“MSME Development by Readiness Resource Mobilization”

Mr. Ky Seng Hoir, Deputy Director of SMEMinistry of Industry and HandicraftEmail Address: mih.kysenghoir@gmail.comWebsite Address: www.mih.gov.kh

Kingdom of CambodiaNation Religion King

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1. Overview

2. Task Responsibilities of SMEH-GD to Support SMEH Development

3. Situation of SMEHs in Cambodia

4. Plan to develop SMEH Clustering in Cambodia

5. Conclusion

Contents

1. OverviewMinistry of Industry and Handicraft set the important role forSMEH to participate the national economic verificationenhancement, Job creation, specific expertise, mechanismand technology transferring, and new technology accessing.The increasing of SMEH in Cambodia are the diversificationand plentiful. SMEH participated to response the rectangularGovernment strategy phase 4 (Private Sector Developmentand Employment) 1. Private Sector Strengthening,Investment and business promotion. 2. Large Industry andSMEH Development are conducted and recognized that“Private Sector is the head of machine for national economicgrowth in Cambodia”. Therefore, Ministry of Industry andHandicraft (SMEH General Department) had trying hard toimplement continuously with effective of IDP and others.

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SMEHs Playing Important Role in Cambodia’s Economy

70% employment, 99.8% companies are SMEHs, and 58% Sales are arise from SMEHs.Total number of SMEHs 515,360 Total Manufacturing SMEHs 156,853 SMEHs Employment 1,123,333 Workers SMEHs Annual Turnover USD 94,277,254,780

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The Organizational Structure chart of MIH

Achievement of Task Responsibilities of SMEH GD

1. Productivities improvement program-Provided Training Program on quality strengthening to MSME-Provided training on 5S to MSME located in Phnom Penh, and Kandal Province

2. Access to Finance-Coordinated with several financials Institution to facilitate the special rate loan program for MSME3. Access to Competitiveness

-Cooperated with involved institutions to bring the Cambodian products into exhibition display-Promoted Cambodian products by display in the showroom in supper market and hotel.

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SMEH-DG Cooperated with Partners to Develop MSME

-UNDESA- Enhancing National Capacities for Unleashing full potential of SMEHs in achieving SDGs in Developing Countries-UN-ESCAP-Financing to women entrepreneur -OECD- through ASEAN program (Alternative Source for SMEHs access to finance-OMEP-Training program for SMEHs for market development -ADB-two projects; 1. Web Portal for online SMEHs registration 2. set the QR code installation in the permission license and operation certificate for SMEHs-GIZ- Supporting the SMEHs development in Cambodia-Task Program-Consulting on food and beverage processing improvement-NOMI-SMEH Capability Strengthening on Garment Sector-International Trade Center (ITC)-SMEH Competitiveness Survey -ABiNet- ASEAN Business Incubator Network Project-UNICEF- Training program on inspection list project, system using to collect the report on eyodine salt processing, and quality improvement of drinking water in Kraties and Steung Treng Province.-IFC-Make Directory Book on SMEHs in Cambodia

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3. Situation of SMEHs in Cambodia

Challenges for Starting Business of SMEHs

Lack of Capital Investment Lack of Potential Location Accessing (Electricity, Water, Waste

Water Treatment Plant, Infrastructures, and Security) Lack of Knowledge on Entrepreneurship, Management, and

Technical Production) Difficult to Apply for the Permission Licenses from relevant

government agencies Lack of Connection with Suppliers (Raw Materials and

Production Machineries ) and also Distributors Lack of Laboratory to Check the Quality of Raw Materials and

Final Products Lack of Information on Markets and Technology Others

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4. Plan to develop SMEH Clustering in CambodiaSMEHs Cluster Model in Cambodia

1. Gathering and Grouping (SMEH)

2. SME Association/Community Collection

3. Geographic Gathering (SMEH Zone)

Why SMEHs need Clustering?

1. Grouping for more strangeness

2. Grouping to dealing with challenges

3. Grouping to get the advantages from Government and others

4. Grouping to share the knowledge, information, experience, technology and others within the group members

5. Grouping for competitive in the market

6. Grouping for value chain, Value added

7. Grouping for helping each other within the group members 9

Technical Support

Location

Business Environments

Productivities Improvement Raw materials

Market Acess

Infrastructure

Financial Support

SME Development

Resource Mobilization for SME Development in Cambodia

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Conclusion

To mobilize the resource for MSME development withsustainability are involve with some factors such as:Business EnvironmentGovernment Incentives/Government SupportNGO IncentivesRaw Materials Suppliers Partners CollaborationMSME ClusteringTechnical and Financial SupportAccess to information/Information transformingOther Measures Participation from MSMEs

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