A Change of Guard

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Monday, 15 October 2012

Cambodia might benefit from Japan-China row

By   
October 15, 2012 
The Japan Daily Press
Cambodia might benefit from Japan-China row
A lot of Japanese companies have been making inquiries about investing in Cambodia. And a good number of them are companies who are considering relocating from China. This was revealed by Phnom Penh Special Economic Zone manager Hiroshi Uematsu in the Japanese newspaper Asahi Shimbun.
Uematsu claims that in his five years as manager, he has not received as many calls, as much as three or four a week. Uematsu’s company is expanding the 90-hectare section of the industrial park by 150 percent, and he thinks that they will all be filled by the end of next year. He attributes this sudden surge in interest in Cambodia to the current territorial spat between Japan and China over a group of uninhabited islands called Senkaku in Japan and Diaoyu in China. Recent events have sparked violent protests in China that have led to damages in Japanese property and have forced some companies to temporarily close up or cut work hours short for the safety of employees. According to Uematsu, almost half of the 500 Japanese companies that have plans for possible projects with the Council for the Development of Cambodia are manufacturers, and as much as 80 percent of them are considering relocating from China.

Another factor for this growing interest in Cambodia might be the improved highways to Vietnam and Thailand. This is what Kengo Katsuki believes. Katsuki is vice president of the local subsidiary of Japanese precision parts manufacturer Minebea Co. He says that improved land transportation has caused countries like Cambodia, Myanmar, and Laos to be included in the production network of other Southeast Asian nations and have thus become quite attractive to foreign investors.

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