s total exports, Japan ranks fourth with a market share of 7.7 per cent. The main products that Cambodia exports to Japan are garments, footwear, sugar, fish and seafood. Imports from Japan are mainly machinery, automobiles, electronic products, beef, iron, steel and pharmaceutical products. Cambodia’s exports have been buoyed by efforts to assist its exporters, including the simplification of export procedures and in particular the implementation of an online system to process export documents.
Cambodia is geographically located in the center of Asean and provides favorable conditions for businesses with rapid infrastructure development and fast-rising economic growth, investment, trade and tourism. Currently, there are 137 Japanese investment projects in Cambodia, mainly involved in the manufacturing of electronic and electricity components, auto spare parts, agro-industry products and food processing materials, hotels, tourism, hospitals and malls. Most Japanese factories in Cambodia are located in special economic zones, which produce a lot of products that are exported to Japan. Japanese investment in non-textile manufacturing has contributed to diversifying Cambodia’s economic base and human resource development.