Japan and Cambodia have announced an economic study to develop a “growth corridor” between Phnom Penh and Sihanoukville.
The plan will rely on export zones and improved infrastructure to develop industry, processing and transport “mainly focused on the industry development for the target year 2015,” according to an outline of the study, which the Japan International Cooperation Agency will assist.
“The idea behind the corridor development project is a plan to improve Cambodia’s economy in the next 15 years when it and other Asean countries realize zero percent tariffs,” Ministry of Commerce Secretary of State Khek Ravy said.
The corridor will help Cambodian products find an export outlet in markets like China, he said.
The study will also look for ways to develop agriculture, from fish to fruit, Khek Ravy said.
The corridor would affect people living along National Routes 3 and 4, encompassing Kompong Speu, Kampot, Takeo, Kandal and Koh Kong provinces.
The study was discussed Monday by representatives of the government, JICA and other NGOs, who examined ways to properly use Cambodia’s mountains, sea and arable land. It will also look at ways to develop foreign investment.
An export processing zone is an area exploiting Cambodia’s trading advantages while using foreign investment and expertise.
The study comes as Cambodia’s neighbors enter the world market, especially with Vietnam’s move toward normalized relations with the US and China’s entry into the World Trade Organization.