Cambodia puts small businesses and farm processing at centre of growth push
A new strategy targets financing, skills and productivity for smaller firms as the World Bank lowers its 2026 growth forecast to 3.5 per cent.
Cambodia is seeking to support economic growth through smaller manufacturers and higher-value agriculture, with Prime Minister Hun Manet launching the National Strategy for MSME Development 2026-2030 and the government supporting more advanced food processing.
The push comes as weaker tourism, higher fuel prices, climate risks and lower household spending weigh on the economy. The World Bank revised its forecast for Cambodia’s 2026 growth in October to 3.5 per cent, down from its April projection of 3.9 per cent.
Hun Manet said priorities for micro, small and medium enterprises included easing business conditions, raising productivity, adopting technology and improving financing and skills, according to state news agency Agence Kampuchea Presse. The measures come as Cambodia prepares to leave least developed country status by the end of 2029.
These businesses generate about 63 per cent of GDP and account for over 70 per cent of employment outside agriculture. State media, citing the 2022 Economic Census, said about 750,000 MSMEs employed nearly three million workers, including 1.8 million women. Hun Manet identified constraints including capital shortages, limited technical capacity, high production costs and bureaucracy.
At the Cambodia Agriculture Forum and Exhibition 2026, Industry, Science, Technology and Innovation Minister Hem Vanndy urged a shift towards technologically advanced processing of safe, quality food. He said the dominance of raw and partly processed agricultural exports limited added value and left producers vulnerable to international price changes.
Agriculture contributes about 16 per cent of GDP and employs over three million workers. Government measures include infrastructure upgrades, agro-industrial clusters and improved drying, cold-storage and packaging technology. Modern farming equipment, including smart tractors and drones to apply fertiliser, is also a focus.
