Skills Development Fund Chief Executive Officer Ky Sokkim has highlighted the important role of Cambodia’s informal economy in generating jobs and supporting national economic growth, as the government and its partners step up efforts to strengthen the skills, productivity and business capacity of informal workers. He made the remarks yesterday in Siem Reap province during a campaign focused on developing the informal economy, improving vocational skills and raising service quality across Cambodia’s tourism sector.
Led by Tourism Minister Huot Hak, the campaign brought together representatives from government ministries and institutions, subnational administrations, tourism industry associations, training institutions and around 3,000 informal economy workers and businesses. The initiative reflects a broader effort to help informal businesses gain greater recognition, improve their competitiveness and gradually move toward the formal economy while supporting higher standards in Cambodia’s tourism industry.
Synopsis
Cambodia’s informal economy remains an important source of employment and income, particularly for workers and small businesses operating outside the formal business system. The Skills Development Fund is seeking to strengthen this part of the economy by combining skills training, digital tools, business support and formalisation opportunities.
For entrepreneurs and business leaders, the development of informal businesses is more than a social policy issue. It is closely connected to productivity, workforce quality, tourism services, digital adoption and the country’s ability to create sustainable employment. The latest campaign in Siem Reap shows that Cambodia is increasingly looking at skills development as an important investment in both people and economic competitiveness.
Why the Informal Economy Matters to Cambodia’s Growth?
SDF says workers and businesses operating in the informal economy make a significant contribution to Cambodia’s economic activity and employment. Many of these workers provide essential goods and services to communities and visitors, while informal businesses create income opportunities for people who may have limited access to formal employment or conventional business support.
The challenge is that informal operators can face barriers to training, technology, finance, business knowledge and market opportunities. Addressing these gaps could help businesses improve productivity and service quality while giving workers stronger opportunities to increase their income and participate more fully in the formal economy.
For Cambodia’s tourism sector, the issue is particularly relevant. Informal workers and small businesses are part of the wider tourism ecosystem, from local sellers and service providers to independent workers and other community based businesses. Raising their skills in hospitality, hygiene, food safety, digital technology and business management could contribute to a more consistent visitor experience and stronger tourism competitiveness.
Siem Reap Campaign Focuses on Skills and Formalisation
The campaign in Siem Reap is designed to encourage informal economy operators to register through the Cam IE digital platform. Registration provides a pathway toward official recognition and digital certification while helping connect informal workers and businesses with skills development opportunities.
The initiative also promotes SDF’s Skills Card Programme and Informal Economy Support Programme. These programmes are intended to strengthen vocational, business and digital capabilities while helping informal workers prepare for a gradual transition into the formal economy.
SDF’s official Informal Economy Programme describes its objective as improving the skills and capacity of informal business owners, workers and self employed individuals, with the broader goal of improving livelihoods, competitiveness and participation in the formal economy. Its target groups include market vendors, street sellers, motor taxi and delivery drivers, artists, performers, freelancers, agricultural workers and other informal workers.
SDF Links Skills Development With National Economic Policy
Ky Sokkim said the campaign is connected to Cambodia’s National Strategy on Informal Economy Development 2023 to 2028, which places greater emphasis on building the capacity of informal workers and helping them make use of technology, innovation and new business opportunities.
“This campaign is a key step in line with the National Strategy on Informal Economy Development 2023–2028 to build capacity and help informal economy workers adopt technology, innovation and opportunities to strengthen and expand their businesses,” Sokkim said.
The approach is significant for businesses because skills development is increasingly being treated as an investment in productivity rather than simply a training expense. Better trained workers can help companies improve service quality, adopt new technology and respond more effectively to changing customer and market expectations.
SDF’s broader model is based on co financed training that brings together enterprises, training providers and the fund. Its current priority sectors include tourism, digital, manufacturing, construction, electronics, automotive, agro industry, logistics and green energy.
More Than 100,000 People Have Received Training
With support from the Royal Government, SDF has expanded its work in workforce development and capacity building. According to the figures provided for this campaign, a total of 101,544 trainees have received training through SDF supported activities, with women accounting for 34 percent of participants.
Of those trainees, 47,501 informal economy workers received training through the Skills Card Programme and Informal Economy Support Programme. The training has focused on areas including digital technology, digital marketing, business management, hospitality, hygiene and food safety.
These areas are particularly relevant to small businesses because they directly influence daily operations, customer service, marketing, business efficiency and the ability to compete in an increasingly digital marketplace.
SDF’s previous official reporting also shows the scale of its wider investment in skills development. Its 2024 annual report recorded total training costs of approximately US$29.40 million from 2018 through 2024, supporting 34,431 trainees, while SDF contributed about US$15.66 million.
SDF’s History and Why It Was Created
The Skills Development Fund is a national trust fund under Cambodia’s Ministry of Economy and Finance. Contrary to some possible interpretations of its history, SDF was not established in 2004 or 2005. Official SDF records state that the fund began as a pilot project in March 2018, with its first call for proposals launched in July that year. In 2023, the Royal Government transformed the pilot into a formal trust fund under the name Skills Development Fund through Sub Decree 97 dated May 18, 2023.
The fund was created in response to Cambodia’s need for a stronger skilled workforce and closer cooperation between industry and training providers. Its purpose is to help ensure that training responds to actual labour market demand rather than being separated from the needs of employers and businesses.
SDF’s stated vision is to become a trusted financing platform for demand driven and sustainable skills development supporting Cambodia’s development vision toward 2050. Its mission is to encourage practical partnerships between employers and training providers.
Who SDF Supports and Why Businesses Should Pay Attention?
SDF support extends beyond individual workers. The fund works with enterprises, SMEs, informal businesses, training institutions, business associations and other partners to develop training that responds to real workforce requirements.
For SMEs, this matters because the cost of upgrading employees can be a significant barrier to growth. SDF’s co financing model allows eligible enterprises to participate in supported training programmes while working with training providers to design programmes around actual business needs. Cambodia’s SME support portal also identifies SDF support for SME owners, SME employees, large firm employees and training of trainers.
The fund also provides opportunities for larger businesses to support their MSME partners. Its iLead Programme is designed to connect industry leaders with MSMEs through training, mentoring, technology transfer and supply chain development, creating opportunities for smaller businesses to improve productivity and gain access to larger markets.
This makes SDF relevant not only to companies seeking training support but also to investors and larger enterprises looking to build stronger local supply chains and a more capable Cambodian workforce.
What SMEs Need to Know Before Approaching SDF?
SMEs interested in SDF support should first identify the specific skills gaps affecting their employees or business operations. SDF encourages enterprises and other applicants to develop training proposals together with appropriate training providers.
The fund provides programme guidelines, proposal templates and other resources to help applicants prepare their submissions. SDF also offers free consultation services for enterprises of all sizes, including SMEs and informal businesses, as well as business associations and training providers.
SMEs can contact SDF through its official website and consultation channels. The fund lists its main contact details as info@sdfcambodia.org and +855 23 901 583. Its office is located on the 8th Floor of the Business Development Center in OCIC Boulevard, Chroy Changvar, Phnom Penh.
Businesses seeking assistance should explain their sector, workforce needs, proposed training objectives and the skills gaps they want to address. This makes it easier for SDF and potential training partners to determine which programme and funding mechanism may be appropriate.
Why This Matters for Investors and Business Leaders?
For investors considering Cambodia, workforce capability is an important part of the business environment. Access to skilled employees affects productivity, operating costs, service quality, innovation and the ability of companies to expand.
SDF’s growing role reflects a wider effort to connect skills development with private sector demand. In June 2026, SDF and the International Labour Organization signed a partnership agreement focused on skills development, labour market research and workforce competitiveness. The cooperation is intended to strengthen evidence based skills planning and identify emerging workforce needs.
For entrepreneurs and managers, the message is straightforward. Investing in people is increasingly connected to investing in business competitiveness. For informal businesses, improving skills and gaining formal recognition could also open the door to new markets, partnerships, technology and growth opportunities.
The Bigger Picture for Cambodia
The development of Cambodia’s informal economy will require more than registration alone. Informal entrepreneurs need practical support that helps them operate better, reach customers, use technology, manage finances, improve service quality and understand the requirements of formal business activity.
The Siem Reap campaign demonstrates an effort to address those needs through a combination of recognition, digital tools, vocational training and business development. If these measures continue to reach workers and small businesses outside major urban centres, they could contribute to stronger local economies while helping more businesses prepare for formalisation.
For Cambodia, the opportunity is significant. A stronger informal economy can provide more productive jobs today while creating a pathway for promising micro and small businesses to grow into formal enterprises tomorrow.
Conclusion
The message from SDF is clear: Cambodia’s informal economy should not be viewed simply as a collection of small or unregistered activities. It is an important part of the country’s employment base and economic activity, and its future development will influence productivity, household incomes, tourism services and broader economic competitiveness.
The challenge now is turning training and formalisation opportunities into measurable business results. For entrepreneurs, SMEs, investors and business leaders, the expansion of SDF programmes offers an important development to watch as Cambodia continues building a more skilled, productive and competitive workforce.