On April 7, 2025, the Ministry of Industry, Science, Technology & Innovation (MISTI), with technical and financial support from the United Nations Industrial Development Organization (UNIDO), officially launched the “SME Skills4Productivity” program, aimed at enhancing the competitiveness, productivity, and compliance capabilities of small and medium enterprises (SMEs) in Cambodia.

The launch is part of the “Decent Employment for Youth” Phase III, a UN joint program implemented by ILO, UNESCO, UNICEF and UNIDO, and funded by the Swiss Development and Cooperation (SDC).

Through this project, MISTI and UNIDO will collaborate to enhance the capacity of enterprises and business associations. This partnership aims to improve productivity, increase market competitiveness, support national economic growth, and generate decent jobs for youth.

"This project plays a key role in enhancing the skills of workers in factories, enterprises, and handicrafts, especially those in the agro-industrial sector,” said H.E. Heng Sokkung, Secretary of State of the Ministry of Industry, Science, Technology & Innovation. “MISTI is actively promoting entrepreneurship and fostering the growth of SMEs, while also coordinating the development of the informal economy to create decent jobs and contribute to Cambodia’s smooth and successful LDC graduation by the end of 2029."

A UNIDO’s rapid needs assessment indicates that SMEs in Cambodia are facing with a number of challenges. These include limited access to markets, formal financial services, and working capital, as well as difficulties in attracting a skilled workforce, acquiring technical knowledge (including food safety and resource efficiency), ensuring compliance, managing operations, and sourcing reliable, quality raw materials.

Mr. Sok Narin, UNIDO Country Representative, said "The initiative will transform SMEs, making them more competitive and thriving. This will create jobs, inspire others, and strengthen supply chains, leading to a resilient local economy. By equipping SMEs with essential tools, the initiative aims to contribute to industrial modernization and inclusive economic growth in Cambodia."

The “SME Skills4Productivity” program is designed to address some of these challenges through a series of training on GHP/HACCP food safety standards, resource efficient and cleaner production, business management and digital transformation.

A number of highly motivated and committed SMEs will be selected for additional coaching sessions to help them translate the knowledge gained from the training into practice and implement necessary changes.

MISTI and UNIDO have called on SMEs to take advantage of this unique training opportunity to enhance their skills, innovate their processes, and adopt sustainable practices.