MISTI, IBC Expanding cooperation to drive private sector growth

Hem Vanndy, Minister of Industry, Science, Technology and Innovation (MITI), received a delegation from the International Business Chamber of Cambodia (IBC), led by Chairman Paul Clements, earlier this week. They discussed strengthening cooperation to meet the evolving needs of the private sector in Cambodia.

During the meeting, Minister Vanndy emphasized the government’s commitment to engage the private sector, highlighting MISTI’s broad mandate and ongoing efforts to facilitate business development.

Clements said IBC has been operating in Cambodia for 31 years and is currently co-chair of Working Group D of the Government-Private Sector Forum. Its diverse membership includes 141 companies representing approximately 20 nationalities.

He stressed that the IBC provides an important platform to promote international trade and investment in Cambodia by facilitating networking, advocacy and knowledge sharing among its members.

Minister Vanndy proposed to expand cooperation between MISTI and IBC by expanding the existing Memorandum of Understanding (MoU). He suggested including more comprehensive support mechanisms for businesses to better adapt to MISTI’s diverse mandate.

While commending IBC’s commitment to the ‘Cambodia First’ principle, Minister Vanndy highlighted MISTI’s approach to supporting businesses, which focuses on support rather than punitive measures.

He stressed the importance of effective representation from chambers of commerce and business associations in voicing the concerns of their members, emphasizing that “The government cannot talk to every business owner; we need representation from the business community to understand their problems and take appropriate action.”

The minister proposed that the ministry’s technical experts conduct specialized briefings for IBC members from various sectors, including industrial safety, SMEs, water supply and standards.

He encouraged the IBC to expand its interests beyond its current membership base to support greater industry collaboration and knowledge exchange.

Additionally, the Minister outlined MISTI’s ongoing reform program, which includes transforming the national laboratory into a public administration institution with enhanced testing capabilities to better serve the private sector.

Looking ahead to Cambodia’s 2030 and 2050 goals, Minister Vanndy stressed the need to strengthen local production and supply chains to reduce dependence on imported raw materials, emphasizing the importance of backward linkages and local supply chains to ensure the resilience of the industrial sector.

Echoing Minister Vannda’s sentiments, Clements said import substitution is key, while advocating for improved government policies to make it easier to do business. He stressed the IBC’s commitment to promoting international chamber forums and expressed his willingness to review and expand the Memorandum of Understanding with MISTI to further enhance cooperation.

Minister Vanndy addressed the issue of the informal economy, advocating its formalization in order to integrate with more extensive supply chains. He highlighted government incentive programs, including tax breaks, social security benefits and skills development programs, that aim to support the transformation of informal sector entities into valuable partners for large industries, including IBC members. Radio National Kampuchea (RNK)