Cambodia Launches M&E Framework to Boost Informal Economy Formalization

The Royal Government of Cambodia has taken a decisive step forward in formalizing its informal economy with the official launch of the Monitoring and Evaluation (M&E) Framework for the National Strategy on Informal Economy Development (NSDIE) 2023–2028. This milestone marks a comprehensive and inclusive push to transform the livelihoods of millions of informal workers by expanding access to public services, protections, and economic opportunities.

A New Era of Inclusion for Informal Workers

Launched with support from the Ministry of Industry, Science, Technology and Innovation (MISTI), in cooperation with the International Labour Organization (ILO), UNDP, and the Australia-funded CAPRED programme, the M&E Framework will oversee the implementation of NSDIE across 28 ministries and 25 provinces.

The framework serves as a nationwide monitoring system to track interventions aimed at integrating informal workers and enterprises into the formal economy. It will assess the impact of policy measures that improve access to health insurance, digital registration, skill development courses, social protections, and affordable finance for the informal sector — which constitutes a significant portion of Cambodia’s workforce.

CAM-IE: The Heart of Cambodia’s Digital Formalization Drive

A centerpiece of the NSDIE initiative is the CAM-IE platform, a user-friendly digital tool launched in December 2024. CAM-IE enables informal businesses to register online and access services, acting as a single-window gateway for onboarding, training, financing, and legal identity.

Accessible via mobile app, web portal, and in-person support at partner bank branches, CAM-IE has already received over 119,183 applications, signaling high demand from small entrepreneurs and self-employed workers. CAM-IE also links registrants with social security schemes, microfinance opportunities, and vocational training programs, further accelerating the journey from informality to formality.

Real-Time Tracking Through Digital Dashboards

At the launch event, held in Phnom Penh and attended by over 350 government officials, private sector actors, and development partners, the government unveiled an advanced digital dashboard for the M&E framework. This tool provides real-time analytics on service uptake, including:

• Registrations through CAM-IE

• Participation in social protection schemes

• Enrolment in skill-building programs

• Gender-disaggregated service utilization

• Partner bank facilitation rates

The dashboard enables policymakers to tailor interventions based on actual needs and usage patterns, ensuring better responsiveness and accountability.

Financial Access Through Expanding Bank Partnerships

To strengthen the program’s outreach, the Cambodian government formalized partnerships with three additional commercial banks, bringing the total number of partner banks to eight. These institutions serve as physical registration points and help facilitate financial literacy, micro-loans, and formal business account openings for informal entrepreneurs.

This approach is particularly crucial for micro- and small-scale businesses that may lack digital literacy or access to mobile internet, enabling inclusive onboarding through traditional banking channels.

Empowering Women in the Informal Economy

The M&E framework is explicitly designed to measure gender equity, recognizing that women make up 87% of Cambodia’s informal workforce and 62% of micro-enterprise owners. The framework tracks indicators such as:

• Women’s enrolment in social protection programs

• Female participation in formalization and entrepreneurship initiatives

• Access to finance and training disaggregated by gender

• Digital engagement rates of women on the CAM-IE platform

“This isn't just about measurement, it's about dignity,” said Tun Sophorn, ILO National Coordinator. “When we track women's access to social protection or vulnerable groups' enrolment in skills programs, we're making inclusion measurable.”

A Phased and Contextualized Approach

H.E. Hem Vanndy, Minister of Industry and Chair of the Cambodian Council for the Development of the Informal Economy (CCDIE), emphasized the importance of customized interventions. “Our phased approach recognizes informality's diversity — from street vendors needing simplified registration to home-based enterprises requiring financial literacy training,” he noted. “The M&E system helps tailor interventions.”

The approach reflects an understanding that informality is not monolithic — it spans various occupations, locations, and levels of vulnerability. Accordingly, Cambodia’s strategy involves gradual, scalable reforms that match the needs of workers and businesses at every level.

International Support and Long-Term Vision

Cambodia’s NSDIE initiative and the accompanying M&E framework have received strong backing from development partners, including UNDP, ILO, and Australia’s CAPRED programme. These agencies are providing not just financial assistance, but also technical expertise, digital infrastructure, and policy coordination.

The long-term vision is to integrate 2 million informal workers and micro-entrepreneurs into the formal economy by 2028, building a more resilient, inclusive, and productive economy that is aligned with Cambodia’s broader Digital Economy and Society Policy Framework 2021–2035 and the Pentagon Strategy Phase 1 (2023–2028).

Final Thoughts

With the launch of the M&E Framework for NSDIE, Cambodia is setting a regional benchmark for managing informal-to-formal transitions. By digitally enabling registration, scaling public-private partnerships, and placing equity at the heart of implementation, the Royal Government is moving from intent to impact — ensuring that economic inclusion is no longer aspirational, but measurable and actionable.