Cambodia Aims to Reduce Import Dependence and Boost Exports Through SME Development

PHNOM PENH, July 30, 2026 (KPT) — Cambodia is actively promoting the development of its Small and Medium Enterprises (SMEs) as a key driver for domestic production. The government is encouraging manufacturers to build robust supply chains, reduce their reliance on imports, and prepare goods for export markets, signaling a strategic push towards greater economic self-sufficiency and sustained growth. Deputy Prime Minister Sun Chanthol, First Vice Chairman of the Council for the Development of Cambodia (CDC), met with representatives from the Federation of Associations of Small and Medium Enterprises of Cambodia (FASMEC) to discuss measures aimed at improving the business environment and supporting local firms. Te Tangpor, chairman of FASMEC, highlighted the need for simpler and faster administrative procedures to facilitate the expansion of domestic value chains. Deputy Prime Minister Chanthol welcomed these proposals and pledged government support to foster SMEs as a stronger engine for sustainable and inclusive growth. During the meeting, a range of Cambodian-made products, from processed foods to household goods, were showcased, demonstrating the nation's growing production capabilities. Officials urged manufacturers to enhance quality and safety standards, boost competitiveness, and pursue import substitution where viable, with a long-term objective of penetrating international markets. Increased SME participation in supply chains is expected to help Cambodia retain more value domestically, lessen import dependence, and build a stronger foundation for export diversification. Furthermore, efforts are underway to strengthen linkages between local enterprises and larger investment projects, deepen domestic value chains, and improve the regulatory environment to assist SMEs in scaling up their production. The Cambodian government views SMEs as critical for sustaining economic growth, creating jobs, and broadening the country's export base beyond traditional sectors. Information Source: Kampuchea Thmey English