Agreement on the Protection of Activities and on the Promotion of Investments between Cambodia and Japan Now in Force

Norbert Klein

Posted on 2 August 2008
The Mirror, Vol. 12, No. 571

http://cambodiamirror.wordpress.com/2007/06/16/friday-1562007-cambodian-prime-minister-attracts-japanese-investments-by-promising-to-combat-corruption/
“Cambodian and Japan had signed an agreement [last year on 14 June 2007 – see The Mirror, Vol. 11, No. 512: 15.6.2007: Cambodian Prime Minister Attracts Japanese Investments by Promising to Combat Corruption] about the protection and the promotion of investments, in order to open ways for Japanese investors to enter the Cambodian investment market.

“According to an announcement by the Japanese Embassy in Cambodia on 21 July 2008, this agreement [came now into force and] will bring two important positive results. ‘First, it is the first symbolic step to strengthen economic relations between Cambodia and Japan; second, it contributes strategies to develop Cambodia to promote economic development through direct foreign investments.’

“This announcement continues to say that besides the two points mentioned above it is an agreement which guarantees Japanese investors a clear investment process, with the freedom to transfer financial gains, and with equal contracts and equal rights in solving problems to increase transparency.

“So far, Cambodia could not attract big private investments from Japan.

“According to figures from the Council for the Development of Cambodia in 2007, Japanese investors ranked fifth, compared to other foreign investors, such as investors from China, Thailand, South Korea, Vietnam, and Saudi Arabia, with total investments of approximately US$81 billion, while Japan is the biggest donor country for Cambodia. These statistics show that from 1992 to 2006, Japan granted approximately US$1,177 million, and the Japanese government maintains a policy to always grant approximately US$122 million to Cambodia each year.”

Rasmei Kampuchea, Vol.16, #4656, 1.8.2008
Newspapers Appearing on the Newsstand:Friday, 1 August 2008