Kingdom of Cambodia Nation Religion King MSME Development

Kingdom of Cambodia Nation Religion King “MSME Development by Readiness Resource Mobilization” Mr. Ky Seng Hoir, Deputy Director of SME Ministry of Industry and Handicraft Email Address: mih. kysenghoir@gmail. com Website Address: www. mih. gov. kh

Contents 1. Overview 2. Task Responsibilities of SMEH-GD to Support SMEH Development 3. Situation of SMEHs in Cambodia 4. Plan to develop SMEH Clustering in Cambodia 5. Conclusion 2

1. Overview Ministry of Industry and Handicraft set the important role for SMEH to participate the national economic verification enhancement, Job creation, specific expertise, mechanism and technology transferring, and new technology accessing. The increasing of SMEH in Cambodia are the diversification and plentiful. SMEH participated to response the rectangular Government strategy phase 4 (Private Sector Development and Employment) 1. Private Sector Strengthening, Investment and business promotion. 2. Large Industry and SMEH Development are conducted and recognized that “Private Sector is the head of machine for national economic growth in Cambodia”. Therefore, Ministry of Industry and Handicraft (SMEH General Department) had trying hard to implement continuously with effective of IDP and others. 3

SMEHs Playing Important Role in Cambodia’s Economy Ø 70% employment, Ø 99. 8% companies are SMEHs, and Ø 58% Sales are arise from SMEHs. Ø Total number of SMEHs 515, 360 Ø Total Manufacturing SMEHs 156, 853 Ø SMEHs Employment 1, 123, 333 Workers Ø SMEHs Annual Turnover USD 94, 277, 254, 780 4

The Organizational Structure chart of MIH 5

Achievement of Task Responsibilities of SMEH GD 1. Productivities improvement program -Provided Training Program on quality strengthening to MSME -Provided training on 5 S to MSME located in Phnom Penh, and Kandal Province 2. Access to Finance -Coordinated with several financials Institution to facilitate the special rate loan program for MSME 3. Access to Competitiveness -Cooperated with involved institutions to bring the Cambodian products into exhibition display -Promoted Cambodian products by display in the showroom in supper market and hotel. 6

SMEH-DG Cooperated with Partners to Develop MSME -UNDESA- Enhancing National Capacities for Unleashing full potential of SMEHs in achieving SDGs in Developing Countries -UN-ESCAP-Financing to women entrepreneur -OECD- through ASEAN program (Alternative Source for SMEHs access to finance -OMEP-Training program for SMEHs for market development -ADB-two projects; 1. Web Portal for online SMEHs registration 2. set the QR code installation in the permission license and operation certificate for SMEHs -GIZ- Supporting the SMEHs development in Cambodia -Task Program-Consulting on food and beverage processing improvement -NOMI-SMEH Capability Strengthening on Garment Sector -International Trade Center (ITC)-SMEH Competitiveness Survey -ABi. Net- ASEAN Business Incubator Network Project -UNICEF- Training program on inspection list project, system using to collect the report on eyodine salt processing, and quality improvement of drinking water in Kraties and Steung Treng Province. -IFC-Make Directory Book on SMEHs in Cambodia 7

3. Situation of SMEHs in Cambodia Challenges for Starting Business of SMEHs Ø Lack of Capital Investment Ø Lack of Potential Location Accessing (Electricity, Water, Waste Water Treatment Plant, Infrastructures, and Security) Ø Lack of Knowledge on Entrepreneurship, Management, and Technical Production) Ø Difficult to Apply for the Permission Licenses from relevant government agencies Ø Lack of Connection with Suppliers (Raw Materials and Production Machineries ) and also Distributors Ø Lack of Laboratory to Check the Quality of Raw Materials and Final Products Ø Lack of Information on Markets and Technology Ø Others 8

4. Plan to develop SMEH Clustering in Cambodia SMEHs Cluster Model in Cambodia 1. Gathering and Grouping (SMEH) 2. SME Association/Community Collection 3. Geographic Gathering (SMEH Zone) Why SMEHs need Clustering? 1. Grouping for more strangeness 2. Grouping to dealing with challenges 3. Grouping to get the advantages from Government and others 4. Grouping to share the knowledge, information, experience, technology and others within the group members 5. Grouping for competitive in the market 6. Grouping for value chain, Value added 7. Grouping for helping each other within the group members 9

Resource Mobilization for SME Development in Cambodia Business Environments Market Acess Technical Support SME Development Location Financial Support Productivities Improvement Raw materials Infrastructure

Conclusion To mobilize the resource for MSME development with sustainability are involve with some factors such as: Ø Business Environment Ø Government Incentives/Government Support Ø NGO Incentives Ø Raw Materials Suppliers Ø Partners Collaboration Ø MSME Clustering Ø Technical and Financial Support Ø Access to information/Information transforming Ø Other Measures Ø Participation from MSMEs 12

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