Phnom Penh, April 7, 2025—Minister of Industry, Science, Technology & Innovation H.E. Hem Vanndy presided over the annual general assembly of the Federation of Associations for SMEs of Cambodia (FASMEC) today, highlighting the vital role of small and medium enterprises (SMEs) in driving Cambodia’s economic growth and job creation.

In his address to the assembly, Minister Vanndy shared that Cambodia’s economy grew by around 6% in 2024, driven by growth of key econnomic sectors, with the industrial sector expanding 8.5%.

SMEs, he emphasized, are central to this momentum. “In Cambodia, SMEs make up 98% of all business units, employ around 70% of the workforce, and contribute 58% to the country’s gross domestic product,” he said. “They are a cornerstone of the national economy and household livelihoods, harnessing local resources, labor, and raw materials, while increasingly adopting new technologies to drive socio-economic development.”

The Minister also commended FASMEC for its past year’s achievements, contributing to the Royal Government and MISTI in advancing the growth of SMEs.

"For 2025, I encourage FASMEC to build on its momentum by expanding activities through innovative initiatives and strong collaboration with local and international partners,” he added. “By helping SMEs become more competitive, sustainable, and modern, FASMEC will not only serve its members’ interests but also play a vital role in strengthening Cambodia’s entrepreneurial ecosystem."

The general assembly that focused on FASMEC’s 2024 review and 2025 planning also featured a local product exhibition and an award ceremony for FASMEC’s outstanding members.