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Cambodia: Despite low productivity, nation still among the most profitable countries for Japanese
A study conducted by the Japan External Trade Organisation has found Cambodia to be among the least productive countries in Southeast Asia.
The 2019 Survey of Business Conditions of Japanese Companies in Asia and Oceania released this week ranked Cambodia as the second least productive country in the region.
Cambodia achieved a score of 70.7, which placed it below the Philippines, Singapore, Thailand, Vietnam, Laos, Malaysia and Indonesia. Only Myanmar, which achieved a score of 50.7 ranked lower than Cambodia among the Asean nations.
The Chinese territories of Macau and Hong Kong were ranked as the most productive countries in the survey, followed by Australia, New Zealand, Philippines, Singapore, Taiwan, Thailand, Vietnam, Laos and Pakistan.
Despite the perception of low productivity, many Japanese firms are optimistic about their prospects and still wanting to expand in Cambodia a sign that the Kingdom’s appeal to foreign investors is not waning.
In recent years, Cambodia with its inexpensive labour, investor-friendly laws and growing market consistently ranked as among favourite destinations of foreign investors in Southeast Asia.
The survey found that half of Japanese companies want to expand their business in Cambodia in the next two years.
According to the survey Cambodia is among the countries most profitable for Japanese investors, with 47 percent of Japanese companies expecting a profit in 2019. A total of 35 percent said they expect to earn the same profit from last year while only 18 percent are looking at lower profits.
The survey covered 20 nations in Asia and the Oceania region, including nine out of 10 countries in Southeast Asia. Brunei, an oil-rich state with very limited manufacturing capacity, was the only Southeast Asian country that was not included in the survey.
The study, which is conducted every year, is mainly based on the perception of Japanese companies about the business climate of the countries where they operate. For the 2019 survey 265 Japanese companies in Cambodia were polled between August and September.
Japan is among the biggest investors in Cambodia. There are currently more than 1,500 Japanese businesses in the Kingdom, mostly engaged in manufacturing, real estate, construction, automotives and trading.
Source: https://www.khmertimeskh.com/50695613/despite-low-productivity-nation-still-among-the-most-profitable-countries-for-japanese