Fostering Inclusive Growth: Navigating Challenges and Shaping Strategies
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Abstract
SMEs and Backward Linkages: A Pathway to Cambodia’s Inclusive and Sustainable Growth
Shakeel Ahmad
Deputy Resident Representative
UNDP Cambodia
Cambodia’s strong economic performance over the past two decades has been driven largely by foreign direct investment (FDI), with FDI inflows accounting for nearly 30 percent of gross fixed capital formation—among the highest in ASEAN. However, much of this investment has been concentrated in non-tradable sectors such as construction and real estate, limiting technology spillovers and domestic value creation. As Cambodia approaches graduation from least developed country (LDC) status, the loss of preferential trade access and stricter rules of origin will challenge its export competitiveness, especially in the garment sector, which remains dependent on imported fabrics and inputs. The country’s enterprise structure—dominated by micro and informal firms with weak backward linkages—highlights the need to strengthen domestic small and medium enterprises (SMEs) and promote greater local investment. Enhancing access to long-term finance, innovation, and production upgrading will be critical to build a “missing middle” of competitive local enterprises capable of integrating into regional and global value chains. Moving forward, fostering stronger domestic–foreign linkages, deepening SME participation in export sectors, and promoting inclusive industrial diversification are essential for sustaining Cambodia’s growth and resilience in the post-LDC era.
Mirror, Microscope, Crystal Ball: The Role of Research in Economic Development
Milan Thomas, Ph.D.
Country Economist
Cambodia Resident Mission
Asian Development Bank
In a world of tightening resource constraints and rising geopolitical, technological, and climatic uncertainty, it is more important than ever to make economic policy decisions based on evidence. Drawing on the experience of ADB’s Country Economist for Cambodia, this keynote address will demonstrate the power of economic research through projects that used three distinct research methodologies. First, cost-benefit analysis is applied to reflect on the effectiveness of investments in development innovation. Second, impact evaluation is applied to examine the effect of a rural development intervention. Third, macroeconomic modeling is applied to forecast Cambodia’s economic performance amid escalating trade barriers. Together, these examples illustrate the exciting role of economic research in navigating challenges and shaping strategies for inclusive growth in Cambodia.
The Impact of Business Education on Manager Innovation Practices in the Banking Sector - Implications for Inclusive Growth
Casey Barnett
President
CamEd Business School
Empowering Resilient Agriculture for Sustainable Development: Insights from Innovative Solar-Powered Cooling and Irrigation Systems
KET Pinnara, Ph.D.
Vice Dean
Institute of Technology of Cambodia
Recent heatwaves and prolonged droughts have caused 60–70% yield losses in Kampot pepper production, alongside high vine mortality and severe economic impacts on smallholder farmers. This study evaluates the performance of an integrated solar-powered cooling and drip irrigation system designed to enhance climate resilience in pepper cultivation. The combined use of solar-driven refrigeration-based cooling and precision water delivery demonstrates strong potential to stabilize microclimatic conditions, reduce heat stress, and optimize water use. Economic analysis highlights substantial avoided losses and improved production reliability. These findings provide robust evidence for scalable, low-carbon agricultural technologies that advance resilient, inclusive, and sustainable rural development.
Market Systems Development Approach and Systemic Change in Markets: Empirical Evidence
Tapas R. Dash, Ph.D.
Professor & Research Advisor
CamEd Business School
The market system is an interconnected set of transactions within an institutional environment, where interventions look to address market failure to make markets work better for the poor. Market Systems Development (MSD) encompasses all actors and institutions that influence the delivery of goods or services. This study, conducted in the Northwestern region of Cambodia, examines how behavior change is a key outcome of Market Systems Development (MSD) interventions in changing the role of direct value chain actors and in supporting functions and institutions that include supporting new technologies, helping to build the capacity of service providers, and working with authorities to eliminate rigidities in market participation. Using the Adopt-Adapt-Expand-Respond (AAER) framework, the study empirically demonstrates its use in planning for and measuring systemic change in study areas to create sustainable, scalable positive impacts and to ensure that local partners become the drivers of change.
Biofuels: Growth and Sustainability of a Renewable Energy in Cambodia
Kenneth Paul Charman, Ph.D.
Professor & Research Committee Chairman
CamEd Business School
Biofuels are renewable energy, like wind and solar, and hydropower, and are produced from food crops and non-food natural sources. Used widely at a domestic level in rural areas, biofuels already represent a significant proportion of Cambodia's total energy consumption, but their contribution as a power source for electricity generation, or for widely used organic fuels such as ethanol and biodiesel is at present limited. This paper sets out the landscape for growth in the biofuels sector both to provide an additional revenue for small scale farmers, and to provide larger scale energy production with export potential. The infrastructure for the collection, refining and blending of biofuels with fossil fuels is key, as is the development of a policy and regulatory framework, which addresses issues such as the impact on food security, and the trade-offs between energy production in use, which are similar issues to those being addressed by other ASEAN countries.
Digital Transformation for SMEs – Using Technology to Stay Competitive and Expand Markets
El Liza, Sokhom Samaja, Cheng Guechheang. Deng Wensing
Students at CamEd Business School
In today’s rapidly evolving digital economy, small and medium-sized enterprises (SMEs) are forced to adopt digital transformation to compete and expand their market share. However, in Cambodia, the majority of SMEs still face significant challenges, including limited funding, a lack of digital skills, and inadequate technological infrastructure. This study explores how digital transformation enhances the competitiveness and market growth of food and beverage SMEs using the data from selected SMEs in Phnom Penh. A mixed-method design was employed, with standardized questionnaires administered to SME owners and managers to capture the impacts of digital tools on efficiency, competitiveness, and market expansion, while semi-structured interviews with government officials and finance specialists provided deeper insights into policy and finance support mechanisms. The study reveals that the adoption of digital technology significantly enhances SME competitiveness by boosting operational efficiency, reducing costs, and expanding access to larger markets through the Internet. Nevertheless, challenges such as a lack of technical know-how, resource shortages, and cyber risks continue to hinder advancement. Findings from this research guide policymakers, support institutions, and entrepreneurs in developing strategies for sustainable digital transformation and development. The study is limited to SMEs in Phnom Penh's food and beverage sector; hence, future research may be expanded to other industries and provinces.
Inclusive Finance: How Insurance Drives the Community Resilience
Tola Ponlu
Chief Executive Officer
Prudential Cambodia, CLM Hub
Navigating Challenges and Shaping Strategies: Evaluating the Impact of Sustainable Irrigation Techniques on Water Productivity, Economic Performance, and Rice Production in Cambodia
Mengheak Phol
Research Scholar (Ph.D. Program)
Institute of Technology of Cambodia
Cambodia’s increasing water scarcity and rising production costs demand irrigation strategies that improve both water productivity and farm-level economic performance. This study evaluates four water-saving irrigation techniques: Shallow-Deep-Shallow (S), Shallow and Frequent (Q), Wetting (W), and Shallow and Frequent for direct seeding (DQ) against the local empirical control method (CK) under dry-season field conditions at CARDI. The results indicated no significant differences in grain yields among the treatments. However, substantial reductions in irrigation inputs translated into measurable economic benefits. Notably, the Q treatment achieved the highest water productivity at 0.93 kg/m3 and reduced irrigation use by 31%, resulting in lower pumping and labor costs while maintaining yield levels. Additionally, the DQ, W, and S methods demonstrated water savings ranging from 21% to 26%, thereby improving input efficiency despite variances in plant responses. By reducing water consumption without compromising yield production, the Q method offers the strongest potential to enhance farmers’ net returns, strengthen resilience to water scarcity, and guide strategies for cost-effective, sustainable rice production in Cambodia.
AI Skills for the Future Workforce: Preparing Youth for the Digital Economy
Mara Socheattaa, Korn Chealiny, Lonh Sokunpidor, Neang LyKakrona, Thou Bun Seyha
Students at CamEd Business School
Integrating AI into Accounting Education to Enhance Workers' Productivity
Pa Saravann, Hornkongkea Sodana, Hout Senghong, Huy Vicheka, Vuth Dykanal
Students at CamEd Business School
In today's rapidly expanding economy, artificial intelligence (AI) is one of the fastest-evolving technologies. Various professions are experiencing different impacts from the development of AI. AI tools are being incorporated into various accounting schools' academic settings to help develop qualified workforces for the AI-driven workplace. This study investigated how the integration of Generative AI (GenAI) into the work environment enhances productivity and efficiency among workers. Based on a survey of 150 samples from various industries, most of which are from the accounting, finance, and banking sectors, the study found that participants commonly use Generative AI tools such as ChatGPT, Gemini, and Co-Pilot in their work. They reported that AI helped them by automating routine, time-consuming tasks, thereby improving the accuracy and consistency of their work. Additionally, this led to higher productivity, allowing them to complete work faster, handle larger workloads, and make fewer errors. Eventually, the impacts of GenAI on employees also highlight the need for AI tools in the industry and for their integration into accounting education to develop skilled workers. However, our study has not explored possible strategies or policies to improve the integration of Gen AI to achieve greater outcomes, due to limited time and resources.
Micro and Small Enterprises in Cambodia's Growing Economy
Mok Theany Sathura, Roeurn Porching , Lim Seng Hak
Students at CamEd Business School
This study aims to examine the role of micro and small enterprises in Cambodia's growing economy. Specifically, it explores how they create employment opportunities and raise income, and analyzes their contribution to innovation, competitiveness, and local business networks. With a limited sample size of 45 enterprises, the study collected primary data through surveys and interviews from micro and small businesses in the service and trade sectors. The study reveals that most small businesses operate in the service sector, have been running for one to three years, employ 6–20 staff, and mainly rely on personal savings for funding. These businesses contribute to local employment, generate income, introduce new products, and maintain competitiveness through service quality and marketing. Overall, this study lays the groundwork for further, wide-scale research to support the expansion of small businesses, although the findings are limited to Phnom Penh.
Equipping Gen Z with Future Skills: Education as a Driver of Inclusive Growth
Phorn Sivleng, Keo Vansak, Khov Vanphy, Song Chansakana, Ly Sovannpanha
Students at CamEd Business School
This study explores how education can prepare Generation Z for the rapidly changing world of work while promoting inclusive and sustainable growth. It aims to determine whether current education systems effectively equip young people with essential future-ready skills such as digital literacy, critical thinking, creativity, adaptability, and entrepreneurship. The research combines a literature review with survey data from 150 Generation Z students and 50 national employers to analyze perceptions of skill preparedness, the impact of active learning, and equity in access to opportunities. Findings reveal a significant gap in perceptions between students and employers regarding critical thinking and problem-solving skills. Active learning methods, including project-based learning and internships, improve engagement and skill application, but remain unevenly accessible, contributing to a new “skills-based digital divide.” Furthermore, while employers increasingly value a “skills-first” approach, degree-based recruitment still dominates. The study is limited by its scope and sample size, suggesting future research should expand to other areas for broader insight.
Financial Literacy: Bridging the Gap Toward Sustainable Growth
Chhoeun Soknich, Noch Sreypich, Long Serey Borita
Students at CamEd Business School
Our research aims to explore the role of financial literacy in closing the gap toward sustainable growth. This includes promoting financial inclusion for disadvantaged groups, serving as a pathway to sustainable development, and supporting Cambodia’s economic growth. The data for this research were collected from primary sources involving underprivileged groups, including women, farmers, and ethnic minorities. Additionally, we gathered information from various secondary sources, including online news articles, newspapers, organizations, and case studies from institutions such as Open Development Cambodia (ODC) and UNICEF. We also use ministry reports and other official government documents. The results show that financial literacy benefits small and medium-sized businesses by improving resource management and enabling better financial decision-making. With these skills, they operate more efficiently, reducing overborrowing. As more households become financially secure, increased participation in the formal financial sector is observed, contributing to economic growth at both household and national levels. The study further reveals that disadvantaged groups, especially women and farmers, face significant barriers to acquiring financial knowledge, thereby limiting their economic participation. Improving financial literacy within these groups enhances their ability to manage income, access financial services, and contribute to sustainable development. Overall, expanding financial literacy initiatives is essential for promoting inclusive growth in Cambodia.
Digital Inclusion in Cambodia: The Role of E-Commerce and On-Demand Service Platforms in Expanding Economic Opportunities for All
Bou Chansovatey, Leng Puth Socheata, Heng Eryaraksa, Sao Sokhethida, Politz Sarich
Students at CamEd Business School
Symposium Summary Report
Kenneth Paul Charman, Ph.D.
Professor & Research Committee Chairman
CamEd Business School
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