Phnom Penh, August 5, 2025 — In response to growing concerns from businesses impacted by the ongoing Cambodia–Thailand border tensions, the Ministry of Industry, Science, Technology & Innovation (MISTI) convened a high-level consultation today to address critical challenges facing the manufacturing, SME, and service sectors.
Chaired by H.E. Hem Vanndy, Minister of Industry, the forum brought together more than 230 participants, including private sector leaders, business associations, development partners, and officials from relevant ministries and provincial departments.
Minister Vanndy acknowledged the evolving regional trade dynamics caused by the border conflict with Thailand and emphasized the importance of adapting quickly. “These challenges are also opportunities for our local producers,” he stated. “We are seeing increased demand from domestic suppliers who are proving their competitiveness in the market.”
He stressed the importance of creating a resilient and integrated local supply chain ecosystem—from raw material sourcing and processing to logistics, quality assurance, and market access. “We must not only produce more, but produce better,” the Minister said. “To meet market expectations and compete effectively, our goods must meet consistent quality and safety standards.”
Key Challenges and Proposed Solutions
This year’s consultation, the third under the 7th government mandate, is part of an ongoing effort by MISTI to engage directly with the private sector and resolve systemic issues. MISTI consolidated and presented 12 key challenges raised by businesses nationwide. These include:
- High logistics and production costs
- Unfair market competition
- Limited access to finance, markets, and modern technologies
- Skill gaps and outdated production techniques
- Regulatory compliance hurdles—ranging from company and product registration to customs, taxation, and adherence to standards
- Lack of strong support services in metrology, certification, and laboratory infrastructure
Private sector representatives elaborated on these constraints and received clarifications and immediate responses from responsible government institutions.
Several businesses also stressed the need for improvements in the certification system, especially in securing certificates of origin to ensure export competitiveness.
Government Commitment to Reform
Minister Vanndy reaffirmed the government’s strong commitment to private sector development, citing ongoing reforms, digital service expansion, and improved coordination among ministries. “The government has heard the private sector,” he said. “We are taking concrete steps—ranging from regulatory reforms and benefit provisions to public service delivery improvements.”
He urged the private sector to be proactive in seizing emerging opportunities and to contribute to national resilience by expanding production and creating more jobs. “Especially now, as many Cambodians are returning from Thailand, we must provide opportunities at home,” he noted.
Forward-Looking Action
MISTI confirmed that the consolidated challenges and feedback from today’s consultation will be formally submitted to the Council for the Development of Cambodia (CDC) for further coordination and follow-up actions.
This collaborative model—linking government policy, institutional accountability, and private sector responsiveness—is at the core of Cambodia’s industrial development strategy as it navigates both regional disruptions and long-term transformation goals.
As Cambodia builds forward from regional tensions and global uncertainty, forums like this reinforce a growing commitment to inclusive, resilient, and high-quality industrial growth.
Also read, It’s Time for Cambodia to Feed Itself and the Region
