Cambodia looks to responsible business and skills as LDC graduation approaches

PHNOM PENH, (ILO News) – Strengthening responsible business practices, developing workforce skills and supporting small and medium-sized enterprises (SMEs) will be vital as Cambodia prepares to graduate from Least Developed Country (LDC) status in 2029.

The priorities emerged from a High-Level Dialogue on Cambodia’s LDC Graduation under the theme "Leveraging Responsible Business Conduct (RBC) for Smooth Transition and Decent Employment."

Convened by the Cambodian Federation of Employers and Business Associations (CAMFEBA), the event was held with support from the International Labour Organization (ILO) in partnership with the Ministry of Labour and Vocational Training (MLVT) and the International Organisation of Employers (IOE).

The dialogue brought together more than 80 participants, including senior government officials, employer representatives, development partners, trade unions, and SME leaders. It highlighted Responsible Business Conduct as key to strengthening business resilience, accessing higher-value markets and attracting sustainable investment. Participants called for targeted support to help Cambodian SMEs adapt to evolving international requirements while emphasis was placed on upskilling and reskilling Cambodia’s workforce as a cornerstone of future competitiveness.

Speaking at the opening, Sovann Vannaroth, Permanent Secretary of State of the MLVT, emphasized that Cambodia’s transition must be accompanied by stronger competitiveness and continued protection of workers’ rights. "One principle must remain clear throughout this transition: Cambodia must become more competitive by raising productivity, increasing value addition, and advancing decent work, but never at the cost of labour protection or workers’ rights. Competitiveness that comes at such a cost is neither sustainable nor resilient."

© CAMFEBA

© CAMFEBA

From the employers’ perspective, Oknha Sar Kinal, Vice President of CAMFEBA, stressed that Responsible Business Conduct is rapidly becoming a business necessity rather than a voluntary initiative. “Responsible Business Conduct is no longer an option or a 'nice-to-have.' It is becoming a business imperative and a key requirement for sustainable market access.”

Helen Kirsch, Officer-in-Charge of the ILO Office in Cambodia, highlighted the importance of collective action to ensure that economic progress translates into decent work and sustainable development. “From the ILO’s perspective, Responsible Business Conduct and Decent Work go hand in hand. Businesses that respect workers’ rights, invest in skills, promote safe and healthy working conditions, embrace diversity and inclusion, and engage constructively with workers and their representatives are often better positioned to enhance productivity, attract investment, strengthen resilience, and access higher-value markets.”

Sonya Elmer Dettelbacher, Deputy Director of the Swiss Cooperation Office and Consular Agency, welcomed the strong consensus reached among stakeholders as she commended the outcomes of the dialogue. “Today’s dialogue reinforced a shared commitment among government, employers, workers, and development partners to work together to support Cambodian enterprises, especially SMEs, in navigating the opportunities and challenges of LDC graduation. Responsible Business Conduct, skills development, and social dialogue will be critical foundations for a resilient and inclusive transition.”

Closing the event, Tep Sophoan, Executive Director of CAMFEBA, outlined CAMFEBA’s commitments to sustain momentum beyond the dialogue. “CAMFEBA remains committed to translating today’s discussions into concrete actions. We will document and disseminate the key outcomes and recommendations from this dialogue, particularly those related to skills development and SME competitiveness.”