PHNOM PENH: Minister of Industry, Science, Technology and Innovation, H.E Hem Vanndy, has called on the European Union to take a deeper, more targeted approach in calibrating its existing and future support to Cambodia, as the country prepares for its graduation from Least Developed Country (LDC) status by 2029.
He made the remarks in a Sectoral Technical Meeting held in Phnom Penh on June 17 with the EU Delegation led by Mr. Koen Everaert.
H.E. Minister emphasised the importance of the EU’s portfolio to be aligned with Cambodia’s Pentagonal Strategy and geared toward overcoming the critical development gaps that still remain. “We ask Team Europe not only to continue what’s working, but to deep dive—what else must we do now to avoid missing the opportunity for a successful LDC graduation?” he said.
“With global uncertainty now, Cambodia will need a gradual transition through agro-processing and industrialisation, adding value to our local products before reaching service-led growth,” he added.
The EU delegation delivered a comprehensive overview of the Joint European Strategy, Team Europe initiatives 2 (TEI 2), and its Global Gateway.
They highlighted a €500 million investment spanning 25 programmes over the next two years under TEI 2. They also highlighted key projects and success stories, underscoring the EU’s commitment to fostering cooperation and driving sustainable development in Cambodia.
One of Team Europe’s flagship initiatives highlighted during the meeting was the Bakheng Water Treatment Plant, a Global Gateway project supported by France through AFD.
With a combined EU investment of over €600 million across three phases, the project, when completed will have doubled Phnom Penh Water Supply Authority’s capacity from 0.6 to 1.2 million cubic metres per day, upgraded over 5,000 kilometres of water supply network, and connected over 500,000 households, including in industrial zones.
H.E. Hem Vanndy also called on the EU to support Cambodia in vital sectors for industrialisation, with a particular focus on meeting market requirements and technical regulations.
He emphasised the importance of strengthening Cambodia’s national quality infrastructure, improving productivity to boost SME competitiveness, and facilitating linkages between local SMEs to the value chain of large industries.