Cambodia PM calls for more investment from Japan

TOKYO, June 14 (Reuters) - Cambodian Prime Minister Hun Sen on Thursday urged Japanese business leaders to invest more in one of the poorest Asian countries which he said could make a new start as a country build on rich natural resources.

"Development of natural gas and mineral resources provide Cambodia with great potential and this means Cambodia will make a new start as a country founded by natural resources in the international community," he told Japanese business leaders.

Japan's direct investments in Cambodia stood at $4 million for the five years from 2002.

"We will improve the environment for investments and I feel confident that investments by Japanese companies and investors will help the Cambodian economy grow stronger," Hun Sen said.

He said Japan's aid had helped Cambodia vastly improve its infrastructure in the last decade.

Japan's aid grants to Cambodia stood at $1.17 billion in the 1992-2007 period and Japan had extended yen loans totalling $137 million in the same period, Hun Sen said..
He said that the Cambodian economy had grown 13.5 percent in 2005 and 10.8 percent in 2006.

He also said Cambodia's per capita gross domestic product (GDP) had nearly doubled to $513 in 2006 from $288 in 2000, and inflation had remained below 3 percent between 2000 and 2006.

He said he would sign a bilateral investment pact with Japanese Prime Minister Shinzo Abe later in the day.

"I certainly believe that this pact will serve as a source of great confidence for those who invest in Cambodia," he said.

Japan's imports from Cambodia stood at 8.6 billion yen ($70.06 million) in 2005, while Cambodia's imports from Japan were 11.5 billion yen. ($1=122.74 Yen) .