Cambodia is preparing three major 10-year policy frameworks to modernise its industrial sector, strengthen workforce skills and create more decent, higher-paying jobs as the Kingdom seeks to diversify its economy and improve national competitiveness by 2035.
The draft Cambodia Industrial Development Policy 2026–2035, National Policy on Technical and Vocational Training 2026–2035, and National Policy on Employment and Labour 2026–2035 were reviewed at a meeting of the Economic and Financial Policy Committee chaired by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth earlier this week.
The three frameworks are designed to support the Royal Government’s Pentagonal Strategy – Phase I, with a focus on economic diversification, human capital development, industrial competitiveness and environmental sustainability.
Key Facts
Policy period: 2026–2035.
Number of draft policies: Three.
Industrial policy: Cambodia Industrial Development Policy 2026–2035.
Skills policy: National Policy on Technical and Vocational Training 2026–2035.
Employment policy: National Policy on Employment and Labour 2026–2035.
Meeting chair: Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth.
Main objectives: Industrial modernisation, workforce development, higher productivity and better employment opportunities.
Finalisation target: By the end of November, for government review and approval.
Current status: Draft policies under review; final government approval has not yet been reported.
Three National Policies Target Cambodia’s Economic Transformation
The three draft policies address interconnected challenges facing Cambodia's economy: the need to move towards higher-value industrial production, develop workers with relevant technical skills and create more productive and better-paid employment.
Together, they are intended to establish a stronger connection between industrial development, workforce training and labour market requirements.
The policy frameworks were developed through studies and consultations involving relevant ministries and institutions, private-sector representatives and development partners.
The government aims to ensure that the policies are relevant to Cambodia's economic priorities and can be translated into practical implementation measures.
1. Industrial Development Policy 2026–2035: Moving Towards Higher-Value Manufacturing
The draft Cambodia Industrial Development Policy 2026–2035 aims to transform Cambodia's industrial structure from low-skilled, low-value-added production towards more skills-intensive, technology-driven and higher-value-added industries.
Prepared by an inter-ministerial working group of the National Economic Council, the framework seeks to establish a competitive, diversified and resilient industrial base.
It also aims to strengthen domestic industrial capacity and connectivity while deepening Cambodia's integration into regional production networks.
The draft policy identifies four key objectives:
Attract quality investment
The government aims to attract investment that generates skilled employment, improves productivity and raises incomes.
Sustain long-term industrial growth
The framework seeks to support stable and sustainable industrial development while strengthening the competitiveness of Cambodian industries.
Develop supporting industries
Building stronger supporting industries could improve productivity across the wider economy and strengthen connections between domestic businesses and industrial supply chains.
Prepare industries for future challenges
The policy aims to help the industrial sector adapt to emerging trends while improving resilience and environmental management.
The shift towards higher-value production is particularly relevant as Cambodia seeks to strengthen its position within regional manufacturing and production networks.
2. Technical and Vocational Training Policy 2026–2035: Developing a Skilled Workforce
The draft National Policy on Technical and Vocational Training 2026–2035, prepared by the Ministry of Labour and Vocational Training, focuses on developing a skilled and adaptable workforce capable of responding to changing labour market demands.
The policy aims to establish a quality, inclusive and forward-looking technical and vocational education and training system.
A central priority is stronger cooperation with private-sector businesses and other stakeholders so that training programmes can respond more effectively to employers' requirements.
The framework also emphasises lifelong learning and continuous skills development in response to three major transitions:
Digital transformation: Developing skills relevant to technology adoption and changing workplace requirements.
Green transition: Preparing workers for emerging employment opportunities associated with more sustainable economic activities.
Changing market needs: Ensuring that training and qualifications remain relevant as industries and occupations evolve.
Workforce development is considered essential to improving productivity, supporting economic diversification, strengthening national competitiveness and expanding access to decent employment and higher incomes.
3. Employment and Labour Policy 2026–2035: Expanding Decent and Higher-Income Jobs
The draft National Policy on Employment and Labour 2026–2035 aims to develop a resilient, competitive and inclusive labour market that provides Cambodian workers with better employment opportunities and improved living standards.
Its priorities include:
Developing human capital to meet employers' needs.
Creating more high-income occupations.
Expanding opportunities for decent work.
Strengthening labour market governance.
Supporting inclusive and resilient economic development.
The framework recognises the importance of aligning workforce capabilities with the needs of businesses and industries.
For Cambodia, improving employment quality will involve more than increasing the number of jobs. The policy also places emphasis on higher-income occupations, better opportunities and a labour market that can respond to economic changes.
Senior Government Officials Review the Three Policy Frameworks
The review meeting was chaired by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth.
Other senior officials attending included:
Say Samal, Deputy Prime Minister and Minister of Land Management, Urban Planning and Construction.
Koeut Rith, Deputy Prime Minister and Minister of Justice.
Hem Vanndy, Minister of Industry, Science, Technology and Innovation.
Heng Sour, Minister of Labour and Vocational Training.
Representatives from relevant ministries and institutions also participated.
Pornmoniroth commended the cooperation among the ministries and institutions involved in preparing the three frameworks.
He urged the relevant working groups to finalise the draft policies by the end of November so they could be submitted for government review and approval.
Supporting Cambodia’s Pentagonal Strategy – Phase I
The three draft policies are intended to support the government's Pentagonal Strategy – Phase I, which prioritises economic diversification, human capital development and environmental sustainability.
The frameworks also reflect the need to prepare Cambodia's economy for demographic changes and evolving global economic conditions.
Their combined approach connects industrial competitiveness with workforce capabilities and labour market development.
A stronger industrial base requires workers with relevant technical and professional skills. At the same time, effective vocational training depends on understanding the skills employers need and the types of industries the country aims to develop.
By addressing these areas through coordinated national policies, the government seeks to establish a stronger foundation for long-term economic development.
What the Policies Could Mean for Cambodian Businesses and Workers?
If approved and effectively implemented, the three frameworks could have implications for businesses, workers, educational institutions and investors.
For manufacturers and industrial investors: The industrial policy could support a more competitive business environment, stronger domestic supply chains and greater emphasis on technology-driven production.
For employers: The vocational training framework could encourage closer cooperation between businesses and training institutions to develop workers with industry-relevant skills.
For Cambodian workers: The employment and labour framework aims to expand access to decent work and higher-income occupations.
For vocational training institutions: Greater emphasis on private-sector partnerships and lifelong learning could influence training programmes and skills development priorities.
For investors: A more developed industrial workforce and stronger supporting industries could improve the conditions for investment in higher-value manufacturing and related sectors.
These are potential implications of the draft frameworks. Their actual impact will depend on the final policies, implementation arrangements, funding and coordination among relevant institutions.
Angkor Times Analysis: Linking Industrial Investment with Skills and Better Jobs
Cambodia's preparation of three coordinated 10-year policies reflects an important economic development challenge: industrial growth, workforce skills and employment quality need to advance together.
Attracting investment alone does not automatically create a higher-value industrial economy. Businesses also need skilled workers, reliable suppliers, supporting industries and an employment environment capable of adapting to technological and market changes.
The draft Industrial Development Policy addresses the production side of this challenge by seeking to move Cambodia towards more technology-driven and higher-value-added industries.
The vocational training framework addresses the workforce requirement, while the employment and labour policy focuses on ensuring that economic development creates better employment opportunities and improved living standards.
For the private sector, one of the most important elements will be whether vocational training becomes more closely connected to actual business demand. Employers need workers with practical technical capabilities, digital skills and the ability to adapt as production processes change.
The emphasis on supporting industries is also significant. Stronger domestic industrial linkages could create opportunities for Cambodian suppliers and manufacturers to participate more deeply in regional production networks.
However, the success of the three policies will depend on implementation rather than their stated objectives alone.
Key indicators to monitor include:
Growth in higher-value-added industrial production.
Investment in technology-intensive and skills-intensive industries.
Expansion of domestic supporting industries.
Private-sector participation in vocational training.
Employment in higher-income occupations.
Improved access to decent work.
Workforce readiness for digital and green economic transitions.
The government's target to finalise the drafts by the end of November marks the next step in the policy process. Once reviewed and approved, the focus will shift towards translating the frameworks into practical programmes, measurable targets and coordinated implementation.
For Cambodia, the longer-term objective is to build an economy that creates not only more jobs, but also more productive industries, stronger skills and better opportunities for its workforce.
Frequently Asked Questions
1. What are Cambodia's three new draft policies for 2026–2035?
They are the Cambodia Industrial Development Policy 2026–2035, National Policy on Technical and Vocational Training 2026–2035, and National Policy on Employment and Labour 2026–2035.
2. Who chaired the meeting reviewing the policies?
The meeting was chaired by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth.
3. What is the main objective of the Industrial Development Policy?
It aims to move Cambodia from low-skilled, low-value-added production towards more skills-intensive, technology-driven and higher-value-added industries.
4. What does the vocational training policy aim to achieve?
It seeks to develop a skilled and adaptable workforce through a quality, inclusive and forward-looking technical and vocational education and training system, with stronger private-sector partnerships.
5. What is the purpose of the Employment and Labour Policy?
The policy aims to create a resilient, competitive and inclusive labour market with better employment opportunities, more high-income occupations and improved living standards.
6. How do the three policies support Cambodia's industrial development?
They address three connected areas: industrial competitiveness, workforce skills and employment. Together, they aim to strengthen productivity and prepare Cambodia for changing economic conditions.
7. How does the private sector contribute to the policies?
Private-sector representatives were involved in consultations during policy development. The vocational training framework also emphasises stronger partnerships with businesses and other stakeholders.
8. When will the draft policies be finalised?
Deputy Prime Minister Aun Pornmoniroth urged the relevant working groups to finalise the three drafts by the end of November for government review and approval.
9. Have the three policies received final government approval?
The report describes them as draft policies under review. It does not confirm final government approval.