750k SMEs in Cambodia Key Driver of Economic Growth, Contributing 63% to GDP and Employing Over 70% of Workforce

• Sommana Yan
• 26 June 2024
• Local News
• 3143 Views

Cambodia has more than 750,000 small and medium-sized enterprises (SMEs) which play a pivotal role in the nation’s economy, contributing 63% to the gross domestic product (GDP) and employing more than 70% of the workforce. This significant contribution was highlighted by Samdech Hun Manet, PM of Cambodia, in his message on the occasion of the first National Day of Small and Medium Enterprises, celebrated on 27 June 2024, and released on 25 June 2024.

PM Hun Manet emphasised the essential role that SMEs play in production, supply, and services. He noted their continuous efforts to evolve and adapt to market demands, environmental requirements, and technological advancements. “All small and medium-sized enterprises are striving to develop and respond to new trends,” he stated, acknowledging their contribution to the country’s economic development.

Micro and medium-sized enterprises make up about 90% of Cambodia’s total business production base, employing between 60% and 70% of the workforce and contributing 50% of GDP. Within the ASEAN framework, there are approximately 70 million SMEs, representing between 97.2% and 99.9% of all businesses, contributing around 44.8% to the GDP of ASEAN member countries.

According to the National Report on the Final Results of the Cambodia Economic Census 2022 by the National Institute of Statistics of the Ministry of Planning, Cambodia has 753,670 micro, small, and medium enterprises, employing a total workforce of 2,980,569 people, including 1.8 million women. The census results confirm that the SME sector contributes 63% to GDP and employs more than 70% of the workforce, excluding the agricultural sector.

To further enhance the capacity of enterprises, PM Hun Manet highlighted the government’s efforts to expand public investment and strengthen institutional mechanisms. The government is committed to developing the necessary physical infrastructure and providing innovative public services to support the growth and development of the SME sector.

• Business and Market
• Economy and Finance