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Government Policies

How’s Cambodia reintegrating the returning workers for its growth?

Last updated: December 1, 2025 12:50 am
Published: 3 months ago
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The border conflict between Cambodia and Thailand plumbed new depths on all counts. In fact, the losses were too many, but one of the quintessential casualties was the return of 900,000 Cambodian migrant workers from Thailand. Truth is, Cambodian migrant workers in Thailand earned goodwill, became a model of efficient and obedient workers. But then they were mercilessly targeted merely because they are from Cambodia. When attacks continued unabated, the Royal Government was left with little choice and urged them to return, assuring them that they would be taken care of. The Ministry of Labour now sees the return of Cambodian workers as a golden opportunity. It wants to utilise them, to what it terms as ‘pieces of gold’ for its own economic growth. So far, the CDC has approved 600 investment projects, and the number is expected to escalate by the end of 2025. As a top government official tells Khmer Times, “These projects are expected to create around 400,000 additional jobs, on top of the existing 82,000 employment opportunities already generated.” Going by the current trend, there shouldn’t be any dearth of jobs in the years to come

As foreign investment in Cambodia — especially in manufacturing, agro-industry, and construction sectors — is on the rise, so is the demand for a skilled and semi-skilled labour force.

The return of 900,000 Cambodian migrant workers from Thailand during the border conflict between the two Kingdoms, presents a unique opportunity for Cambodia. Returning workers could help replenish the domestic labour market at a time when new factories, enterprises, and investment projects are expanding across the country.

However, while many workers bring valuable experience from abroad, most still require additional vocational training and certification to meet industry standards and contribute productively to Cambodia’s economic transformation.

Speaking to Khmer Times, Sun Mesa, spokesman for the Ministry of Labour and Vocational Training (MLVT), said that Cambodian workers have long migrated abroad in search of higher-paying jobs, particularly to Thailand’s agricultural, construction, and manufacturing sectors. Many of them worked in informal or low-skilled jobs where they gained work experience, but often lacked formal skills training or professional certification.

“As of October 2025, Cambodia has approved 579 investment projects with a total capital of $9.2 billion, which are expected to create around 400,000 additional jobs, on top of the existing 82,000 employment opportunities already generated,” he said.

“Regarding the benefits of our workers returning home, the labour force is a powerful economic asset. With more than 900,000 returnees, their presence significantly strengthens and expands economic activity. Their return contributes to a more stable and self-sufficient labour market, supporting national economic growth more effectively,” he said.

“As we have seen during the boycott of Thai products, many local producers began creating new products — initiatives that were largely driven by the skills and efforts of returning workers, leading to the creation of direct employment opportunities.”

Mesa acknowledged that Thailand has more advanced technologies and modern practices. Therefore, Cambodian workers, who spent years there, have gained valuable knowledge and skills in sectors such as agriculture, industry, and agro-industry, which enables them to generate employment and even create their own jobs.

“Another important point is that their return helps meet the labour demands of investors operating in Cambodia, particularly in industrial and other sectors, ensuring a greater supply of skilled labour,” he added.

“The return of our Cambodian workers is truly a golden opportunity. We can transform these nearly one million ‘pieces of gold’ — our labour force — into industrial gold, especially as many of them are now enrolling in vocational training programs.”

Mesa observes that working conditions in Cambodia are improving, a reason for the increasing investor interest in the Kingdom. In addition, the Ministry of Labour offers flexible opportunities for workers to participate in technical and vocational skills training at any time. Overall, good working conditions, a skilled workforce, and political stability are helping attract more investors and support continued investment in the country.”

Job creation efforts

Cambodia has gained strong confidence from both local and foreign investors due to supportive government policies, stable economic growth, and improved trade agreements. This investor trust has led to a steady rise in approved investment projects, especially in manufacturing, agriculture, and tourism.

These investments are creating thousands of jobs for Cambodians. The government continues to focus on attracting more investors to support long-term economic growth and help Cambodia achieve its goal of becoming a high-income country by 2050.

Sun Chanthol, Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia (CDC), told Khmer Times that Cambodia has gained strong trust from both domestic and foreign investors under the leadership of Prime Minister Hun Manet, resulting in increased investments and job creation for local and expatriate workers.

He noted that, to date, the CDC has approved 600 investment projects, and the number is expected to grow by the end of 2025, potentially creating more than 400,000 jobs for Cambodian citizens.

“We will continue to work hard to attract investors, as Samdech Prime Minister encouraged, to bring in customers and companies to invest in our country to create jobs for our people. We are proud to have approved more projects compared to 2024, and we will not slow down. We will work even harder to attract more investment next year,” he said.

Chanthol added that Cambodia’s tariff trade agreement with the United States has significantly boosted investor confidence, giving them clarity and advantages in trade and encouraging further investment.

According to Chanthol, most approved investment projects are in the manufacturing sector, followed by agriculture and tourism. He emphasised the importance of national unity and collective determination to build a prosperous and respected country.

“When we are poor, the other countries look down on us. That is why the Prime Minister has vowed to transform Cambodia into a high-income country by 2050. When we have high income, they will respect us, and they will no longer look down on us,” DPM Chanthol stated.

Skills development

Cambodia is preparing to enter a new era of labour market development, driven by the shift from labour -intensive industries to higher-value production. This means that while returning migrant workers can help fill labour shortages, their integration into new industries will require targeted training, skills development, and support services.

This is a crucial moment for Cambodia to move from a low-skilled to a semi-skilled economy. Returnees can be trained for specialised roles in quality control, machine operation, food processing, digital services, mechanical repairs, and agricultural technology. If properly supported, they can help Cambodia transition to higher-value production, boost productivity, and reduce dependency on low-wage labour.

Socio-economic researcher Chey Tech told Khmer Times that most of the returning workers have successfully found employment, while some have chosen to go back to Thailand.

He noted that those who remain in Cambodia possess skills in sectors such as agriculture, construction, hospitality, and food services, which they can continue to apply and further develop within the country.

Tech added that the government should continue to enhance its skills, as many returnees have already participated in vocational training programs provided by the Ministry of Labour and vocational training centers across various provinces.

“Those who have attended vocational training courses at the Ministry of Labour have the potential to enter the industrial sector, particularly semi-technical industries, as well as automotive and electrical assembly sectors,” Tech emphasised.

Mesa hightlighted that the Ministry of Labour has established a mechanism to help Cambodian workers returning from Thailand find employment. Since June, the ministry has launched a campaign encouraging returnees to register for job placement services, resulting in more than 600 registrations nationwide, particularly in border provinces such as Battambang, Banteay Meanchey, and Siem Reap.

He added that labour migration is a global phenomenon, with Cambodians working abroad and foreign nationals also coming to work in Cambodia. He noted that Cambodia’s cooperation is not limited to Thailand but extends to other countries, including South Korea, Japan, Saudi Arabia, Singapore, Malaysia, and several more.

“For our workers returning from Thailand, they can now find employment in Cambodia because the country today is very different from what it was 20 years ago. We now have a stronger economy and tens of thousands of job opportunities available in factories and enterprises nationwide,” Mesa added.

He went on to say that Cambodia continues to attract investment due to its skilled workforce, strong political stability, peace, and security — key factors that investors seek. These conditions enable Cambodian citizens to secure long-term employment and also create opportunities for those outside formal employment systems to start their own businesses.

Filling workforce

Cambodia is expected to see major shifts in its labour market following the return of over 900,000 Cambodian migrant workers, with experts saying their reintegration could boost investment, fill labour shortages, and accelerate the country’s transition toward a more skilled economy.

The return of these workers comes at a time when Cambodia is witnessing rapid industrial expansion, especially in manufacturing, agriculture processing, logistics, construction, and services. With growing foreign investment and factory relocation to rural areas, businesses are increasingly seeking a stable and available labour force.

Sam Soeun, President of the National Confederation of Labour of Cambodia, told Khmer Times that the return of nearly one million Cambodian workers could help strengthen the labour force, boost productivity, and attract more investors to Cambodia.

He said that Cambodia has also introduced a policy to train 1.5 million youth and citizens in vocational skills in response to the large influx of labour. “Cambodia has appropriate policies to facilitate the smooth reintegration of workers returning from Thailand, including simplifying documentation, job placement procedures, and access to employment opportunities. Their labour force will be a vital driver of national economic development.”

He added that to meet labour demands in large factories, enterprises, and industries, the Ministry of Labour and relevant institutions play a crucial role in facilitating procedures for workers to effectively respond to market needs.

“We can clearly see that the Ministry of Labour is proactively taking responsibility for workers returning from Thailand. I personally participated alongside the Ministry and competent authorities, and they genuinely care for Cambodian workers — from the moment they arrive until they are successfully placed in suitable jobs,” said Soeun.

He noted that so far, more than 300,000 Cambodian workers have secured employment, with many others participating in the informal economy.

New opportunities

The return of these workers presents an opportunity for Cambodia to upgrade its workforce and move from a low-skilled to a semi-skilled economy. If provided with proper training and certification, returnees could be deployed in specialised roles such as machine operation, quality control, food processing, mechanical repair, digital services, and agricultural technology.

This would not only increase productivity but also help Cambodia move toward higher-value production and reduce reliance on low-wage labour. It aligns with the government’s goal of modernising the workforce and improving competitiveness as outlined in the Pentagonal Strategy and Cambodia Vision 2050.

Chheng Kimlong, an economist and president of the Asia Vision Institute (AVI), told local media that Cambodia has long prioritised economic growth through diversification by seeking a wider range of investment partners. In the context of Thailand’s ongoing political turmoil, border-related issues have disrupted production chains due to unilateral closures on the Thai side. Combined with Thailand’s economic slowdown, driven by political instability, border disputes, and a decline in tourism, these developments present both opportunities and challenges for Cambodia.

“If we look at the opportunities, Thailand used to receive substantial foreign investment from Japan, the US, Korea, and Europe over the past 30 years, especially in the automotive, pharmaceutical, and food sectors. Now, however, Thailand’s attractiveness has decreased,” said Kimlong.

“So, if we look at the opportunity, Cambodia can play a new role. Why can Cambodia play a new role? Because Cambodia enjoys peace and political stability, an improved business environment — with updated investment laws, better legal implementation frameworks, and a functioning justice system. Overall, Cambodia is very attractive.”

Kimlong noted that developments in Thailand may allow Cambodia to absorb and enhance its own competitiveness. By seizing the opportunities created by trade disruptions — such as Thailand’s unilateral border closures — Cambodia can strengthen its resilience and modernise domestic production lines and industrial systems in several key sectors.

He added, “We can call this a golden opportunity, one that rarely occurs. When it does, the government, the people, and the private sector must recognise and seize it.”

He explained that for workers returning from Thailand, integrating them immediately into the national workforce is essential to discourage them from seeking work abroad. Their return represents an important additional labour force that needs support, resources, and modern vocational training to complement the skills they gained in Thailand. The Ministry of Labour has been assisting them by providing both skills training and immediate job opportunities.

“This reflects the strength of our economy, but it also requires the government to support these workers in a timely and comprehensive manner,” he said.

Son Sithoeun, a Cambodian worker recently returned from Thailand and originally from Pursat province, said she found a job in the Koh Kong Zhejiang Special Economic Zone through the National Employment Agency (NEA) under the Ministry of Labour.

“The Royal Government and the Ministry of Labour have made great efforts to help workers like me.”

Read more on Khmer Times

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