Cambodia
Investing in skills and bolstering sustainability of garment value chains
Ambassador Prasith Suon is Cambodia's Permanent Representative at the 澳门六合彩官网资料. He describes Cambodia抯 efforts to strengthen economic competitiveness and secure market access amidst preparations for graduation from LDC status.
Ambassador Prasith Suon is Cambodia's Permanent Representative at the 澳门六合彩官网资料.Tell us a bit about Cambodia’s journey towards LDC graduation.
Cambodia met all three graduation criteria – income per capita, human assets and economic vulnerability - on two consecutive occasions in 2021 and 2024. As a result, Cambodia was recommended for graduation during the 2024 Triennial Review of the UN Committee for Development Policy. The country is currently seeking a five-year preparatory period to allow sufficient time to prepare for a smooth transition by 2029.
What are some of the trade challenges that Cambodia may face on its path to graduation?
Cambodia's exports are concentrated in manufacturing, predominantly garments, and agricultural commodities, like cashew nuts and rice. Heavy reliance on agriculture and labour-intensive sectors makes it vulnerable to external shocks. The loss of international support measures can be an obstacle for its socio-economic development after graduation. Its exports of garments, travel goods and bicycles will face higher tariffs, stricter rules of origin and greater market competition after graduation.
What is the way forward?
As part of its mitigation strategy, Cambodia is exploring a transition to other preferential trading schemes and negotiating new free trade agreements to unlock its export potential and further enhance market access.
Another important priority is to improve education levels of its people so that they get the technical and professional skills they need to get better jobs. Through technical and vocational education and training, the aim is to empower 1.5 million young people in Cambodia to acquire new skills across 10 priority sectors, ranging from hairdressing to graphic design. This is important as we aspire to enhance our export earnings, including through specialization in services exports.
Another important priority is to diversify Cambodia's economic activities across value chains. For example, since 2022, it has been working to transform its travel goods and apparel sector into an environmentally sustainable and resilient sector with high value added which can support diversification efforts and increase competitiveness.
As the country approaches graduation, it continues to rely on support from its development partners during the transition, including in making the most of trade preferences, expanding its export base, reaching new markets and upskilling its people to boost productivity