Phnom Penh, June 26, 2025 — Micro, small, and medium enterprises (MSMEs) are poised to play a pivotal role in driving Cambodia toward its goal of graduating from Least Developed Country (LDC) status by the end of 2029. This was the central message conveyed by Prime Minister Hun Manet in a keynote address read during the 2nd National Micro, Small and Medium Enterprises (MSME) Day, held at Phnom Penh Hotel.
Organised by the Ministry of Industry, Science, Technology and Innovation in partnership with Khmer Enterprise, GIZ, UNIDO, and the SME Bank of Cambodia, this year’s event focused on the theme “MSMEs Readiness for LDC Graduation”. The forum was presided over by Deputy Prime Minister and Minister of Economy and Finance, Aun Pornmoniroth.
Delivering Prime Minister Hun Manet’s message, Minister of Industry Hem Vanndy reaffirmed the government’s steadfast commitment to empowering MSMEs, recognizing them as the backbone of the Cambodian economy and essential contributors to national development.
“MSMEs contribute across nearly all sectors by creating jobs, supporting livelihoods, curbing migration, and strengthening the private sector,” the Prime Minister noted. “The progress achieved over the past two decades has generated a renewed sense of national pride, aligning with our collective aspiration to graduate from LDC status by 2029.”
Hun Manet emphasized that the path to graduation is not without challenges. Cambodia is set to face the gradual withdrawal of preferential trade terms, concessional aid, and other development incentives granted by partners and donor nations. These shifts will require Cambodian enterprises — especially MSMEs — to strengthen their capabilities, embrace innovation, and build trust in both domestic and global markets.
“The 2029 milestone is no small challenge,” he said. “However, the Royal Government believes that Cambodia can achieve it. LDC graduation must be viewed not as a threat, but as an opportunity to transform, compete, and thrive in a modern, tech-driven global economy.”
He called on MSMEs to take lessons from other rapidly growing economies and focus on preparedness, capacity building, entrepreneurship, innovation, and compliance with international standards to succeed in the post-LDC transition.
In his remarks, Minister Pornmoniroth echoed these sentiments, stressing that MSMEs must urgently upgrade their production capabilities in the face of increasing geopolitical and economic uncertainties.
“MSMEs form the economic foundation of the country,” he stated. “They continue to play a vital role in job creation, poverty alleviation, environmental protection, and sustainable development. Their resilience is key to building a more inclusive and robust Cambodian economy.”
According to the 2022 Cambodia Inter-Censal Economic Survey conducted by the National Institute of Statistics under the Ministry of Planning, Cambodia had 753,670 MSMEs employing nearly 3 million people — 60% of whom are women. The sector contributes 63% to the country’s gross domestic product (GDP), underscoring its centrality to national economic resilience and diversification.
As Cambodia approaches a crucial turning point in its development journey, the government’s focus remains firmly on empowering MSMEs as strategic actors in the country’s transition to a more competitive, inclusive, and innovation-driven economy.
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