Lok Chum Teav (Her Excellency) TEKRETH Kamrang, Secretary of State, Ministry of Commerce (MoC)

His Excellency Dr. CHHIENG Vanmunin, Chief Executive Officer, Khmer Enterprise (KE)

Excellencies, distinguished guests, ladies, and gentlemen!

I am extremely delighted to welcome you all to this virtual launch of the Innovation Challenge on Business Digitalisation and E-Commerce Acceleration.

Digital is transforming the world around us. It is changing the way we work, the way we study, the way we access services and the way we interact with each other. The COVID-19 crisis has exposed the importance of digital transformation for resilience. It strained global demand and international supply chains, highlighting the need for new, efficient, and highly competitive business models - relying on digital technology, adopting, and adapting to the digital economic environment, market demands, and environmental and social safeguards.

As such, UNDP prioritizes digital transformation in all its interventions and considers it an accelerator for recovery, poverty reduction and sustainable development.

In a strategic partnership with the Ministry of Commerce (MoC), the Ministry of Economy and Finance (MEF), Khmer Enterprise (KE) and Enhanced Integrated Framework (EIF), UNDP Cambodia is implementing a key initiative as part of Cambodia's e-commerce acceleration project (Go4eCAM) to develop needed skills for entrepreneurship and e-commerce (SME eBiZnest).

The Innovation Challenge was designed as a platform for providing micro-small- and medium enterprises (MSMEs) with the opportunity for tapping into innovative solutions to accelerate the business digital transition and e-commerce application for reaching a broader clientele both in domestic and international markets.

The MSMEs sector plays a crucial role in driving the Cambodian economy, contributing approximately 58% to GDP and creating about 70% of the total employment in Cambodia^[1]. As such, the reforms undertaken by the Royal Government of Cambodia for strengthening and diversifying the productive sector and achieving trade-related competitiveness and growth are commendable. These strategic objectives, which are enshrined in the national development agenda, the Fourth Rectangular Strategy, the National Strategic Development Plan (2019-2023), the Cambodia Trade Integration Strategy Update (CTISU 2019-2023), and the Cambodia E-commerce Strategy, have a common red thread, the recognition of e-commerce as a driver for private sector growth, and better access to both domestic and international trade markets.

UNDP Cambodia is supporting the vision of the Royal Government of Cambodia on promoting MSMEs growth with a focus on business digitalization and e-commerce and engaging the private sector in innovation to achieve Cambodia’s Sustainable Development Goals (SDGs). UNDP’s contribution includes, but is not limited to:

    - Covid-19 response with e-commerce promotion for business continuity and resilience (ex. three e-commerce campaigns, job matching forum with the National Employment Agency (NEA), farmers onboarding onto AgriTech platforms, among others)

    - Credit Guarantee Scheme

    - The innovation challenge on alternative plastic and a practical guide on sustainable e-commerce.

    - Startup support through an intensive incubation Programme (BlueTribe)

Excellencies, distinguished guests, and partner MSMEs!

The potential for e-commerce development is significant and promising for the diversification of the economy, new jobs creation, and better financial inclusion. It also contributes to improved lives and livelihoods. Yet E-commerce is relatively less developed compared to Cambodia’s neighbors, which puts the Kingdom at a disadvantage in terms of competitiveness and integration into regional and global trade networks.

Studies conducted by UNDP Cambodia found that the key challenges for e-commerce development in the Kingdom include low uptake of digitalization among MSMEs, limited e-commerce skills, low digital literacy, and lack of investment capital, among others.

The launching of the Innovation Challenge on Business Digitalization and E-Commerce has the ambition to identify innovative solutions to respond to the limitations and make a start on changing business behavior and approaches. The challenge aims to award USD 5,000 for 70 winning ideas for the total amount of USD 350,000. In addition, winning MSMEs will benefit from capacity building on domestic and cross-border e-commerce, tailored business mentoring/coaching and respective technical support. The challenge aims to achieve the inclusion of women-owned/led and provincial businesses of up to 50% of the total awards. It expects to contribute to the enhancement of the e-commerce ecosystem and eventually of trade for poverty reduction and development.

Finally, I would like to conclude by reconfirming UNDP’s commitment to supporting and partnering with the private sector as one of the strategic dimensions of UNDP’s work and contribution to sustainable development in Cambodia.

Orkun Chroeun!

Source:

[1] Current Situation of SME in Cambodia, Ministry of Industry and Handicraft, 2018: https://www.unescap.org/sites/default/files/SME%20Financing-Chhea%20Layhy%202019.pdf