On April 18, 2024, the Coordinating Committee on the Development of Informal Economy discussed formalization support for micro-enterprises, focusing on establishing their legal status and the associated benefits. The discussion was led by H.E. HEM Vanndy, Minister of Industry, Science, Technology & Innovation, and Chairman of the Coordinating Committee on the Development of the Informal Economy.

The meeting showcased examples from Benin and Brazil where formalization efforts have significantly impacted economic landscapes.

In Cambodia, according to the Cambodia Economic Census 2022, nearly 93% of economic entities are micro-enterprises, with only 6.5% of them registered, mainly with sub-national administrations.

During the meeting, Minister Vanndy urged ministries-institutions, who are members of the coordinating committee, to develop a simplified registration process, easing compliance and offering incentives for formalization. The goal is to grant legal status to micro-enterprises, enabling them to access support programs such as skill training, financial assistance, and social protection that can empower them to expand their operations and make a more substantial contribution to Cambodia's economic advancement.