Agreement between Japan and the Kingdom of Cambodia
for the Liberalization, Promotion and Protection of Investment

◇ Outline ◇


I- Significance of the Agreement

  1. The Agreement symbolizes the first step of strengthening the economic relations between Japan and Cambodia.

  2. It contributes to the Cambodian development strategy preferring economic development by inviting foreign direct investment.
 II- Main Points

  • Liberalization of Investment

    1. The most-favored nation treatment (e.g. treating Japanese companies equally as other foreign companies) and the equal treatment with domestic investors (e.g. treating Japanese enterprises equally as Cambodian enterprises) in relation to the acquisition and the operation of the investment properties (e.g. enterprises, bonds) in Cambodia.

    2. Freedom of money transfer

    3. Equality of the contracting parties: The agreement treats the two countries equally, in other words, it covers both Japanese investment in Cambodia and Cambodian investment in Japan equally.

  • Protection of Investment

    1. Dispute settlement procedure

    2. Increase of transparency, legal stability and predictability for investors; e.g. when Japanese enterprises invest in Cambodia, they do not need to worry about disadvantageous regulations being introduced later.
III- Background

September 2006 Japan and Cambodia government agreed to start the bilateral investment agreement negotiation.
December 2006 The two countries agreed to officially start the negotiation.
January 2007 The first meeting was held.
March 2007 The second meeting was held.
June 2007 Prime Minister Hun Sen visited Japan and signed the agreement together with Prime Minister Shinzo Abe.
July 1st 2008 Exchange of diplomatic notes was done informing the completion of the respective domestic process.
July 31st 2008 The agreement entered into force.


IV- Invest Agreement between Japan and the other ASEAN countries

  1. Japan has agreed or signed either investment agreement or Economic Partnership Agreement including chapter concerning investment with the following ASEAN countries:
    • Singapore (entered into force:2002)
    • Vietnam(entered into force: 2004)
    • Malaysia(entered into force: 2006)
    • Philippines (signed:2006)
    • Thailand (entered into force :2007)
    • Indonesia (entered into force :2008)
    • Brunei (entered into force :2008)
    • Laos (entered into force :2008)

  2. ASEAN is one of the most important partners in trade and investment to Japan and Japan is the largest trade and investment partner outside the area as well as the largest ODA donor to ASEAN.

  3. Similarly to the above ASEAN countries, the effectuation of bilateral investment agreement is expected to symbolize the strengthening of bilateral economic relations, not only promoting the investment between the two contracting party.


Copyright(C): Embassy of Japan in Cambodia