Cambodia plans one-stop SME service to simplify approvals and support local producers

The Cambodian government is preparing a one-stop service intended to make it easier for small and medium-sized enterprises to register their businesses and obtain the approvals they need. The plan is expected to reduce administrative delays that business representatives say have made it harder for local producers to compete with imported goods.

Under the proposal, an SME coordination unit would let companies lodge applications in one place. Officials would then work with the relevant government bodies to complete the necessary steps from registration through licensing and permits. The unit would also track incentives handled through it.

Prime Minister Hun Manet reviewed the plans on October 4. He said the service was designed to make procedures simpler, quicker and less costly for SMEs. He added that the unit was part of a broader set of measures the government plans to introduce to support the sector.

The unit will be created by royal decree and will report directly to the prime minister. The decree is intended to encourage cooperation among ministries, public agencies, the private sector and development partners, with the goal of making registration and licensing services more effective and transparent.

Te Taingpor, president of the Federation of Association for Small and Medium Enterprises of Cambodia, or FASMEC, said the initiative responds to long-standing complaints from companies in manufacturing, processing and services. Speaking on October 4, he said businesses had often had to make repeated visits to complete paperwork, raising costs and diverting time from production.

He said the need for a single coordination mechanism arose because companies sometimes had to deal with 17 or 18 ministries for one process. In his view, that lack of coordination among institutions prompted the prime minister to step in.

Taingpor linked the problem not only to slower approvals but also to higher administrative expenses. He said these barriers had affected manufacturers waiting for imported raw materials, limiting their ability to meet growing demand for Cambodian-made products.

He welcomed the idea of bringing officials from different agencies together to speed up processing, but said further work would still be needed to reduce the remaining costs that businesses face. When administrative expenses fall, he argued, local firms will be better placed to compete.

The reform arrives as some domestic producers try to benefit from rising support for Cambodian goods. Taingpor connected that trend to a consumer boycott of Thai products, saying it has encouraged more interest in locally made items and supported domestic production.

But he cautioned that public support would not be enough if companies did not improve quality, safety and packaging. He warned that local businesses should not take advantage of shifting consumer preferences by selling inferior goods, saying poor quality would ultimately harm Cambodia's own producers.

He added that Cambodian SMEs had made significant progress over the past year, with products becoming available in more sectors. Still, he said consistently meeting market standards remains a work in progress.

Taingpor plans to visit the coordination unit to examine how it operates and provide feedback on procedures and costs that companies think should be lowered further.

He also highlighted a growing export focus, noting that more Cambodian producers are looking beyond the domestic market to diaspora communities in Europe, Australia, South Korea and the United States. SMEs, he said, should not only serve local consumers but also help bring income into the country through exports.