Minebea increases its investment capital to $700M

Minebea increases its investment capital to $700M

Minebea (Cambodia) Co. Ltd., a large Japanese company in Cambodia, plans to invest additional capital in its expansion and, as of now, has increased its total investment to over $700 million, according to a statement from the Council for the Development of Cambodia (CDC) released on Tuesday.

The additional investment plan was discussed during a meeting between Chea Vuthy, Secretary General of the Cambodia Investment Board of the CDC, and Kensuke Watanabe, Manager of Administration and Human Resources at Minebea (Cambodia) Co., Ltd.

The meeting focused on the legal and regulatory aspects of the company’s application for an expansion of electronic equipment production and the company plans to invest an additional $15 million in this expansion, the CDC said.

“Minebea (Cambodia) Co., Ltd. is a major Japanese company that has been investing in Cambodia since 2011 in the production of various electronic components.

“The company has now increased its total investment capital to more than $700 million,” it added.

Speaking to Khmer Times, Lim Heng, Vice President of the Cambodia Chamber of Commerce, highlighted that Cambodia is a member of ASEAN and the Regional Comprehensive Economic Partnership (RCEP) and is strategically located in the heart of Southeast Asia. Additionally, Cambodia has experienced rapid economic growth for more than two decades.

Furthermore, Cambodia serves as a key market for RCEP countries, with a young and skilled workforce and a highly strategic location, bordering densely populated neighboring countries such as Thailand and Vietnam, he said.

“As a result, Japan stands to benefit significantly from Cambodia, not only in terms of market access and economic cooperation but also as a strategic and political partner that can help Japan enhance its role and position in the region,” Heng said.

Heng went on to add that under the leadership of Prime Minister Hun Manet during his visit to Japan recently, Cambodian investors met with many Japanese investment groups, and Japanese investors also expressed strong interest in investing in Cambodia.

“Although the Japanese side has shown great interest in investing in Cambodia, the Head of the Royal Government of Cambodia has also urged Japan to increase its investment in the country, particularly in infrastructure, the establishment of special economic zones, and the development of ports,” he said.

According to Heng, Cambodia and Japan share a long history of friendship and cooperation. As of now, the relationship between the two countries has grown stronger. In addition to being a major market for Cambodia, Japan continues to provide official development assistance, focusing on infrastructure development and human resource capacity building.

Speaking to Khmer Times, Chey Tech, a socio-economic researcher, said the Japanese companies investing in Cambodia is a highly positive development, “One such example is Minebea Mitsumi, which has played a key role in attracting further investment from Japan,” he said.

Tech further explained that the trust Japanese investors, along with others, have in Cambodia stems from the country’s stability, improved political environment, infrastructure, and, most notably, successful examples of past Japanese investments in the Kingdom.

Bilateral trade between Cambodia and Japan reached $2.16 billion in 2024, a 20.11 percent increase from $1.79 billion in the previous year, according to a report from the General Department of Customs and Excise.

In 2024, Cambodia exported $1.4 billion worth of products to Japan, up 19.81 percent from the previous year, while Cambodia’s imports from the East Asian nation were valued at $752 million in 2024, an increase of 20.68 percent from 2023.

The Kingdom’s main exports to Japan include garments, bags, footwear, furniture, cosmetics, paper and office supplies, and leather goods.

Cambodia imported machinery, automobiles, electronics, furniture, fabrics, and plastics from Japan.

Japan is one of Cambodia’s biggest trade partners, and the increasing export value reflects the growing demand for Cambodia-made products in the Japanese market.

Source ៖ Khmer Time