Cambodia: Government and Private Sector Collaborate to Address Business Challenges

AKP Phnom Penh, August 7, 2026 -- The Royal Government and the private sector for the manufacturing, small and medium-sized enterprises (SMEs) and services sectors met to identify practical solutions to improve Cambodia's business environment during the fourth meeting of Working Group "C" of the Government-Private Sector Forum held on Aug. 6. The private sector presented 13 key challenges affecting business operations, including salt production and imports, access to finance, investment incentives, electricity costs, business licensing procedures, implementation of environmental regulations, shortages of skilled labour, cashew processing, product certification, the development of enterprises in the informal economy, and strengthening compliance among online businesses to ensure fair competition. Opening the meeting, H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation and Co-Chair of Working Group "C", underscored the importance of the Government-Private Sector Forum as a mechanism for delivering practical solutions. "The value of this Government-Private Sector Forum mechanism lies not in the number of issues raised, but in our ability to transform challenges into solutions that are clear, actionable and measurable,” he said. “The challenges faced by the private sector do not always stem from the absence of policies or regulations. In many cases, they arise from the gap between policy, implementation and the practical realities experienced by businesses,” H.E. Minister added. The discussions were conducted in an open and constructive manner. All issues and proposals were reviewed and addressed within the Working Group at both the technical and policy levels. The meeting agreed on a number of specific follow-up measures, including continuing to simplify regulatory and administrative procedures, accelerating the digitalisation of public services, strengthening support for informal economy operators, expanding industry-driven skills development, providing technical, financial and market support to enterprises, enhancing inter-agency coordination, and establishing monitoring mechanisms to ensure the effective implementation of the agreed measures. Working Group "C" of the Government-Private Sector Forum serves as a platform for the Royal Government and the private sector to jointly address policy, regulatory and implementation issues affecting the manufacturing, SME and services sectors. The mechanism aims to translate private sector challenges into practical reforms and solutions that enhance Cambodia's competitiveness and promote private sector development. By Chea Vannak