Prime Minister Hun Manet recently highlighted the critical role of micro, small, and medium enterprises (MSMEs) in Cambodia’s economic framework, labeling them as crucial contributors to national development. During the official unveiling of the ‘Techo Sen’ building and at the conclusion of the 2023 Annual Meeting and Set Directions for 2024 of the Ministry of Industry, Science, Technology, and Innovation (MISTI), Hun Manet articulated the Royal Government of Cambodia’s (RGC) commitment to nurturing the private sector, with a particular focus on MSMEs.
The RGC recognizes MSMEs as fundamental to the nation’s economy, representing up to 99 percent of all businesses in Cambodia. Hun Manet underscored the significance of unity and solid foundational building in overcoming the limitations posed by the country’s size and population.
In his speech, Hun Manet outlined the ‘Pentagonal Strategy’, a comprehensive 25-year socio-economic development plan for Cambodia, devised to be implemented in five phases while adhering to the four priority areas established by the ‘Rectangular Strategy’ introduced by Hun Sen, the former Prime Minister and current Supreme Privy Council to the King.
The event was attended by key ministers, including Hem Vanndy, Minister of MISTI, Sok Soken, Minister of Tourism, and Cham Nimul, Minister of Commerce. The Prime Minister emphasized the government’s vision of fostering a sustainable and resilient economy that generates ample employment opportunities with substantial rewards. This vision is integral to Cambodia’s ambition to transition to an upper middle-income status by 2030 and achieve high-income status by 2050.
Hun Manet pointed out that MSMEs remain a focal point of governmental efforts. He argued for the necessity of bolstering the private sector across all levels to ensure robust economic health. The Prime Minister also highlighted the importance of job creation over direct financial handouts as a means of providing sustainable support to the populace.
The government has prioritized the promotion of MSMEs and handicraft businesses, along with enhancing industry linkages to minimize operational costs, including those related to transportation, digital services, and utilities. This approach is seen as vital for nurturing the engines of Cambodia’s economy and laying the groundwork for sustained growth.
Additionally, Hun Manet referenced the launch of six priority policy programs by the RGC, two of which are directly aimed at benefiting MSMEs and the informal economy. These include vocational and technical training for youth from disadvantaged backgrounds and a national strategy to integrate informal economic participants into the formal economy from 2023 to 2028, ensuring they can access social protection benefits.
A recent memorandum of understanding between Jyotsana Varma, ADB Country Director for Cambodia, and Dith Sochal, CEO of FTB Bank, further underscores this commitment. The partnership, part of the ADB’s ‘Trade and Supply Chain Finance Program’, seeks to enhance the sector’s contribution to Cambodia’s economic diversification by supporting trade and MSMEs through financial partnerships with banks.
