Asian Development Bank approves $60 million loan for skills training

Garment workers make Adidas apparel at the Shen Zhou garment factory in Phnom Penh, Cambodia, October 18, 2011. Photo by Will Baxter
by Textile Quotient News Desk
9 Jul 2019

ADB has approved a $60 million loan to Cambodia to boost labour skills and competitiveness and help the government’s efforts to transit the economy into a skills-driven one. The country’s technical and vocational education and training (TVET) programs are not meeting the needs of the current labour skills in the garmenting industry.

According to the statement from ADB, the loan aims to help Cambodia diversify and modernize the country’s industrial sector by upgrading the facilities and equipment of selected technical training institutes (TTIs) around the country; improving the curriculum and skills of TTI trainers; and forging stronger ties with the government and business community to meet the needs of the labour market.

The Cambodian Garment Training Institute, which was created by the Garment Manufacturers Association in Cambodia, last year trained around 1,794 workers to improve their leadership skills, especially on implementing lean manufacturing and ‘kaizen’ principles to improve the work environment and productivity.

The ‘Sewing operator training programme for apparel and footwear’ will train workers on the soft and technical skills they need before they start work at the factory. This programme has been developed in partnership with the government with the aim of upskilling workers and enhancing productivity.

As per ADB, the Skills for Competitiveness Project will help produce 18,000 qualified technicians, 28 percent of whom are women, who will have higher employability and technical skills in the garmenting and other sectors. It shall upgrade 16 new training facilities with gender-sensitive, inclusive, and energy-saving design features like separate dormitory floors and toilets for women; the provision of advanced and industry-grade training equipment; capacity development training for trainers; and the provision of merit-based stipends to selected students.

The ADB added that the project will provide upskilling and reskilling opportunities for existing workers to address skills gaps and skills shortage in the industrial sector through work-based learning programs. About 18 work-based lending programs will be implemented in partnership with industry players, which will improve the competencies of about 360 workers.

To increase industry investments in skills development in Cambodia, the pilot skills development fund, an innovative model will also be expanded. The project will finance training supported by the fund, which will provide training opportunities for at least 3,500 people, at least 25 percent of them women; develop the capacity of government agencies to strengthen the management of the fund; and provide support for the establishment of a new permanent agency, which will be up and running by 2024.

Combodia News

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