He told a Divine Word University graduation ceremony in Madang earlier this month that promoting PNG among Japan's corporate community would further strengthen the business relationships and economic partnerships between the two countries.

"More and more Japanese businessmen are taking interest in this country and an increasing number of businessmen from Japan visit our embassy in Port Moresby," Matsumoto said.

"They all testify how impressed they are by actually coming here and observing the huge potential of this country.

"I am looking forward to seeing further development of relations in the area of trade and investment."

Matsumoto said Japan contributed to PNG's development not only through official development assistance by numerous exchanges of trade missions between the two countries over the years, but in human resources.

To this end, the ambassador encouraged the university graduates to consider applying for Japanese government scholarships to help in part to assist PNG's development.

PNG Prime Minister Peter O'Neill hosted then-new ambassador Matsumoto last October in his own country after Japanese Prime Minister Shinzo Abe in July.

O'Neill said during Matsumoto's visit in October that the engagement between his country and Japan was "at its strongest level" in the two countries' bilateral history.

"Companies from Japan continue to make a significant contribution to our economy and employ thousands of Papua New Guineans," O'Neill said.

"It was also an honour for Papua New Guinea to deliver our first LNG shipment to Japan this year, and now our gas is powering businesses and homes."

He said the most significant announcement from Abe's visit in July was the 2 billion kina ($A930,000) overseas development assistance package that is being delivered over a three year period, which he said would provide support through a range of economic development initiatives around the nation that would "empower our people and strengthen bilateral relations".

These include education, health, infrastructure, law and order, rural development and fisheries, O'Neill said.

"During Prime Minister Abe's visit, we also ratified the Investment Promotion and Protection Agreement that will deliver benefits and confidence to Japanese investors and Papua New Guinean business partners," O'Neill said.