Cambodia receives $100 mn ADB loan for skills development

The first subprogramme of the Skills for Future Economy Sector Development Programme will help transform Cambodia into a technology-driven, knowledge-based industrial economy by strengthening its human capital resources, with a focus on enhancing the country’s skills development environment, providing industry-led inclusive training, and mobilising additional funds for demand-driven skills development, ADB said in a press release.

“Reshaping Cambodia’s labour force and modernising its economy requires the continual reform of the TVET system through comprehensive strategies and well-timed, successive investments,” said ADB country director for Cambodia Jyotsana Varma. “These structural and institutional reforms in TVET are crucial in designing training programmes that meet market demand, upgrade training facilities and equipment, and expand the Skills Development Fund (SDF).”

The SDF was piloted by the government under the ADB-financed Skills for Competitiveness Project, which was approved in 2019 to boost the skills and competitiveness of Cambodia’s growing labour force. The SDF pilot has been responding to industry skills development training needs through co-financing partnerships with government institutions, industries, training providers, and development partners.

Three key challenges contribute to the broader constraints facing Cambodia’s TVET system—the lack of a focused and comprehensive skills development programme for the fourth industrial revolution, limited private sector roles in skills development and the transformational vision of industries, and inadequate financing and partnerships in skills development. Combined, these challenges limit the employability and productivity of current and future labour forces and may prevent post-pandemic Cambodia from diversifying and transforming into a knowledge-based economy. The Skills for Future Economy Programme will help address these challenges.

An estimated 9 million workers make up Cambodia’s labour market, with women accounting for 49 per cent of the workforce. As of 2021, 54 per cent of Cambodia’s population was under 30 years old, presenting a unique opportunity for the country to increase investment in human capital development and enhance the skills of new entrants to the labour market, while also upgrading the skills of existing workers to match industry demand.

The programme is a key component of ADB’s support for the government to strengthen human resources and develop the private sector and jobs market. It is also aligned with the government’s overall development plan and strategy as well as ADB’s country partnership strategy for Cambodia, 2019–2023.

ALCHEMPro News Desk (NB)