Key Partners: Ministry of Labour and Vocational Training (MLVT) – Directorate General of Technical Vocational Education and Training (DGTVET), National Employment Agency (NEA), and ILO social partners in Cambodia
Donor: SIDA
Duration: June 2015 - December 2017
Project Objectives
The ILO’s programme on Skills for Trade and Economic Diversification (STED) was designed to help policy-makers work with the private sector and employers’ and workers’ associations in thinking strategically about the skill demands of tomorrow and about the supply responses required today. STED is meant to assist in the formation of skills development policies and strategies to help improve the competitiveness of firms in priority sectors in the context of open markets while building or maintaining a sound and diversified economic structure.
Sector Focus and Policy Framework
In Cambodia, a STED Project is focusing on the light manufacturing and food processing sectors, both of which are among the priority export sectors identified under the Cambodia Trade Integration Strategy (CTIS) 2014-2018. The STED Project supports the Industrial Development Policy (IDP) 2015-2025, which was launched to develop the country’s industrial sector and achieve full integration into regional and global value chains, and to promote a platform for growth focusing on economic diversification, strengthening national competitiveness and enhancing productivity.
The STED Project is also aligned with the National Employment Policy (NEP) 2015-2025, which recognizes that investing in skills development is necessary to diversify the economic base and produce high-value outputs.
Project Advisory Committee
Prakas Nos. 385 and 496 (2015) established the tripartite STED Project Advisory Committee (PAC) and identified its members. Chaired by the Director General of DGTVET, the PAC provides overall advice and guidance on the implementation of the STED Project.
Analytical Phase
Under the STED’s analytical phase, assessments were conducted on the light manufacturing and food processing sectors. Initial results from the STED Assessment indicate a positive outlook among firms in both sectors. However, the survey also informed that threats/challenges are seen highest in terms of the need for information on market demand, the issue of high cost of utilities, low skills, access to finance, support for product innovation and technical requirements, and need for better economic and regulatory policies.
The STED Assessment focused on five sub-sectors under light manufacturing: plastics and synthetic rubber, clay building materials, structural metal, bicycles and invalid carriages and furniture. Altogether, these sub-sectors employ around 70,000 workers, of whom an estimated 36% are women. Skills shortages reflected in recruitment difficulties and skills gaps among existing workers are among the main challenges of firms, including exporters. In terms of business capabilities, the top priorities include improving efficiency, quality management and developing the local supplier base.
In the food processing sector, the STED Assessment covered ten sub-sectors: grain mill products, sugar, soft drinks, starches and starch products, spirits, wines, malt liquor and malt, processing of fruits and vegetables, macaroni/noodles, processing of fish and mollusks. These sub-sectors employ about 132,500, of whom 40% are female. The manufacture of grain mill products account for 25% of the total employment in these sub-sectors. A major area of challenge to firms, especially among exporters, is also on the skills shortages and skills gaps of workers in the sub-sector. The top priorities to improve business capabilities are in the areas of quality management, developing the domestic market and developing the local supplier base.
A key feature of the STED programme is the emphasis on social dialogue among stakeholders. The first round of consultations was conducted on 24-25 March 2016, where the initial results of the STED Assessment were presented. A second round of consultations was held on 17 June 2016 to validate the proposed recommendations of the STED Assessment.
The STED Assessment Reports will be relevant to government ministries and other agencies, development partners, and sector stakeholders engaged in planning, trade, enterprise development, education, and training. The STED recommendations will also be the basis for ILO’s guided interventions to be implemented by key partners during the duration of the project until 2017.
Competency Standards Development
To directly support Cambodia’s skills development initiatives, the STED Project is collaborating with DGTVET in the development of competency standards for priority occupations under the two STED sectors: welding, machining, baking and fruits & vegetable processing. In partnership with the National Polytechnic Institute of Cambodia (NPIC) and the Industrial Technical Institute (ITI), DGTVET led the drafting and validation process for the competency profiles, competency standards, competency-based curriculum, and competency assessment packages for the four occupations. In March 2017, the updated materials will be presented to an Industry Advisory Group to get endorsement to the Sub-Committee on Skills Standards and Testing of the National Training Board. Pilot courses will be conducted by NPIC and ITI in the second quarter of 2017.
Project Information
• Key Partners: Ministry of Labour and Vocational Training (MLVT) – Directorate General of Technical Vocational Education and Training (DGTVET), National Employment Agency (NEA), and ILO social partners in Cambodia
• Donor: SIDA
• Duration: June 2015 - December 2017
Project Objectives
The ILO’s programme on Skills for Trade and Economic Diversification (STED) was designed to help policy-makers work with the private sector and employers’ and workers’ associations in thinking strategically about the skill demands of tomorrow and about the supply responses required today. STED is meant to assist in the formation of skills development policies and strategies to help improve the competitiveness of firms in priority sectors in the context of open markets while building or maintaining a sound and diversified economic structure.
