Cambodia’s total garments and footwear exports to Japan increased 32.7 per cent in the first half of the year, that is, January to June 2016. There was a surge in exports of garments and footwear to Japan during the period due to the competitive prices of Cambodian products. Cambodia has lower production costs than has Japan and so Japan doesn’t produce much of garments and footwear.

The good relations with Cambodia have induced Japan to place more orders with Cambodian suppliers. 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.

However, Cambodia’s imports from Japan rose only marginally by 0.9 per cent in the first half of the year compared to the same period last year. Cambodia hopes to learn from Japan how to utilise international supply chains for manufacturing. Cambodia relies heavily on garment exports to earn foreign earnings. There are now plans to shift from low-priced garment manufacturing to higher end manufacturing of automobile, machinery and electronic parts, which will help it diversify its export basket and maintain the overall health of the economy.