•    H.E. PENN Sovicheat, Secretary of State, Ministry of Commerce,
•    H.E. Tanheang Davann, Secretary of State, Ministry of Justice,
•    H.E. Heng Sok Kung, Secretary of State, Ministry of Industry, Science, Technology and Innovation
•    H.E. Hoeurn Samnieng, Deputy Secretary General, Council for the Development of Cambodia (CDC)
•    Ms. MIYOSHI Asagi, Counsellor, Embassy of Japan
•    Representatives of the Royal Government, Development Partners, the Private Sector, Civil Society and UN Agencies
•    Distinguished Guests.

Good morning, Chom reap sour.

I would like to extend my warmest greetings to all of you present here today and thank you in advance for your insights and contributions to the Consultation on Policy Approaches for Advancing Responsible Business Practices in Trade.

This consultation follows yesterday’s learning workshop on Responsible Business Practices. It presents an opportunity to leverage your knowledge and practical experience in assessing the responsible business ecosystem in Cambodia, identifying policy gaps and opportunities, and exploring instruments to accelerate the adoption of responsible business practices for advancing trade competitiveness and market penetration.

Excellencies, Partners, and Distinguished Guests.

Cambodia’s upcoming graduation as a Least Developed Country in 2029 is a testament to its significant socioeconomic achievements. Nevertheless, it also implies a gradual withdrawal of international support measures, such as preferential trade agreements, grants and concessional funding. Potential associated challenges could include employment precarity and an increase in poverty levels, as well as deprivations and inequalities. On the other hand, opportunities can bring improved creditworthiness, economic diversification, higher-value exports, and the ability to attract more diverse investments. It also presents a unique opportunity to rebrand the country as a responsible trade partner. To reduce risks and harness opportunities, anticipatory planning, timely preparedness, and concerted efforts are necessary to implement structural, socioeconomic, and environmental transformations and adjustments. 2029 is closer than we think!

After graduation, Cambodia's exports will need to comply with the regulatory frameworks and standards of its major trade partners, particularly in terms of corporate sustainability and social responsibility, on par with other middle-income countries. This awareness of responsible practices and their importance for business resilience and sustainable socio-economic progress is also increasing in ASEAN.

ASEAN member states are promoting responsible business conduct through the ASEAN Guidelines for the Promotion of Responsible and Inclusive Business, the various ASEAN online platforms, networks, and alliances for responsible business and Corporate Social Responsibility, as well as the ASEAN Sustainable Finance Taxonomy, among other initiatives.

Moreover, many ASEAN member states, including Indonesia, the Philippines, Thailand, and Vietnam, have developed and are implementing their national action plans to promote responsible business, aligning with the United Nations Guiding Principles. Others, such as Laos and Malaysia, are at different stages of progress in elaborating their national action plans. I hope Cambodia can follow suit soon.

Excellencies, Partners, and Distinguished Guests.

The UN and UNDP are supporting the Royal Government in preparing for a smooth transition, working closely with the Ministries of Planning, Economy and Finance, as well as Commerce, among others. Advancing responsible business practices in Cambodia means encouraging businesses to operate in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and good governance. It means ensuring that the activities of businesses and investors, while generating gain, align with the needs of society, now and in the future.  

This requires a multifaceted approach that engages various stakeholders, including the government, businesses, associations, and civil society. Today’s dialogue aims to discuss responsible business practices from their diverse perspectives, guided by the UN Corporate Sustainability Principles and ASEAN standards, and explore their potential impacts on access to ESG and Impact investments, international trade, and preparedness for LDC graduation.

Excellencies, Partners, and Distinguished Guests.

The UNDP remains committed to supporting Cambodia in its transition and promoting responsible business conduct among its businesses and their supply chains, in line with international standards, to facilitate access to international markets and integration into global value chains, thereby strengthening the economy's robustness and resilience, and promoting growth powered by international trade. Allow me to express my gratitude here to the Ministry of Commerce for its leadership in coordinating and navigating this complex process and to the Government of Japan for its steadfast support.  

I wish you all a productive discussion.

Thank you. Som Arkun!