Japan-Cambodia Ties Move On to a New Horizon

KHMER TIMES
MAY KUNMAKARA

Yuji Kumamaru, Japan’s ambassador to Cambodia. KT/Chor Sokunthea

Japan was one of the key players in the 1991 Paris Peace Accords and Japanese overseas development assistance helped Cambodia rise from the ashes of civil war to be one of the best economic performers in Asean. As Yuji Kumamaru winds up his diplomatic posting as Japan’s ambassador to Cambodia, he spoke to Khmer Times’ May Kunmakara of his term in office, and reflected upon Japan-Cambodia ties as both countries now move forward in a strengthened relationship.

KT: Diplomatic ties between Cambodia and Japan go back a long time. What are your thoughts about this relationship?

Mr. Kumamaru: Well the relationship has been growing strong since 1991 when the Paris Peace Accords were signed. Around that time, of course, Japan was among the implementers of the peace agreements, along with others. Since then, we have not been working only on political issues but also restoring and rebuilding the Cambodian economy. In the first phase of our [post-1991] relationship we have been mainly providing ODA [overseas development assistance]. In 2010, we went on to the next phase where the [Japanese] private sector became involved and started to play a bigger role. This Japanese public-private partnership has boosted our relationship with Cambodia in all sectors of the economy. More so, it has also strengthened country-to-country and people-to-people relationships.

KT: Since 1992, Japan has been the biggest bilateral donor to Cambodia. Have you observed whether Japanese assistance or ODA to Cambodia has been used properly?

Mr. Kumamaru: There has been effective [project] implementation with Japanese aid money and the results have been good. Overall, our ODA effort has been achieved with the help of our Cambodian counterparts. Our main pillar of assistance is in infrastructure ‒ roads, bridges, ports and so forth. We also emphasize on strengthening human capital and human resources, besides helping in technology transfer.

KT: A joint JICA, World Bank, IMF and ADB survey indicated that Cambodia needs an estimated $13 billion investment in infrastructure works by 2020, if the country intends to continue attracting foreign investment. The joint survey also called for $1.2 billion in infrastructure spending per year in Cambodia, with about half going to new projects and the other half to maintenance. How will the Japanese government contribute to the development of infrastructure in Cambodia?

Mr. Kumamaru: Well, roads, bridges and ports have been our main infrastructure projects. The Tsubasa Bridge [also known as Neak Loeung Bridge] is the largest bridge built with Japanese government assistance. Japanese aid has also helped improve Sihanoukville Port and also the Phnom Penh Port. Japan is also helping Cambodia establish a better southern corridor connecting Phnom Penh, Ho Chi Minh City and the Thai border. This is part of the Asean highway that we have been working on.

KT: In recent years, we have observed that the flow of investments from Japan and bilateral trade between the two countries are on the rise. What are the main sectors here that Japanese investors are keen to invest in?

Mr. Kumamaru: The Cambodian economy is growing fast and this means the manufacturing, and goods and services sectors are also growing. In the services sector, we have investments in shopping malls ‒ like Aeon Mall ‒ and also in banking and financial services. The manufacturing sector is crucial for the development of Cambodia and it is important for the country to diversify from depending solely on the garment industry. Japanese companies with established factories are keen to invest in the country to set up plants to manufacture car spare parts, for instance.

Also, wages are competitive here ‒ being lower compared to China, Vietnam or Thailand. Japanese companies are looking for alternatives and Cambodia seems to be a good place to invest. Also, the workforce is young and can be easily trained. That is another attraction.

KT: Last year, the government launched its Industrial Development Policy (IDP) in a move to diversify economic growth from garment exports to other areas of manufacturing. How do you think Japan can help Cambodia in this IDP?

Mr. Kumamaru: The IDP is a good policy paper. The problem with Cambodia’s manufacturing base is that it is too narrow. You have to broaden it by including other industries ‒ starting with light industries that currently are growing slowly and need more value-added manufactured products.

Also, we need to look into the agribusiness sector. The market value chain has to be strengthened. So the question is how do we bring all the players and stakeholders together to assume their different roles to meet targets and objectives within a certain timeframe.

KT: Early this month, ANA, with support of both the Japanese and Cambodian governments, launched direct flights from Tokyo to Phnom Penh. What do you think of this air link?

Mr. Kumamaru: We are very excited about this and I am very happy that this happened during my time in office. Of course, I don’t claim any credit for this. It is a very important and new development and I think this will further strengthen Japan-Cambodia ties. Previously, Cambodia was a country that was too far for Japanese people. Now we have a direct flight and it only takes between five to six hours to reach Phnom Penh from Tokyo Narita. Japanese people who previously did not know Cambodia will now want to visit the country. Japanese businesspeople will also want to visit Cambodia, to seek opportunities. On the Cambodian side, I think many Cambodian tourists would also want to visit Japan.

KT: What is your last word as you wind up your diplomatic posting in Cambodia? What is your view of Japan-Cambodia ties in the future?

Mr. Kumamaru: Well, Cambodia is an open country. I hope the Cambodian people will remain open-minded as always. This is one way to have good ties with our neighbors. Asean is a good regional grouping and Cambodia has a very important role in it. I want Cambodia to be a good Asean member as the regional grouping moves on to new horizons.

Speaking about our bilateral relationship, I would like to see the people of both countries ‒ Japan and Cambodia ‒ promote better understanding of each other. Many Japanese people still do not know enough about Cambodia, and I want to promote Cambodia to them. Also, many Cambodians do not know about Japan. Mutual respect is important to further build our relationship.