Key Reforms

No.
Decision/Reform
Description/Activities
Status
Reference
1
Promoting SMEs
MIH is in the process of drafting SME Promotion Policy aiming at providing a national-level framework to promote and regulate SMEs as well as spell out a clear tax regime for the sector. The policy aims to provide a clear roadmap for SME development in the Kingdom by creating a national definition of SMEs, simplifying tax rules in order to get businesses to adopt better book-keeping techniques, and tax compliance as well as improving technology adoption capabilities.
In progress
Phnom Penh Post, 19 April 2015

Phnom Penh Post, 17 December 2014

2
Developed New National Accreditation System
The new system is established to ensure all Cambodia-made products meet ASEAN and international quality standards as the Kingdom prepares for regional integration at the end of the year. MIH needs to make sure that companies and agencies that provide product certification services are equipped to do so and are operating to the highest standards. All Cambodian-made products, from garments, rice, locally produced snacks to even bottled water, require a level of accreditation when packaged and sold domesticity or for export. Thailand’s National Standardization Council will work with the MIH’s Department of Accreditation to install the system. Currently, Cambodia’s accreditation system and laboratories are under the oversight of the MIH, the Ministry of Agriculture and the Ministry of Public Health. The newly established Department of Accreditation under the MIH will now serve as the single government oversight body making the process faster and less complicated.
In progress (In process to install system)
Phnom Penh Post, 10 February 2015

3
Developed Inspection Guidebook
The guidebook is develop to ensure SMEs are clear on the laws regarding government inspections and to help prevent extortion attempts by corrupt inspectors. The guidelines cover a range of inspections, from food hygiene to health and safety.
Completed (guidebook published)
Phnom Penh Post, 1 October 2014

Phnom Penh Post, 10 March 2015

4
Green Industry Initiative
MIH has called for companies to investigate alternative, renewable energy sources, which will in turn reduce energy costs, strengthen production capacity and promote value added industries – industries that go beyond producing only raw materials without incurring additional costs. The Green Industry Workshop aims to promote efficient, renewable and clean energy usage among Cambodia’s major industries with brick making factories listed as a key sector in need of more environmentally friendly practices.
On going ( Green Industry Workshop conducted)
Phnom Penh Post, 22 April 2014
5
Online registration platform for SMEs
The online registration, a means of cutting through bureaucracy, can reduce corruption and ensure transparency. Start-up capital of $3,000 or more would be able to register using the new process, which will take businesses just two to three days to complete. If people go to the ministry instead, starting from handing documents from the ground level, it usually takes 10 to 15 days to finish the whole process.
In progress (online registration implemented)
Phnom Penh Post, 7 July 2014
6
Industrial Development Policy 2015-2025 (approved by the Cabinet Ministers on March 6, 2015)
The policy would diversify the economy, decreasing its dependence on traditional sectors, like garments, tourism and agriculture, and directing foreign direct investment towards agro-businesses, handicrafts and light manufacturing. The policy framework will consist of four pillars: attracting FDI to boost industrial development in the domestic private sector; modernizing small- and medium-sized enterprises (SMEs) and linking them to multinationals; a regulatory framework that aims to enhance competitiveness; and policy creation on human resource development coupled with infrastructure and services improvements. The Council for the Development of Cambodia is expected to oversee the implementation of the policy. The new policy, launched by Prime Minister Hun Sen at the Peace Palace in Phnom Penh, will look to beef up the gross domestic product share of the industrial sector to 30 per cent by 2025, from the 24.1 per cent recorded in 2013. All relevant ministries and institutions have to create a unit in charge of “Industrial Development Policy 2015-2025” to prepare action plan for the implementation of the policy at their individual ministries and institutions.

* The ministry created 24 working groups who are responsible to implement the policy action plan of Industrial Development Policy 2015-2025.
  • These working groups have duties to:
    • Implement the action plan in the matrix of the Industrial Development Policy 2015-2025 that is related to the Ministry of Industry and Handicrafts
    • Encourage and monitor action plan of each department
    • Prepare the budget plan to implement each action plan
  • Aggregate and report on the implementation of the action plan every three months.

Completed (Policy approved on 06 March 2015)

Completed (Working Groups Created)
Phnom Penh Post, 6 March 2015


Industrial Development Policy 2015-2025


Prakas 17
7
One Window Service Office
It was established to facilitate the process of business registration, new license application, extension of license, and other related documents.


* The ministry has created one window service office and one roof office with the implementation of online enterprise and handicrafts registration. This intends to accelerate service delivery, reduce time, eliminate bureaucracy, and to gain trust from the public.


  • The ministry has created one window service office of National Metrology Center to make it easier in providing public services to businessmen.


Completed (Prakas 908)

Completed


Completed
Prakas 908, 20 May 2014
(Khmer)


MIH Achievement Report 2016
8
Improving access to and quality of urban drinking water supply
As activities to improve access to and quality of urban drinking water supply, National Strategic Development Plan (NSDP) 2014-2018 envisages the following actions:
• Develop a legal framework for urban water supply
• Promote decentralization and de-concentration in the urban water supply sector
• Transfer full autonomy for service delivery to all provincial waterworks
• Increase sector financing
• Improve sector performance and access to safe, affordable and sustainable water supplies and
• Improve water source protection and enforcement of regulations.
(Each of the above items comes with a number of more specific actions detailed in NSDP 2014-2018)

MIH has been making a number of progresses against all the above key action points in a highly systematic, integrated and well sequenced manner through:
• Enactment of a number of related Prakas (see references)
• Expansion of urban water infrastructure across the country (to improve quantity) - including major infrastructure projects of Public Water Utilities in Battambang, Kampot, Kampong Cham. Private investment in such facilities has also been encouraged and increasing.
• Capacity building of central and provincial water authorities to improve quality of service as well as financial management sustainability of each water supply entity
• Organisational reform including upgrading of relevant government entities and improved human resources management within relevant authorities (e.g. upgrading of the Department of Potable Water Supply to the General Dept of Potable Water Supply in order to enhance the administration of water supply and the enforcement of relevant regulations)
The reform activities are still in progress, but already some concrete results have been achieved which are commendable even from the world standard:
• As far as the Cambodian Millennium Development Goals (CMDGs) are concerned, Goal 7 (Ensuring Environmental Sustainability)'s target on urban water (80% urban population has access by 2015) was achieved well in advance.
• Several provincial water authorities have been improving the financial performance.
In-progress
Prakas 461, 24 December 2013 (Khmer)

Prakas 210, 26 May 2014 (Khmer)


Prakas 070, 24 December 2013 (Khmer)

• Announcement No.747 CoM, 20 Jul.2016. (regarding creation of the General Dept of Potable Water Supply)
9
The Water Supplier Monitoring System (WSMS)
The Department of Potable Water Supply of the Ministry of Industry and Handicraft together with the Water and Sanitation Program (WSP) build a public website which allows water operators to use this system to submit their reports electronically, so to fulfill their reporting obligation as required by the ministerial Prakas. MIH uses this system to better exercise their monitoring and regulatory responsibilities, including water sector information disclosure.

The system serves as a platform with comprehensive database and geographic interface to various types of users, including general public. It provides an M&E module for tracking the progress of key indicators for Cambodia’s water operator, a web portal for the collection, analysis and dissemination of information and GIS mapping of water operator data among others.
On-going
WSMS
10
Small and Medium Enterprises (SMEs) Park
To attract investor, reduce cost, and to ensure sustainable market, the Ministry of Industry and Handicrafts has cooperated with private sector to pilot building an SMEs park in Kandal province. The Ministry has also proposed feasibility study to create another two SMEs parks in two different provinces which are kompong Chhnang and Kompong Cham.
In 2017 the ministry will continue to conduct studies and encourage the development of SMEs park under the theme “One Province One Small and Medium Enterprise and Handicraft (SMEH) Park”.
On-going
MIH Achievement Report 2016
11
Functional Transfer
In 2016 the ministry has finished preparing the list of functional analysis of the ministry and the four General Departments (General Department of Industry, General Department of Small and Medium Enterprises and Handicrafts, National Metrology Center, and Institute of Standards of Cambodia). The functions that should be transferred to subnational administration which is the municipal and provincial investment commission are:

1. Factory and enterprise registration (with capital less than 2 million dollars)

2. Handicrafts registration (with capital less than 50 thousand dollars)

3. Small enterprises and handicrafts in manufacturing sector (with capital less than 3 thousand dollars)

After discussion with municipal and provincial technical departments, they are committed to this functional transfer, the ministry also discussed with NCDD about some technical works to ensure a smooth and effective process.
Planning-stage
MIH Achievement Report 2016
12
Functional transfer in metrology sector
The ministry has delegated some functions to municipal and provincial Department of Industry and Handicrafts.
  1. Monitoring of metrology equipment (non-automatic scale, scale for weighing valuable items [gold, platinum, or diamond], nozzle used at gas station, and gas measuring instruments)
  2. Monitoring of manufactured goods and packaged goods which have been produced and sold at the market.
Completed
MIH Achievement Report 2016