UNDP: Informal Economy, SMEs Key to Cambodia’s Growth

PHNOM PENH, Cambodia (Sept.12, 2025)— The informal economy, innovation and small and medium-sized enterprise (SME) development represent strong opportunities to accelerate Cambodia’s progress, the United Nations Development Programme (UNDP) said this week.

Enrico Gaveglia, the newly appointed UNDP Resident Representative in Cambodia, made the remarks during a courtesy meeting with Hem Vanndy, Minister of Industry, Science, Technology and Innovation, on Wednesday.

“We are here to listen and understand the government’s challenges and identify areas where UNDP can add the most value,” Gaveglia said, highlighting the agency’s support for a monitoring and evaluation framework launched in July.

Vanndy welcomed continued collaboration, urging UNDP to align its development programming and technical assistance with national priorities. He pointed to key areas such as access to finance for micro, small and medium enterprises (MSMEs), sustainable green financing, digital transformation in manufacturing, and workforce skills development.

“Cambodia must strengthen its industrial base and innovation ecosystem to compete globally,” Vanndy said. “Our priority is to nurture SMEs, enhance standards, and promote science and technology so that our enterprises can grow sustainably and play a central role in the economy.”

The ministry is currently undertaking reforms aimed at improving public services, strengthening national quality infrastructure and promoting regulatory compliance as part of a long-term growth strategy.