The European Union’s (EU) long-standing partnership and cooperation in key reforms in exports, public finance management and agribusiness would focus more on technical education to produce middle and higher technicians.

This is to support the transition of Cambodia’s economy into a green and digital one, with jobs for the young population, said Bryan Fornari, head of cooperation for the EU delegation to Cambodia.

In line with that, the EU partnership would expand in agriculture and industrial sectors while promoting the environmental and social standards needed to “reap the full benefits of access to the European market”.

“Our cooperation on these key reforms will aid and prepare Cambodia for a smooth transition from Least Developed Country (LDC) status, with new opportunities, such as foreign direct investment inflows, opening up,” he said.

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In that, key reforms also help Cambodia address “new challenges coming from the new middle-income status”, for instance, the change of preferential market access for exports for which Cambodia now benefits from the Everything But Arms scheme.

Speaking at the ASEAN-Cambodia Business Summit in Phnom Penh, organised by EuroCham Cambodia last week, Fornari said Cambodia may be eligible for the EU’s Generalised System of Preference Plus (GSP+) upon migration from the LDC status.

The GSP+ is a special incentive arrangement for sustainable development and good governance which could enable Cambodia to maintain duty free access to the market for “the very key segments that are important to Cambodia” - garments, footwear and bicycles.

“The GSP+ scheme also includes reinforced conditionality on the implementation and compliance with international conventions on human rights, labour rights and a good governance environment,” he added.

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Reiterating that the EU remains committed to working closely with Cambodia on the crucial reforms needed for this smooth transition from LDC, Fornari asserted that beyond government reforms, EU member states are actively working to promote investments here and to attract opportunities for businesses.

“For this purpose, we have defined together what we call Team Europe Initiatives, initiatives that we do together. In particular, we have two - one in agriculture, and one on green energy and industrial value chains.

“The aim for TEI is to mobilise more investment for Cambodia under the Global Gateway, which is the European strategy or a roadmap to mobilise major investments around the world,” he said.

Meanwhile, Fornari mentioned that other opportunities lie ahead, including enhancing the green agribusiness sector. “Cambodia has a diverse range of products, like fruits, vegetables and spices, with a true potential of being processed to cater to European consumers, and meeting the quality and safety standards required by the European markets.

“This is what is needed. And this would enable Cambodian products to tap into European markets, which are very good markets because of their high purchasing power. Europeans are ready to pay premium prices for quality products.”