REPORT. Consultation Workshop on Priority Export Sectors. 12 th August 2015 Phnom Penh Hotel, Phnom Penh Cambodia

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1 REPORT On Consultation Workshop on Priority Export Sectors 12 th August 2015 Phnom Penh Hotel, Phnom Penh Cambodia 1

2 REPORT On Consultation Workshop on Priority Export Sectors 12 th August 2015, Phnom Penh Hotel, Phnom Penh Cambodia 1. INTRODUCTION The International Labour Organization (ILO) will implement a new SIDA funded project on Scaling up Skills for Trade and Economic Diversification (STED) which will contribute to the Cambodia Decent Work Country Programme and to the National Employment Policy goal of enhanced skills and human resource development for improved productivity, sustainable and inclusive growth. STED is a methodology developed by the ILO that provides strategic guidance for the integration of skills development in sectoral policies. It is designed to support growth and decent employment creation in sectors that have the potential to increase exports and to contribute to economic diversification. STED supports the formation of skills for which there is demand in the labour market and helps to avoid skills mismatches that contribute to unemployment, in particular among the young. Through a STED analysis, the project aims to develop effective skills strategies in the selected export sectors in Cambodia. The project also aims to strengthen the capacities of governments, social partners and other stakeholders to assess skills gaps and to design strategies to overcome those gaps. Policy makers, social partners and other relevant actors in Cambodia will be supported in the implementation of the skills strategies. On 18 June 2015, the ILO STED project was officially introduced to the ILO constituents including the Ministry of Labour and Vocational Training (MLVT), Ministry of Commerce (MOC), Cambodia Federation of Employers and Business Associations (CAMFEBA) and major Trade Unions in Cambodia. The project implementation started with the sector selection process. Due to the limited timeframe and resources, the ILO STED project will focus on 2 selected sectors. The selection process will take into account the 10 export sectors in the CTIS and 24 products of Geographical Indication. The General Directorate of Technical Vocational Education and Training of MLVT and ILO organized the consultation workshop with tripartite constituents plus other development partners and civil society organizations to discuss and prioritize the possible export sectors on 12 August 2015 in Phnom Penh. 2. OBJECTIVES AND AGENDA: The objectives of consultation workshop on priority export sector were to: Introduce the ILO STED project and Prioritize the export sectors of Cambodia to be supported by ILO STED project. 2

3 The following was the programme agenda of the workshop (Refer to Annex for the detailed agenda): Opening remarks by MLVT and ILO; Presentation on the STED approach and possible sector selection criteria and primary consideration by ILO; Presentation on a Macro Economic Overview, including the economic contribution and current labour market situation of export sectors by the Council for the Development of Cambodia (CDC); Presentation of the Cambodia priority export sectors/products by the MOC Presentation on the Cambodia skill development framework and future priorities by MLVT Group Discussion (max 3 groups) Group presentations Synthesis of group presentations and short listed priority export sectors for STED analysis Next steps Closing remarks 3. PARTICPANTS: Fifty nine (59) participants attended the consultation workshop on priority export sectors on 12 August They were representatives from Ministry of Labour and Vocational Training (MLVT), Ministry of Commerce (MOC), Ministry of Education, Youth and Sport (MOYES), Ministry of Economic and Finance (MOEF), Ministry of Agriculture, Forestry and Fisheries (MAFF), Ministry of Tourism (MOT), Ministry of Industry and Handicraft (MOIH), Ministry of Health (MOH), Ministry of Planning (MOP), Supreme National Economic Council (SNEC), Council for the Development of Cambodia (CDC), Council for Agricultural and Rural Development (CARD), National Employment Agency (NEA), Cambodian Federation of Employers and Business Association (CAMFEBA), Chamber of Commerce, Garment Manufactures Association of Cambodia (GMAC), Phnom Penh Small Medium Enterprise Association (PSMEA), Cambodian Labour Confederation (CLC), Cambodia Confederation of Trade union (CCTU), Cambodian Union Federation (CUF), Asian Development Bank (ADB), World Bank (WB), United Nations Development Programme (UNDP), United Nations Industrial Development Organization (UNIDO), Cambodian Development Resource Institute (CDRI), Swiss Agency for Development and Cooperation (SDC) and ILO. (Refer to Annex 2 for the detailed list of participants). 4. OPENING SESSION Welcome remarks by Ms. Ma. Concepcion Sardaña, Chief Technical Advisor of ILO STED Project: On behalf of the ILO, Ms. Ma. Concepcion Sardana thanked the Ministry of Labour and Vocational Training, particularly H.E. Laov Him and DGTVET, for convening the workshop which is the first among several consultation dialogues that will be undertaken under STED. In her speech Ms. Ma. Concepcion Sardana also acknowledged the Swedish International Development Cooperation Agency (SIDA) which supports the implementation of the STED 3

4 Project in Cambodia under the Agreement between Sweden and the ILO on Programme Support Ms. Ma. Concepcion Sardana added that STED is a strategic tool developed by the ILO to help constituents integrate skills development in sectoral development strategies. The STED programme provides a framework for partnerships with labour ministries, trade ministries, national statistics offices, technical and vocational education and training (TVET) institutions, employers organizations and trade unions, and sector councils to bring their individual perspectives and information together in order to integrate skills development in trade policy and to anticipate and prepare for emerging skill needs. Ms. Ma. Concepcion Sardana also added that Today, as an initial step under STED, we would like to solicit your views and recommendations on what priority export sectors will be focused on by the Project. We recognize that there are existing national policy frameworks and strategies, as well as recent skills gaps analysis. We will be guided by these frameworks and build on the findings of the skills studies, which ILO has also supported. Opening remarks by H.E Laov Him, Director General of DGTVET of MLVT H.E Laov Him, Director General of DGTVET of MLVT, expressed thanks to all participants from government institutions and from the private sector. H.E also mentioned that at present, according to the study by the private sector, development partners and the National Employment Agency on the labor market in Cambodia, there are challenges on skill mismatch and skill shortages. Therefore the government as well as the Ministry of Labour and Vocational Training has been giving attention to addressing this issue. The General Department of Technical and Vocational Education and Training in collaboration with development partners such as the Asian Development Bank (ADB) is implementing the project to strengthen technical vocational education and training (STVET). Through the STVET project, there has been construction of infrastructure for the educational institutions under DGTVET and development of competency based curriculum to develop human resources in support of three priority sectors construction, mechanic, and ICT. H.E added that recently the DGTVET in collaboration with the ILO through Ms. Ma. Concepcion Sardana has initiated a new project on the skills for trade and economic diversification. Thus, DGTVET organized the consultation workshop with the key stakeholders to provide inputs to identifying priority sectors for supporting investment as well as developing human resources in Cambodia. He added that the consultation workshop on STED will provide the priority sectors and strategic guidance for the integration of skills development in sectoral policies which will enhance skills and human resource development for improved export sectors and industrial sectors. The consultation workshop was officially opened by H.E. Mr. Laov Him, Director General of Directorate of Technical Vocational Education and Training (DGTVET) of the Ministry of Labor and Vocational Training (MLVT). 4

5 5. PRESENTATIONS: 5.1 ILO Presentation on the STED approach and possible sector selection criteria and primary consideration: Ms. Ma. Concepcion Sardana, Chief Technical Advisor of the ILO STED Project, delivered the presentation: Human resources are central to the capability of firms to trade - Strategy choices are influenced by skills and capabilities of business leaders, and are constrained by the skills that can be provided - Technology determines many skills needs, and the success of technology choices is influenced strongly by skills - Operating processes and business organization determine many skills needs, and their success is influenced strongly by skills Skills for Trade and Economic Diversification STED - The ILO s methodology to identify and anticipate skills needed to improve productivity, trade performance and employment in internationally tradable sectors - Sector based methodology to provide strategic guidance on integrating skills development into policies to strengthen traded sectors STED is designed to use skills to: - Improve competitiveness - Improve position in international trade - Drive growth in output and sales - Create more decent employment STED essentially involves: - substantial skills sector studies for traded sectors - with strong social partner and stakeholder involvement, and - often with continuing project involvement in implementation ( Full Cycle STED ) Current STED Work - Russian funded Applying the G20 Training Strategy Project STED technical assistance in Viet Nam, Jordan, and starting in Tajikistan - Aid for Trade Initiative for the Arab States STED technical assistance in Egypt and starting in Tunisia - SIDA STED project STED technical assistance in starting in Cambodia, Myanmar, Malawi Developing STED programme - Research, Results Based Management, Monitoring & Evaluation STED in Cambodia and Myanmar - A component of the Sweden ILO Programme Support Time frame: Up to December Budget: For Cambodia and Myanmar $1.7 million - Project Management: DWT Bangkok/ILO, Cambodia ILO, Yangon STED Project Team - Technical backstopping: Skills Department in ILO Headquarters and Skills and Employability Specialist and others from the Decent Work Team in Bangkok Sector Selection considerations - Economic development perspective 5

6 - Potential for impact - Engagement of national and sector stakeholders - Avoiding duplication / seeking synergies - TVET, universities, other providers The Cambodia Trade Integration Strategy, , identified Ten (10) Priority Export Sectors - Garments - Footwear - Light manufacturing/special economic zones - Processed food - Fisheries - Milled rice - Cassava - Natural rubber - Tourism - High value silk The proposed selection criteria to short list the ten CTIS sectors are - Current export position (export value, import value, export growth) - Potential growth of exports in sector - Presence of sector/industry groups - Current and potential support agencies - Current employment level - Potential for employment growth - Indirect employment creation - Skills shortage/gap - Expected occupational demand (of H, M, L skills) - Training institutions supporting the sector (Refer to Annex 3 for the full ILO presentation) 5.2 Presentation on A Macro Economic Overview, including the economic contribution and current labour market situation of export sectors: Ms. Vann Sereyroth delivered the presentation on behalf of CDC: Overview of Macroeconomic Situation in Cambodia - Key indicator - Committed Investments in Cambodia by sectors - Age Pyramid of Cambodian Population Labor Market and Export Orientation - Labor Intensive Industries, processing and manufacturing - Agriculture and Agro business - MFN/GSP Market Access Industrial Development Policy Aims - Target - Priority Sectors 6

7 (Refer to Annex 4 for the full CDC presentation) 5.3 Presentation of the Cambodia priority export sectors/products: Mr. Kong Keo Mony, Deputy Director Import Export Department of MOC made the presentation: Introduction of Cambodia trade integration in ASEAN and WTO The three main exporting sectors: light industry, agriculture, silk and wood. Conclusion on Cambodia Rectangular Strategy for Growth, Employment, Equity and Efficiency Phase III, to increase exporting products by year and year. (Refer to Annex 5 for the full MOC presentation) 5.4 Presentation on the Cambodia skill development framework and future priorities Mr. Tep Oeun Deputy Director General of DGTVET/MLVT, gave a presentation as following: SOCIO ECONOMIC GOAL OF ROYAL GOVERNMENT OF CAMBODIA Employment population (15 64y) by industrial sector, MLVT s TVET Institutes and Skills Training delivery TYPE OF TRAINING PROGRAMES: - Track 1 Poverty Reduction - Track 2 Supporting Industrial Development Education System for Cambodia CAMBODIA QUALIFICATION FRAMEWORK (CQF) National Competency Standard, Curriculum Based CS, Assessment Packages, Learning Packages - Civil construction - Auto Mechanic - Business and ICT TVET Management Framework TVET institutions in Cambodia Strategic Planning FOR TVET Development, Improve Quality and Relevance of TVET system - Increase Access and Equity to TVET programs - Strengthen Good Governance & Management in TVET system Sharing Information on (SMR ASEAN, and AQRF) (Refer to Annex 6 for the full MLVT DGTVET presentation) Questions and answers after the presentations: Q1: There are 8 levels of CQF, which parts are the responsibility of the MLVT? of the MOYES? 7

8 A1: According to Anukret 152/283, the Ministry of Labour and Vocational Training has authority on the management and development of the TVET program. All levels of the Camobodia Qualification Framework is the responsibility of MLVT. Q2: What is the solution to improve soft skills of TVET students? A2: Include soft skills in TVET competency based curriculum. DGTVET has also made the recommendation to the Ministry of Education to include soft skills in primary school and to cooperate with employers to set up internship programs for the students. Q3: What is the cost and benefit of labour migration from Cambodia other countries? A3: About 200, ,000 people per year are ready to enter the labour market. Labour migration helps reduce the problem of unemployment. Labour immigration helps people find better jobs in the other country and earn income to support their families. 6. GROUP WORK: 6.1 Explanation on group work: A short presentation on priority sectors and section criteria by Khleang Rim, ILO STED National Project Officer. The presentation was focused on: CTIS Priority Export Sectors: Garments, Footwear, Light manufacturing/special economic zones, Processed food, Fisheries, Milled rice, Cassava, Natural rubber, Tourism and High value silk; Explain on the 10 selection criteria; All participants were divided in 3 group to discuss on the priority the export sectors; (Refer to Annex 7 for the full presentation) Mr. Enn Vuthy facilitated and coordinated the discussion. The participants were divided into 3 discussion groups. The discussion of each group focused on topics as follow: Discuss possible export sectors for STED from CDTIS list of priorities based on shortlisting/selection criteria. Other possible criteria items maybe cited if deemed also important. Present the 2 selected export sectors based on working group discussion, citing reasons for selecting each sector. 6.2 Presentation of the results of group work: The presentation of Group 1: After discussion, Group 1 selected: Tourism Garments 8

9 They cited the following reasons for selecting the two sectors: Tourism: Developing sector Provide job for labourers High potential investment Cultural heritage sites, coast and eco tourism Need hospitality skill Garments: Investment increase by year and year Create jobs for Cambodians Require new skills The presentation of Group 2: Group 2 selected: Light manufacturing /SEZ Processed food The group cited the following reasons for selecting the two sectors: Light manufacturing /SEZ: Need low skills, medium skills and high skills Skills link with TVET Investment increase in SEZ High potential investment in future Processed food Potential employment creation for Cambodians Requirement of occupations and skills Small and medium enterprises association The presentation of Group 3: Group 3 selected: Tourism Garments In addition, Group 3 also requested that light manufacturing sector be considered as a priority. Group 3 cited the following reasons for selecting the sectors: Tourism Main sector in economic development Tourism is an industry that does not create pollution High potential investment in the future Support from government 9

10 Garments Main export sector Employment creation High potential investment in the future Government industrial policies in place 7. SUMMARY and NEXT STEPS Ms. Carmela I. Torres, ILO Senior Skills and Employability Specialist, made a brief summary of the workshop. She said that the workshop was fruitful. It was able to solicit inputs among people from different sectors and institutions that will be involved in the STED Project. The workshop was able to short list 4 priorities sectors 1) Tourism 2) Garment 3) Processed food 4) Light manufacturing. She said We will bring today s results to the STED Project Advisory Committee who will finalize and approve the 2 sectors. After the final selection of the 2 sectors by the PAC, we will proceed with the conduct of in depth studies on these sectors, using the STED methodology. The studies will include sector specific surveys of sample establishments and sector specific skills surveys to identify the skills requirements, as well as the challenges and bottlenecks that need to be addressed to ensure the availability of skills needed to support the development of the sector. Continuous dialogue and consultations particularly with sector experts will be made as the studies will progress. She also added that STED recommendations will cover the major skills gaps that will be identified and will be validated by the PAC. The STED Report will be presented to policy makers and development partners to ensure that the recommendations reflect and support national priorities and the overall HRD strategy. The STED Project will support the implementation of recommendations by identified stakeholders and collaborate with other partners that can implement the STED recommendations. 8. CLOSING SESSION: In his closing remarks, H.E. Laov Him expressed his thanks to all participants from the government institutions and from the private sector. He appreciated the good cooperation from ILO which has been contributing to the technical vocational education and training in Cambodia. He also appreciated the active discussion among all participants which resulted in the selection of 4 sectors: 1) Tourism 2) Garment 3) Processed food 4) Light manufacturing for the STED Project. He described the workshop very useful as its results will it contribute to the improvement of the vocational training system in Cambodia. He added he hoped that the ILO will continue to support the technical and vocational training system in Cambodia. The consultation workshop was closed at 1:30pm. 10

11 Annex 1: Workshop agenda 08:00 08:30 Registration MLVT 08:30 09:00 Opening Remarks ILO CAMFEBA TU MLVT 09:00 09:15 Session 1 Moderator: MLVT Presentation on the STED approach and possible sector ILO selection criteria and primary consideration 09:15 09:30 A Macro Economic Overview, including the economic contribution and current labour market situation of export sectors CDC 09:30 10:00 Presentation of the Cambodia priority export Ministry of Commerce sectors/products 10:00 10:15 Presentation on the Cambodia skill development MLVT framework and future priorities 10:15 10:45 Q&A comments 10:45 11:00 Coffee break Session 2 11:00 11:40 Group Discussion (max 3 groups) ILO Facilitator All 11:40 12:10 Group presentations ILO Facilitator All 12:10 12:40 Synthesis of group presentations and short listed priority Moderator: MLVT export sectors for STED analysis 12:40 12:50 Next steps ILO 12:50 13:00 Closing remarks MLVT 13:00 Lunch 11

12 Annex 2: List of Participants No Name Sex Position Ministry/ institution Telephone Government 1 Lay Sok Kheang M Chief Socil Item Supreme National Economic Council (SNEC) Lim Visal Deputy Director CDC Bun Borin M Deputy Director MEF Khin Chantha M Director 5 Norng Kanika F Director 6 Sav Sokunkethya F Director 7 Tong Meng Ang M Deputy Director 8 An Thaysocheat M Deputy Director Department of Institute Management of (MLVT) Department of Policy and Strategy of (MLVT) Department of Labour Market Information of (MLVT) Department of Training of (MLVT) Department of Standard and Curriculum Development, (MLVT) Kuon Phymalen M Deputy Director Department of Quality Insurance of (MLVT) Sip Pagnasoley M Vice Rector office MOEY Eang Mongly Officer 12 Mok Ouksaphea DDTSS 13 Khann Sombann GDA 14 Bun Khema Deputy Director Ministry of Commerce (MOC) Ministry of Commerce (MOC) Ministry of Agriculture, Forestry and Fisheries (MAFF) Ministry of Tourism (MOT)

13 No Name Sex Position Ministry/ institution Telephone 15 Iv Sambath D. Chief 16 Rath Saravuth M Director Ministry of Industry and Handicraft (MOIH) Ministry of Industry and Handicraft (MOIH) Kang Leangy Director Ministry of Planning Ork Sophal M Deputy Director Ministry of Health (MOH) 19 Chou Bunheang M Director CARD Kun Sambat M Officer National Employment Agency (NEA) Ung Ratha Staff DSC Hong Sothea Vice Chief Office MLVT Suy Ranouch Staff DSC Chan Pheakdy Chief Office DGTVET Sin Sareth Vice Chief Office MLVT Phuon Phoury Chief Office MLVT Hem Votanak Staff MLVT Chheang Channa Deputy Director DGTVET Sreng Channkosal Staff MLVT Tep Sophorn F Private Sector and Employer Associations Membership Manager Cambodian Federation of Employers and Business Association (CAMFEBA)

14 No Name Sex Position Ministry/ institution Telephone 31 Hy Sithet F General Manager (CAMFEBA) Sotha Sothan M Director/ Vice Director Chamber of Commerce Say Thouth Legal Official 34 Sam Sochea M Consultation Trade Unions 35 Heng Chanda M General Committee Garment Manufactures Association of Cambodia (GMAC) Phnom Penh Small Medium Enterprise Association (PSMEA) Cambodian Labour Confederation (CLC) Im Chanmony F Officer (CLC) Chuon Momthol M President Cambodia Confederation of Trade union (CCTU) 38 Chuon Momthol Pisey F Officer Cambodian Union Federation (CUF) UN, IOs & Development Partners 39 Sophea Mar M Representative Asian Development Bank (ADB) 40 Vannara Sey Operation official World Bank 41 Leslek Huly Consultate UNDP Hak Sok Chea NPC UNIDO Hing Vutha Researcher 44 Ros Va NPO Cambodian Development Resource Institute (CDRI) Swiss Agency for Development and Cooperation (SDC)

15 No Name Sex Position Ministry/ institution Telephone 45 Camela TORRES Ms. 46 Ma Concepcion SARDAÑA Ms. 47 Khleang Rim M Senior Skills Employability Specialist Chief Technical Advisor National Project Officer ILO ILO STED ILO STED 48 Prep Raksa Finace Assistance ILO Kim Chanhchana F Adm ILO STED Coordinator and Organizers 50 H.E. Laov Him M Director General DGTVET of (MLVT) Mr. Teang Sak M Director Department of Standard and Curriculum (DSC) of (MLVT) Enn Vuthy M Chief Office DSC (MLVT) Horn Vanna M Deputy Chief Office DSC (MLVT) Resource Persons 54 Ma. Concepcion Sardaña Chief Technical Advisor ILO 55 Vann Sereyroth Deputy Director CDC kong Keo mony Deputy Director Ministry of Commerce Tep Oeun Deputy Director General DGTVET of (MLVT)

16 No Name Sex Position Ministry/ institution Telephone Interpreter and Minute taker 58 Khat Prosopheaktra M Interpreter Creative Translation Service Ros Someth M Staff DSC