The Contribution of TVET to Cambodia’s Economy. Case Study: National Polytechnic Institute of Cambodia (NPIC)

Recognizing the critical role a well-trained workforce plays in socioeconomic development, the Royal Government of Cambodia (RGC) introduced the Pentagonal Strategy Phase 1 during the 7th legislature of the National Assembly. This strategy emphasizes human capital development as its foremost priority, with “Technical Skills Training” identified as a key component. The goal is to transform Cambodia’s workforce from predominantly labor-intensive to skill-intensive, thereby supporting the nation’s vision of achieving a high-middle-income country by 2030 and becoming a high-income nation by 2050. To address the skills shortages that impede economic progress, the National Polytechnic Institute of Cambodia (NPIC) is actively contributing to the development of Cambodia’s workforce. Additionally, NPIC has partnered with both local and international institutions, including the Tianjin Sino-German University of Applied Sciences (TSGUAS). Together, they have signed a Memorandum of Understanding (MoU) to establish the Cambodia-Luban Workshop Project, also known as the “Lancang-Mekong Vocational Education Training Center,” to tackle these challenges. Therefore, the main aim of this paper is to study the skills shortage and its effects, as well as the contribution of skills development at both the industrial and national levels. This will be achieved using the Ordinary Least-Squares (OLS) regression, which allows for a comprehensive analysis of the economic impacts of skills development initiatives.