Cambodia Strengthens Investment Push as Japan-Backed Team Targets New Growth Sectors

PHNOM PENH, Feb 20, 2026 (KPT) — Cambodia is intensifying efforts to attract Japanese investment through a newly established Business Co-Creation Team (BCT), designed to streamline facilitation and target emerging growth sectors, officials said Friday.

Speaking at the “Seminar for Supporting Japanese Companies: Cambodia’s Attractiveness as an Investment Destination and Promising Sectors,” Suon Sophal, Deputy Secretary-General of the Council for the Development of Cambodia (CDC), underscored the Kingdom’s drive to position itself as a dynamic investment hub in Southeast Asia.

He said the Japan-backed BCT will serve as a one-stop support mechanism for Japanese investors, assisting from pre-entry to post-entry stages while addressing technical and regulatory concerns.

“Our world is being reshaped by digital transformation, green transition and shifting supply chains,” Sophal noted, adding that Cambodia is adapting through reforms that enhance facilitation, incentives and aftercare services.

Wakabayashi Kohei, Chief Representative of the Japan External Trade Organization (JETRO) in Phnom Penh, highlighted Cambodia’s labor force as a key advantage. “It’s not only about the cost, but the quality of the labor is very good. Many Japanese companies say that people are very nice in Cambodia,” he said.

Cambodia approved 630 investment projects worth US$9.96 billion in 2025 — a 45 percent increase from 2024 — underscoring strong momentum. Exports from Special Economic Zones (SEZs) reached US$8.2 billion last year, up 26 percent year-on-year.

Under its diversification strategy, the government is prioritizing agro-processing, upstream and innovative industries, value-added manufacturing and digital sectors. The investment law guarantees equal treatment for foreign investors, including full ownership rights (except land), protection against expropriation and unrestricted capital repatriation.

The seminar also featured presentations from JETRO Phnom Penh, Royal Group Phnom Penh SEZ, Toyota Tsusho and AEON, who shared insights on infrastructure development, manufacturing competitiveness and retail market potential.

Officials expressed optimism that strengthened public–private dialogue and deeper bilateral cooperation will pave the way for new Japanese ventures and expanded supply chain integration in the Kingdom.