July 10, 2024
PHNOM PENH – Japanese giant Toyota has announced the opening of an automotive training school in Cambodia. Prime Minister Hun Manet encouraged the company to explore the possibility of expanding the scope of training to Cambodian youth to meet the needs of the automotive manufacturing job market, both domestically and internationally.
Ryoji Fujita, managing director of Toyota Tsusho Manufacturing Cambodia, announced the initiative during a July 8 meeting with Manet in Phnom Penh.
In early May, a Toyota assembly plant in the Royal Group Phnom Penh Special Economic Zone was inaugurated by the prime minister, with an investment capital of $37 million.
“Fujita announced the initiative to establish the training school was based on recommendations made by Manet during the inauguration ceremony,” said a July 8 press release issued by the Royal Government Spokesperson Unit.
During the meeting, Fujita asked Manet for guidance regarding the establishment of the new training facility.
“Manet expressed his support for the company’s initiative and encouraged them to work closely with the Ministry of Labour and Vocational Training to discuss details on establishing the school and defining a business model,” said the release.
Manet suggested two options. First, the company could set up the facility itself and secondly, it could be established as a hybrid collaboration with the existing government training institution, through cooperation with the labour ministry.
He encouraged the company to explore the possibility of expanding the scope of training to young Cambodians, not only to train human resources to work for Toyota but also to meet the needs of other job markets, both domestic and foreign, in the future.
The Prime Minister also urged the company to examine the feasibility of supplying spare parts not only to Toyota in Cambodia but also in other countries.
He also asked that they consider working with local companies that can supply accessories for Toyota.
Socio-economic analyst Chey Tech described the initiative as part of the transfer of modern technology in the production and assembly of vehicles to the Cambodian workforce, noting that it would also employ many Cambodians, especially in jobs with higher-paying skills than current jobs in the garment and footwear sector, which are unskilled, low-wage positions.
“It will also contribute to attracting investment because it will create a skilled Cambodian workforce. This will encourage more companies to invest in Cambodia, so I expect foreign direct investment (FDI) to increase,” he told The Post on July 9.
“Through this initiative, people will have more jobs and wages will be higher. It will also contribute to increasing Cambodia’s exports to regional and other international markets,” he added.
Tech believed the new training facility would play a role in realising the government’s vision of transforming Cambodia into a hub for assembling and manufacturing vehicles for domestic use as well as export.
“It will contribute to the government’s goal of providing vocational training to 1.5 million young people from poor and vulnerable families by 2028, as well as developing the Cambodian economy through job growth, attracting FDI and increasing exports,” he said.