March 8, 2012

Cambodia, ADB launch fund for SMEs development


PHNOM PENH, March 7 -- Cambodia's Ministry of Industry, Mines and Energy and the Asian Development Bank on Wednesday unveiled a pilot Technology Development Fund for the country's small and medium enterprises (SMEs).

"The fund aims at enhancing the competitive capacity of small and medium enterprises in the sector of food and soft drink processing industry through improving technology, hygiene and food safety control standard," according to the project's summary report.

The report said that the fund is in the form of grants and will provide to any Cambodian-owned SMEs that meet qualifications. A SME can apply for grant between 5,000 U.S. dollars and 30,000 U.S. dollars.

It added that a qualified SME should have less than 100 employees and current asset of less than 500,000 U.S. dollars.

Meng Saktheara, chief of the ministry's industry department, said that the fund is financed by the ADB for a 2-year pilot project in the amount of 800,000 U.S. dollars.

"As the ASEAN Free Trade Area begins in 2015, it is very important to build capacity and improve product quality for Cambodian SMEs from now on, or they will be unable to compete with those from other ASEAN member countries," he said in a press briefing.

He said the biggest challenges for the country's SMEs at the moment are low quality products due to poor production technology and high production cost.

According to the official 2011 Economic Census, the country has 502,372 entities that employ less than 100 workers each.


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