PHNOM PENH: The Asian Development Bank (ADB) approved a $100 million loan to help build Cambodia's workforce capacity by addressing skills gaps and shortcomings through education and investment reform. The loan will focus on Technical and Vocational Training (TVET) with the participation of the private sector.

The first sub-program of the “Skills Development Program for the Future Economy” will help transform Cambodia into a knowledge-driven and technologically-driven industrial economy through strengthening human resources by focusing on improving the country's environment in development skills by providing industry-led environment-friendly training and mobilizing additional funds for in-demand skills development.

The Asian Development Bank (ADB) Country Director for Cambodia, Jyotsana Varma, said that the reform of Cambodia's labor force and economic modernization require continuous reform of the TVET system through in-depth strategies and timely investment.

"These TVET structural and institutional reforms are essential for developing training programs that meet market needs, improve training facilities and equipment, and expand the Skills Development Fund (SDF)," she said.

The ADB noted three main challenges facing TVET in Cambodia: the lack of specific and in-depth training programs towards digitalization, and the limited role of the private sector in the development of skills and the interactive vision of various industries, financing and partnerships which are not yet realized in the field of training.

Together, these challenges can determine the viability and productivity of the current and future workforce and can prevent post-pandemic Cambodia from diversifying and interacting with a knowledge-based economy. Training programs for the future economy will help address these challenges.

According to an ADB report, there are approximately nine million workers in the Cambodian labor market, 49% of which are women. By 2021, 54% of Cambodians will be under the age of 30, which presents a unique opportunity for the country to increase investment in human resource development and increase skills for new employees entering the labor market towards meeting industry needs.

The ADB press release emphasized that this program is a key element of ADB's support for the Royal Government in strengthening human resources and developing the private sector and the labor market, and in line with the Royal Government's Joint Development Plan and Strategy, as well as the ADB’s Strategic Strategy for Cambodia from 2019-2023.