JETRO opens office in Cambodia to promote trade, business ties+

PHNOM PENH, March 10 (AP) - (Kyodo)—The Japan External Trade Organization officially opened its office in the Cambodian capital Wednesday to promote trade and business ties between Japan and Cambodia.

Cambodian Commerce Minister Cham Prasidh said at the opening ceremony in Phnom Penh that JETRO will play an important role in "bridging business ties" between Cambodian and Japanese businesspeople, and expressed his strong hope that two-way trade as well as and Japanese investment in Cambodia will rise in the near future.

JETRO Chairman Yasuo Hayashi said at the ceremony that the new office in Cambodia will focus not only on promoting Japanese investment in Cambodia and bilateral trade, but also on developing Cambodia's export industries.

The Japanese government-backed organization, which was set up in 1958 to promote Japanese exports, changed its charter after Japan became a major exporting country and now helps Japan's trading partners to tackle the Japanese market.

Hayashi said two-way trade between Japan and Cambodia has more than doubled over the past decade, from $104 million in 2000 to $255 million in 2009.

Japanese exports to Cambodia declined by 39.4 percent in 2009 year on year to $112 million, mainly because of the financial crisis, but imports from Cambodia grew by 18.3 percent to $143 million, he said.

Japan's main exports to Cambodia are vessels, machines and transportation equipment, and its main imports are footwear and sewn products.

Hayashi said the number of Japanese companies investing in Cambodia has increased from 36 in 2008 to 57 as of the end of January this year, a growth of over 20 in less than two years.

Cham Prasidh noted that Japan ranks 14th among foreign countries investing in the country, far behind China and South Korea which rank first and second respectively in terms of size of capital investment.

He said Cambodia can offer Japanese investors a central location in Southeast Asia, a good seaport and cheap labor.

Including the newly launched office in Phnom Penh, JETRO now has offices in eight of the 10 ASEAN countries -- all except for Brunei and Laos.