Then-Prime Minister Hun Sen and Japanese ambassador to Cambodia Atsushi Ueno during the groundbreaking of a container port in Preah Sihanouk province on May 1, 2023. SPM
A steady increase in financial aid from Japan, building on a 30-year history of more than $4 billion in contributions, is anticipated by the Council for the Development of Cambodia (CDC).
This comes in light of the recent letter of exchange signing, solidifying the comprehensive strategic partnership between the two nations.
The CDC highlighted the Development Finance Policy consultation held between the governments of both countries on November 6. Since 1992, Japan has been a principal development partner, providing approximately $4.319 billion in aid, which constitutes 14 per cent of the total growth assistance received by the country, according to a CDC statement.
Chheang Yanara, Senior Minister in charge of Special Missions and second vice-president of the CDC, expressed gratitude to Japan for their unwavering support in the country’s socio-economic progress.
He noted that the meeting coincided with the 70th anniversary of diplomatic ties between the two nations, set for celebration later this year.
“Cambodia’s policy focuses on cooperation to attain [our] vision of becoming an upper-middle-income country by 2030 and a high-income country by 2050,” he stated.
Japanese ambassador Atsushi Ueno noted the updated Charter of Development Cooperation, which includes a comprehensive review of Japan’s aid policy towards Cambodia.
“Both parties have formulated and revisited the … policy for Cambodia, discussing and exchanging views on past challenges in project implementation to enhance future capacity,” he said.
Hong Vanak, an economist at the Royal Academy of Cambodia’s International Relations Institute, noted that the country prioritises proposing key projects for funding to partners like Japan, often comprising grants or low-interest loans.
“Japanese financing has significantly aided the enhancement of key sectors such as water, education and health. Japan’s contributions are precisely what Cambodia needs to ensure economic productivity and to enhance societal quality,” he said.
According to the CDC, the two parties have reaffirmed their commitment to bilateral cooperation, focusing on three essential areas: digital innovation, sustainable economic growth and the advancement of both soft and hard infrastructure.
These focal points resonate with the growth objectives outlined in the initial phase of the Pentagonal Strategy and the Japan Development Cooperation Charter.
The Japanese have agreed to incorporate proposals and feedback from the government into the draft Policy on Development Cooperation for Cambodia, slated for preparation in 2024.
The official strategy meeting on financing between the Kingdom and Japan has convened 13 times to date. The 14th meeting, initially scheduled for 2020, was postponed due to the Covid-19 pandemic.
