Small and medium enterprise actors are calling for increased collaboration to boost domestic production, just as many Cambodians continue to boycott Thai products.
Te Taing Por, president of the Federation of Associations of Small and Medium Enterprises of Cambodia (FASMEC), called for enhanced cooperation to drive domestic production at a forum on local product promotion held on September 8, in collaboration with the Club of Cambodian Journalists (CCJ).
He stressed the importance of improving the quality of local products while maintaining competitive prices in the market, especially in light of the growing trend of Cambodian people boycotting Thai products.
He emphasised that supporting local products requires a balanced focus on both quality and price.
While Cambodian-made goods are often of high quality, the challenge lies in the production costs, which are often significantly higher than many imported alternatives.
He outlined how the high cost of production remains one of the major obstacles affecting the competitiveness of domestic enterprises.
“Electricity, water, transportation and other related costs are high, which limits our production capacity,” he explained.
“This creates a challenge for us to maintain competitive prices in the market,” he added.
To tackle these issues, he proposed a collaborative effort between the public and private sectors to reduce production costs.
“We need to collaborate with relevant stakeholders, both from the government and the private sector, to lower production costs,” he said.
Taing Por stated that reducing production expenses will help local enterprises grow, reduce dependence on imported products and ultimately contribute to the national economy and improve the quality of life of the Kingdom’s citizens.
Further underscoring the importance of small and medium enterprises (SMEs) in Cambodia’s economy, Senate president Hun Sen highlighted the vital role these businesses play during a meeting with the delegation of the Samdech Techo Foundation Association for the Development of Small and Medium Enterprises in Cambodia (STFA) on May 20.
He pointed out that SMEs make up over 98 per cent of all economic entities in Cambodia, employing approximately 70 per cent of the workforce, or around 2.9 million people.
He added that SMEs in Cambodia contribute significantly to the nation’s economic growth, accounting for 93 per cent of the country’s gross domestic product.
This substantial contribution highlights the crucial role SMEs play in supporting Cambodia’s ongoing economic development.
