Open Development Cambodia ran a workshop on “Digital Governance and E-Commerce Technology in Small-Midsized Enterprises (SMEs)”

A workshop on “Digital Governance and E-Commerce Technology in Small-Midsized Enterprises (SMEs)” was held on June 29, 2023, by Open Development Cambodia (ODC). 10 participants (four of which were women) representing various industries attended. The workshop’s main goals are to disseminate the research study’s findings on the effects of new digital and technology laws and regulations on small and medium-sized enterprises (SMEs), on which ODC worked with William & Mary Law School in the United States, and to identify areas where the policy dialogue on the governance of small and medium-sized businesses needs to be expanded.

There are four objectives of the workshop, namely:

1. Present research on newly enacted laws as well as the impacts of potential regulations, particularly data protection laws and the National Internet Gateway (NIG).
2. Provide an opportunity for relevant stakeholders to express their views regarding existing and proposed e-commerce and technology laws/regulations.
3. Identify the proactive measures to take moving forward.
4. Discuss how the proposed law and associated regulations will interact with SMEs, particularly in compliance areas.

The workshop commenced with a welcome speech by Ms. Ourn Vimoil, Partnership and Program Manager at ODC. The speech discussed how digitalization has changed communication in social, political, and economic systems. However, many Cambodians from underrepresented groups lack the agency to scale their businesses and adhere to laws governing SMEs and digital, despite the fact that the internet has made connections with agents from various backgrounds stronger and more inclusive.

The next agenda item pointed two presentations by Ms. Lauren Daffenberg, Research Intern at ODC. The first presentation covered an overview of digital governance regulations and research results. The presenter began talking about the National Internet Gateway (NIG) that has negative responses from Civil Society Organizations (CSOs). NIG is essential to improve tax collection, national security, and cybercrime control, but it is said that the enforcement restrict competition between internet service providers (ISPs) in Cambodia. Additionally, it holds back the investment to invest in or drop out of the industry. Domain Name Change is another regulation that strengthens the link between domestic and international markets and benefits the country by increasing tax revenues and improving data collection, but it can come with additional beginning costs for individuals/enterprises.

The following presentation gave an overview of the regulations governing SMEs and technology, including e-commerce law, various sub decrees, and civil and criminal codes. E-commerce law does a good job defining the language in regard to the legal system, but there is no definition of personal data, and the law applies to almost any documents, actions, information, etc. that circulate on the internet and preserve data without any time limit. Two sub decrees were highlighted, such as N252 on the management, use, and protection of personal identification data and N287 on the management and use of national domain names on the internet. On top of that, the presenter indicated the General Data Protection Regulation (GDPR) in the European Union as one of the best examples of all-encompassing legislation because it applies to any entity that collects the data of an EU citizen. Therefore, SMEs will gain consumer trust and develop a positive business reputation once they are able to secure data privacy.

The presenter wrapped up the sessions by highlighting the strengths of the NIG in ensuring national security and combating cybercrime. It was suggested that in addition to discussing and educating its citizens about technology, legislation governing it should also be covered. More crucially, as SMEs are crucial to the growth of Cambodia’s economy, the consequences of these regulations on them need to be carefully considered. After each presentation, there is a discussion session that engages the participants to reflect and share their experiences regarding the discussed topic. After the presentation on the NIG, it was clear that there were some participants in the workshop heard about the NIG for the first time. Being aware of this legislation is an important step to introduce in the public dialogue. Concluding the second presentation, the first thoughts were on the registration process for SMEs. This process has gotten easier within the last few years; however, the expenses regarding time and money are significant to a lot of SMEs and startups. Different organizations and ministries in the government do not have a common definition of a micro, small or medium sized business, which means that some businesses do not know what is required of them because they do not know where they fall. A more consistent definition could improve this. Many choose to not register for various processes which then hurts the competition of those who are registered with the government. Other than the registration process, some of the participants also struggled with maintain their domain website. This was because of multiple reasons, but some of the main points were that Facebook is still a much easier way to access information, and running a website comes with more problems than benefits.

The group also discussed what data protection means in society today, especially in regard to their personal data. There is a clear gap between the young generation and the older generation. It is not uncommon for the older generation to get scammed or hacked without ever knowing what is happening to them; many adults do not even care about protecting their personal data online and have no intention of wanting to know how to protect it. However, the younger generation is becoming a lot more aware just like the rest of the world. Many of the participants shared that consumers/respondents are now starting to ask about what is done with their data and are trying to make sure that their personal data is secured. Because of the pressure of the younger generation, it is important that SMEs start at least looking to prepare methods to protect personal data.

Between the two presentations, ODC seized the opportunity to present a project on “Strengthening informal economies and SMEs in Cambodia through open data and digital literacy,” funded by the Center for International Private Enterprise (CIPE). Mr. Chheng Pheaktra, Project Officer at ODC, delivered the presentation of the project and stated the aim to raise awareness members of SMEs and informal economies like women and indigenous peoples (IPs) with digital and budget literacy and legal understandings related to Cambodia’s private sector. Additionally, this is an opportunity to network with participants who manage or work for SMEs and to connect with the study presentation, which offers relevant data and recommendations for implementing the project. The workshop was concluded with a closing remarks by Ms. Ourn Vimoil and a group photo. ODC strongly believes that this workshop is one of the channels to engage with the private sector and helps discover new areas of research and what resources can be developed to help SMEs.