Market Update: Govt prioritises informal economy transformation – Full Analysis

Synopsis: Efforts are under way to transform the informal economy into a more productive and sustainable pillar of national development.

The Royal Government of Cambodia (RGC) is intensifying efforts to strengthen the country’s informal economy, which accounts for more than 85 percent of total employment, by enhancing workers’ skills, competitiveness and resilience—particularly in the tourism sector.

Speaking on Wednesday at the closing ceremony of a dissemination workshop on digital platform registration for informal economy workers and skills voucher enrolment, Huot Hak, Minister of Tourism, underscored the government’s commitment to transforming the informal economy into a more productive and sustainable pillar of national development.

The workshop promoted registration through the CAM-IE digital platform, a free and voluntary system that allows informal workers to self-declare their status through a simple and time-saving process. It also introduced participants to the Skills Development Fund (SDF)’s Skills Voucher programme, which provides 600,000 riel (approximately $150) per person in non-cash, non-transferable training credits.

The vouchers can be used for tourism and entrepreneurship training aimed at improving productivity, increasing income and strengthening the competitiveness of informal businesses operating in Cambodia’s tourism value chain.

The ceremony drew approximately 2,000 participants and was attended by senior officials, including Hun Dany, Secretary of State and Chair of the Informal Economy Development Working Group in the tourism sector; Chhay Virak, Deputy Governor of Phnom Penh Capital Administration; Ley Sopheap, President of the Cambodian Federation of Economic Youth Association; and Ky Sokkim, Executive Director of SDF.

Hak emphasised that the informal economy has been identified as a key pillar of Cambodia’s economic framework. “This sector plays a crucial role in driving economic growth, reducing poverty, and narrowing social inequality,” he said.

To maximise benefits for workers, the government is prioritising the development of a comprehensive database of informal workers. According to Hak, the database will serve as a central analytical tool to help ministries and institutions design targeted support mechanisms and ensure effective responses to workers’ actual needs.

“Stronger participation from informal economy workers — particularly in the tourism sector — will better meet labour market demands across sectors and help transform the informal economy into a more productive, resilient, and sustainable contributor to Cambodia’s long-term socio-eco nomic development,” he added.

Sokkim described the campaign as a bridge linking identity recognition with skills development opportunities. He said the initiative aligns with the National Strategy on Informal Economy Development 2023–2028, which seeks to formalise and empower previously unsupported occupations.

“It is a positive step in transforming previously unsupported occupations into formally recognised businesses through the CAM-IE digital platform and Skills Vouchers,” Sokkim said, noting that the programme reflects the government’s broader strategy to formalise the sector.

Under the slogan “Higher Skills, Higher Income,” the Skills Voucher programme aims to equip workers with practical competencies that enhance employability and entrepreneurial success.

According to SDF data covering 2018 to 2026, the fund has supported 6,419 informal tourism workers through 13 projects. The programme has achieved a 96 percent graduation rate, an 88 percent employment rate and a 20 percent average income increase among beneficiaries, demonstrating the tangible impact of targeted skills training.

Sokkim reaffirmed SDF’s commitment to collaborating with government partners to ensure that informal workers gain access to decent employment opportunities and greater financial stability, reinforcing the tourism sector’s role as a driver of inclusive growth in Cambodia.