TVET to boost Cambodia’s SME productivity

TVET to boost Cambodia’s SME productivity

Stronger TVET programmes will help small and medium-sized enterprises bridge skills gaps, boost competitiveness and capture higher domestic market demand.

Ministry of Labour and Vocational Training (MLVT) is promoting technical and vocational education and training (TVET), alongside formal business management, to help small and medium-sized enterprises (SMEs) improve productivity, compete with imported products and generate greater domestic value as the country seeks to strengthen its private sector.

Minister Heng Sour made the remarks during a podcast organised by the ministry on Monday evening under the theme “TVET skills in the SME sector: entrepreneurial needs”.

He said SMEs account for more than 95% of all businesses in Cambodia and employ a significant share of the country’s workforce. Developing these enterprises is therefore essential to creating jobs, increasing household incomes and supporting economic growth.

Sour said upgrading the skills of workers and business owners is crucial to helping small enterprises grow and remain competitive.

“If we can find ways to help SMEs improve their productivity and competitiveness, enabling them to produce goods and services that meet every day needs or supply larger export-oriented enterprises, we will be able to generate greater added value domestically,” he said.

Cambodia’s SMEs include a wide range of retail businesses, from small shops and market vendors to online sellers, as well as enterprises involved in food processing and agricultural product processing, he added.

To support these businesses, the ministry is promoting practical vocational training in areas such as services, sales and beverage-related businesses. Technical skills in mechanics and automation are also important for SMEs, not just large enterprises, Sour said.

He explained that small businesses need to move beyond relying solely on manual labour and adopt technology and machinery to increase productivity, expand output and offer products at competitive prices.

Such changes would help domestic enterprises compete more effectively with imported goods, he added.

“By using machinery and modern production methods, small and medium-sized enterprises can increase output, improve product quality and offer competitive prices,” Sour said.

Unlike larger companies, smaller businesses often operate with limited capital and have less capacity to absorb losses, making productivity improvements particularly important, he added.

khmertimeskh