The recent growth of foreign direct investment (FDI) into the Kingdom will be a good opportunity to develop small- and medium-sized businesses, an official said yesterday.
According to Hang Chuon Naron, deputy director of the National Economic Supreme Council and secretary of state at the Ministry of Economic and Finance, micro-, small- and medium size-enterprises (MSME) contribute greatly to the national economy.
The foreign direct investments Cambodia has recently attracted could push MSMEs to develop more progressively and become sustainable, he said during the annual meeting of MSMEs in Cambodia on Saturday.
“Of course, several foreign direct investments in Cambodia, especially from Japan, will be a good opportunity to support MSMEs. The relationship between MSMEs and FDIs could be an effective factor to share knowledge, skill and management,” said Chuon Naron.
Technological and human resource growth boosts labour productivity in Cambodia, he said. The Kingdom would benefit from foreign direct investments that increase exports, diversify markets and improve customer services.
“I can see MSMEs are looking forward to develop locally, and it is most important to keep the sustainability of Cambodia’s high growth,” Chuon Naron said.
According to the economic census of 2011, 505,103 MSMEs and 636 large-scale companies were active in Cambodia.
Most of the MSMEs are involved in food, garments and textiles, agricultural production or belong to the sectors involving construction equipment, furniture, crafts, silk, repaired services and technologies.
Several Japanese companies recently invested $200 million in Cambodia in such businesses as a supermarket, a car factory in Koh Kong province and multiple companies in the country’s special economic zones.
Federation of Associations for SMEs President Te Taing Por said the 1.6 million workers in the sector play an integral role in the Kingdom’s economy.
The association plans to organize an exhibition of domestic products in March to strengthen SMEs.
In 2011, Cambodian industry generated about $120.2 billion in income, of which large-scale industry contributed only about $50.5 billion with about 200 workers, Chuon Naron added.
To contact the reporter on this story: Rann Reuy at [email protected]