Industry minister Hem Vanndy addresses a ministry-helmed forum aimed at addressing the challenges facing local micro, small and medium enterprises (MSMEs), in Phnom Penh on August 28. Industry ministry
In a bid to determine solutions to the challenges facing local micro, small and medium enterprises (MSMEs), the Ministry of Industry, Science, Technology & Innovation hosted an August 28 discussion forum.
Chaired by industry minister Hem Vanndy, the event was attended by 260 participants.
Among the participants were Te Tang Por, vice-president of the Cambodian Chamber of Commerce and co-chair of the Government-Private Sector Working Group on Manufacturing and Services, as well as representatives from the private sector, development partners – including UN agencies – and officials from several government institutions.
Vanndy used the occasion to reiterate the seventh-mandate government’s commitment to fostering a supportive environment for MSMEs, which he described as playing a vital role in driving economic growth and job creation in Cambodia.
“The private sector is the backbone of our economy, and it is imperative that we work collaboratively to identify and resolve the challenges that hinder its growth,” he said.
Tang Por provided the attendees with an update on the progress of the government’s solutions to private sector challenges that were outlined at last year’s 19th government-private sector forum.
According to the press release, he noted that many challenges had been addressed, but that several issues remain and require the intervention of the government. Currently, he explained that there are 22 challenges, indicating that significant work still lies ahead, particularly given the difficulties faced by SMEs.
Compliance requirements such as product registration and taxation, heightened competition, access to financing, markets, and a skilled workforce, as well as rising production costs – particularly due to high transportation and energy prices – were among the challenges discussed during the meeting.
Vanndy emphasised the need for local businesses to prepare for Cambodia's graduation from its Least Developed Country (LDC) status, urging them to strengthen their operations and competitiveness.
“As we move forward, competition is unlikely to diminish. MSMEs must discover their distinctiveness in terms of quality, taste, local content, traceability and environmental safeguards,” he said.
The ministry has continued to move its public services online, eliminating cash transactions in most cases, and has transformed the Science, Technology & Innovation National Laboratory (STINL) into a public administration institution in order to improve service quality and expand its testing capability to better support the private sector.
The minister explained that the ministry will continue to engage with private sector stakeholders to ensure that their voices are heard and considered in government policy-making.
He believed that the outcomes derived from the August 28 meeting would be crucial in shaping the agenda for the upcoming Government-Private Sector Forum.
