Phnom Penh: Minister of Industry, Science, Technology and Innovation, H.E Hem Vanndy, has urged the European Union to adopt a more targeted approach in its support for Cambodia, as the nation gears up for its transition from Least Developed Country (LDC) status by 2029. H.E Vanndy expressed these views during a Sectoral Technical Meeting in Phnom Penh, attended by an EU Delegation led by Mr. Koen Everaert.
According to Agence Kampuchea Presse, H.E. Minister stressed the necessity for the EU’s initiatives to align with Cambodia’s Pentagonal Strategy to address the remaining development challenges. He emphasized the need for a gradual transition towards agro-processing and industrialization, which would add value to local products and pave the way for service-led growth. The Minister called for Team Europe to explore additional measures to ensure a successful LDC graduation.
The EU delegation provided an overview of the Joint European Strategy, highlighting Team Europe initiatives 2 (TEI 2) and the Global Gateway. They announced a £500 million investment across 25 programs over the next two years under TEI 2, emphasizing the EU’s dedication to promoting cooperation and sustainable development in Cambodia.
One significant initiative discussed was the Bakheng Water Treatment Plant, supported by France through AFD as part of the Global Gateway project. This project, with a combined EU investment exceeding £600 million, aims to double Phnom Penh Water Supply Authority’s capacity and enhance the water supply network, benefiting over 500,000 households, including those in industrial zones.
H.E. Hem Vanndy also appealed for EU assistance in vital sectors essential for Cambodia’s industrialization, with a focus on meeting market requirements and technical regulations. He highlighted the importance of strengthening Cambodia’s national quality infrastructure, improving SME competitiveness, and fostering connections between local SMEs and the value chains of large industries.