SME share of GDP stands at 63 percent, says Hun Sen

SME share of GDP stands at 63 percent, says Hun Sen

Stressing the significant contribution of Small and Medium Enterprises (SMEs) towards the country’s GDP, Hun Sen, former Prime Minister and current President of the Senate said that the sector accounted for 63 percent of the national income (GDP).

This came as Mr Hun Sen received a delegation representing the Samdech Techo Foundation for the Development of Small and Medium Enterprises in Cambodia (STFDSMEC), led by Te Taingpor, President of Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC) and Chair of the Board of Directors of STFDSMEC, yesterday. The meeting was also attended by the Senate Spokesperson Chea Thyrith.

He encouraged and urged small and medium-sized enterprises (SMEs) to continue implementing measures in line with the policies of the Royal Government, especially Pentagonal Strategy-Phase I.

Mr Hun Sen expressed his pleasure in meeting the delegation and thanked the association for its contributions to Cambodia’s society and economy. He acknowledged their efforts in supporting government policy through the establishment of a coalition of associations and funds aimed at developing small and medium enterprises (SMEs) in the country.

Mr Hun Sen stated that small and medium enterprises (SMEs) account for a majority of economic entities in Cambodia, with approximately 753,670 enterprises employing around 70 percent of the total workforce—equivalent to about 2.9 million people.

He added that Cambodian SMEs make a significant contribution to the economy, accounting for 63 percent of the gross domestic product (GDP), clearly demonstrating their vital role in promoting national economic development.

Mr Hun Sen emphasized Royal Government policies, particularly key strategic frameworks including Industrial Development Policy 2015-2025, National Strategy for Informal Economic Development 2023-2028, Asean Strategic Action Plan for SME Development 2016-2025, National Cashew Policy 2022-2027 and National Cassava Policy, which are also aimed at supporting SMEs.

“Samdech Techo Hun Sen said in the meeting that a strong foundation of peace, political stability, and macroeconomic stability is essential for development across all sectors, including SMEs,” Thyrith said.

“The government remains committed to working in partnership with the private sector to drive economic growth and enhance the livelihoods of the Cambodian people,”

“These policies offer important guidance and support mechanisms for SMEs, enabling them to expand further and contribute more effectively to Cambodia’s economic growth.”

Taingpor said that the Samdech Techo Foundation Association has actively collaborated with the government in organising major national events such as the Sea Festival, River Festival alongside showcasing SME products at some exhibitions.

He added that as part of these efforts, the association has also undertaken key initiatives, including conducting training programmes across 20 provinces and cities, focusing on human resource and business management for SMEs.

“The training aims to equip SMEs with the knowledge and skills needed to access financing, supporting their continued growth and development,” Taingpor said.

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