Govt to help businesses adapt to global conditions, PM says

Govt to help businesses adapt to global conditions, PM says

Mr Hun Manet says that the government is continuing reforms to improve the investment and business climate to raise productivity, competitiveness, and innovation.

Prime Minister Hun Manet Saturday said that Cambodia is accelerating economic reforms to strengthen its competitiveness as rising global uncertainty, shifting trade dynamics, and geopolitical tensions reshape the international business environment.

Speaking at the 3rd National Micro, Small and Medium Enterprises (MSMEs) Day 2026 under the theme “Bridging MSMEs to Market,” at Koh Pich Convention and Exhibition Center, Mr Hun Manet said that the government is focused on helping Cambodian businesses adapt to changing global conditions.

Among those present on the occasion were Hem Vanndy, Minister of Industry, Science, Technology & Innovation (MISTI), and Te Taing Por, Chairman of the Board of the Techo Foundation for SME Development in Cambodia.

The event also brought together representatives from government institutions, business associations, financial institutions, development partners, and MSMEs nationwide to discuss expanding market access and improving the competitiveness of local enterprises.

The premier said that the government views the private sector as the engine of national economic growth, while MSMEs and handicraft businesses remain the backbone of Cambodia’s socio-economic development. These enterprises support domestic production and consumption, create jobs and skills, promote innovation through new technologies, and integrate Cambodian manufacturing into regional and global supply chains.

Highlighting the increasing domestic production as a positive trend, Mr Hun Manet said that the government aims to gradually substitute imports where feasible rather than eliminate imports entirely.

Cambodia continues to face global economic headwinds, including supply chain disruptions, growing trade protectionism, technological competition, and geopolitical tensions, which have affected the country’s economy, the premier said, adding that the country has also faced border pressure from Thailand and economic impacts linked to efforts to crack down on online fraud.

Looking ahead, Hun Manet maintained, “emerging trends such as the green economy, digital technology, and artificial intelligence are redefining competitive standards across regional and global markets. Cambodia’s planned graduation from the United Nations’ Least Developed Country (LDC) category in 2029 will bring structural changes to the country’s trade preferences, official development assistance, and other preferential treatment currently extended by development partners.”

“As Cambodia transitions to a new stage of development, businesses will increasingly need to comply with stricter international requirements, including product standards, environmental management systems, quality management standards, food safety systems, and other market access requirements, which are becoming legitimate non-tariff trade barriers,” Mr Hun Manet emphasised.

Within ASEAN, he said that harmonised standards, technical regulations, and conformity assessment procedures are becoming key tests of Cambodian MSMEs’ competitiveness against regional peers and ASEAN trading partners.

“Cambodia retains strategic advantages, including its central location in ASEAN, a young workforce, macroeconomic stability, strong economic growth, and broad access to regional and global markets through free trade agreements and trade mechanisms,” Mr Hun Manet added.

He added that the government is also continuing reforms to improve the investment and business climate through customs and tax reforms, simplified business registration and licensing, human capital development, digital transformation, technology adoption, and SME cluster development to raise productivity, competitiveness, and innovation.

According to Mr Hun Manet, based on the 2022 Economic Census, Cambodia has more than 750,000 MSMEs employing nearly 3 million workers, including around 1.85 million women. MSMEs contribute about 63 percent of GDP and account for more than 70 percent of employment outside the agricultural sector.

Government data also showed a sharp increase in product registrations with the MISTI, including 1,336 products in 2023, 2,158 in 2024, 3,625 in 2025, and 2,353 products registered during the first five months of 2026.

Minister of MISTI Hem Vanndy highlighted the increasingly important role of MSMEs in Cambodia’s next phase of development toward achieving its long-term national vision.

He said that as Cambodia prepares to graduate from LDC status by the end of 2029 and continues progressing toward its Vision 2050 goals, strengthening the capacity and competitiveness of MSMEs is no longer an option but a necessity.

On his part, Taing Por said the event marked an important occasion and demonstrated recognition of MSMEs across Cambodia for their contribution to job creation, value-added processing, and expanding access to both domestic and international markets.

He said locally made products are receiving strong support from consumers, creating an important driving force that has enabled Cambodian products to substitute around 30 percent of imported goods serving total market demand.

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