Phnom penh: Minister of Industry, Science, Technology, and Innovation H.E. Hem Vanndy recently engaged in discussions with a delegation from the International Finance Corporation (IFC), led by Ms. Towfiqua Hoque, IFC Resident Representative to Cambodia. The meeting focused on transforming Cambodia's Garment, Footwear, and Travel Goods (GFT) sector, emphasizing productivity, backward linkages, and integrating local Micro, Small, and Medium Enterprises (MSMEs) into global supply chains.
According to Agence Kampuchea Presse, Minister Vanndy praised IFC's sustained support for Cambodia's economic development. While acknowledging the past emphasis on the financial sector, he advocated for future priorities to include industrial depth and value addition. He pointed out the new vulnerabilities facing Cambodia's industrial growth, particularly in the context of post-Least Developed Country (LDC) graduation, highlighting the need for diversification, productivity enhancement, and stronger local supply chains.
The Minister underscored the necessity of developing backward linkages within the GFT sector. Despite hosting over 3,000 factories and anticipating record-high investments exceeding US$10 billion by 2025, local content remains limited. He urged the IFC to facilitate the development of capable SMEs in sub-sectors such as yarn, accessories, chemicals, leather, and packaging, emphasizing their crucial role in achieving high value addition and sustained competitiveness.
Ms. Hoque stated that IFC's visit, which includes manufacturing experts from Bangladesh, aims to support the structural transformation of Cambodia's GFT sector by leveraging regional experience. She highlighted IFC's extensive collaboration with global brands, supply-chain finance, Better Factories Cambodia, and sustainability programmes, along with its annual allocation of US$150-200 million in short-term supply-chain finance.
IFC is considering potential investments in green special economic zones, logistics hubs, and financing mechanisms for both SMEs and large foreign direct investment projects. The Minister also requested IFC's assistance in identifying game changers and emerging product lines with specific projects that Cambodia can competitively develop, in addition to the traditional GFT sector.