H.E. Hem Vanndy, Minister of the Ministry of Industry, Science, Technology & Innovation and Chairman of the Coordinating Committee for Development of Informal Economy (CCDIE) 
Ms. Kirsty Harris, Development Counsellor, Australian Embassy in Cambodia
Mr. Tun Sophorn, National Coordinator of ILO Cambodia
Distinguished speakers and panellists, 
Excellencies and distinguished guests,
Chum reap suor and good morning,

I am pleased to be here today at the launch of the Monitoring and Evaluation (M&E) Framework for the National Strategy on the Development of Informal Economy 2023–2028 (NSDIE), which I believe is a critical matrix to assess progress towards Cambodia’s goals for informal economy development. I would like to express our sincere appreciation to the Ministry of Industry, Science, Technology & Innovation (MISTI), the Australian Department of Foreign Affairs and Trade (DFAT), the Cambodia Australia Partnership for Resilient Economic Development (CAPRED), and to the International Labour Organization (ILO) for the collaboration in developing this important framework.

Excellencies and distinguished guests,

As we are all aware, Cambodia has a substantial informal economy, like many other developing countries. Estimates suggest that the informal economy employs 88% of the national workforce, with women representing about half of it. The informal economy supports the livelihoods of more than 6.2 million Cambodians. The informal economy presents both a challenge and an opportunity. A challenge, because the majority of those who work in the informal economy often don’t have access to decent employment, social protection, pension, and other services. The economic productivity in informal economies is much lower than that of formal economies. However, at the same time, the informal economy holds immense potential to promote growth, improve livelihoods, and foster prosperity. In fact, in many countries, the informal sector has played a critical role in poverty reduction. What is therefore needed is to harness the potential of the informal economy to make it more productive and reduce workers’ vulnerabilities to potential risks and shocks.

The NSDIE, launched in October 2023, is therefore an appropriate step in this direction. It aims to enhance protection, build capacity, improve productivity, and strengthen the resilience of informal workers and enterprises—ultimately enabling a gradual and voluntary transition to the formal economy. We are already seeing promising results from the implementation of NSDIE. For example, since the expansion of social security for the self-employed and informal workers in 2024, more than four hundred thousand individuals—mostly women—have registered for the voluntary contributory scheme and are now benefiting from it. Following the launch of the Digital Onboarding Platform for the Informal Economy in 2025, more than one hundred thousand informal workers and micro-businesses have registered for a digital certificate, which serves as a substitute for formal business registration, thereby unlocking access to finance and training. Notably, 70% of registrants are women. This is a promising start. The M&E Framework, which is being launched today, will further strengthen the implementation of NSDIE. It provides us with the right tool to track progress, measure impact, and make evidence-based decisions.

Excellencies and distinguished guests,

Enhancing the capacity of Micro, Small and Medium Enterprises (MSMEs) is one of UNDP’s key priorities. We are currently partnering with the National Bank of Cambodia and other government counterparts, including MISTI, in developing an international platform for Universal Trusted Credentials (UTC). This is a digital credentialing system deploying blockchain technology to facilitate access of MSMEs, including informal ones, to finance through an alternative non-financial collateral system.  UTC complements the government’s Digital Onboarding Platform. We at UNDP are therefore pleased to have supported the development of this M&E Framework, and we look forward to our continued engagement in its effective rollout.

Excellencies, distinguished guests,

As we move forward, we should clearly communicate that informal economy development is not about imposing formality; it is about empowering people. Legal identity, financial inclusion, and protection from exploitation are not privileges; they are rights. The tools offered by NDSIE will help informal workers and entrepreneurs build assets, grow their businesses, and contribute more productively to Cambodia’s development. The UNDP remains committed to working with its partners to support the Ministry of Industry, Science, Technology, and Innovation in implementing the NDSIE and its M&E Framework. This work fully aligns with UNDP’s program priorities to promote an inclusive, sustainable, and just transition in Cambodia. 

I thank you all for your attention and wish you a productive workshop. 
Saum Orkun.