How Cambodia can harness the potential of Industry 4.0

Policy Links have launched a new report conducted in collaboration with the UN Development Programme (UNDP) that identifies opportunities and challenges for manufacturing industries in Cambodia to adapt and adopt industry 4.0 technologies, and the policy options required to harness its potential in Cambodia. The adoption and adaption of Industry 4.0 will result in more efficient and productive use of labour, capital and natural resources for Cambodia thus promote the country’s competitiveness as an industrial location.

The report identifies that the emerging picture is one characterized by contrasting views but also one that highlights the need for countries to act. If Cambodia can build on a number of conditions such as investments in basic and digital infrastructure; improvements in the institutional framework; addressing financial constraints; and strengthening linkages between innovation actors it will underpin the country’s competitiveness in the region.

As COVID-19 recovery begins by setting these pre-existing conditions it will give an edge to Cambodian companies that are competing with the imminent reconfiguration of supply chains in the ASEAN region.

“Far too few enterprises in Cambodia are aware of, let alone access, new Industry 4.0 technology. As a result, the economy is missing out on big productivity gains and workers are missing out on high skilled jobs and better pay. This report is an excellent counterpart to the work undertaken by the Royal Government on Cambodia’s Digital Strategy and we are keen to synergize the two,”

Nick Beresford, UNDP Cambodia’s Resident Representative

This report paves the way for further stages: a detailed survey of industrial practices, also reflecting any COVID-19 impacts; and the development of policies mechanisms to ensure technology transfers in the future.

Download the full report here