Despite considerable financial investments by international donors like the?Asian Development Bank (ADB)?into Cambodia’s?Technical and Vocational Education and Training (TVET)?sector, the country faces persistent issues in delivering a skilled workforce for high-demand industries such as car assembly, electronics, and light manufacturing. Between 2014 and 2023, ADB alone committed?over $190 million?in loans and grants to improve Cambodia’s vocational education, aimed at addressing skills gaps, upgrading infrastructure, and developing industry-driven curricula. However, the gap between available jobs and qualified workers remains wide, with?over 50,000 jobs?in key sectors such as industry and services still unfilled according to MOLVT (39,017 in the industrial sector, 2,801 in the service and 9,887 in the agricultural sector to boost the production chain).
Over the past two decades, the Asian Development Bank (ADB) has provided substantial support to Cambodia’s vocational training sector through a combination of concessional loans and grants, focusing on technical and vocational education and training (TVET). Key programs include:
- Technical and Vocational Education and Training Sector Development Program (TVETSDP): Launched in 2014, this initiative has seen around $30 million in ADB loans aimed at improving the quality, access, and relevance of TVET in Cambodia. The program's primary objectives include modernizing the curriculum, upgrading training institutions, and ensuring training aligns with market demands, with a particular focus on supporting marginalized groups such as women and the poor.
- Skills for Competitiveness Project: Approved in 2019, this $60 million project seeks to boost Cambodia’s labor force skills by addressing critical gaps in industries like manufacturing and construction. The project funds demand-driven skills development initiatives and promotes industry collaboration in training.
- 2023 Skills for Future Economy Sector Development Program: This recent $100 million initiative is focused on enhancing Cambodia’s ability to transition to a knowledge-based economy through reforms and investments in TVET, alongside mobilizing additional funds for industry-led skills training.
The funds have been used to upgrade facilities, enhance the quality of vocational training, increase accessibility for vulnerable populations, and promote private sector involvement in training. Additionally, the Skills Development Fund, co-financed by ADB and the government, plays a pivotal role in ensuring ongoing industry-relevant training for Cambodian workers
This paradox is mainly due to a focus on building the "hardware" of education (infrastructure) while neglecting the "software" (qualified trainers and curricula). The current TVET system suffers from a lack of skilled instructors, outdated curricula, and poor linkage to actual market demands.
- Neglect of Instructor Training: While investments have been channeled into building new vocational schools, less attention has been paid to the training of educators. The absence of skilled trainers is one of the most significant weaknesses. This is critical because?the quality of education depends on the capacity of instructors, which directly impacts students' skillsets(Over 50,000 workers nee…).
- Mismatch Between Training and Market Needs: Vocational training programs often lack alignment with the skills foreign investors require. For example,?manufacturing sectors?like automotive assembly and electronics demand specialized technical expertise, but these are rarely the focus in the current curriculum.
- Limited Private Sector Involvement: Programs designed to incorporate private sector input, such as?the Skills Development Fund (SDF), have seen slow uptake. Industry collaboration remains limited, and many training programs do not adequately reflect the needs of high-tech industries.
- Focus on Physical Infrastructure: Government ministries have utilized much of the funding to build more TVET schools without modernizing the training content or teaching methods. This has led to well-built facilities but?underutilized or ineffective programs.
- Informal Sector Overlooked: Cambodia's?informal sector?is a significant source of employment, yet its workers are largely excluded from vocational training opportunities. Integrating informal sector workers into formal training could expand the skilled labor pool.
- Substantial International Funding: Ongoing financial support from ADB and other international organizations for TVET infrastructure.
- Growing Industrial Demand: Increasing interest from foreign investors in sectors like automotive assembly and electronics, creating opportunities for job creation.
- Lack of Skilled Instructors: Few teachers are adequately trained in high-demand sectors like electronics and car assembly.
- Curriculum Mismatch: TVET programs are not aligned with current market needs, limiting job prospects for graduates.
- Poor Private Sector Engagement: Limited collaboration between training institutions and industries.
- Industry Growth: Expanding demand for skilled labor in emerging industries provides a clear incentive to reform TVET programs.
- Potential for Public-Private Partnerships: Greater collaboration with the private sector could modernize training content and ensure better employment outcomes for graduates.
- Inclusion of Informal Sector Workers: Offering training to informal workers can formalize their skills and improve the overall labor market.
- Persistent Skill Shortage: Without addressing the educator shortage and curriculum gaps, the skills mismatch could worsen, deterring foreign investment.
- Dependence on Foreign Aid: Over-reliance on external funding might create sustainability challenges once international donors reduce support.
Action Plan for Addressing the Skilled Labor Shortage
- Reform Instructor Training Programs:Objective: Ensure all vocational instructors are adequately trained in modern teaching methods and industry-specific skills.Actions:Provide scholarships for trainers to receive international certifications.Establish partnerships with foreign institutions for train-the-trainer programs.
- Align TVET Curriculum with Industry Needs:Objective: Develop a market-driven curriculum that addresses the requirements of high-growth industries.Actions:Regularly consult with private sector stakeholders to update curricula.Focus on high-demand sectors like electronics, automotive, and manufacturing.
- Enhance Private Sector Involvement:Objective: Involve industry leaders in shaping and delivering vocational training.Actions:Expand co-financing mechanisms like the Skills Development Fund (SDF).Incentivize businesses to participate in training initiatives through tax breaks and public recognition.
- Expand TVET Access to the Informal Sector:Objective: Integrate informal sector workers into vocational training programs to enhance their employability.Actions:Develop flexible, modular training programs suited to informal workers’ needs.Provide financial aid or stipends to encourage participation from low-income workers.
- Monitor and Enforce Compliance with Labor Laws:Objective: Ensure vocational training programs comply with Cambodia’s labor and employment laws(Guidebook Cambodian Emp…).Actions:Strengthen the Ministry of Labor’s monitoring mechanisms for vocational institutions.Align training programs with labor regulations to protect workers’ rights.
TVET programs in Cambodia should prioritize industries that have high demand for skilled labor, are experiencing rapid growth, and are critical for both the domestic economy and attracting foreign investment. Based on current labor market needs and industry trends, the following sectors should be prioritized:
- Why Prioritize: The automotive sector is growing rapidly in Southeast Asia, and Cambodia has the potential to attract foreign investment in car assembly. Developing specialized skills in automotive engineering, mechanics, and assembly line operations will support this growth.
- Key Skills Needed: Mechanical engineering, robotics, assembly line management, quality control.
2.?Electronics and Electrical Manufacturing
- Why Prioritize: The global electronics industry continues to expand, and Cambodia is in a position to become a hub for electronics manufacturing and assembly. Vocational training in electronics assembly, circuit design, and quality testing can provide a skilled labor force for investors.
- Key Skills Needed: Electronics assembly, semiconductor manufacturing, testing, quality assurance.
- Why Prioritize: Light manufacturing, including textiles and consumer goods, is already a significant employer in Cambodia. Improving skills in areas such as machine operation, production line management, and quality control can help modernize and expand this sector.
- Key Skills Needed: Machine operation, production efficiency, lean manufacturing, quality management.
- Why Prioritize: Cambodia’s infrastructure development is driving demand for skilled workers in the construction industry. TVET programs should focus on training in construction management, safety regulations, and advanced building techniques.
- Key Skills Needed: Construction management, electrical installation, plumbing, welding, safety protocols.
5.?Information and Communication Technology (ICT)
- Why Prioritize: As Cambodia seeks to transition to a knowledge-based economy, the ICT sector is essential. TVET programs should offer courses in software development, network management, and cybersecurity to build a future-ready workforce.
- Key Skills Needed: Coding, network management, cybersecurity, IT support, data analysis.
- Why Prioritize: Agriculture remains a cornerstone of Cambodia’s economy, but the sector requires modernization. Training in agro-industrial processes, agricultural machinery, and sustainable farming techniques can improve productivity and appeal to international markets.
- Key Skills Needed: Agronomy, machinery operation, food processing, sustainable practices.
7.?Tourism and Hospitality
- Why Prioritize: Cambodia’s tourism sector continues to grow, particularly with its cultural and historical sites. Training in hotel management, culinary arts, and tourism services is essential to provide high-quality services that attract international tourists.
- Key Skills Needed: Hotel management, customer service, event planning, culinary arts.
- Why Prioritize: As sustainability becomes a global priority, renewable energy is a growing sector. Training programs should cover solar panel installation, wind energy technologies, and maintenance of renewable energy systems.
- Key Skills Needed: Solar energy systems, wind energy, renewable energy maintenance, electrical engineering.
- Why Prioritize: The healthcare industry in Cambodia is in need of skilled professionals, especially as the country aims to improve its healthcare system. Training programs focused on nursing, healthcare support, and medical technology can meet growing healthcare needs.
- Key Skills Needed: Nursing, medical assistance, healthcare technology, public health.
Cambodia's skilled manpower shortage, despite significant international funding, stems from systemic inefficiencies in the TVET system. To overcome these challenges, a comprehensive action plan focusing on training instructors, modernizing curricula, and involving the private sector is essential. By integrating informal workers into the formal vocational training system and ensuring alignment with labor laws, Cambodia can better position itself to meet the demands of a growing industrial economy.
David Van is a savvy business and policy advisor, with decades long experience in regional senior management roles and development sector in Asia, as well as government relations advisory support, blended finance and private-public partnership conceptualization
