Improving labour rights and working conditions, especially for women, is central to the government’s efforts. Post staff
As Cambodia prepares to graduation from Least Developed Country (LDC) status in 2029, the economic and social changes on the horizon raise critical concerns about the transition’s impact on women.
Women are expected to face disproportionate challenges during this shift, particularly in industries like garment manufacture and agriculture, which heavily rely on their labour.
The government and all stakeholders are working to address these gender impacts, while also leveraging opportunities for inclusive development.
Cambodia’s economy has long been dependent on preferential trade measures, which will be gradually phased out following LDC graduation.
“Projections from the Dynamic Global Trade Analysis Project estimate that the country could see a 2.4 per cent drop in aggregate exports by 2030, translating to $771.8 million in losses,” according to a policy brief released by the Ministry of Planning and UNDP Cambodia in November 2024.
The joint report explained that this reduction will affect employment, with an estimated 168,000 jobs at risk, nearly 58 per cent of them held by women.
“The number of new poor persons due to LDC shocks is estimated at 144,000 in 2027, 122,000 in 2028, 95,000 in 2029 and 70,000 in 2030, leading to around 432,000 non-poor persons slipping into poverty due to LDC graduation,” said the report, citing the Dynamic Computable General Equilibrium (DCGE).
The garment industry employs more than 91,000 employees in over 1,500 factories. Post staff
The garment industry, which employs over 91,000 employees in more than 1,500 factories, is particularly vulnerable to these shifts as rising tariffs and stricter rules of origin requirements will reduce Cambodia’s competitiveness.
The policy brief recommended reforms for competitiveness, green development, export diversification, trade benefits, climate resilience and social protections focused on women.
The government is aware of the risks and is actively preparing measures to mitigate these impacts, according to Kata On, spokesperson for the Ministry of Labour and Vocational Training. He highlighted the proactive steps being taken.
“Cambodia is moving from a less developed country to an upper middle-income country by 2030 and a high-income country by 2050,” he said.
“The government has outlined economic policies to mobilise more new investors to expand small and medium-sized industries and build more heavy industries to increase exports and create jobs for the people,” he told The Post.
He said Cambodia's economic growth was projected to hit around five per cent in 2024 and six in 2025, with expectations of continued growth in the future.
He added that improving labour rights and working conditions, especially for women, is central to the government’s efforts.
Economic modelling also suggests a potential rise in poverty as a result of LDC graduation. Reduced access to education, healthcare and social protections further exacerbate the challenges they face.
However, Kata On noted that social protections are being expanded, with special attention to women’s needs.
“The government is striving to improve labour rights and working conditions, especially for women, to guarantee peaceful communities,” he explained.
The number of new poor persons due to LDC shocks is estimated at 144,000 in 2027, 122,000 in 2028, 95,000 in 2029, and 70,000 in 2030, leading to around 432,000 non-poor persons slipping into poverty due to LDC graduation. Post staff
While the challenges are significant, Cambodia’s transition also opens doors for progress in gender equality and inclusive development.
The government is investing in vocational and technical training to equip women with skills that meet labour market demands.
According to Kata On, nearly 40 per cent of the 150,000 students currently enrolled in vocational training programmes are women.
He also highlighted a government initiative that provides free vocational education and monthly allowances to students from poor and vulnerable families.
“Over the past year, more than 83,000 students have enrolled. The labour ministry has established 45 professional study programmes and 37 dedicated institutes across the country which train workers with the skills they need to meet the demands of the labour market,” he said.
The government is also collaborating with private institutions to support female entrepreneurs, added the spokesman.
“We encourage the creation of more female entrepreneurship centres to support female entrepreneurs in business,” he explained.
“Facilitating low-interest loans and training women in financial management are part of our broader strategy to empower women in the workforce,” he added.
As Cambodia approaches this pivotal moment in its development journey, addressing the gendered impacts of LDC graduation is not only a necessity but also an opportunity to build a more inclusive and equitable society.
By prioritising investments in women’s education, training and entrepreneurship, the Kingdom can ensure that its transition benefits all segments of its population.
“The development of the country must be based on human resources and we encourage women to participate in the labour sector. This is the direction that the Royal Government is implementing,” said Kata On.
According to the Policy Brief report, the most substantial GDP gains will manifest in SIM 3 (tourism), where the nominal GDP registers a noteworthy increase of $2.606 billion, closely approximating the total GDP loss of $2.947 billion incurred in the LDC simulation.
