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The government is establishing a Small and Medium Enterprise (SME) Coordination Unit, a one-stop service, to address bottlenecks facing SMEs and strengthen the sector following a Thai boycott of Cambodian products following the recent border clashes.
Prime Minister Hun Manet on October 4 inspected the progress of setting up the SME unit, which will coordinate business registration, license renewals and permits for SMEs, as well as monitor the implementation of incentives provided through the unit. The service would be available in-person and online.
The move comes on the heels of a national campaign to boycott Thai goods as both sides clashed twice last year over territorial control. Trade restrictions had been imposed prior to the incident.
Hun Manet has called for reforms to ease business registration and licensing, remove barriers to local production and reduce reliance on imports.
“The SME Coordination Unit will act as a facilitator with relevant ministries and institutions for the entire start-to-end process, which is a measure that will help reduce complexity, time, and expenses for small and medium enterprises,” he said on his Facebook page.
He added that the unit is among new initiatives and incentives which are being introduced to support the development of SMEs in Cambodia.
In mid-September, the government established a committee to implement the 2026–2030 national strategy for micro, small and medium enterprises (MSMEs), tasked with coordinating policy and addressing inter-ministerial issues.
About 45,000 registered SMEs and handicraft businesses accounted for 58% of GDP in 2025, according to government data.
Nuth Samphors, founder of LSV Industry, a Phnom Penh manufacturer of household and hygiene products, welcomed the move, saying that a dedicated unit would save SMEs time by streamlining registration and other processes. It would encourage SMEs to expand into production.
“I believe this measure will offer substantial support to existing or new SMEs,” she said, adding that it would improve access to technical support, capacity building and other services.
Te Taing Por, president of the Federation of Associations for Small and Medium Enterprises of Cambodia (FASMEC), told CamboJA News that SMEs require such a mechanism because they previously spent a lot of time handling registration and paperwork.
“When we conduct a campaign to boycott [Thai] products, it must strongly boost domestic production. But in the past, handling paperwork [for SMEs] was very slow and involved multiple ministries.”
He added that the new mechanism could further stimulate domestic SME growth, allowing businesses to supply the local market while preparing for export.
Prior to the conflict, Cambodian products represented only a small portion of the market, but following the campaign, the market share has increased to 30%.
The next challenge is to reduce production costs, accelerate production speed, and ensure products meet quality standards, he pointed out.
In addition, SMEs face limited access to capital and bank loans, administrative hurdles and difficulties competing with foreign companies.
Taingpor said access to finance remains a key concern, hence FASMEC’s upcoming plan to sign a memorandum of understanding with Agricultural and Rural Development Bank (ARDB), which is a collaboration with SME Bank. Funds of about $1 billion would be made available for SME loans.
He said the interest rate would be negotiated, but urged SMEs to carefully consider borrowing and ensure that loans are used for intended purposes only.
