Cambodia Commits to Stronger SME Integration into Foreign Investment Supply Chains

PHNOM PENH, May 8, 2026 (KPT) — Cambodia is pledging stronger cooperation among government agencies, financial institutions and the private sector to ensure small and medium enterprises (SMEs) are more effectively integrated into foreign direct investment (FDI) supply chains, officials said Thursday.

Speaking at the Cambodia Investment Forum 2026, Industry Minister Hem Vanndy said SMEs must be positioned at the heart of Cambodia’s industrial future. He stressed that simplifying public services and expanding support mechanisms are essential to help local businesses grow alongside rising foreign investment.

Vanndy said the government is committed to developing dedicated SME zones near or within special economic zones, enabling domestic firms to supply goods and services directly to export oriented factories. He added that strengthening national quality infrastructure — including standards, laboratories and certification systems — will be critical for SMEs to meet industrial and export requirements.

“With the right support, SMEs can scale, supply to FDI, and play a central role in Cambodia’s industrial future,” Vanndy said, underscoring the government’s determination to embed SMEs into global value chains.

Deputy Prime Minister Sun Chanthol reaffirmed Cambodia’s attractiveness as an investment destination, citing its open regime, strategic location and young workforce. He noted continued growth in investment approvals and said special economic zones remain a major driver of industrial expansion, exports and job creation.

Cambodia has approved 62 SEZs nationwide, including 35 currently in operation, and emphasized that SME integration into these hubs is now a government priority to strengthen resilience and competitiveness.