Cambodia Urged to Boost Skills, Productivity to Attract Quality Investment

Deputy Prime Minister Sok Chenda Sophea has emphasized the critical need for Cambodia to transition from relying on the benefits of a young, abundant, and affordable workforce to competing based on high skills, high productivity, and high added value. This shift is crucial for attracting quality investment, creating better jobs, and further boosting the income of citizens. Sophea made these remarks during the opening ceremony of the 16th National Employment and Productivity Fair 2026, held on September 12, 2026, at the Diamond Island Convention and Exhibition Center. The event was themed "Skills and Employment: Productivity for Sustainable Economic Growth." The Deputy Prime Minister highlighted that the advantages that previously attracted investors to Cambodia may no longer be sufficient to retain investment in the future, as technology, production structures, and competition among nations are rapidly evolving. "For many years, Cambodia had a strong competitive advantage in attracting investment: an abundant, young, and reasonably priced labor force... In this context, affordable wages will lose their attractiveness. In an environment of intense competition, productivity is the key factor. Productivity does not mean working more upfront; it means working better than before through higher skills, more modern techniques, and more effective management. This is why skills development is no longer just a social policy, but an economic policy, and ultimately, a policy for sustainable growth," he explained. He further elaborated that approximately 8% of workers possess skills exceeding demand, while 6% have insufficient skills. Concurrently, 29% have qualifications above the required level, and 22% have qualifications below the job requirements. Around 22.7% of enterprises reported difficulties in finding appropriately skilled labor. In response to these challenges, the government has identified human capital development and the promotion of labor productivity as key priorities in the first phase of the "Strategic Pentagon." This strategy aims to transform Cambodia's industrial structure from labor-intensive to skill-based and technology-based industries, according to the Deputy Prime Minister. It is noted that during the three years of Prime Minister Hun Manet's leadership, factories, enterprises, and companies in Cambodia have increased from over 7,000 to more than 47,000, providing employment for approximately 2.3 million citizens within the formal system.