Kampuchea'S Exports To Japan Surged By 35%

Closer economic cooperation with Japan will further intensify in the future.

Because of the worsening investment environment in Thailand, many Japanese enterprises have moved to Kampuchea, and Kampuchea is becoming the export center of Japanese products.

The Kampuchea law allows the wholly foreign-owned enterprises of foreign enterprises and the cheap labor force of the locals is undoubtedly very attractive to Japanese production enterprises, which makes the Japanese enterprises that invest in factories in Kampuchea very profitable.

At present, apart from launching a garment factory in Kampuchea, Japanese auto parts manufacturers and electronics manufacturers are also going to build factories in Kampuchea and then export their products to Japan.

Kampuchea pair

The main export products are clothing,

Electrical machinery and leather products.

According to Suzuki Hiroshi, chief economist of Kampuchea Business Research Institute, foreign direct investment is the main reason for Kampuchea's sharp increase in exports to Japan.

Direct investment from Japan has become one of the most important driving forces for Kampuchea's economic growth.

However, there may be another important reason why Kampuchea is so popular with Japanese enterprises. Kampuchea's neighbouring country, Thailand's domestic investment environment, is deteriorating.

It is reported that the Thailand government is considering revising the foreign-funded enterprises act. The newly amended bill will stipulate that most of the joint venture owners must be Thailand nationals.

In this way, the new rules may lead to many Japanese enterprises moving from Thailand to Kampuchea.

According to JETRO, Thailand imported more than 14% of its products from Japan in September this year.

At the same time, Thailand's exports to Japan also declined slightly, about 1%.

These data indicate that the attitude of governments to foreign direct investment (FDI) has a significant impact on Japanese enterprises' direct investment in the country.

In addition to China, Thailand and Vietnam, many Japanese companies are now looking for the next investment destination, and Kampuchea is relatively consistent with the requirements of Japanese investors.

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Recently, officials from the Ministry of trade in Indonesia said that Indonesia has 19 potential products to export to other ASEAN countries. Therefore, the Indonesian industry is not too concerned about the upcoming ASEAN economic community.

According to the introduction, these 19 kinds of products include 9 kinds of high quality products, including textiles, electrical appliances, rubber, timber and footwear. They also include 10 potential export products: leather and leather products, medical equipment and equipment, spices, processed foods, essential oils, fishery products, handicrafts, jewelry, seeds, stationery, and paper.

The Ministry of trade of Indonesia said that after the implementation of the ASEAN economic community, it will help expand the market of other ASEAN countries, expand the export of these products, and at the same time attract foreign businessmen to invest in Indonesia. Therefore, domestic enterprises should be prepared to improve their competitiveness.

Local analysts believe that the backwardness of infrastructure (such as gas and electricity supply shortages) and high logistics costs will weaken the price advantage of Indonesian products and affect the competitiveness of Indonesian enterprises after the completion of ASEAN economic community.