Phnom Penh, December 16, 2024 – The Royal Government of Cambodia has officially launched the Digital Platform for Onboarding the Informal Economy. The event was presided over by Samdech Moha Borvor Thipadei HUN MANET, Prime Minister of the Kingdom of Cambodia and marked an important milestone in implementing the National Strategy for Informal Economy Development 2023-2028, the government’s fourth strategic priority program launched in October 2023.

In his keynote address, Samdech Thipadei Prime Minister emphasized the platform’s significance in providing recognition and support for the informal economy. “Today’s launch of the Digital Platform for Onboarding the Informal Economy demonstrates the Royal Government's commitment to supporting informal economy actors, aimed at creating opportunities for their business development and career expansion, ultimately enhancing living standards and overall well-being.”

The platform will also facilitate government’s targeted interventions, especially during crises, and open doors for informal economy actors to access benefits such as skills development, social protection and formal financial services.

H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation and Chair of the Coordinating Committee for Informal Economy Development, said that this digital platform will provide a solution to the longstanding issue of lack of data about informal economy.

"This digital data exchange will enable relevant authorities to address challenges faced by informal economy actors, improve productivity, business growth and competitiveness until they can integrate into the formal sector,” he added.

The digital platform offers a range of onboarding options that are free of charge and entirely voluntary, primarily aimed at micro-enterprises, employees of micro-enterprises, seasonal workers, and self-employed individuals working in the informal economy.

According to the Cambodia Labor Force Survey 2019, Cambodia has about 7.9 million people in the labor force, with 21.5% of the workforce (1.7 million) employed in the formal sector, while a staggering 6.2 million individuals find work in the informal sector. These workers often lack access to essential services, leaving them vulnerable to shocks.

Recognizing the importance and potential of the informal economy, the National Strategy for Informal Economy Development seeks to strengthen this vital sector, enhance its resilience to crises, and support its transition into the formal economy.