{"id":2344,"date":"2019-07-12T18:21:37","date_gmt":"2019-07-12T11:21:37","guid":{"rendered":"https:\/\/capitalcambodia.com\/?p=2344"},"modified":"2019-07-12T18:24:29","modified_gmt":"2019-07-12T11:24:29","slug":"who-will-defuse-the-ticking-time-bomb-of-cambodias-skills-shortage","status":"publish","type":"post","link":"https:\/\/capitalcambodia.com\/who-will-defuse-the-ticking-time-bomb-of-cambodias-skills-shortage\/","title":{"rendered":"Who will defuse the ticking time-bomb of Cambodia\u2019s skills shortage?"},"content":{"rendered":"
A combined effort to jump-start the Kingdom\u2019s vocational education programs might be too little too late<\/em><\/p>\n
To say that the government has closed the door after the horse has bolted would be an understatement in relation to the urgency of Cambodia\u2019s skills gap.<\/p>\n
This comes after decades of warnings, initiatives, and development loans focused on the issue but still Cambodia gallops towards the cliff face.<\/p>\n
At present, Cambodia is ill-prepared to meet targets set out by the Industrial Development Policy (IDP) that aims to hoist the nation, baggage and all, up the value chain.<\/p>\n
Certainly, progress has been made. Phnom Penh in particular, is not the city it was five years ago, let alone two decades ago.<\/p>\n
Introducing both the National Employment Policy 2015-2025 (NEP) and the National Technical Vocational Education and Training Policy (NTVET) 2017-2025, Heng Sour, spokesperson for the Ministry of Labour and Vocational Training, points out that \u201cCambodia has placed human capital development at the centre of our agenda by adopting socio-economic policies to cope with the transformative changes led by mega-trends to equip our labour force with skills of the future.\u201d<\/p>\n
Sour was keen to emphasise that the ministry\u2019s 2019 Strategic Development Plan, which aims to strengthen Technical and Vocational Education and Training (TVET) quality, its support to socio-economic development, as well as promoting public-private partnerships, good governance as well as research and development. Whether enough has been done will soon become apparent.<\/p>\n
A lack of urgency?<\/strong><\/p>\n
As the EU looks set to end Cambodia\u2019s Everything But Arms (EBA) status, possibly ahead of the 2020 schedule, the need for diversification of revenue is now very real.<\/p>\n
Dark, Trump-shaped clouds are gathering over the US. Jingoistic protectionism, a trade war, and two pieces of legislation posing threats to Cambodia\u2019s development \u2013 the Cambodia Accountability and Return on Investment Act (CARI Act), and the Cambodian Trade Act (CTA), which is under proposal, threaten to hit the Kingdom where it hurts.<\/p>\n
So there is a risk that Cambodia will lose both EBA and America\u2019s Generalised System of Preferences (GSP) \u2013 delivering punishing blows to one of the top performing economic sectors. Throw into the mix the slower than expected growth in China, and suddenly, Cambodia\u2019s rosy seven percent average year on year growth begins to looks fragile.<\/p>\n
Of course, the government has been aware of this for some time and plans are afoot to remedy it, Sour tells Capital Cambodia.<\/p>\n
\u201cThe IDP has set specific targets to increase the share of the industry sector in GDP through increased growth of the manufacturing sector (20 percent by 2025). The government aims to develop a comprehensive, long-term, multi-sector policy framework to guide industrial development, employment generation, and skills development.\u201d<\/p>\n
But with so many players involved and so much money being poured into this red hot issue, is a lack of coordination preventing the government from meeting its own targets?<\/p>\n
Beneficiaries of development debt<\/strong><\/p>\n
Earlier this year, ADB shelled out a loan of $60 million to bolster TVET initiatives in Cambodia. The Cambodian government will utilise the $60 million loan to invest in five Technical Training Institutes (TTIs) across the country, upgrading their facilities and updating their curriculums. The stated goal is to produce some 18,000 highly skilled technicians in four high-growth sectors; manufacturing, construction, electricity and electronics.<\/p>\n
One such TTI set to benefit is the Institute of Technology of Cambodia (ITC), chosen on account of its longstanding production of graduates fit for high-priority sectors, according to Dr Po Kimtho, deputy director-general of ITC.<\/p>\n
\u201cWe have worked a lot with various donor agencies, but most of the support was focused on engineering programs, postgraduate degree programs, and research activities. Through these collaborations and the assistance from government budget, many laboratories in various skills have been upgraded,\u201d says Kimtho.<\/p>\n
Citing a need for more staff, more infrastructure, more equipment and more students interested in TVET courses,\u00a0 Kimtho hopes the ADB loan will address these issues, but also expressed a desire for \u201cmore frequent dialogue between the private sector, training institutions, relevant stakeholders in order to identify the gaps between demand and supply of labour\u201d as well as \u201cmore accurate information on labour demand projection.\u201d<\/p>\n
If these issues are addressed, it is hoped Cambodia\u2019s vocational educators will be able to further diversify the workforce, increase the number of higher value skilled workers, while posing limited risk to national debt, given the nature of the ADB loan.<\/p>\n