Excellency Heng Sour, Minister of Labour and Vocational Training
Mr. Oktavianto Pasaribu, Deputy Director of Decent Work Support Team of the International Labour Organization (ILO)
Representatives of line ministries, employers, labour unions and workers association
Distinguished guests, excellencies, colleagues, ladies, and gentlemen

Good morning. Chum reap sour. 

This year’s Labour Economic Conference focuses on "Economic and Employment Recovery and the Path to LDC Graduation". This discussion is pivotal for Cambodia as the Royal Government prepares for the country’s graduation and smooth transition out of the Least Developed Country (LDC) category.

The upcoming LDC graduation celebrates the remarkable progress made since Cambodia was first included in the list of least developed countries, in 1991. With a steady economic growth of around 7 per cent per year for the last two decades and a progressively increasing investment in people, Cambodia was able to significantly improve its socio-economic indicators. For example, before the pandemic, the Kingdom reduced its monetary poverty rate from 47.8 per cent in 2007 to 17.8 per cent in 2019. The investment in the first large-scale cash transfer to more than 700,000 families during COVID-19 helped slow down the loss of development gains during the pandemic. Since then, the Royal Government has taken steps to strengthen and expand its social assistance and security systems, investing in people and reducing the risk of them slipping back into poverty.

Excellencies, ladies, and gentlemen.

While the Cambodia we saw 30 years ago is very different from the Cambodia of today, Cambodia of 2050, as depicted in the Cambodia Vision 2050 and the Pentagonal Strategy Phase I 2024-2028, is also a very different country.

To get the country on the desired pathway, UNDP is supporting the Royal Government in using foresight to identify new sources of economic growth. But beyond the pace of growth, it is also important to consider its nature and quality.

The region has been at the forefront of many economic transformations and provides valuable lessons learned. The transformations can be traced back to Japan’s early experience with export-led industrialization, followed by the emergence of the Asian Tigers, and the rise of the economies of South-East Asia, South Asia, and China. These shifts, featuring just-in-time production and integrated value chains, established Asia as the world’s manufacturing hub and enabled many countries to climb the income ladder. Nevertheless, they have also underscored the criticality of creating quality job opportunities, investing in skill development, and expanding social protection systems to ensure sustainable and inclusive growth. By recalibrating its growth strategies, the country can unlock new drivers of growth that would generate needed jobs to stimulate positive upward spirals of opportunities and prosperity.

Excellencies, ladies, and gentlemen.

As we gather here today, it is important to reflect on the journey that has made the country what it is today. Cambodia's progress over the past decades has been remarkable, however, as it gears for LDC graduation, it must be recognized that the coming transition will bring both challenges to manage and opportunities to harness.

Just last month, UNDP and the Ministry of Planning launched the policy brief “Cambodia’s Graduation from Least Developed Country (LDC) Status: Preparedness and Potential Economic and Social Impacts”. The brief highlights a potential GDP growth slowdown, between 0.5% to 1.5%, and 165,000 potential job losses, particularly among women in the garment sector, increasing the risk of poverty for 432,000 people if no timely measures are taken.

This means that the process of LDC graduation will require deep transformations, and this is precisely why this conference is so relevant, as it aims to address the critical issues and policy options necessary to enhance Cambodia’s labour market amidst evolving economic and market uncertainties.

Excellencies, ladies and gentlemen.

One of the key challenges faced in Cambodia is ensuring that the labour market is prepared to support the national growth ambitions and meet the demands of a rapidly changing global economy. In a country where 88% of the working force is informal, a multifaceted approach is required. This is why we celebrate initiatives such as the National Strategy for Informal Economic Development 2023-2028, and the recently developed National Roadmap for Accelerating Decent Jobs and Social Protection, supported by the United Nations Global Accelerator on Decent Jobs and Social Protection.

The Global Accelerator aims to foster a virtuous cycle of sustainable development that generates economic and social returns, facilitating the transition to a resilient, sustainable, and inclusive world. This vision is rooted in the principles of the UN Common Agenda, which calls for inclusive, networked, and effective multilateralism to address humanity’s most pressing challenges.

The UN System in Cambodia, namely ILO, UNDP, and UNICEF, has secured 1.8 million US dollars, from the UN Joint SDG Fund, to support the Royal Government in launching the implementation of the National Roadmap. They will also provide needed technical assistance and capacity development, and support the generation of data and analysis to inform policy-making and resource mobilization.

Excellencies, ladies and gentlemen.

Over the next two days, we will hear from a diverse group of experts, policymakers, private sector representatives, union members, and researchers from across the region. These will share their knowledge and experience on a range of topics, including regional labour market dynamics, strategic human capital development, active labour market policies, skill development, and the strengthening of social security systems. I am confident that their insights and recommendations will provide valuable input for policymakers to develop the labour market and enable and accelerate a smooth LDC graduation and beyond.

Excellencies, ladies and gentlemen.

As we embark together on this journey, it is important to remember that the success of our efforts depends on the active engagement and commitment of all stakeholders (Government, private sector, civil society, and development partners). Each of us has a role to play in shaping Cambodia’s labour market and ensuring that it is inclusive, resilient, and competitive.

Let us seize this opportunity to share knowledge, develop strategic partnerships, and renew our commitment to support the Kingdom in achieving its development ambitions. I wish you all a productive and inspiring conference, and I wish the Ministry of Labour and Vocational Training, and H.E. Minister Heng Sour, success in this ambitious and enormous endeavour. You can count, Your Excellency, on UNDP’s partnership!

Thank you, Som Arkun.