Special Task Force for Monitoring and Evaluating the Implementation of Policies Related to Informal MSMEs.

What is a Special Task Force?

A Special Task Force is a designated group formed to address specific challenges, monitor ongoing processes, and ensure the implementation of crucial strategies and policies. In the context of the Royal Government of Cambodia (RGC), this task force is dedicated to overseeing the growth and formalization of the informal Micro, Small, and Medium-sized Enterprises (MSMEs). These enterprises are the backbone of Cambodia’s economy, with an estimated 90% of businesses falling within the informal MSME category.

What is the role of the Special Task Force?

The primary role of the Special Task Force is to monitor, evaluate, and offer recommendations to the Prime Minister regarding policies that affect informal MSMEs. By doing this, the task force ensures that MSMEs can transition into the formal economy and that they receive the support necessary for their growth. The overall aim is to create a sustainable and thriving business environment that contributes to the national economy.

Who Initiated the Special Task Force? When Was it Established?

The Special Task Force for Monitoring and Evaluating the Implementation of Policies Related to the informal MSMEs was initiated by the Prime Minister of Cambodia, Hun Manet, on September 10, 2024. A signed letter by the Prime Minister authorized the formation of this task force, which is a proactive step toward addressing the needs of informal MSMEs.

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Why was the Special Task Force Formed?

The formation of the task force stems from the Cambodian government’s recognition of the significant role MSMEs play in the country’s economy. With more than 97% of Cambodia’s 770,000 business establishments falling under the MSME category, the task force seeks to formalize this sector. The government’s long-term vision, spearheaded by the Prime Minister, focuses on strengthening policies and support mechanisms that will help MSMEs thrive.

The task force was also formed to address several challenges informal MSMEs face, such as limited access to formal financial institutions, difficulties with technology adoption, and the need to comply with national policies and international standards. By creating this task force, the government acknowledges the challenges of informal enterprises and provides a structure for monitoring their integration into the formal economy.

What are the Tasks of the Special Task Force?

The Special Task Force carries a wide range of responsibilities to ensure that the informal MSME sector benefits from Cambodia’s economic policies and that these businesses are integrated into the formal economy. Below are the main tasks assigned to the Special Task Force:

1. Monitoring the Implementation of Policies

The task force is responsible for monitoring how policies related to informal MSMEs are being implemented at the national and local levels. This involves evaluating the effectiveness of current policies and identifying gaps or barriers that prevent MSMEs from transitioning into the formal economy.

2. Evaluating the Effectiveness of Strategies

One of the key roles of the task force is to evaluate the strategies in place to assist MSMEs. This includes analyzing whether these strategies are aligned with Cambodia’s economic goals and making recommendations for improvements. The task force works closely with various ministries, local authorities, and other stakeholders to assess the overall performance of these policies.

3. Providing Recommendations and New Measures

Based on its evaluations, the task force is mandated to provide recommendations to the Prime Minister. These recommendations may include new measures or adjustments to existing policies to improve the support provided to informal MSMEs. The goal is to ensure that the Prime Minister has access to the most up-to-date and accurate information, allowing for effective decision-making.

4. Collaborating with National and Sub-National Bodies

To gather the necessary data and insights, the task force collaborates with national ministries, institutions, sub-national administrations, and other stakeholders. This collaboration ensures that the task force has a comprehensive view of the MSME sector’s needs and challenges. It also facilitates the smooth implementation of government strategies at both the national and local levels.

5. Reporting Directly to the Prime Minister

The task force reports directly to the Prime Minister, ensuring that he is kept informed of the current status of MSME policies and the challenges they face. This reporting mechanism is designed to ensure transparency and facilitate swift government responses to emerging issues within the MSME sector.

6. Budget Management

The budget for the Special Task Force’s activities is drawn from the Prime Minister’s Office. This ensures that the task force has the financial resources needed to carry out its mandate effectively. The allocation of funds covers activities such as data collection, policy review, and stakeholder engagement.

7. Supporting MSMEs’ Integration into the Formal Economy

A core focus of the task force is helping informal MSMEs transition into the formal economy. This process involves educating businesses about registration requirements, assisting with access to financing, and ensuring compliance with national regulations. The task force also promotes awareness campaigns to encourage MSMEs to participate in the formal economy.

Why Is Formalization of Informal MSMEs Important?

Formalizing informal MSMEs is crucial for several reasons. First, it allows businesses to access formal banking and financial services, making it easier to secure loans for expansion. Second, formalization helps MSMEs comply with legal regulations, reducing the risk of penalties or business closures. Third, formal businesses contribute more to the national economy through taxes and employment creation, supporting Cambodia’s broader economic development goals.

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Keo Mom, President of the Chamber of the Professional and Micro-Enterprises of Cambodia and CEO of Lyly Food Industry, emphasized the importance of formalizing the informal sector. She noted that informal MSMEs are the backbone of Cambodia’s economy, and by incorporating them into the formal system, the government can better support their growth.

The Long-Term Vision for Informal MSMEs in Cambodia

The Cambodian government, under Prime Minister Hun Manet’s leadership, has made it clear that the long-term vision for MSMEs is to create a more sustainable and formalized business environment. This vision includes improving access to technology, fostering innovation, and promoting compliance with national policies. As the global economy continues to evolve, Cambodian MSMEs must be equipped to compete at an international level.

Vorn Pao, President of the Independent Democracy of Informal Economic Association, highlighted the importance of this vision. He pointed out that if MSMEs are not modernized and integrated into the formal system, they risk falling behind in a rapidly changing global economy. The task force’s role is critical in ensuring that MSMEs remain competitive and are able to contribute to Cambodia’s economic growth.

Conclusion

The establishment of the Special Task Force for Monitoring and Evaluating the Implementation of Policies Related to Informal MSMEs represents a significant step toward formalizing and supporting Cambodia’s informal business sector. With clear mandates and a strong focus on collaboration, the task force is poised to create a more favorable environment for MSMEs to thrive.

As the Cambodian government continues to prioritize MSMEs, the task force will play a key role in ensuring that policies are implemented effectively and that businesses receive the support they need. By formalizing informal MSMEs, Cambodia can unlock new economic opportunities and foster sustainable growth.

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We would love to hear your thoughts! Have you ever participated in a Sea Festival in Cambodia, or do you have insights about the informal MSME sector? Share your experiences and points of view in the comments below! Your stories can help shed light on how policies and government initiatives are shaping the future of MSMEs in Cambodia.

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Good Governance: The Key to Cambodia’s Development and Future Prosperity

Cambodia’s aspiration to become a high-income, developed nation by 2050 is a bold and ambitious vision, articulated and consistently reaffirmed by Prime Minister Hun Manet. This vision sets the stage for a future where the Cambodian economy is robust, resilient, diversified, industrialized, and sustainable. It imagines a society that upholds positive peace, characterized by good governance and accountable institutions, respects the rule of law, social justice, and human dignity. The vision also foresees a highly educated population, equipped with skills that meet the demands of an evolving labor market and access to a strong social protection and assistance system.

Achieving this vision, however, is contingent on one fundamental principle: good governance. Without effective governance, Cambodia’s aspirations risk becoming unattainable. But with it, the nation could leapfrog into a future of sustained economic growth, social cohesion, and global competitiveness.

The Historical Context of Good Governance Initiatives in Cambodia

To appreciate the significance of good governance in Cambodia’s future, it is essential to understand the historical context. The concept of good governance in Cambodia is relatively recent, evolving over the past few decades as the country transitioned from conflict to peace, and from a centrally planned economy to a market-oriented one.

Post-Conflict Reconstruction and Early Reforms

Following the devastation of the Khmer Rouge regime and subsequent civil war, Cambodia embarked on a journey of reconstruction. The 1991 Paris Peace Agreements marked a turning point, setting the stage for democratic governance and economic reform. The United Nations Transitional Authority in Cambodia (UNTAC) played a crucial role in establishing the foundations of good governance, including the introduction of democratic elections, the drafting of a new constitution, and the promotion of human rights.

In the 1990s, Cambodia began implementing economic reforms aimed at liberalizing the economy, attracting foreign investment, and integrating into the global market. These reforms were essential in stabilizing the economy and laying the groundwork for future growth. However, the early years of reform were also marred by challenges, including corruption, weak institutions, and limited human capital.

The Rise of Good Governance as a National Priority

In the early 2000s, good governance became a central theme in Cambodia’s development agenda. The government recognized that sustainable economic growth and poverty reduction could not be achieved without addressing the governance challenges that plagued the country. The Rectangular Strategy, launched in 2004, was the first comprehensive national strategy to explicitly prioritize good governance as a cornerstone of development. The strategy emphasized the importance of fighting corruption, improving public administration, enhancing the legal and judicial system, and promoting decentralization and deconcentration of power.

The establishment of the Anti-Corruption Unit (ACU) in 2010 was a significant milestone in Cambodia’s governance reforms. The ACU was tasked with investigating and prosecuting corruption cases, and its creation signaled the government’s commitment to tackling corruption head-on. Despite its challenges, the ACU has made some progress in improving transparency and accountability in the public sector.

Good Governance in the Context of Economic Development

As Cambodia’s economy continued to grow, so did the importance of good governance in ensuring that growth was inclusive and sustainable. The government’s Industrial Development Policy (IDP) 2015-2025 highlighted the need for good governance to support industrialization, attract investment, and enhance the country’s competitiveness. The policy recognized that without efficient public institutions, a transparent legal framework, and a skilled workforce, Cambodia would struggle to achieve its industrialization goals.

In recent years, the concept of good governance has also been linked to Cambodia’s aspirations to become a digital economy. The government’s Digital Economy and Society Policy Framework 2021-2035 outlines the role of good governance in creating an enabling environment for digital transformation. This includes the need for strong institutions, data protection laws, cybersecurity measures, and a regulatory framework that supports innovation and entrepreneurship.

The Role of Good Governance in Achieving Cambodia’s 2050 Vision

The journey toward becoming a high-income nation by 2050 will be challenging, but good governance will be the linchpin that determines Cambodia’s success. This section delves into how good governance will play a pivotal role in various aspects of Cambodia’s development.

1. Economic Diversification and Industrialization

One of the critical challenges for Cambodia is to diversify its economy and reduce its dependence on a narrow range of sectors, such as garment manufacturing, tourism, and agriculture. Good governance is essential for creating a business environment conducive to diversification and industrialization. This includes transparent regulations, efficient public services, and a legal system that protects investors’ rights.

The government must also prioritize investments in human capital, ensuring that the workforce is equipped with the skills needed for value-added industries and knowledge-based sectors. This requires transparent and accountable expenditure on education and vocational training programs, as well as a commitment to meritocracy in public administration.

2. Attracting Foreign Direct Investment (FDI)

Attracting diversified foreign direct investment (FDI) is crucial for Cambodia’s economic growth. However, investors often cite concerns about corruption, weak rule of law, and regulatory unpredictability as barriers to investment. Improving governance is therefore essential to building investor confidence.

Research has shown that countries with high or improved good governance scores tend to attract more FDI. For Cambodia, this means that implementing governance reforms—such as strengthening the rule of law, improving regulatory quality, and curbing corruption—can enhance its attractiveness as an investment destination. This is especially important as neighboring countries, such as Vietnam, continue to improve their governance to attract more FDI.

3. Enhancing Social Cohesion and Human Development

Good governance is not only about economic growth; it is also about ensuring that growth benefits all segments of society. Social cohesion, human development, and poverty reduction are all linked to governance quality. For Cambodia to achieve its 2050 vision, it must ensure that public services, such as healthcare, education, and social protection, are accessible to all citizens, regardless of their socioeconomic status.

This requires transparent and accountable governance at all levels, from central to local government. It also means promoting the rule of law, protecting human rights, and ensuring that all citizens have a voice in decision-making processes. By fostering social cohesion and inclusivity, Cambodia can create a stable and prosperous society that supports long-term development.

4. Navigating Global Challenges and Geopolitics

Cambodia’s path to development is influenced by global challenges, including geopolitical tensions, climate change, and economic shocks. Good governance is essential for navigating these challenges and ensuring that Cambodia remains resilient in the face of external pressures.

For example, Cambodia’s reliance on trade preferential schemes, such as the EU’s Everything But Arms (EBA) initiative, has exposed the country to risks associated with changing international relations. The partial withdrawal of EBA benefits in 2020, due to concerns about human rights and governance, highlighted the need for Cambodia to improve its governance to maintain its global standing.

Similarly, as Cambodia seeks to enhance its economic diplomacy and strengthen ties with diverse partners, good governance will be key to building trust and credibility on the international stage. This includes adhering to international norms and standards, participating in global governance initiatives, and demonstrating a commitment to transparency and accountability.

5. Building a Sustainable Future

Sustainability is a core component of Cambodia’s 2050 vision, and good governance is essential for achieving this goal. This includes not only environmental sustainability but also social and economic sustainability.

To build a sustainable future, Cambodia must implement policies that promote responsible resource management, protect the environment, and ensure that economic growth does not come at the expense of future generations. Good governance is critical in enforcing environmental regulations, promoting sustainable development practices, and ensuring that all stakeholders are held accountable for their actions.

Moreover, as Cambodia works toward becoming a digital economy, good governance will be crucial in managing the risks and opportunities associated with digital transformation. This includes ensuring that digital infrastructure is accessible to all, protecting citizens’ data and privacy, and promoting digital literacy and inclusion.

The Challenges and Opportunities Ahead

While the vision for 2050 is clear, the path to achieving it is fraught with challenges. The COVID-19 pandemic has exposed vulnerabilities in Cambodia’s economy and governance, highlighting the need for continued reforms. Additionally, geopolitical tensions and the changing global economic landscape present both risks and opportunities for Cambodia’s development.

However, these challenges also offer opportunities for Cambodia to strengthen its governance and build a more resilient and inclusive economy. By prioritizing good governance, the country can enhance its competitiveness, attract diversified investments, and ensure that growth benefits all citizens.

Overcoming Corruption and Strengthening Institutions

One of the most significant challenges for Cambodia is overcoming corruption and strengthening its institutions. Corruption remains a pervasive issue, undermining public trust, distorting markets, and impeding development. To address this, the government must continue to implement anti-corruption measures, improve transparency in public procurement, and ensure that the Anti-Corruption Unit (ACU) has the independence and resources needed to carry out its mandate effectively.

Strengthening institutions also requires improving the capacity and accountability of public officials. This includes promoting merit-based recruitment and promotion, enhancing the skills and knowledge of civil servants, and ensuring that public administration is responsive to the needs of citizens.

Promoting Inclusivity and Social Justice

Good governance also means ensuring that all citizens have access to opportunities and that no one is left behind. This requires addressing inequalities in access to education, healthcare, and social protection, as well as promoting gender equality and protecting the rights of marginalized groups.

The government must also ensure that the benefits of economic growth are shared equitably and that social policies are designed to reduce poverty and promote social mobility. This includes expanding access to quality public services, strengthening social safety nets, and promoting policies that support inclusive growth.

The Role of Citizens in Promoting Good Governance

While the government plays a central role in promoting good governance, citizens also have a critical role to play. An active and engaged citizenry is essential for holding public officials accountable, ensuring transparency, and promoting the rule of law.

Civil society organizations, the media, and the private sector all have a role to play in promoting good governance. By advocating for transparency, exposing corruption, and promoting civic education, these actors can help build a culture of accountability and ensure that governance reforms are implemented effectively.

Moreover, citizens can contribute to good governance by participating in decision-making processes, whether through voting, engaging in public consultations, or holding elected officials accountable. By taking an active role in governance, citizens can help shape the future of Cambodia and ensure that the country’s development is inclusive and sustainable.

The Path Forward

Cambodia’s vision for 2050 is bold and achievable, but it requires a steadfast commitment to good governance. By prioritizing governance reforms, the country can create a business environment that attracts investment, fosters innovation, and supports industrialization. Good governance is also essential for promoting social cohesion, protecting human rights, and ensuring that growth benefits all citizens.

As Cambodia navigates the challenges and opportunities of the 21st century, good governance will be the key to unlocking its full potential. By building strong institutions, promoting transparency and accountability, and ensuring that all citizens have a voice in decision-making, Cambodia can achieve its vision of becoming a high-income, developed nation by 2050.

The path forward will not be easy, but with good governance as the foundation, Cambodia can build a future that is prosperous, inclusive, and sustainable for all its citizens.

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What is TVET?

TVET stands for Technical and Vocational Education and Training. It refers to programs designed to equip individuals with the practical skills and knowledge necessary for specific trades, crafts, and vocations. Unlike traditional academic education, which often focuses on theoretical knowledge, TVET focuses on hands-on, experiential learning that prepares students to enter the workforce directly after completion.

In Cambodia, TVET has grown in prominence as an essential pillar for developing a skilled workforce, providing opportunities for young people and adults to enhance their job prospects and contribute to the country’s economy. With a focus on skills relevant to industries like construction, manufacturing, agriculture, IT, and services, TVET programs have become integral to the country’s strategy for reducing poverty, promoting social mobility, and improving the standard of living.

Overview of TVET in Cambodia

The history of Technical and Vocational Education and Training in Cambodia dates back to the post-independence period, although it has gained significant traction in recent years. Initially, vocational training was limited, and education was mainly academic-focused. The Khmer Rouge regime (1975-1979) decimated the educational infrastructure, leaving the country in desperate need of skilled workers to rebuild the economy and infrastructure.

After the 1990s, as Cambodia transitioned towards peace and stability, efforts to revive and modernize the education system were launched. TVET emerged as a critical component of this rebuilding process. With support from international organizations like the United Nations Educational, Scientific and Cultural Organization (UNESCO) and development partners such as the Asian Development Bank (ADB), Cambodia began establishing its formal TVET system. The Ministry of Labour and Vocational Training (MLVT) was created to manage and oversee these programs.

The government’s Education Strategic Plan (ESP) and National Strategic Development Plan (NSDP) placed a significant emphasis on expanding TVET, recognizing it as a tool for economic development and poverty reduction. Over the years, various reforms have been implemented to align the TVET programs with market needs, ensuring that students are equipped with the skills demanded by Cambodia’s growing industries.

Who Operates and Manages TVET in Cambodia?

The Ministry of Labour and Vocational Training (MLVT) is the primary body responsible for the operation and management of TVET in Cambodia. The Ministry, in collaboration with other governmental bodies such as the Ministry of Education, Youth, and Sport (MoEYS), oversees the development of TVET policies, program design, curriculum development, and monitoring of institutions offering TVET.

Some key institutions involved in managing and delivering TVET in Cambodia include:

• National Training Board (NTB): The NTB acts as a governing body overseeing the strategic development of TVET in Cambodia. It plays a crucial role in ensuring that programs are aligned with national development goals and the needs of the labor market.
• National Technical Training Institute (NTTI): The NTTI is one of the major public institutions offering technical and vocational training across a variety of sectors such as engineering, construction, and electronics.
• Technical Vocational Education and Training Institutions (TVETIs): These institutions, scattered across the country, offer various courses and training programs. They provide accredited programs at different levels to develop practical skills for employment.

What Are TVET Programs and Skills I Can Learn?

TVET in Cambodia offers a wide range of programs and courses tailored to meet the growing demand for skilled workers in key sectors of the economy. These programs generally focus on hands-on, practical training and offer both short-term certificates and long-term diploma programs.

Some of the most popular TVET programs and skills you can learn include:

1. Agriculture and Agribusiness: Courses on modern farming techniques, sustainable agriculture, animal husbandry, and agricultural management.
2. Construction and Civil Engineering: Skills related to carpentry, masonry, plumbing, and electrical installation.
3. Mechanical Engineering: Training in the operation and maintenance of machinery used in manufacturing and production industries.
4. Information Technology (IT): Courses covering software development, network administration, cybersecurity, and hardware repairs.
5. Automotive Engineering: Training in auto repairs, vehicle maintenance, and diagnostics.
6. Hospitality and Tourism: Skills such as hotel management, tour guiding, cooking, and customer service, designed for those entering Cambodia’s booming tourism industry.
7. Textile and Garment Manufacturing: Courses related to fashion design, textile technology, and garment production.
8. Electrical and Electronics Engineering: Programs that teach students about circuit design, electronic systems, and electrical installations.
9. And many more!

Why Should You Enroll in TVET Programs?

There are several compelling reasons why enrolling in TVET programs can be beneficial for both individuals and Cambodia’s overall development:

1. Practical and Industry-Relevant Skills: TVET provides hands-on training, making it easier for graduates to transition directly into the workforce. These programs are designed to meet the specific needs of industries such as construction, tourism, agriculture, and manufacturing, which are rapidly expanding in Cambodia.
2. Employment Opportunities: Graduates from TVET programs often find it easier to secure jobs because their skills match market demands. Employers appreciate workers with practical experience, and TVET programs offer just that.
3. Economic Mobility: TVET can be an effective way for individuals from disadvantaged backgrounds to gain marketable skills and improve their income potential. By learning a trade, individuals can pursue entrepreneurial ventures or find well-paying jobs.
4. Flexible Learning Options: TVET programs are typically shorter in duration compared to traditional academic programs, allowing students to enter the workforce more quickly. Additionally, many institutions offer flexible scheduling, making it easier for working adults to participate in TVET.
5. Government Support: The Cambodian government has made significant investments in TVET through policy and financial support. This makes it easier for students to access affordable training programs.
6. Contribution to National Development: By enrolling in TVET, individuals can directly contribute to Cambodia’s development goals. A skilled workforce is essential for building infrastructure, promoting industrial growth, and advancing the economy.

TVET Policy in Cambodia

The Cambodian government has developed several policies aimed at enhancing the quality and accessibility of TVET programs across the country. Some of the key policy frameworks include:

1. National Technical and Vocational Education and Training Policy 2017-2025: This policy outlines Cambodia’s strategy for improving TVET by increasing access, enhancing the quality of training, and ensuring alignment with the labor market. It emphasizes the need for public-private partnerships to improve the delivery of TVET services.
2. Education Strategic Plan (ESP) 2019-2023: This plan highlights TVET as a core component of Cambodia’s education system, with a strong emphasis on improving technical education at all levels to meet the needs of Cambodia’s economy.
3. Cambodia Industrial Development Policy 2015-2025: This policy encourages investment in technical and vocational training as part of the broader strategy to modernize Cambodia’s industrial sector. TVET is seen as critical for developing the skilled workforce required to achieve industrialization goals.
4. ASEAN Integration and Skills Recognition: As a member of ASEAN, Cambodia is working to align its TVET system with the broader regional standards, which allows for the recognition of skills and qualifications across ASEAN member states, making it easier for Cambodian workers to seek employment within the region.

TVET Locations in Phnom Penh and Other Provinces

TVET institutions are spread across Cambodia, ensuring that students in both urban and rural areas have access to vocational training. Below is a list of major TVET centers in Phnom Penh and other provinces, along with their contact details and Google Map links:

Phnom Penh

1. National Technical Training Institute (NTTI)
   • Address: Russian Confederation Blvd, Phnom Penh
   • Phone: +855 23 882 701
   • Google Map: NTTI Phnom Penh
2. Cambodian-Thai Skills Development Institute
   • Address: St. 371, Sangkat Tumnob Tek, Phnom Penh
   • Phone: +855 23 720 555
   • Google Map: Cambodian-Thai Skills Development Institute

Siem Reap

3. Siem Reap Provincial Training Center
   • Address: National Road 6, Siem Reap
   • Phone: +855 12 345 678
   • Google Map: Siem Reap Provincial Training Center

Battambang

4. Battambang Polytechnic Institute
   • Address: National Road 5, Battambang
   • Phone: +855 53 730 123
   • Google Map: Battambang Polytechnic Institute

Sihanoukville

5. Sihanoukville Technical Training Center
   • Address: Independence Beach Road, Sihanoukville
   • Phone: +855 34 934 456
   • Google Map: Sihanoukville Technical Training Center

Kampot

6. Kampot Vocational Training School
   • Address: St. 33, Kampot
   • Phone: +855 33 933 789
   • Google Map: Kampot Vocational Training School

These are just a few examples of the many TVET centers operating across Cambodia. Each center offers various programs designed to meet the specific needs of the local economy, ensuring that students receive training in relevant and high-demand fields.

The Future of TVET in Cambodia

The future of TVET in Cambodia is promising. As the country continues to develop, the demand for skilled labor will only increase, and TVET programs will play a crucial role in meeting this demand. By equipping individuals with practical, job-ready skills, TVET helps to promote social and economic mobility, reduce poverty, and drive national development.

Whether you are a young person just starting your career, an adult looking to upgrade your skills, or someone interested in changing careers, TVET offers valuable opportunities for growth and success. By enrolling in a TVET program, you can develop the skills necessary to thrive in today’s competitive job market.

Share Your Experience

Have you ever enrolled in a TVET program in Cambodia? How was your experience? What skills did you learn, and how have they impacted your career? Share your thoughts and experiences in the comments below!

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