Progress Review for Formalisation of Cambodia’s Non-Formal Economy

AKP Phnom Penh, June 21, 2019 —

Cambodia and international labour experts have discussed the evaluation of an endeavour to formalise the Kingdom’s non-formal economy to better the benefit and welfare of workers.

The discussion took place recently at the Ministry of Labour and Vocational Training here in Phnom Penh, between its Secretary of State H.E. Mam Vannak and visiting delegation of Evaluation Department of the International Labour Organisation (ILO) led by an independent consultant Mr. Paolo Carlini.

The Royal Government of Cambodia in cooperation with ILO strategised action plans to formalise Cambodia’s non-formal economy from 2014 to 2018 so that workers in the industry are recorded and supported with necessary social security measures to improve their welfare.

The discussion between the ministry and ILO intended not only to see the result of formalisation effort, but also to document lessons learned and case studies for sharing with concerned stakeholders within and beyond Cambodia.

According to the ministry’s record, the Royal Government of Cambodia has generated jobs for 99.3 percent of about ten millions of the Kingdom’s population in current labour market.

Of the mentioned number, almost 1.5 million are being employed in formal economy, 2.4 in non-formal economy, over 4 million in agriculture, 1.2 million are migrant workers overseas, and 500,000 are civil servants.

The government particularly through labour ministry so far has introduced policies and procedures as social security support to all workers, including those in both formal and non-formal economies, focusing on the vulnerable groups such as pregnant women and those with lower income.

Once the evaluation for Cambodia is completed, the result will be brought to the governing board of the ILO to study and decide the next steps.

On behalf of the Royal Government of Cambodia, H.E. Mam Vannak thanked the ILO team and the independent consultant for the good cooperation.

By Mc Soleil