With an average annual growth rate of 6 percent, Cambodia’s economic rise in the region is remarkable. However, experts argue that sustaining this momentum requires urgent attention to the country’s skills gap, which affects multiple sectors. A survey conducted last year identified significant skill shortages, making it increasingly difficult for companies to hire qualified candidates. As Cambodia moves towards graduating from the Least Developed Country (LDC) status by 2029, addressing these skill shortages will be a crucial factor in maintaining economic growth.

Heng Sour, Minister for Labour and Vocational Training, emphasized that: “We understand that developing human capital is key to maintaining Cambodia’s competitiveness.” This is a fundamental aspect of any successful economic model.

The Skills Gap Across Multiple Sectors

Cambodia has shown strong economic performance over the past two decades. While the pandemic affected growth, the country is now on a recovery path. However, a major obstacle to sustaining growth is the widening skills gap, which threatens to slow down progress. Analysts and industry experts warn that failing to address this issue could hinder Cambodia’s economic aspirations.

The skills gap is visible across all sectors of the economy, including tourism, manufacturing, construction, IT and IT-enabled services (ITES), banking and finance, education, and agriculture. The country struggles with a shortage of skilled workers even in low-to-medium skill-intensive industries. There is a significant disconnect between the skills required by businesses and the training provided by educational institutions, both academic and vocational.

A survey by EuroCham, in partnership with the Swiss Agency for Development and Cooperation and Swiss Contact, identified widespread skill shortages in Cambodia. It highlighted that businesses face substantial hiring challenges and that technical and soft skills training—particularly in leadership, quality control, and project management—are critically needed.

Many small businesses remain unaware of available training programs. The survey revealed that a large portion of companies prefer in-person training and are willing to invest in employee development.

Tourism & Hospitality

Tourism is a vital part of Cambodia’s economy, contributing nearly 10 percent of GDP. The government has introduced strategies like ‘Cambodia – Beyond Angkor Wat’ to diversify tourism offerings. Despite these efforts, the industry faces an acute shortage of skilled workers, especially as it competes with neighboring countries like Vietnam and Thailand.

To address this, the Ministry of Tourism launched the Hospitality Kampuchea (HoKa) program, an industry-based training initiative that has earned international recognition. Currently in its third phase, HoKa aims to train nearly 14,000 individuals, focusing on areas such as front office operations, housekeeping, food and beverage services, cooking, barista skills, and community tour guiding.

However, industry insiders stress that more such programs are needed. If Cambodia does not scale up its training efforts, the tourism sector could face serious setbacks, impacting the broader economy.

Jovany Antonio, an American investor in Cambodia’s F&B sector, highlighted the challenge: “The current local workforce supply substantially falls short of meeting the demand from the tourism and hospitality sectors.”

He also pointed out a major issue: “Businesses that invest in training employees often lose them to competitors, creating a cycle of continuous hiring and retraining, which is both costly and time-consuming.”

Manufacturing

The manufacturing sector is also struggling with a shortage of skilled labor, particularly in mid- and high-skill positions. A report from the Cambodia Development Research Institute (CDRI) found that most companies rely on low-skilled workers who lack formal vocational training. Businesses value work experience over formal education and often conduct in-house training due to the lack of relevant Technical and Vocational Education and Training (TVET) programs.

To address these gaps, the government launched the ‘TVET 1.5M’ program in November 2023. This initiative aims to provide vocational training to 1.5 million young people from poor and vulnerable backgrounds. So far, 80,000 have registered, with 30,000 currently in training and 20,000 having graduated. The program offers training in 45 majors across 10 key industries, including construction, energy, IT, manufacturing, mechanics, automotive repair, and tourism.

Speaking at the Cambodia-ASEAN Business Summit 2025, Hem Vanndy, Minister of Industry, Science, Technology, and Innovation, emphasized the importance of upskilling: “Upskilling is not only crucial for addressing the skills gap but also for ensuring job security in the face of AI and automation.”

Information Technology (IT)

The IT sector is another area experiencing a severe skills shortage. The demand for skilled IT professionals—particularly in artificial intelligence (AI), data science, and cybersecurity—has surged due to Cambodia’s rapid digital transformation. However, the local workforce struggles to meet industry needs, forcing businesses to rely on foreign expertise.

Dr. Tam Sakirin, Dean of Information and Communication Technologies at the University of Puthisastra, highlighted the issue: “The country’s digital growth is being hampered by a lack of qualified professionals. We need a concerted effort to develop a strong IT talent pipeline aligned with industry needs.”

Dr. Tam suggested several solutions:

• Modernizing and strengthening ICT education to include in-demand fields like AI, Data Science, and Cybersecurity.
• Offering short-term skill development programs, such as coding boot camps and certification courses.
• Encouraging public-private partnerships between universities and tech firms to provide internships, co-teaching initiatives, and technology competitions.
• Incentivizing private-sector investment in talent development through tax breaks and financial incentives.
• Establishing international collaborations with universities in advanced IT hubs like South Korea, Singapore, and Japan to facilitate student exchanges and joint research projects.

The Way Forward

Addressing Cambodia’s skills gap is critical for sustaining economic growth and achieving its LDC graduation goals. While various government initiatives, such as TVET 1.5M and HoKa, are making progress, there is still a long way to go. The private sector, educational institutions, and policymakers must collaborate to ensure that workforce development aligns with industry demands.

The road ahead will require continuous investment in education, vocational training, and professional development. If Cambodia successfully tackles these skill shortages, it can strengthen its competitiveness and create better job opportunities for its people.

What do you think about the skills gap in Cambodia? Have you faced challenges in finding skilled workers or job opportunities? Share your thoughts in the comments and spread this discussion by sharing this blog post with others!