The second annual private-public sector workshop was designed to discuss the challenges small- and medium-size enterprises face in securing adequate lines of credit, meeting technical export requirements, reducing certificates of origin fees and overcoming other trade barriers.

Te Taing Por, president of the Federation of Association for Small- and Medium-Sized Enterprises of Cambodia, said that while local companies continued to grow this year, unfair competition and cheaper imports from neighbouring countries stifled growth potential.

Local products are unlikely to be found in the country’s shopping malls, hotels and restaurants.

“Because these businesses are biased towards foreign products, it is hard for SMEs to expand in the local market,” he said.

“There are also technical barriers standing between SMEs reaching their exporting goals, so I request that the relevant ministries take action.”

An inter-ministerial group should be created that could facilitate direct communications between Cambodian producers and buyers from foreign markets like the US, Japan and China, he said.

Hak Sovanna, president of the Alliances of Cambodian Agricultural Products Exporters, said the government lacked clarity on sanitary and phytosanitary requirements and the need to obtain a certification of origin.

“Some SMEs have no idea how to apply for SPS and CO registration,” he said, adding that “A more transparent process would help break down export barriers.”

Industry and Handicrafts Minister Cham Prasidh said the government could not give Cambodian products preferential treatment over imports due to free market dynamics.

“Our private sector has to build up its capacity, its quality and its standards of food safety to fairly meet the competition in the market,” he said.

The ministry has created 804 national product standards for local products, and producers are expected to register and maintain the quality of their products in accordance with these set standards.

“Local producers always complain of the difficulties when it comes to getting their products into the market,” he said.

“But often big and small companies alike do not meet our standards or don’t even register their products with the ministry at all.”