Phnom Penh, August 4, 2025 — The Ministry of Industry, Science, Technology & Innovation (MISTI) convened a consultation to address private sector challenges in the manufacturing, SME, and service sectors.

Chaired by Minister Hem Vanndy, the forum brought together more than 230 participants, including representatives of the private sector, business associations and federations, development partners, relevant ministries-institutions, and provincial departments.

Minister Vanndy spoke about the changes to regional supply chains caused by the Cambodia-Thailand border clashes, while also stressing emerging opportunities. “These challenges are also opportunities for our local producers,” he said. “We are seeing increased demand from domestic suppliers who are increasingly proving their competitiveness in the market.”

He emphasized the need to build a comprehensive ecosystem for local supply chains—from raw materials and processing to logistics, quality assurance, and market access. “We must not only produce more, but produce better,” the Minister said. “To meet market expectations and compete effectively, our goods must meet consistent quality and safety standards.”

This marks the third consecutive year of MISTI’s private sector consultations under the 7th mandate of the government, following two rounds of resolutions to the challenges and requests raised by businesses in the manufacturing, SME, and service sectors.

For this year’s consultation, MISTI consolidated 12 key challenges raised by the private sector nationwide. These include high logistics and production costs, unfair competition, limited access to finance, markets, skills, technologies, and production techniques, as well as regulatory compliance issues such as company and product registration, customs and taxation, and adherence to standards. Businesses also highlighted the need for stronger support services in metrology, laboratories, and certification systems—particularly certificates of origin.

Representatives of the private sector elaborated on these challenges and received clarification and solutions from responsible ministries-institutions. In addition, Minister Vanndy reaffirmed the government’s commitment to reform, including expanding digital services and establishing specific coordination mechanisms to address the actual needs of the private sector.

“The government has heard the private sector, and we have been taking concrete steps—from regulatory reform and provision of benefits and relief measures to improving public service delivery. But we also need the private sector to be proactive and active, to seize these opportunities, and to build resilient supply chains,” he said.

He also urged companies to expand production and create more jobs for Cambodian workers, especially those returning from Thailand.

MISTI will report the identified challenges and proposed solutions for businesses in the manufacturing, SME, and service sectors to the Council for the Development of Cambodia for further coordination and government action where needed.

By: The Ministry of Industry, Science, Technology & Innovation (MISTI)