Minister urges Kampong Speu’s informal economy to go digital

Minister urges Kampong Speu’s informal economy to go digital

Minister Hem Vanndy, Chairman of the Coordinating Committee on Informal Economy Development (CCIED), on Monday urged informal economy actors in Kampong Speu to adopt the government’s digital platform, emphasizing that their participation is crucial for growth and integration into the province’s expanding industrial landscape.

Speaking at a major campaign event co-organized by the CCIED and the Kampong Speu Provincial Administration, Vanndy, Minister of Industry, Science, Technology and Innovation, said, “We are seeing growth in the formal economy, particularly in the industrial sector, with an increasing number of factories.”

“However, to achieve Cambodia’s Vision 2050, we must also grow our informal economy and integrate it into the supply chain, as it represents the vast majority of our economic units,” he added.

The campaign drew around 3,500 participants, marking its fourth iteration following previous campaigns in Phnom Penh, Battambang, and Siem Reap.

Cheam Chan Sophorn, Governor of Kampong Speu, highlighted that the province, home to 950,000 people, has approximately 380,000 informal economy actors. He urged attendees to join the platform and encourage others to participate as well.

As of April 25, over 51,324 applications had been received nationwide, with Kampong Speu ranking sixth.

Onboarding paves the way for informal economy actors to access various forms of support developed by ministries and institutions, such as skills development, National Social Security Fund (NSSF) benefits, formal financial services, arrear relief, tax exemptions, and social protection services.

The platform offers multiple onboarding options, including the CAM-IE mobile app, the web portal, and nationwide branches of onboarding partners, which currently include Wing Bank, Vattanac Bank, ACLEDA Bank, ABA Bank, SME Bank, and ARDB Bank. Onboarding targets microenterprises, workers and employees of microenterprises, seasonal workers, and self-employed individuals in the informal economy.

Speaking to Khmer Times, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association (CCCA), highlighted the urgent need for informal businesses in Cambodia to integrate into the formal economy. Vichet stressed that for businesses to make this transition successfully, they must undergo proper registration, secure sufficient financial resources, and embrace modern technologies to align with regional and international standards.

He explained that a significant portion of Cambodia’s economic activity is still driven by informal small and medium enterprises (SMEs). These businesses often operate without the necessary legal, financial, and technological infrastructure to compete effectively on the global stage. As a result, they face limitations in accessing broader markets, attracting investment, and contributing fully to the nation’s economic growth.

Vichet also emphasized that this movement towards formalization is not just a private sector initiative but is strongly backed by the Royal Government and relevant ministries. Their efforts reflect a broader commitment to implementing structural reforms aimed at strengthening the country’s overall economic framework. By encouraging SMEs to formalize, Cambodia hopes to build a more resilient and competitive economy that is better positioned to integrate with global markets.

“This step shows that the government is serious about aligning Cambodia’s economic policies with regional and international trends, ensuring sustainable growth and attracting quality investments,” he said. Vichet’s remarks underline the government’s strategic vision to create an economic environment that fosters innovation, enhances transparency, and promotes sustainable development.

Formalizing businesses, he argued, will not only improve their growth prospects but also contribute to a stronger national economy capable of weathering future global challenges.

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