Cambodia Well-Placed to Draw Japanese Investment, ERIA Chief Says

PHNOM PENH, Feb 9, 2026 (KPT) — Cambodia is well-positioned to attract more Japanese investors as firms weigh relocating production bases in the region, the head of a leading economic research institute said Monday.

During talks with Prime Minister Samdech Thipadei Hun Manet at the Peace Palace, Tetsuya Watanabe, President of the Economic Research Institute for ASEAN and East Asia (ERIA), said Cambodia is increasingly viewed as a promising destination for new Japanese investment.

Watanabe outlined ERIA’s findings on the proposed Cambodia–Japan Green Special Economic Zone, stressing the country’s potential to become a new industrial hub that would bolster regional and global supply chains. He said Japanese firms are studying relocation options and looking closely at Cambodia, adding that ERIA plans to convene a Cambodia–Japan business forum soon.

Samdech Thipadei Hun Manet welcomed the delegation and said his government is prioritizing the development of Green Special Economic Zones and tailored SEZs. He urged ERIA to coordinate with Cambodian ministries, the Council for the Development of Cambodia, and private sector partners to explore bilateral or trilateral SEZ models.

Japan’s Ambassador to Cambodia, Ueno Atsushi, also encouraged Japanese companies to assess opportunities in the country, citing stability and security as key factors for investor confidence. Speaking earlier at the Cambodia–Japan Cooperation Center, he said Cambodia’s young population and expanding domestic market offer “big potential” for growth.

Bilateral trade between Cambodia and Japan reached US$2.53 billion in 2025, up 17.1 percent from the previous year. Cambodian exports totaled US$1.57 billion, while imports from Japan rose 27 percent to US$956 million, underscoring sustained confidence in the investment climate.