Japan calls for more effort from the government to ease business

Japanese investors in Cambodia have discussed challenges they face with the Cambodia government and called on it to do more to facilitate doing business in order to boost trade and investment between the two countries.

The news emerged from a discussion yesterday during the 20th Cambodia-Japan Public-Private Sector Meeting under the agreement between the two countries for the liberalisation, promotion and protection of investment.

According to a policy recommendations document, issues such as tax exemption, reducing the price of electricity and problems for parallel importation were discussed.

Sok Chenda Sophea, secretary-general of the Council for the Development of Cambodia (CDC), who was the co-chair of the meeting, said that in the name of the government, Cambodia would like to thank the Japanese government for providing assistance to Cambodia to contain COVID-19.

He said the two government have strong diplomatic relations boosted by good cooperation in the area of trade, investment and tourism.

He added this 20th meeting will be another tool to strengthen relations between the two countries.

Mikami Masahiro, Japanese ambassador to Cambodia, said that the countries need to join hands during this virus crisis to strengthen cooperation. The government of Japan is considering providing assistance to help the Kingdom’s economy and society.

“The Japan government will provide comprehensive cooperation to expand investments in Cambodia and we understand that the bilateral meeting is an important mechanism to achieve that investment expansion goal,” he said.

He added Japanese investors also expressed an interest in investing in the agriculture processing sector and industry that adds higher value.

“Some companies are considering a global production chain because of the impact of COVID-19 and the improvement of the investment environment in Cambodia currently is regarded as an opportunity to attract more investment,” the ambassador said.

However, challenges remain which need to be solved.

The Japanese Business Association of Cambodia (JBAC) expressed concern over a new scheme for electricity prices that introduced the idea of “capacity charge” that would increase costs.

Kanda Yogo, Chairman of JBCA, said that in the name of  270 business members in Cambodia, his association hoped to further discuss the issue fruitfully in a cooperative way.

“Because of the measures taken by the Cambodian government to contain COVID-19 it has made our business here better than in other countries,” he said.

JBAC raised some challenges such as logistics, taxation, electricity prices while other issues will be discussed separately with the relevant ministries to find solutions.

JBAC also suggested the government should open a customs office at Stung Bot border gate and provide customs services along the border 24 hours a day. It also asked for tax exemption on oil for production.

The volume of bilateral trade between Cambodia and Japan was recorded at $1.01 billion in the first half of this year, a year-on-year decrease of 3.7 percent, according to figures from the Japan External Trade Organisation.(This news came from Khmertimes.com)