Cambodian Commodity Chain Analys

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Coalition to Address Sexual Exploitation of Children in Cambodia


                             Plan Cambodia

  Cambodian Commodity Chain Analysis Study
Volume 2: Job Facilitation Program Recommendations

                         Prepared by:
                  Emerging Markets Consulting
            Private Sector Development and Business Consultants

                          In Partnership with
                            Curtis Hundley

                           February 25th, 2005

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Note: Supporting research and analysis on the industries assessed in this report is contained in
the accompanying document entitled “Cambodian Commodity Chain Analysis Study: Volume 1
– Comparative Industry Assessments.”

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Table of Contents
Introduction......................................................................................................................... 4
   Summary of Commodity Chain Analysis Project Phases............................................... 4
     Phase 1 Overview ....................................................................................................... 5
     Phase 2 Overview ....................................................................................................... 7
Industry Assessments and Program Recommendations ..................................................... 9
   Agricultural Processing: Horticulture ............................................................................ 9
     Industry Sustainability and Growth .......................................................................... 11
     Current and Proposed Industry Support Initiatives................................................... 13
     Employment Creation for Disadvantaged Youth...................................................... 14
     Current Job Facilitation Programs ............................................................................ 18
     Lack of Verifiable Data on Job Placement and Shortage of BDS ............................ 19
     Potential Job Facilitation Programs .......................................................................... 19
     Recommendations..................................................................................................... 24
     Estimated Cost and Impact of Proposed Initiatives .................................................. 28
   Handicrafts.................................................................................................................... 29
     Industry Sustainability and Growth .......................................................................... 31
     Current and Proposed Industry Support Initiatives................................................... 33
     Employment Creation for Disadvantaged Youth...................................................... 34
     Current Job Facilitation Programs ............................................................................ 36
     Potential Job Facilitation Programs .......................................................................... 37
     Recommendations..................................................................................................... 40
     Estimated Cost and Impact of Proposed Initiatives .................................................. 42
   Semi-Skilled Tourism Support Services....................................................................... 44
     Industry Sustainability and Growth .......................................................................... 45
     Current and Proposed Industry Support Initiatives................................................... 46
     Employment Creation for Disadvantaged Youth...................................................... 46
     Current Job Facilitation Programs ............................................................................ 51
     Potential Job Facilitation Programs .......................................................................... 56
     Recommendations..................................................................................................... 63
     Estimated Cost and Impact of Proposed Initiatives .................................................. 65
Summary ........................................................................................................................... 66
Next Steps ......................................................................................................................... 67
Appendix........................................................................................................................... 68
   Agricultural Processing: Horticulture – Contact Details ............................................. 68
   Handicrafts – Contact Details ....................................................................................... 69
   Semi-Skilled Tourism Services – Contact Details........................................................ 71

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Plan International, Cambodia and COSECAM (“Plan/COSECAM”) have commissioned
the development of a Commodity Chain Analysis Study to evaluate industries in
Cambodia that may provide significant employment to disadvantaged youth and young
adults in Siem Reap and Kampong Cham provinces. The primary objective of the study
is to provide specific recommendations about approaches to develop entrepreneurial and
industrial sectors in order to increase job opportunities for the target population.
Specifically, the study seeks to identify several high potential industries and develop
tangible plans to build the necessary “business linkages” and support infrastructure to
facilitate employment.

Summary of Commodity Chain Analysis Project Phases
To fulfill this objective, the study is comprised of 2 primary, sequential analytical phases.
Figure 1 provides an overview of the key activities and objectives of each phase of the

                                   Figure 1: Project Framework

                                                  Phase 1                                     Phase 2

                                              Assessment of
    Provincial                                   Potential
  Characteristics:                              Industries
    Siem Reap                                                                            Action Planning
  Kampong Cham                                      6-8
                                                                                          For Selected
                                             Focus on Industry
                                                                                            3 Industries
                                                Compare wrt
                            List of              Long-term                  Work
                                                                                         Conduct Additional
                           Potential           Sustainability &          Planning for
                                                                                        Research to Finalize
                          Industries            Employment                Follow-On
                                                                                        Industry Assessment
                        For Evaluation          Opportunities              Analysis
                                                 For Target
                                                                                        Develop Action Plan
                                                                                           For Required
                                                                                        Support to Facilitate
Project Parameters                           Select 3 Industries
                                                                                          Employment of
Target Beneficiaries                           For Additional
                                                                                        Targeted Population
    Objectives                                Assessment &
 Guiding Principles                           Action Planning

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Phase 1 Overview
Phase 1 consisted of a rapid, comparative assessment of 7 industries that have the
characteristics necessary to provide employment to disadvantaged youth in the target

Selection Process and Criteria
The industries assessed in this first phase were selected in cooperation with
Plan/COSECAM at the beginning of the study. Selection of the industries was based on
the following criteria:
1. Low skill requirements for the majority of employment positions within the industry
2. Labor intensive
3. Potential to create efficient vocational training programs and private sector linkages
4. Government/donor supported
5. Utilizes provincial resources and infrastructure
6. Large and growing market
7. Strong presence/opportunity within Siem Reap and Kampong Cham provinces

Included Industries
Based on the pre-project analysis detailed above, the following industries were selected
for Phase 1 assessment:1
1. Agricultural Processing
2. Aquaculture Fisheries
3. Construction
4. Handicrafts
5. Manual Labor Services
6. Security Services
7. Semi-Skilled Tourism Support Services

Main Activities
The main activities conducted during Phase 1 included:
1. Identification of the strengths and weaknesses of each industry with respect to
   industry sustainability and growth prospects.
2. Evaluation of each industry’s “ability” to provide significant employment to
   disadvantaged youth in the targeted provinces.

  Several industries, while attractive with respect to potential employment for disadvantaged youth, were
not assessed during the phase of analysis for various reasons including the high potential for unethical
treatment of employees (exporting of manual labor to foreign countries and rubber processing) and extreme
ambiguity with respect to the industry’s sustainability given macro changes within the industry that could
not be assessed during the course of the study (garment industry).

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The objective of Phase 1 analysis was to select the top three industries with respect to
sustainability and growth and potential for job creation for disadvantaged youth for
evaluation and program recommendation development in Phase 2.

Phase 1 Assessment Framework
To conduct a sufficient assessment of each industry to enable selection of three high-
priority industries for further review, each evaluation is comprised of the following

1. Industry Overview
2. Industry Structure
      a. Key Components of the Industry Value Chain
      b. External Influences on the Industry Value Chain
      c. Summary
3. Industry Size and Growth Prospects
      a. Overview
      b. Key Drivers for Industry Sustainability and Growth
      c. Key Barriers to Industry Sustainability and Growth
      d. Market Size and Growth Projections
4. Donor / Government Support Initiatives
      a. Overview
      b. Main Initiatives
5. Industry SWOT Analysis
6. Industry Employment Evaluation
      a. Employment Categories within the Industry
      b. Potential Employment Categories for Disadvantaged Youth
               i. Skill/Other Requirements
              ii. Current Recruitment/Employment Process
             iii. Employment Barriers
             iv. Employment Opportunities
7. Evaluation Against Assessment Criteria
8. Recommendation for Further Analysis

Phase 1 Assessments are contained in an accompanying report titled “Cambodian
Commodity Chain Analysis Study: Initial Comparative Industry Assessments.” That
document provides the rationale for selection of the top 3 industries included in this

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Phase 2 Overview
Phase 2 consisted of the development of recommendations to support industry growth
and sustainability while promoting job facilitation for disadvantaged youth for the top
3 priority industries identified at the end of Phase 1.

Selection Process and Criteria
Selection of the industries for Phase 2 recommendation development was based on the
comparative analysis conducted during Phase 1 of the study.

Included Industries
The industries selected for Phase 2 were handicrafts, agricultural processing and semi-
skilled tourism support services. In order to develop actionable and concrete
recommendations; however, appropriate sub-sectors within each industry were selected
for detailed analysis and recommendation development. These sub-sectors included:
1. Handicrafts: Arts & Crafts, Basketry and Silk Handicrafts
2. Agricultural Processing: Horticultural Processing
3. Semi-Skilled Tourism Support Services: Hotel and Restaurant sectors

Main Activities
The primary activities in Phase 2 included:
1. Identification of the key barriers to industry growth and sustainability
2. Identification of the key barriers to job creation for disadvantaged youth
3. Recommendation development to facilitate job creation for the target population
   through elimination of key barriers

The primary objective for Phase 2 evaluation was to develop tangible recommendations
for Plan/COSECAM to support job creation for disadvantaged youth within each
industry. The recommendations address both programs focused on general industry
support and programs to facilitate employment for the target population.

Phase 2 Assessment and Recommendation Framework
For each industry evaluated in Phase 2 of the study, a detailed analysis was conducted
across two separate areas: (1) barriers and potential solutions for industry growth and
sustainability and (2) barriers and potential solutions for job creation for disadvantaged
youth. The final recommendations for each industry combine these analyses to provide a
coordinated program to address the key barriers facing each industry. Figure 2 provides
an illustration of the process used.

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This report contains the analysis and recommendations developed during Phase 2 of the
            Figure 2: Industry-Specific Analysis and Recommendation Framework

                  Industry Growth
                                                                                       Job Creation for
                                                                                     Disadvantaged Youth

                 Identification &                                                      Identification &
 Step 1        Evaluation of Barriers                                                Evaluation of Barriers

             Identification & Evaluation                                           Identification & Evaluation
                of Existing Support                                                   of Existing Support
 Step 2               Programs                                                              Programs
                to Address Barriers                                                   to Address Barriers

             Development of Potential                                              Development of Potential
                Plan/COSECAM                                                          Plan/COSECAM
 Step 3        Support Programs                                                      Support Programs
                 (New/Existing)                                                        (New/Existing)

 Step 4                                             Plan/COSECAM
                                                   Support Programs

                                              Estimated Cost and Impact
 Step 5
                                             For Recommended Program

 Step 6                                       Recommended Next Steps

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Industry Assessments and Program Recommendations
Agricultural Processing: Horticulture
Cambodia’s horticulture processing industry is one part of a larger agro-processing
industry. The horticulture processing industry adds value to a wide variety of fruits and
vegetables, while the larger agro-processing industry includes horticulture as well as such
items as livestock, fish, grains, seeds, nuts, legumes and other commodities. The
horticulture processing industry consists of a range of enterprises segmented for this
presentation by size of manufacturing capacity and type of product.
Except for a few very large rice mills, which are scattered throughout rice growing
regions, and some state-owned rubber processing plants, located primarily in Kampong
Cham, there are relatively few large-scale agro-processing enterprises, defined as firms
employing more than 60 persons. The vast majority of Cambodian agro-processing
enterprises, and all firms in the horticulture processing industry that we are aware of, are
family-owned businesses employing 60 persons or less.
In Phnom Penh, horticulture processing enterprises generally manufacture traditional
Cambodian products, primarily for local consumption; very few finished products are
exported. Processed products include fruit, such as dried banana, pineapple, and mango;
and vegetables, such as pumpkin, yams, chili sauce, soybeans (sauce or paste), mushroom
(pickled or dried), cabbage, and tomatoes. Most of these family-owned businesses
employ less than 60 persons, the majority of whom are unskilled or trained on the job.
In Kampong Cham, with the exception of rice millers and rubber processors, large scale
agro-processing enterprises are limited to one operating cashew nut processing enterprise
that operates several months of the year and employs up to 500 semi-skilled laborers, and
one cassava processing factory that has ceased operation. The majority of horticulture
processing activity is conducted by small-scale, family-owned businesses that produce a
one or more traditional Cambodian products. These products are sold to local consumers,
distributed within the province, or exported to Phnom Penh markets. Kampong Cham
typifies most provinces in Cambodia wherein many small, family-owned enterprises
employ between 2 and 20 unskilled youth to prepare traditional Cambodian products,
plus locally-specific specialty items such as pickled cabbage, mango leather, palm juice,
palm wine, or other easily processed products.
Selected as a High-Priority Industry
The horticulture processing industry has been chosen as a high priority industry for
following reasons.
1. Field research and practical experience has demonstrated that horticulture processing
   can be a viable, profitable business at the local (including Phnom Penh) and
   provincial levels and that there is existing and expanding market demand for
   traditional Cambodian products using locally-grown fruits and vegetables.
2. Kampong Cham and Phnom Penh have large quantities of fresh vegetables and fruits
   available that can be processed using basic and available processing technologies that
   require minimal packaging to meet local market requirements.

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3. Most Cambodian crops are seasonal, with surpluses during harvest time and shortages
   at other times. Cambodian small-scale processors have a comparative advantage over
   importers in processing vegetables and fruits during harvest season and storing them
   for the short-term in sanitary and hygienic conditions for sale when prices more than
   double during the off-season.
Selected Sub-Sector for Industry Growth and Employment Opportunities
The agro-processing sub-sector for horticulture (fruits and vegetables) was selected as the
focal point for initiative development based on the following factors.
1. Small-scale horticulture processing activities can effectively compete with imported
   products from Thailand and Vietnam because they can be cost-effectively produced
   in small amounts for niche markets, are recognized and respected as Cambodian-
   made by local consumers, and can be delivered to local markets without incurring
   expensive transportation costs.
2. Recent donor-funded projects in support of this sub-sector demonstrate that the skills
   for low-technology food processing are easily and readily acquired, training is cost-
   effective relative to the results achieved, and local demand is growing for traditional
   Cambodian products hygienically manufactured and packaged.
3. Training facilities as well as a core set of experienced small-scale horticulture
   processing trainers are available for short-term training programs that have
   demonstrated their effectiveness at encouraging quality food production and village
   level employment for disadvantaged and vulnerable female and male populations.
The sub-sector provides jobs within medium and large-scale enterprises and self-
employment in small-scale businesses either in Phnom Penh or at the village level.

                      Agro-Processing Sector (Industry)
                              Includes fish, livestock, grains, nuts,
                                  seeds and other commodities

                                  Horticulture Sub-Sector
                                  Includes fruits and vegetables

                  Large-Scale Horticulture            Small-Scale Horticulture
                  Processing Enterprises              Processing Enterprises

Overall employment within this industry sub-sector is estimated to be expanding at more
than 10 percent per year and should continue. Government statistics do not accurately
record employment because most enterprises are unregistered.

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Additional reasons why the horticulture sub-sector was selected include:
•   Above average job growth in areas outside Phnom Penh.
•   Low level of skills and capital required to create permanent employment
•   Ability of the sector to decrease urban migration by creating jobs at local levels.
•   Ability of skills gained through training in small-scale food processing to be
    transferred to other agro-products, higher-valued products and other sectors, such as
Although the majority of employment to date has been in the medium- and large-scale
enterprises located primarily in Phnom Penh, recent donor-funded initiatives demonstrate
and indicate that an increasing number of new employment opportunities exist in the
small-scale processing industry at the local and provincial levels.
Geographic Selection: Kampong Cham and Phnom Penh
The geographic selection for this proposed intervention is the municipality of Phnom
Penh and the province of Kampong Cham, but the proposed initiatives could readily be
expanded to other provinces, such as Siem Reap. Phnom Penh was selected due the
availability of produce, existing demand for traditional Cambodian products, and the high
numbers of vulnerable and disadvantaged youth already facing the issue of limited
employment opportunities and the need to rapidly develop income-producing skills that
enable long-term employment. Kampong Cham was selected due to its nearly year-round
availability of a broad range of fruits and vegetables, its close proximity and easy access
to the Phnom Penh market, and its growing population of vulnerable and disadvantaged
youth resulting from the mechanization of agriculture, few village-level employment
opportunities, and resultant effects on urban migration.

Industry Sustainability and Growth
With increased consumer incomes, an improved cash economy in rural areas, expanding
tourism, production of higher quality products that meet consumer demand, and multi-
year growth expectations of 10-20 percent, the industry appears reasonably strong and
Main Barriers to Industry Growth
Barriers to industry growth primarily concern the shortage of trained, competent
processors at all industry levels, incorporation of modern technology in processing
activities, marketing of Cambodian brands, and affordable financing alternatives. The
following are the five key barriers to growth and sustainability.
1. Limited number of horticulture processing enterprises with modern equipment
   and food processing technology. In Kampong Cham, there are relatively few
   processors at the village level, one or two in each district, and almost no province-
   wide processors. In Phnom Penh, many small, family-owned processors use outdated
   processes that are inefficient and uncompetitive.

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2. Poor product quality due to unsanitary processes and training related to food
   safety, sanitation, hygiene, quality control, packaging, and labeling. This is
   especially true in Kampong Cham where many processors do not use soap to scour
   bottles, packaging is performed on dirt floors and is of low-quality, and a general lack
   of hygiene creates potential risks of food contamination.
3. Limited market information and market interactions within the supply chain from
   which to develop and promote higher-value products. Supply chains are weak and
   inefficient, exemplified by little interaction among businesses in the industry, poor
   information, and poor understanding about how the supply chain can be improved.
4. Negative perception by consumers that Cambodian products are of poor quality
   relative to imported products from Thailand and Vietnam. The perception is
   oftentimes accurate, but some products are still successfully competing well against
   imports. At the local level, products are better able to meet consumer taste
   requirements and have a competitive advantage.
5. Few affordable financing alternatives available that encourage investment in
   enterprise scale and scope, technology, and market development. A problem for
   almost all businesses that appears to be a vicious cycle. Because Cambodian
   enterprises don’t invest in improved technologies, increase their market base, and
   improve their image, profits of 2 to 3 percent on investment make it impossible to
   support investment borrowings requiring 12 to 36 percent annual interest rates.
   Without higher value products and higher rates of return, few businesses will be
   willing or able to invest.

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Current and Proposed Industry Support Initiatives
We found only one active donor-funded project directed at horticulture processing enterprise development. Below is a list of inactive
and proposed initiatives and how they address industry barriers. The activities include skills training; skill center development,
business development services, and general business environment improvement projects.
                 Barriers to Growth and                                               Poor product                  Limited market
                                                    Limited number of                                                                  Negative      Few affordable
                        Sustainability                                                  quality -                  information and
                                                       processing                                                                    perception by     financing
                                                                                       unsanitary                       market
                                                       enterprises                                                                    consumers       alternatives
    Support Programs                                                                   processes                     interactions
    MOWA Pursat1 (Active)                                       X                          X                                              X          From MFI/Donor
    MOWA-FAO Kampong Speu1                                                                                                                               Supplied
                                                                X                              X                                          X
    (Inactive)                                                                                                                                          equipment
    Agrisud2 (Finished)                                         X                              X                              X           X          $60 grant funding
         3                                                                                                                                               Supplied
    AQIP (Finished)                                             X                              X                                          X
    CBRDP (Finished)                                          X                                X
                   5                                     Value Chain
    RGC-MAFF (Proposed)                                                                        X
    ITC6 (Proposed)
    MPDF/IFC7 (Proposed)                                      X                                                                                       Business skills
    MOWA-ADB8 (Proposed)                                      X                                X                          X              X           Basic equipment
                                                          Register                                                     Promote        Promote
    ADB-SME9 (Proposed)                                                                                                                                  Indirectly
                                                         enterprises                                                  Associations   Associations
Note: The term “inactive” refers to projects that were implemented and could possibly be re-instituted if funding was provided.
  Ministry of Women’s Affairs (MOWA)-Food and Agriculture Organization (FAO), Pursat and Kampong Speu provinces, training for 560 persons since 2001
  MOWA in Pursat province has trained more than 500 persons since 2001 for a variety of donors
  Agrisud Rural Development Project, Siem Reap and Banteay Meanchey Provinces, 2001-2
  Agricultural Quality Improvement Project (AQIP), One-time training, 2001, this component of the project has been discontinued
  Community Based Rural Development Project (CBRDP), One-time training, 2001, this component of the project has been discontinued
  Royal Government of Cambodia (RGC), Ministry of Agriculture, awaiting a donor
  International Trade Council (ITC), Support to Trade Promotion and Export Development, to develop export strategies, 2005
  Mekong Project Development Facility (MPDF)/International Finance Corporation (IFC), Business support, uncommitted; no active projects proposed
  MOWA-Asian Development Bank, Expanded Agri-processing Training, Awaiting a donor, Earliest 2006, unlikely to be funded
   ADB-Small Medium Enterprise Project, Ministry of Industry, Mostly focused on business registration and improving the business registration process, 2005

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Employment Creation for Disadvantaged Youth
With increased consumer incomes, an improved cash economy in rural areas,
expanding tourism, production of higher quality products that meet consumer
demands, and multi-year growth expectations of 10-20 percent, the industry appears
to be reasonably strong and sustainable.
Employment Situation
Due to business registration rules and lack of registration enforcement, government
statistics under-report the numbers of small-scale enterprises. An accurate census has
not been conducted, but reliable estimates were obtained from interviews with
existing business managers in Phnom Penh and Kampong Cham agro-businesses
during the course of practical field-level experience over the past several years.
In Phnom Penh, agro-processing enterprise owners suggest there may be less than 20
medium- and large-sized processing enterprises (excluding breweries and rice mills)
employing an average of 60 persons each, and less than 40 small-sized enterprises
employing an average of 30 persons each. Estimating total employment of processors
in Kampong Cham is more difficult because few reliable government statistics exist.
The following estimates were extrapolated from interviews with agro-processing
enterprise managers. In most provincial districts (Kampong Cham has 12 districts),
there is usually one “large” producer (10-25 employees) that produces fish, soy, and
chili sauce, and 10 to 20 small, single-item enterprises (2 to 5 employees), that
prepare noodles, fish paste, pickled cabbage, and mango for the local markets.
The following estimates were extrapolated from existing government sources at the
Ministry of Industry, Mines and Energy and supplemented with practical field-level
interviews with agro-processing enterprise managers in Phnom Penh and Kampong
          Estimated Employment in Horticulture Processing Industry

                                                          Phnom Penh             Kampong Cham
    Employment at Medium- and Large-                                      1200            300
    Sized Processors
    Small-Sized Processors                                                1200            100
    Estimated Total Employment                                            2400            400
Skill Requirements
Interviews with managers of processing enterprises located in Phnom Penh indicate
that the decision to hire employees is usually based on existing employee
recommendations, family, or close friends. Kampong Cham horticulture processing
enterprises, which are all relatively small, family-owned businesses, hire new
employees mostly through family, friends, and neighbors within the local village, and
little training is expected or provided.
In no enterprises were employees expected to possess any processing skills and none
of the enterprises see an advantage for hiring skilled labor, since they are satisfied
with their minimal-skill on-the-job training programs. Interviews indicated that
complex tasks are nearly always assigned to trusted relatives or long-term staff. All

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training is performed on the job with no investment for long-term training. Most
companies experience 20 to 30 percent annual turnover of employees.
The only advanced training course for agro-processing is related to industrial hygiene
training available at the Institute Technique Cambodia (ITC) in Phnom Penh. The
ITC course prepares a few persons each year to work in breweries. Recent donor-
funded projects include small-scale horticulture processing and entrepreneurship
training facilitated by the Ministry of Women’s Affairs (MOWA) and funded through
FAO and AQIP, a short-term course as part of the CBRDP project in Kampot
province, and a short-term course as part of a former Agrisud rural development
project in Siem Reap province. The donor funded training has been directed toward
about 600 disadvantaged females and male war veterans in villages outside Phnom
Penh. Anecdotal results from these donor funded activities, although not well-
documented, indicate a reasonably high success rate in providing sustainable
employment to a reasonable percentage of those trained.
Job Creation for Disadvantaged and Vulnerable Youth
There are two types of employment opportunities promoted in the proposed
initiatives, gainful employment in existing medium- and large-scale processing
facilities, mostly located in Phnom Penh, and small-scale processing opportunities,
mostly located in Kampong Cham, but also applicable to Phnom Penh. The small-
scale horticulture processing industry has excellent potential to create long-term
employment for disadvantaged and vulnerable youth due to several factors, including:
1. Better than average growth of the industry approaching 10 to 20 percent per year.
2. Few pre-requisite skills needed for either industry employment placement or self-
3. Minimal skills training requirements for small-scale horticulture processing.
4. Skills transferability to higher-value products and services; skills training includes
   processing training, beginning business and marketing training.
5. Ability of the small-scale processing component to discourage urban migration.
6. Improvement in self-confidence of trainees and promotion of village-level income
   generating opportunities that contribute to family earnings and community
   economic development.
Recent activities by the FAO, the Australian-funded AQIP project, the French-funded
Agrisud project, and the German-managed IFAD-CBRDP project demonstrate the
1. Short-term processing skills training, supplemented with minimal business skills
   training and a grant consisting of either funds of less than $100 or low-tech
   equipment by which to start and maintain a small business, has the potential to
   provide the foundation for beneficiaries to earn a reasonable income in a relatively
   short timeframe and to provide permanent employment for disadvantaged and
   vulnerable youth.
2. Horticulture processing and fundamental business management training offer
   lifetime skill sets that can be easily transferred to other processing and non-
   processing activities or provide the self-confidence one needs to graduate to
   higher-value employment positions, such as owning a larger-scale business, or
   seeking employment elsewhere in the industry.

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3. With minimal training, disadvantaged and vulnerable youth can be equipped with
   a set of skills they can apply within their homes and rural villages, thus providing
   value to their families and income at the local level while discouraging urban
   migration to search for jobs that pay relatively similar wages.
Job Quantity and Quality Dimensions of Horticulture Processing
Quantity dimensions of horticulture processing consist of promoting low-skilled jobs
at existing medium-and large-scale processing enterprises, located primarily in Phnom
Penh, and with an estimated 20 percent annual staff turnover per year. Perhaps 240
jobs per year are available through this option, but the fact that there is already high-
turnover indicates the quality of these jobs may not be suitable for many employees.
Quality dimensions consist of the potential for longer-term regularized income
potential by providing skills training to selected participants that allow them to
produce products for sale in their villages, provinces, or Phnom Penh. This should be
considered a life-skills training component, since value from this training could pay
dividends for a lifetime and improves the participant’s standard of living in
measurable ways other only monetary.
Estimated Horticulture Processing Employment Growth
Measuring growth in this industry and sub-sector are difficult because no government
or private agency accurately tracks this sub-sector. The best evidence of industry
growth is probably obtained through interviews with medium- and large-scale
enterprise managers which the survey team conducted for this project and during the
course of several years, as well as interviews with donor-funded project managers
who have provided training and encouragement for the development of small-scale,
mostly village-level processing enterprises. Managers at processing enterprises in
Phnom Penh indicated that net sales are projected to increase by 10-20 percent per
year for the next several years. Although some medium-scale enterprises in Phnom
Penh are experiencing an employment decrease and some processors have ceased
operations due to industry consolidation and economies of scale, the overall trend for
industry growth is very positive.
Donor-funded project managers indicated that there is considerable pent-up demand
for small-scale processing at the village level and in Phnom Penh. Due to the dearth
of statistical data, estimating future growth is difficult, but most managers agree that a
conservative estimate would be to project growth of enterprise development and sales
at an annual range of 15 to 25 percent. Considerable donor activity has occurred in
the past three years and the number of new small-scale enterprises has been increased
by 100 to 300 per cent per year. Reasonably, one cannot expect this level of growth
to continue; it will gradually taper off during the next several years. As these small-
scale enterprises grow, offer higher-value products, and expand production into new
products, we can expect to observe expanding employment opportunities.
The following table provides an estimate for employment growth in the horticulture
processing sub-sector based on owner-manager interviews. This is an estimate of
growth independent of any future donor-funded initiatives supported by
Plan/COSECAM or others. Any skills training or industry development effort would
contribute to increased sector and sub-sector employment.

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                   Estimated Sub-Sector Employment Growth Per Year

                                                                                               Net New
                                2004        2005       2006        2007        2008    2009
    Phnom Penh                  2,400      2,640       2,904      3,194        3,514   3,865     1,465
    Kampong Cham                  400        480         576        691          829     995       595
    Net Increase Per Year                    320         360        406          458     517     2,061
    Estimated Total Sub-
                                2,800      3,120       3,480      3,886        4,343   4,861
    Sector Employment

To compensate for productivity increases in the industry and to provide a conservative
approach we are estimating medium- and large-scale industry growth at only 10
percent per year and small-scale industry growth at 20 percent per year, although we
perceive that for small-scale industry growth, this may be significantly under-
estimated. In addition, this estimate only pertains to the horticulture sub-sector, and
could be expanded if one considers other sub-sectors and products, such as nuts,
grains, fish, or other commodities.
Demand for Cambodian-made products has increased in rural areas and small-scale
processors have been able to cost-effectively produce these products and compete
against imports. In Kampong Cham, interviews with processors indicated that net
number of new small-scale businesses has increased considerably, which could be
attributable, in part, to donor-funded processing skills training.
Interviews with sauce makers, bamboo shoot processors, and other small scale
businesses indicated that demand for their products exceeds their ability to supply
them. Due to a deficiency of market and business analysis, no records are available to
document the demand and supply situation, but interviews and observations, such as
the increased number of Cambodia brands available in local markets and other market
activities, such as Vietnamese processors counterfeiting Cambodian brands, indicate
that this accurately describes the situation.
Barriers to Horticulture Processing Employment Growth
Barriers to employment growth are primarily related to skills development, employee
recruitment processes, and location of employment. The location of employment
barriers emanate from the two distinctly different types of employment in this sub-
sector. Gainful employment in existing medium- and large-scale processing facilities
requires less skill, but either encourages urban migration, since most of the
employment is located in Phnom Penh, or is most relevant to disadvantages or
vulnerable youth already in Phnom Penh. Self-employment in small-scale industry
requires some training in food processing, hygiene, packaging, and business
management. The primary barriers to employment include the following:
1. Lack of skills in horticulture processing, hygiene, packaging, and business
   management are needed to develop employment in the small-scale processing
   sector. This lack of skills does not inhibit gainful employment in medium- and
   large-scale processing enterprises, and discussions with managers at these
   enterprises indicate no comparative advantage for applicants possessing
   horticulture processing skills.

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2. Informal hiring practices at medium- and large-scale enterprises concentrate on
   referrals from existing employees, friends, and relatives to locate new employees.
   Combined with that fact there is no benefit from obtaining even low-level
   training, these practices constitute a significant barrier that will require a unique
   set of incentives to overcome. This is not applicable to the sector focused on
   small-scale processing activities
3. Low monthly incomes from agro-processing employment. The monthly income
   from gainful employment at enterprises was reported to be in the range of $25 to
   $75 dollars, with most in the range of $40 to $70. For persons living in Phnom
   Penh, a significant portion of income is needed for transport (about $1 per day or
   $30 per month) and housing ($20 per month for a simple sleeping room). With
   these expenses, disposable incomes are in the range of $20 to $30 per month for
   unskilled labor. Even though the income potential of small-scale village
   processing seems low, at an estimated starting range of $20-$25 per month, those
   choosing this activity avoid most of the transportation costs and can live with their
   families in the village. As processing skills, confidence, and business
   management improve, higher incomes are possible.
4. Need to migrate to urban areas for gainful employment in the majority of
   medium- and large-scale agro-processing enterprises in Phnom Penh and
   Kampong Cham. Combined with the low net wages, this probably increases the
   vulnerability of youth in the urban setting. The small-scale horticulture
   processing option is valuable for self-employment in Phnom Penh as well as in the
   provinces. Therefore, this option could be considered for those youth who have
   already immigrated to urban areas and require training or retraining, such as
   displaced garment workers.

Current Job Facilitation Programs
The following table identifies how the inactive and proposed initiatives being
promoted by donors and the government might influence and reduce the employment
barriers in the agro-processing industry. The previous table listing support programs
that influence industry barriers has been modified below to include those we believe
truly have an influence on employment barriers.

      Barriers to Employment    Lack of skills          Informal                  Low       Need to
                               in horticulture           hiring                 monthly    migrate to
 Support Programs                processing             practices               incomes   urban areas
 MOWA-FAO1 (Inactive)                   X                     X                   X            X
 ITC (Proposed)                                                                                X
 MOWA-ADB3 (Proposed)                 X                       X                 X              X
          4                        Register                                  Promote        Promote
 ADB-SME (Proposed)
                                  Enterprises                              Associations   Associations

  This project is currently seeking short term funding for 2005 for additional training
 courses and there is a likelihood that this funding will be provided.
  The ITC-sponsored project could promote small-scale industry growth in rural
 areas by promoting agro-processing working groups and associations where
 additional training can be provided in processing, marketing, and business

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  There is significant uncertainty for the funding of this project. The ADB has not
 committed to this, nor has the ADB placed it into their priority list of projects for
 Cambodia. It is doubtful that this project will receive funds for the project as
  The ADB-SME project is primarily directed at registering informal business
 enterprises and promoting business association development. Formalizing
 enterprises may have benefits for Cambodian enterprise owners if additional
 business service development or financial supports are tied in some manner with
 this process. The government has never had much success in forming or managing
 associations and there is reason to believe this effort will also be ineffective.
 Finally, it was the view of project managers interviewed that few project funds will
 be committed to this objective, so the impact is not likely to be significant.

Lack of Verifiable Data on Job Placement and Shortage of BDS
During the course of the research, it has become apparent that none of the past small-
scale agro-processing training projects have been diligent at tracking job placement
and no project has provided business development services (BDS) to these new
entrepreneurs. This lack of due diligence poses some risk for future training projects,
such as those proposed in this report. Anecdotal information from field studies by the
project team, as well as through discussions with training project managers, indicate
that many trainees continue to produce and market processed goods. There are two
essential findings that are relevant to future projects: 1) monitoring and evaluation of
training results should be an integral component of the project, and 2) a common
failure observed in these training projects has been a lack of longer-term business
advisory services. The quality of the training observed was excellent, but it should be
realized early on that most of the trainees have had no experience in business and will
need at least minimal support to overcome problems during their first few months in

Potential Job Facilitation Programs
Proposed Initiatives
Initiative 1 – Participate in the MOWA-ADB project through funding or sponsorship
through scholarships
In May 2004, the Ministry of Women’s and Veteran’s Affairs (MOWA) in
cooperation with the Ministry of Agriculture, Forestry and Fisheries (MAFF) and the
Disability Action Council, an International NGO, prepared and submitted a US$6.12
million project proposal to the ADB for funding entitled, Empowering Vulnerable
Groups through Training on Village Level Food Processing. The project is to provide
skills-based horticulture processing training and support for three to five years
beginning in January 2005. It is to encompass nine provinces with training to be
conducted in the Women’s Centers in each provincial capital town. The executing
agency is to be the FAO.
The project is under advisement, has not received funding approval, and no project
approval or starting date has been suggested, although the MOWA staff appear to be
confident that this project will be funded. The objective of the project is to train to up
to 2,300 persons consisting of 250 disadvantaged and vulnerable women with
horticulture processing training of nine main food products and 45 secondary products

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and to train an additional 45 trainers who could remain at the provincial Women’s
Centers to provide continued support services. Each trainee then agrees to return to
their village and train 5 to 10 additional persons in the skills. In addition to
horticulture processing skills, the training would include skills development in
entrepreneurship, enterprise development, and Women’s Center management. There
has been no indication to date that the ADB will fund this project.

• MOWA has demonstrated expertise and experience providing training at its
   Kampong Speu and Pursat facilities that it could be replicated Kampong Cham,
   Siem Reap, or other provinces.
• The project could be easily and quickly be expanded.
• FAO, as implementing party, has proven project management skills and
   organizational structure.

• No analysis has been conducted in each province of demand for training, nor the
   impact on existing businesses of thousands of new food processing trainees.
   Some analysis should be conducted.
• Estimated cost per trainee is an expensive $2,500, inclusive of start-up costs, for a
   three-week training course that includes minimal long-term business support
• Neither the MOWA nor MAFF are held in high regard for their effective and
   efficient project management capabilities.

Initiative 2 – Negotiate with MOWA to use the existing facilities and trainers.
In June 2003, the FAO, in cooperation with the Ministry of Women’s Affairs,
conducted a technical cooperation program entitled, Empowering Vulnerable Groups
through Training on Village Level Food Processing at its training facility in Kampong
Speu, where the project invested in training facilities, lecture hall, drying machines,
electric generator, and preparation kitchen. The training provided two courses, one
workshop, and one study tour, and skills development for 50 persons who then agreed
to return to their villages and train 10 additional persons each in horticulture
processing. No follow-up to the project has been conducted, so successes in income
generation are unknown. Other donors have funded similar training of more than 500
vulnerable and disadvantaged persons in Pursat.
The installed facilities and equipment are currently at the facilities and available,
although the MOWA has no scheduled training programs and are awaiting further
funding from the ADB or other donors, which is not assured. Interviews with
MOWA representatives indicated an interest in making use of the facilities, but an
agreement would need to be reached on a program basis. The MOWA also has a
Woman’s Center at Kampong Cham province, but the horticulture processing training
facilities have not been installed.

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• The facilities are already installed and operational.
• Training could begin almost immediately after negotiation with MOWA.
• MOWA has a staff of experienced trainers.
• The room and board facilities could be located nearby and a turn-key agreement
   could be negotiated on a reasonable per-person-trained rate.
• Without the FAO involved, the costs could be considerably less, since the project
   would not need to import international consultants.

• The concept of having trainees train others in their villages is a weak premise that
   should be designed out of the program.
• If future funding became available from another donor, such as ADB, it could
   disrupt existing training activities funded by Plan/COSECAM.
• The project would require Plan/COSECAM to develop the project and present it
   to the MOWA and perhaps to manage it.
• Some room and board facilities would need to be provided, and the MOWA and
   other donors have already encouraged a system of per-diem payments to trainees.
• Longer term development and business support services need to be included in the
   package, as well as follow-up activities.

Initiative 3 – Develop a stand-alone horticulture processing training project and partner
with non-government agencies and bi-lateral donors
Several horticulture processing projects have been implemented by donor agencies.
None of the projects have had long-term funding and all of them were sub-
components of larger rural economic development projects. The projects included a
successful small-scale horticulture processing promotion project by French-funded
Agrisud in Siem Reap province, wherein, Agrisud’s low-cost, high-impact training
program provided short-term skills and business training, provided a $60 grant to
those trainees willing to invest at least an equal sum, but provided little in the way of
business development services after the training was finished. Minimal follow-up
activities have demonstrated that many of the trainees have continued to process and
sell products. The Australia-funded AQIP project partnered with the MOWA to
provide one-off training in processing, but no details of the project are available.
Similarly, the German-managed CBRDP project provided one-off training in Kampot
province working with sugar-coated peanuts and pickled vegetables. Interviews with
one GTZ project officer indicated that many of the trainees are still operating home-
style businesses, but none have expanded beyond simple, home-scale businesses.
A stand-alone horticulture processing training project funded and managed by bi-
lateral donors could be a cost-effective and efficient option for development. Project
design could include conversations with other NGOs interested in the vulnerable and
disadvantaged youth issues and bi-lateral donors interested in rural economic
development and agricultural development. There appears to be interest among
donors for this type of support, separate from government-managed initiatives. The
project could receive foundation funding from Plan/COSECAM; enough for a one or
two year trial project phase to test assumptions and fine tune training. The project
could employ a management firm or NGO, hire trainers, equip a small training facility
in Kampong Cham and Phnom Penh, provide business start up funding for trainees in

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amounts less than $100 per student, and hire a local business development service
firm to provide longer term support services. The numbers of trainees is limited only
by the funding and selection criteria.

• Avoids the unproductive costs associated when working with government
• Allows for performance-based development and management of the project on a
   contractual basis.
• Maintains control of the project within Plan/COSECAM.
• Provides a vehicle for additional donor partnering and contributions where interest
   by other donors has already been expressed.
• Up-front investments such as training facilities are relatively low cost and provide
   long-term value to the program infrastructure.

• Requires up-front investment in equipping one or more training facilities.
• Requires up-front project design, negotiation with a training and business support
   firm or NGO, and some oversight on the part of Plan/COSECAM.
• An untested model for training, initially possibly not linked with other donor

Initiative 4 – Work with Phnom Penh and provincial-based processors to place
identified at-risk clients and subsidize employee hiring and training
Interviews with agro-processors indicated that employee hiring is mostly performed
internally and none of those interviewed expressed interest in hiring pre-trained staff.
The jobs in most of these processing facilities are exceptionally low-skilled consisting
of bottle washing, product stacking, and delivery. Still, there may be value in
promoting the hiring of a specific set of vulnerable and disadvantaged youth for
employment in this type of manual labor environment, at the large- and medium-
scale, and the smaller-scale businesses located in the provinces. Any programmed
approach would need to create a contract on the part of the business to hire the
trainee/employees for an agreed time period. The type and amount of training needed
could be negotiated with the individual processors or provided by the processor
themselves. Plan/COSECAM would provide the incentive through an economic-
skills development grant to the business payable during the course of employment,
rather than up-front payments.

• Would allow Plan/COSECAM to promote employment of the specific group of
• Provides the possibility for long-term employment.
• Provides an incentive to processors to consider different employee hiring models.

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• Doesn’t increase the skills of vulnerable and disadvantaged youth in the long-term.
• Provides only a permanent job in an essentially low-skill labor environment.
• Few opportunities for advanced job growth or development.
• Untested premise that processors would respond to incentives.
• Assumes the role of employee quality guarantor, replacing the current system of
   personal references.
• Doesn’t address many of the more fundamental industry or employment barriers.

Initiative 5 – Support lending to agro-processors through investments tied to increased
hiring for vulnerable youth
Most agro-processors interviewed during this and other research projects indicate a
desire and willingness to expand their production and marketing activities, including
employing additional staff, if affordable financing for expansion were available. To
address this industry growth and employment barrier, another option to support
employment to disadvantaged and vulnerable youth might be to negotiate contracts
with interested firms who agree to employee Plan/COSECAM-selected youth.
Plan/COSECAM, directly or through an MFI, could agree to support a reasonable
investment (equity or loan) in the business. This is different than Initiative 4, as it
identifies business investment and financing as the driver for employment rather than
a subsidy for an agreed time period, and addresses this growth barrier in the industry.

• Encourages agro-processing and economic development activities.
• Addresses a chronic development barrier to economic growth.
• Can be applied to any type or size of agro-processing enterprise.
• Encourages additional investment in the sub-sector.

• Investments require business analysis and feasibility studies.
• Requires Plan/COSECAM to enter into long-term contractual relationships.
• Enforceability of contracts is a major problem if businesses don’t repay loans.
• Does not address the fundamental barriers of low monthly incomes or urban

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Influence of Proposed Initiatives on Employment Barriers

        Barriers to Growth and
                                        Lack of                                            Need to
               Sustainability                               Informal              Low
                                        skills in                                         migrate to
                                                             hiring             monthly
                                      horticulture                                          urban
                                                            practices           incomes
                                      processing                                            areas
 Proposed Initiatives
 1. Participate in the MOWA-
                                             X                    X               X           X
 ADB project
 2. Negotiate with MOWA to
 use the existing facilities and                                                              X
 3. Develop a stand-alone
 horticulture processing                     X                    X               X           X
 training project
 4. Subsidize employment
 partnerships with Phnom
                                             X                    X                           X
 Penh and provincial-based
 5. Investments in horticulture
 processing firms tied to long-              X                    X
 term employment

Employment Creation for Disadvantaged Youth
We make three recommendations that highlight the distinctions in the proposed
initiatives and different outcomes expected from them in reducing the barriers to
industry growth while promoting employment for disadvantaged and vulnerable
youth. We encourage Plan/COSECAM to consider each of the three
recommendations then, depending on the resources available decide, which is in their
best interest to promote. Although the three recommendations promote the agro-
processing industry and horticulture processing sub-sector, the sponsors may find it
attractive to run a pilot test of each one and determine the results after a sufficient
time before fully funding any of the initiatives. Each recommendation is briefly
described below, followed by a table identifying some success criteria, and estimated
cost and benefits.

Recommendation 1 – Small-Scale Horticulture Processing Training
The first recommendation is to develop and fund a program for small-scale
horticulture processing skills training based on either proposed initiative 2 or 3. The
selection of the proposed initiative can be determined after additional discussions with
the MOWA, FAO, and other interested donors, with an indication from them as to the
level of support they are willing to provide and the cost of that support. Concurrent
with those discussions, we would recommend cost-benefit analysis of the initiatives to
determine the costs and long term benefits of providing stand-alone horticulture
processing skills training. Proposed initiative 3 will require the purchase and
equipping of a facility and hiring of training and project management staff.
Comparing the costs and benefits of proposed initiative 2 with those of proposed
initiative 3 will enable a more reasoned decision.

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One of the fundamental oversights of every donor-funded project implemented to date
has been a lack of follow-up and long-term business development support services
related to advanced horticulture processing skills training. A regular follow-up
service component should become an essential element of the selected initiative.
Intensive training for three or four weeks may provide some necessary skills, but
surely is not sufficient to build confidence in business and market development,
product development, or competitive business concepts.

Recommendation 2 – Subsidized Employment Partnerships
The second recommendation is to encourage medium- and large-scale processors to
hire unskilled youth selected by Plan/COSECAM for full-time, long-term processing
facility positions through a subsidy. Additional discussion with processing
enterprises will need to be conducted to determine any prerequisites to employment
and if any skills training would make these candidates more attractive. From
interviews conducted for this and previous research we understood that skills training
would not add value, but this should be confirmed during project design. Due to the
informal nature of hiring practices by processing enterprise managers interviewed,
some financial or other incentives will need to be provided if disadvantaged or
vulnerable youth are to have an opportunity to obtain jobs at these processing
facilities. If training could be provided as an incentive, that would be the first option
to pursue, but the incentive could take the form of a per-person subsidy provided to
hiring enterprises over a long period of time, to ensure performance.
This subsidy could be likened to a scholarship, since the primary objective is to assist
youth to locate gainful employment and acquire some experience and skills. Further
analysis and a few conversations with processors would quickly determine their
interest and required incentive.

Recommendation 3 – Investments in Agro-Processing Tied to Employment
Proposed initiative 3 supports financial lending to any size of agro-processor tied to
the provision that they would provide gainful employment for Plan/COSECAM-
selected candidates for an agreed time period. The financial lending could come in
the form of a loan guarantee through a licensed lending facility, an equity investment
though a facility designed specifically for this initiative, direct lending by the NGOs,
loan support payments based on continued employment of candidates, or other
creative framework.
Most agro-processing businesses could benefit from such an initiative. Small, family-
operated processors often find it difficult to borrow funds at a reasonable interest rate
for an effective timeframe. Usually, these borrowing requirements are small,
averaging $100 to $1,000, for the purchase of processing or storage equipment,
renting or purchase of facility space, or other business-level needs that encourage
expansion and hiring of additional staff.

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The needs of medium- and large-scale enterprises are usually greater, probably
averaging $5,000 to $20,000 to facilitate purchases of processing, cold storage, bottle
washing, and transportation investments. Lending of these amounts would require
considerable financial knowledge, feasibility assessments, and iron-clad contractual
agreements. The levels of financial return would need to reflect this increased level
of financial risk. If this initiative is attractive, the next step would be an analysis of
how financial assistance could best be offered and through whom. For example, the
incentive could be calculated as a reduction in the interest rate or as a monthly
subsidy payment. For the calculations in the table below, a $20 subsidy is considered
for each of 24 months.
Recommendation for a Pilot Project
Given that Plan/COSECAM have little previous project experience in this industry,
we would recommend a pilot project associated with Proposed Initiative 2. A pilot
project associated with and extended from the existing MOWA-FAO agriculture
processing training project would give Plan/COSECAM a partner with considerable
experience in the training delivery side of this industry and, thereby, make that
portion of any pilot project fairly risk free.
Plan/COSECAM could provide strength to the partnership by providing initial
monitoring and evaluation surveys of previously trained students of the MOWA,
Agrisud, AQIP, and CBRDP projects to determine, for instance, how many students
actually start-up businesses after they receive training, how many succeed, and what
other benefits are achieved, from the perspective of the students.2 Another important
pilot program element that Plan/COSECAM could consider is to provide business
development service (BDS) support, should this need be highlighted through the
initial surveys described above.
Therefore, the pilot project would consist of the following:
    1. Contact the agencies that have provided small-scale agro-processing training
       and seek their support for a fairly simple monitoring and evaluation of their
       previously trained students.
    2. From the research, identify the critical success factors for achieving results.
       Especially determine if BDS could play a role in future success.
    3. Begin negotiation with MOWA to partner with the Ministry to provide
       training on a regular basis to meet the needs of Plan/COSECAM. This
       partnership should be contingent on MOWA supporting a project design that
       includes the initial monitoring and evaluation survey.
    4. Design a project based on (1) the negotiations in item 3 above, (2) the
       knowledge gained from the survey and (3) the recommendations received
       from the project officers for AQIP, Agrisud, and CBRDB, and other MOWA
       provincial-based projects.

  In fact, given the limited understanding of the success of the program to date, a simple survey of
previously trained students should be conducted prior to proceeding with any negotiations with

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5. To keep start-up costs low, start the first training classes in Kampong Speu
   province at the existing training facility, since this will reduce fix cost
   investments and installing new equipment. Take the students from Kampong
   Cham or whatever other province Plan/COSECAM deems of interest to the
   training site and house them in the on-site or nearby accommodations.
6. Provide longer term monitoring and evaluation, BDS support, and other
   critical support for the trainees. Currently, trainees are more or less trained for
   a short period, given about US$100 of new processing equipment and
   informed that they are on their own. Plan/COSECAM, with their skills at
   long-term support to vulnerable persons can provide much comfort and moral
   support by offering regularized and continuous mini-training courses or on-
   call support services to these new, fledgling entrepreneurs.

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Estimated Cost and Impact of Proposed Initiatives
Since the number of potential job positions is relative to the amount of funds available for training, subsidies, scholarships, and
investment, for the following table it was assumed $200,000 is available for any of the proposed initiatives. The estimated costs are
conservative estimates, presented to provide a frame of reference as to the benefits from such an investment; exact costs and benefits
could be assessed during project design. The timeframe for initiatives 2 and 3 is one to five years, while the timeframe for initiatives 4
and 5 are two years. The exact timeframe depends on the number of youth to be assisted.
  Project Considerations
                                  How many                                                         Expected         cost of       Expected
                                                                           Does this                                                           Estimated
                                 Persons Can                                                        Cost to     establishing       cost of
                                                    What is the             Option                                                                Total
                                   Become                                                         Design the     the project       project
                                                     Quality of          Provide Long-                                                          Subsidy
                                 Assisted for                                                     Project and     (Supplies,      managing
                                                   Jobs Created?          Term Skills                                                          Per Person
                                  a $200,000                                                       Negotiate       facilities,   the project
                                                                         Development?                                                          Employed?
                                 Investment?                                                      Contracts?    and BDS) for     (2 years)?7
 Proposed Initiatives
                                                                                                                 2 years?5, 6
  2. Negotiate with MOWA                        258     High quality,      Yes, foundation             $5,000         $40,000         $6,000         $6001
  to use the existing                                   possible self-      lifetime skills
  facilities and trainers                                 employed
  3. Develop a stand-alone                      278     High-quality,      Yes, foundation            $15,000         $60,000        $30,000         $4502
  horticulture processing                               possible self-      lifetime skills
  training project                                        employed
  4. Subsidize employment                       396      Low quality        No, skill levels          $10,000               0        $10,000         $4803
  partnerships with Phnom                                hourly wage       will remain low
  Penh and provincial-                                       jobs
  based processors
  5. Investments in agro-                       396      Low quality        No, skill levels          $10,000               0        $10,000         $4804
  processing firms tied to                               hourly wage       will remain low
  long-term employment                                       jobs
  Assumes training costs can be limited to $200 per week per trainee for training, room, board and a take-away home processing equipment.
   Assumes that avoiding MOWA and FAO management overheads would provide substantial cost advantage.
  Assumes a direct subsidy calculated at $20 per month for 48 continuous months.
   Assumes a direct or indirect subsidy calculated at $20 per month for 48 continuous months.
   Assumes that BDS can be procured at a low-cost basis from local consulting firms who pay regular visits to trainees.
  These are estimated fixed costs for supplies, building rental, and maintenance; getting the project up and running.
   These are estimated variable costs for monitoring, evaluation, and general management of the project.

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In Cambodia, the handicrafts sector is one of the fastest growing industries due to the
following factors:
1. A large and relatively stable market with opportunity for expansion driven by export
    demand and direct purchase from tourists visiting the country, Siem Reap in
2. A high level of donor involvement at all levels of the handicrafts value chain;
3. The opportunity for outsourced production which allows household-based
    employment and income generation for the disadvantaged and vulnerable who have
    limited or no education, few marketable skills and desire to avoid urban migration.

Handicrafts are defined as any products produced by skilled and manual occupation
which uses minimal and low-technology production capacity. Handicraft products
include, among others, silk production, silk weavings, silk products, mat weaving,
wood/stone/marble carvings, metal products (including gold, silver and bronze),
lacquering and gilding, pottery, brick making, basketry, ceramic products and furniture

The export demand for Cambodian handicrafts currently exceeds the amount that local
producers are able to supply. It is estimated that there are about 100-150 organizations
involved in handicrafts production in Cambodia, comprised in the most part of private
sector firms, not-for-profit organizations, and NGOs.

In Phnom Penh, most of the Handicrafts production organizations produce handicrafts for
export and only a small percentage of products are sold locally to tourists at various retail
outlets throughout the country. These organizations are mostly not-for-profit
organizations and associations, with only a few private or semi-private firms. These
organizations employ, on average, between 20-40 producers per organization, although
some large organizations such as The Cambodian War Amputees Rehabilitation Society
(CWARS) employ up to 600 full-time producers.

The situation is different in Siem Reap where handicrafts products are primarily produced
to sell to tourists visiting the Angkor Wat temple complex, a market which is estimated at
approximately US$15 million. The private firm Artisans D’Angkor alone sold more than
US$5 million worth of handicraft products in 2004. As in Phnom Penh, handicrafts
production organizations employ on average about 40 low-skilled producers per
organization and large organizations, such as Artisans D’Angkor, employ about 600
producers regularly and outsource about 100 producers to supply handicrafts to their
retail outlets throughout Cambodia.

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    Selection as a High-Priority Industry
    The following handicraft sub-sectors were selected as high priority areas of program
    1. Basketry;
    2. Art crafting: wood and stone carving, lacquering and gilding;
    3. Silk weaving and processing and silk related products.

    Results from field research and assessment of the sector suggest that the handicrafts
    industry – basketry, art crafting (lacquering and gilding) sub-sectors in particular – is a
    stable and profitable business that creates employment for disadvantaged youth of both
    rural and urban areas. Cambodian-made handicrafts, particularly silk related products,
    are increasingly popular among tourists and international buyers and this demand is
    driving the fast growing3 industry.

    The reasons for selecting these sub-sectors are as follows:
    1. These handicrafts sub-sectors are quite informal and can be organized at the village
    2. They provide a large amount of employment for the rural poor;
    3. The skills required to perform these tasks are minimal;
    4. They provide opportunities for employment4 and income generation for both sexes of
       vulnerable and disadvantaged youth who have limited or no education or skills;
    5. There is a high level of donor involvement and intervention within the sub-sector.

    The following table is a summary of the rationale why basketry, art crafting and silks
    have been selected as high priority industries.

                                   Handicrafts Sub-sectors
Reasons                                                                       Basketry   Art Crafting    Silks
The nature of employment is quite informal and flexible                          X            X            X
Large rural employer                                                             X
Minimal skills required                                                          X                           X
Export driven market                                                             X            X              X
Growing demand for upscale-market workmanship                                    ?            X              X
Abundance of raw materials                                                       X            X
Provide the greatest job opportunity for disadvantaged youth,                    X                           X
particularly females
Many laborers required in response to sub-sector growth                                                      X
High level of donor involvement and intervention at all levels of                                            X
the value chain.

      Industry experts and handicrafts productions organizations interviewed estimate that the overall
    Handicrafts industry is growing on average between 20-30% annually.
       Stone and Wood carving are male dominated occupations, making up 85% and 60% respectively; whereas
    Silk related production and Lacquering & Gilding are female dominated occupations, making up 95% and
    85% respectively.

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Geographic Selection: Phnom Penh and Siem Reap
The geographic location for these proposed interventions is primarily focused on the
areas where Plan/COSECAM has operations, namely the Phnom Penh municipality and
Siem Reap province. However, the proposed initiatives can be easily expanded to other
geographic locations as deemed necessary.

Phnom Penh Municipality was selected for intervention due to the high number of
vulnerable and disadvantaged youth currently facing the issue of employment availability
and because it is the home base of many handicrafts production organizations that have
large production and training facilities.

Siem Reap province was selected due to the robust tourism industry. Cambodia has
received over one million tourists a year5, mainly to Siem Reap province, and handicrafts
products are sold directly to tourists through local souvenir shop operators. There is also
a growing number of vulnerable and disadvantaged youth in rural areas as a result of the
scarcity of community/village level employment opportunities which is leading to urban

Industry Sustainability and Growth
Main Barriers to Industry Growth
The main barriers to industry growth mostly concern the provision of consistent quantity
and quality of products to meet export market demand and improvement in design to
meet buyer expectations through innovative and creative product designs/concepts.

Five key barriers to the sustainability and growth:
1. Inconsistent and Unreliable Quality of Handicraft Production. Capacity building
   and significant skills development is required to produce quality products to meet
   buyers’ expectations and to provide consistent quality products such as standard
   colors for silk production.
2. Limited Capacity of Production – Inconsistent and Unreliable Quantity of
   Supply. The productivity of the Cambodian producers needs to be improved in order
   to meet buyers’ demands and to compete with growing competition from the
   countries in the region, specifically producers from Thailand, Vietnam and China. In
   Siem Reap, most of the major souvenir shops import up to 90%6 of handicraft
   products from neighboring countries. It is more profitable to sell imported products
   than locally made products due to reliability and large quantity production
   (economies of scale drive down production costs), and consistent quality from the use
   of modern technology and machinery. Most production organizations including big
   producers such as Artisans D’Angkor and Artisans Association of Cambodia (AAC)
   experience significant issues with respect to production capacity and consistent

 Source: Cambodian Ministry of Tourism
 Source: Through interviews with souvenir shop operators in Siem Reap province and handicrafts industry

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3. Limited Product Design and Innovation. Cambodian producers currently have very
   limited design expertise and capacity to meet the needs of export buyers in most of
   the handicrafts sub-sectors and fabric silk design in particular. The producers have
   basic materials and limited access to design concepts; producers experience difficulty
   in interpreting buyers’ needs with respect to product design and quality and in
   producing finished products that are acceptable to buyer’s expectations and struggle
   with the design concepts that drive export markets.
4. Quality Assurance. Quality assurance is a major issue across all handicraft
   production organizations with respect to satisfying export buyers expectations. This is
   due to a lack of internal quality assurance control procedures and in part due to a
   different understanding and appreciation of quality standards between producers and
5. Raw Materials. A shortage of raw materials in Cambodia creates a heavy reliance on
   imported inputs, especially silk yarn. Cambodia provides only about 5% of the total
   silk yarn required for silk fabric production, with the remaining 95% imported from
   China via Vietnam. This contributes to the high cost of Cambodian handicrafts and
   makes them uncompetitive relative to Thailand, Vietnam, and China.

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Current and Proposed Industry Support Initiatives
Current Initiatives
This table identifies support programs currently active and proposed and their impact on addressing industry barriers. These activities
include donors’ initiatives, handicrafts associations, and vocational training centers.
              Barriers to Growth       Poor Quality        Limited Production              Limited Product          Reliance on        Marketing and Export
            and Sustainability            of Silk             Capacity and                   Designs and           Imported Raw            Promotion
                                        Production           Producer Skills                  Creativity           Materials and
Support Program                        and Weaving                                                              Inputs/Accessories
MRD7 - PASS Project (end of 2005)             X                                                                         X
MOC8 - ITC Project CMB/61/87 (on-
going)                                                                                                                                             X
ITC assistance to the CSF9 (on-                                        X                             X
Traidcraft10 Assistance Program (on-
going)                                                                                               X                                   Market Development
IFC/MPDF Sponsored Designs and
Export Promotion Center11                                              X                             X                                             X
Chantiers12- Ecoles in Siem Reap              X                        X                             X
Artisans Association of Cambodia                                       X                             X                                             X
Cambodian Crafts Cooperation                  X                        X                             X
Cambodian Silk Forum (CSF)                    X                        X                                                                           X
RGC15 Vocational Training Centers                                      X

  Ministry of Rural Development(MRD) – Silk Intervention: providing silk production and weaving training and equipment assistance to silk yarn producers and
weavers in Banteay Meanchey, Kandal, Kampong Cham, Otdor Meanchey, Takeo and Siem Reap provinces. So far the PASS Project has trained 1,300 yarn
producers and 5,065 silk weavers (both existing and new weavers.)
  International Trade Council – Support Trade Promotion and Export Development at the Department of Export Promotion of Ministry of Commerce (MOC)
  International Trade Council – Support Trade Promotion and Export Development, development of export strategies, 2005 and provide assistance to the
Cambodian Silk Forum (CSF) in strengthening its structure to provide better services to its members, NGOs and private silk handicrafts businesses/organizations.
   Traidcraft assistance to Artisans Association of Cambodia and Cambodian Craft Cooperation
   IFC/MPDF initiative to provide export promotions and Handicraft design support and capacity building for handicraft producers
   French Government supported vocational training center in Siem Reap
   Artisans Association of Cambodia provides marketing, designs assistance, institutional development, and training to its 20 members organizations.
   Cambodian Crafts Cooperation provides training support to its 50 members organizations. CCC is in the process of setting up a Chamber of Handicrafts of
   Royal Government of Cambodia (RGC); Provide Vocational Training to vulnerable target group e.g. sewing, crafting, beauty salon, hair dressing and silk

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Potential Industry Support Initiatives
Given the current programs involved in reducing barriers to industry growth, the
following are potential Plan/COSECAM appropriate industry support programs which
can provide modest intervention and cooperation for immediate success.
1. Work closely with existing PASS program to provide training to vulnerable and
    disadvantaged youth who are interested in self-employment and whose families have
    the facilities, land and buildings to conduct these activities.
2. Explore areas of value-added program (cooperation) with Traidcraft to support
    handicrafts production organizations to create employment demand.
3. Contracted Service with Chantiers-Ecoles to design and deliver a special training
    program aimed at benefiting vulnerable and disadvantaged youth in high job demand
    occupations e.g. basketry making, mat weaving, lacquering and gilding, wood
    carving, bronze-smith and so on.
4. Provide financial support to handicrafts promotion organizations such as AAC to
    provide specific advanced training programs (new designs/concepts that meet
    international buyer expectations) required for silk product production and link the
    trained producers to employers of AAC members and others institutions if applicable,
    particularly in Phnom Penh.
5. Cooperate with CCC to recruit some of Plan/COSECAM target group for CCC
    training programs.

Employment Creation for Disadvantaged Youth
Employment Situation
The exact number of those employed in the handicrafts sector is currently unknown due
to business registration regulations, the lack of registration enforcement, and the fact that
the handicrafts sector is informal, small in size and scattered nationwide, and many of the
enterprises operate as NGOs.

The total employment growth projection for the Handicrafts sub-sectors (basketry, art
crafts, and silk) is projected at approximately 14,000 by the year 2009, using a
conservatively estimated annual growth rate of 10%.16

                        Estimated Sub-sectors Employment and Growth17
 Descriptions               2005         2006         2007         2008                         2009
 Phnom Penh                 5,460        6,006        6,607        7,267                        7,994
 Siem Reap                  4,150        4,565        5,022        5,524                        6,076
 Estimated Total
 Employment                  9,610             10,571               11,628            12,791   14,070

   This figure is based on an estimate of current employment in the three industry sub-sector developed
through interviews with business managers and industry experts and data from the RGC.
   These figures were extrapolated from the existing data collected from government source at the Ministry
of Industry, Mines and Energy and supplemented by field interviews with industry experts and handicrafts
production organizations, both in Phnom Penh and Siem Reap province.

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Within these sub-sectors, the following positions are appropriate for disadvantaged youth.
1. Silk producers (mulberry tree growing, silk worm breeding),
2. Silk weavers,
3. Silk related product producers (sewers),
4. Wood/stone carvers,
5. Lacquering and gilding,
6. Basketry,
7. Salespeople.
Compensation for Producers
The results from surveying numerous handicrafts production organizations demonstrates
that, on average, these occupations earn between US$40 to US$100 per month depending
on production skills and experience in the respective occupations. Payment is mostly
based on output. Some occupations such as wood and stone carving, providing the
workmanship is good, can earn up to $120 per month. This compensation scheme is
similar for both full-time and outsourced producers.
Skill Requirements
There are two types of artisan groups from which individuals are recruited for these sub-
    • Existing skilled artisans – this group is defined as artisans possessing transferable
        skills. This includes artisans already employed by the industry and/or graduates
        from vocational training centers or those with skills inherited from their family
        members or friends. This group is usually employed as foremen or act as coaches
        to junior artisans. This group of artisans is unlikely to be within our target
    • Unskilled artisans – this group is defined as individuals who meet the criteria of
        production organizations, including disabled persons, widowed women,
        vulnerable and disadvantaged youth, poor rural youth etc. and possess no or
        minimal skills prior to recruitment. These groups are required to go through
        intensive 3-6 months of skills training and are apprenticed for up to 6 months
        before becoming skilled artisans.

The length of skills training required to perform these tasks varies depending on the
nature of the job; e.g. a basket maker may be required to undergo full-time training for 1-
2 weeks, but has to be apprenticed to an experienced producer for about 3 months before
she/he is able to produce products independently. All training is conducted on
organizations’ premises or at vocational training centers.
The Barriers to Job Creation for Disadvantaged Youth
The barriers to employment for disadvantaged youth include: significant skill
requirements prior to employment, discrimination upon return to local communities after
training (particularly for exploited women and youth) and informal hiring practices
among informal firms.

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As mentioned above, a key barrier to job creation for disadvantaged youth is the long
training period required to develop the skills necessary to gain meaningful
employment. Most new producers must undergo a training period of between 3 to 6
months and take apprenticeships of another 3 to 6 months before they become skilled
artisans and are able to perform the required tasks required.

In addition, although the disadvantaged youth have been trained in the skills necessary to
be employed or for self-employment, they may have difficulty in utilizing their skills to
create viable businesses and incomes due to the discrimination they experience in their
communities once they return from training, particularly exploited women and children.
As such, reintegration training and community support intervention is extremely
important in order for disadvantaged youth to be integrated and accepted back again into
society and resume a normal life.

Finally, employers recruit artisans according to their organization’s social mission and
target groups such as disabled persons, widowed women, poor rural youth, and other
vulnerable and disadvantaged groups. The recruitment process for profit organizations is
usually based on existing artisan’s recommendation, family and close friends, and
through word-of-mouth dissemination within the community.

Current Job Facilitation Programs
Several programs presently provide training to facilitate handicraft employment creation,
but many graduates have difficulty in finding jobs and integrating into society because
the training is not linked to job demand and there is a lack of coordination between
employers and laborers. These programs are mostly run by NGOs18 whose social mission
is to work with disadvantaged groups such as war veterans, disabled persons, widowed
women, poor rural Cambodians and so on. The main training programs currently in place
2. Traidcraft
3. AAC
4. CCC
5. Cambodian Silk Forum
6. RGC Vocational Training Centers
7. NGO-run Vocational Training Centers

  National Center for Disabled Persons, Rehabcrafts of Cambodia, Tabitha, Association for Aid & Relief
Japan (AAR), CWAR, CCC, AAC, Don Bosco, Jesuit Service Cambodia (JRS) etc.

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Potential Job Facilitation Programs
The following are the proposed initiatives to be considered by Plan/COSECAM as
potential job facilitation programs.

Initiative 1 – Participate in the existing MRD “PASS” Project through negotiation
with MRD to expand PASS targeted recipients to include the rural vulnerable and
disadvantaged youth, and fund or sponsor silk production and weaving training programs
in Siem Reap province where Plan operates.

PASS is funded by the French government assistance program, AFD, through the
Ministry of Rural Development (MRD) to provide a silk production intervention
program. The PASS project began operations in early 2002 and the project is to be
finished at the end of 2005. Currently additional funding is being sought to extend the
project beyond 2005. NZAID and AFD are currently interested in providing continued
funding for the project. The project is executed by the Ministry of Rural Development
through its Provincial Rural Development Department and the project is led by a French
consultant. The project encompasses six provinces in Cambodia, namely Odtor
Meanchey, Banteay Meanchey, Takeo, Siem Reap and Kampong Cham.

The PASS project provides silk yarn production skills training and silk weaving skills
training to rural farmers. The objective of the program is to increase incomes of the rural
poor; create rural employment; and decrease yarn importation by increasing local silk
yarn production (a 10% increase is targeted by the end of 2005). MRD has a silk weaving
training facility in Takeo and is in partnership with Chantiers Ecoles in Siem Reap to
provide silk yarn production training e.g. mulberry tree growing, silk worm breeding and
silk weaving.

Initiative 2 – Work with handicrafts production organizations to link vocational
training with employment through sponsorships (subsidized cost), training and working
capital support to assist outsourced producers trained by this initiative to obtain

Siem Reap Province
1. Artisans D’Angkor 19has expressed interest in engaging in the program to hire and
   outsource some of their products to Plan/COSECAM targeted groups if their
   production skills are similar to Artisans D’Angkor’s current producers. Presently,
   Artisans D’Angkor contracts Chantiers Ecoles to train their producers. Therefore, the
   issue of producer’s quality would be solved if Plan/COSECAM contract Chantiers
   Ecoles to train vulnerable and disadvantaged youth to the occupations that are in high
   demand in the job market. Artisans D’Angkor prefers to work with
   organization/groups rather than on an individual basis because Artisans has had some
   negative previous experiences, especially concerning the quality and productivity of

  Artisans D’Angkor is the sister organization of Chantiers Ecoles. Artisan D’Angkor employs handicraft
producers trained by Chantiers Ecoles and has provided financial support to Chantiers Ecoles since the
funding ceased.

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     these artisans. Hence Plan’s role to articulate the linkage between employers and
     employees is needed so as to attract outsourced production.

2. Rural Workshop: Experience has demonstrated that to have quality workmanship,
   production must occur in a workshop where there is a Quality Assurance process and
   access to the tools and equipment needed. Artisans D’Angkor has 12 rural workshops
   in Siem Reap province. Plan/COSECAM should consider sponsoring a few
   workshops in the district or communes in which Plan operates so as create

3. Basket Making: Plan/COSECAM should consider replicating the existing basket
   making village model at Krabei Real Commune, Pok District, Siem Reap province by
   expanding this model to other Plan targeted groups or villages. The producers in this
   village work closely together in the development of unique product designs and have
   established processes to distribute production and market knowledge. While these are
   informal organizations, the producers in the village enjoy greater profits as a result of
   this information sharing and cooperation.

4. Support of Cooperatives: To increase the financial returns for handicraft producers,
   Plan/COSECAM should consider the development of industry-based cooperatives.20
   These cooperatives would work to consolidate producers into a unified organization
   to achieve economies of scale in the purchase of raw materials and production
   infrastructure and to gain pricing leverage with buyers. The nature of handicraft
   production, particularly within the basketry sub-sector where entire villages produce a
   similar product, makes the establishment of industry-based cooperatives achievable.

5. Souvenir Shops: Most of the big souvenir shops in Siem Reap municipality import
   up to 90% of handicrafts and souvenir items from Thailand, Vietnam and China.
   There are a few exceptions such as AuthentiKhmer21 Crafts, CTM22 souvenir shops
   which display more Cambodian-made handicrafts in their shops. Since Cambodia has
   more than one million tourists visiting the country (mainly Siem Reap province) it
   seems currently less pressure is put on them to promote authentic Cambodian
   handicrafts. Handicrafts branding should be directed at local shoppers (tourists) by
   promoting authentic Cambodian-made products in these souvenirs shops.
   Plan/COSECAM should work with these souvenir shops by introducing an incentive
   program for them to buy Cambodian made products to sell in their shops. Field
   research demonstrates that tourists are unable to distinguish between products that are
   Cambodian-style and Cambodian-made and products made in other countries.
   Tourists are then disappointed when they discover that the products they have bought
   have not been made in Cambodia or by Cambodians. Plan/COSECAM should also
   Given Cambodia’s history with respect to the term “cooperative,” it is recommended that these
organizations be termed either “associations” or “unions.”
   AuthentiKhmer Crafts only sell products made in Cambodia by local producers and under equitable trade
   CTM merchandise Cambodia Craft in their shops, making up approximately 30% of all souvenirs. CTM
promotes products made in Cambodia by displaying in-store signs “Products made by Cambodian
Disabled, Trainees” etc. to attract sympathy from shoppers.

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     consider providing marketing expertise23 on how to market upscale handicraft
     products made in Cambodia in these shops. If 30% of the products sold in these big
     souvenir shops were made in Cambodia, this would make a huge impact on
     employment in these handicrafts sub-sectors.

6. Work with Chantiers Ecoles to design new skills training programs to produce
   products that are in great demand, namely bronze related production, mat weaving,
   basket production (new designs and concepts), silk related products (new designs and
   concepts), and recycled paper. For some of these products, bronze products in
   particular, the souvenir shop operators have to wait up to several months before
   receiving their orders.

Phnom Penh Municipality
1. Plan/COSECAM should work with handicrafts associations in Phnom Penh, such as
   Artisans Association of Cambodia (AAC), Cambodia Crafts Cooperation (CCC) and
   the Cambodian Silk Forum to identify which of their members’ organizations need
   additional producers in response to increasing export buyer demand.24 In addition,
   Plan/COSECAM should seek to provide incentives to producer organizations, for
   example by subsidizing the cost of training, membership fee allowance, working
   capital, export market facilitation and promotion.

2. Sub-contract the RGC Vocational Training Centers such as the Ang Snoul
   vocational training center in Kandal province to train general (basic) sewing skills for
   Plan/COSECAM targeted groups prior to undergoing specific sewing training with
   handicrafts associations and producers organizations.

Initiative 3 – Work with Handicrafts Promotion Organizations such as Traidcraft, the
IFC/MPDF sponsored Designs and Export Promotion Center25 and Cambodia Silk Board
(to be established) by identifying areas of cooperation with them to address the barriers
identified above, namely production capacity, producer skills, product designs, marketing
and export promotion.

Initiative 4 – Financial Support to production organizations who are in need of
capital to expand their operations. Many production organizations indicate a desire and
readiness to expand their production and marketing activities if affordable financing for
expansion were available26. By supporting lending, Plan/COSECAM would be able to
enter into an exclusive arrangement with production organizations to employ and
outsource production to vulnerable and disadvantaged youth for the expansion
component(s) that Plan/COSECAM provides financing assistance.

   This can be one of the incentives to be proved by PLAN/COSECAM.
   Currently the handicraft export market demand growth is about 20-30% annually.
   An IFC/MPDF initiative to provide export promotions and Handicrafts designs support and capacity
building for Handicrafts producers.
   Handicrafts Associations e.g. AAC, CSF, CCC can provide a list of production organizations who are in
need of financial support to expand their operations and markets.

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Initiative 5- Work with the IOM to develop programs to support community
reintegration of trained youth, particularly exploited women. As mentioned previously,
many disadvantaged youth are unable to utilize the skills gained through participation in
the training programs due to discrimination within their own villages. As such, to
provide the framework for successful reintegration into community life and to ensure that
developed skills are utilized fully, Plan/COSECAM should work with the IOM to build
and operate programs to integrate disadvantaged youth back into their communities.

The table below is a summary of the influence of the proposed initiatives on employment
barriers for the vulnerable and disadvantaged youth.

Barriers to Employment               Skill               Community                   Informal    Weak Industry
                                 Requirements           Discrimination                Hiring      Value Chain
Support Program                                                                      Practices
Participate in the MRD–                   X
PASS Project
Work with Handicrafts                     X                                             X             X
Production Organizations
Work with local Souvenir                                                                              X
Shop Operators
Work with Handicrafts                     X                                             X             X
Promotion Organizations
Work with Handicrafts                     X                                             X
Subcontract Training                      X                                             X
Financing Supports                                                                      X             X
Work with IOM on                                                 X
Reintegration Programs

In order to facilitate employment creation for vulnerable and disadvantaged youth, the
following programs are recommended. The expected outcomes from these initiatives are
a reduction in the barriers to handicrafts sector growth and sustainability while promoting
employment for Plan/COSECAM targeted groups.

Recommendation 1: Develop Joint Program with MRD-PASS Project
Work closely with the MRD-PASS program to broaden its target group to include
vulnerable and disadvantaged youth.27 Discussion is underway among the donor
community to expand this project from its current scope and to coordinate assistance
efforts through the proposed establishment of a “Cambodian Silk Board”. The
Cambodian Silk Board will be used as an avenue for aid assistance in the Cambodia silk
sector. ITC is responsible for coordinating this proposed program.

  The success of the program to date should be evaluated prior to making a substantial commitment in
developing a joint program with MRD-PASS.

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Recommendation 2: Provide Required Training and Facilitate Employment
through Subsidies

Contract Training Services from Existing Vocational Training Centers
•   Siem Reap: Plan/COSECAM should evaluate the opportunity to work with Chantiers
    Ecoles’ to provide training in high demand jobs for vulnerable and disadvantaged
    youth in Siem Reap. In particular, to support the growth of the basketry industry in
    the province, Plan/COSECAM should seek to develop a program specifically focused
    on this sub-sector.
•   Phnom Penh: Plan/COSECAM should work closely with the Royal Government of
    Cambodia (RGC) Vocational Training Center in Ang Snoul District, Kandal
    Province, to provide basic training programs (e.g. sewing, weaving, basketry, etc.) to
    vulnerable and disadvantaged youth prior to taking the advanced vocational training
    course with Handicrafts Associations such as AAC and CCC and their respective
    production organizations.

Subsidized Employment Partnerships
Encourage handicrafts production organizations to employ vulnerable and disadvantaged
youth selected and recruited by Plan/COSECAM as regular full-time employees and/or
long-term outsourcing producers through subsidized training costs for this employment.
There are a few organizations which expressed an interest in participating in this type of
program (e.g. Artisans D’Angkor and AAC).

Recommendation 3: Build Rural Workshop Facilities
To address the low skill quality of producers and limited production capacity of these
sub-sectors, we would recommend Plan/COSECAM invest in the development of “rural
workshops.” These workshops would seek to provide the infrastructure necessary to
enable disadvantaged youth to create high-quality handicrafts for sale to the domestic and
export markets. At the same time this initiative will reduce urban migration by providing
disadvantaged youth with the equipment necessary to earn a living in their rural villages.

Rural workshops would include basic production equipment for the type of handicrafts
produced in the region and would be managed/run by a foreman that is an experienced
craftsman. This person would provide training, on an ad hoc basis, to other users of the

Recommendation 4: Provide business/technical assistance and financial support to
selected Handicraft Promotion and Production Organizations
The handicrafts promotion organizations and associations play an important role in
promoting and developing the handicrafts market, and strengthening and capacity
building of handicrafts production organizations as well as producers (e.g. the activities
of Traidcraft, CCC, AAC, CSF, and the proposed IFC/MPDF Designs and Export
Promotion Center). Plan/COSECAM should provide financial support to initiatives of
the Handicraft Associations; specifically Plan/COSECAM should consider specific
invention/support to the AAC initiative of setting up a Boutique Shop in Phnom Penh to
support its member organizations, especially members who do not have a presence in

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Phnom Penh, and to promote their products through this Boutique Shop. By doing this,
AAC members would be able to display and introduce their products in this shop and use
this shop as a marketing tool to promote and develop new markets and buyers.

In addition, based on our field research and interviews, many production organizations in
Phnom Penh, members of AAC in particular, are keen to expand their production and
marketing activities and to facilitate working capital28 if affordable financing assistance
were available. If Plan/COSECAM provides financial assistance of US$60,000 to six
AAC members, the project team estimates that an extra 100 jobs will be created.
Untrained sewers would be expected to undergo sewing skill training for six month and
unskilled silk weaver for 18 months. This US$60,00029 is inclusive of training fee,
training materials and equipment assistance30 after the successful completion of training.

Estimated Cost and Impact of Proposed Initiatives
Assuming successful implementation of the proposed interventions (both industry support
and direct job facilitation), the total new job creation for vulnerable and disadvantaged
youth for Phnom Penh and Siem Reap province is estimated approximately 2,400 jobs by
year 2009, split equally between Phnom Penh and Siem Reap.31 The employment growth
projection for theses sub-sectors are estimated conservatively at the rate of 10 percent

It is anticipated, given the scope of the proposed interventions, the jobs will be created
across all three sub-sectors and include various positions within each sub-sector.

   Many small production organizations are faced with significant cash flow problem when coping with
large orders. Most of the time they have to get loans from local banks and informal money lenders at high
interest rate which makes production costs uncompetitive.
   This amount can be considered as grants, loans and other arrangements.
   Equipment Assistance includes one sewing machine for each trainee and a loom and other related tool for
each weaver.
   Obtained through interviews with industry experts and consultants’ estimations, we believe these
numbers are reasonable if appropriate interventions are provided.

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      The total cost associated with these proposed initiatives is relative to the potential number
      of job positions and the amount of funds available for training subsidies, investment in
      production facilities, financial support to handicrafts producer and promotion
      organizations. The below table is a conservative estimate of costs involved in these

                           Impacts and                 Cost32 of        Number                Type of            Estimated
                       Considerations                Interventio        of Jobs             Job created           Cost per
                                                           n            Created                                   Person
Recommendation                                         Per Year                                                  Employed
                                                        No cost            N/A                 N/A                No cost
1. Develop Joint Program with MRD-                    associated                                                 associated
PASS                                                   with this                                                  with this
                                                       program                                                    program

2. Training and Subsidized Employment
a) Silk Production and Related Products                 $3000               10         Silk Yarn Producers34       $300
                                                       $24,200              40         Silk Weavers                $600
                                                       $84,000             140         Fabric Sewers               $600

b) Art Crafting                                        $15,000              30         Wood/Stone Carvers          $500
                                                       $40,000              80         Lacquering/Gilding          $500

c) Basketry                                             $,4000              80         Basket Producers             $50

d) Retail Shop33                                          N/A               20         Salesperson                  N/A

3. Develop 2 Rural Workshops                          $20,00035            N/A                 N/A                  N/A

4. Support Handicraft Production and
Promotion Organizations (provide
financial support to 6 organizations)

a) Production and Market Expansion                     $60,000              90         Silk Sewers                US$500
                                                                            10         Silk Weavers
b) Working Capital Facilitation (on an ad
hoc basis and as required)                             $15,000             N/A                 N/A                  N/A

c) Establish and maintain Boutique retail             Unknown              N/A                 N/A                  N/A

         This is inclusive of training cost, training materials & equipment assistance, accommodation and an
      allowance for attending the training.
         Indirect benefits from these initiatives and market development effort within the Handicrafts sector.
         Silk Tree Growers and Silk Worm Breeders.
         Does not include the cost of land.

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Semi-Skilled Tourism Support Services
The tourism industry in Cambodia is one of the largest and more stable industries driving
the economic development of the country, and as such is part of the government’s
Poverty Reduction Strategy. Despite the significant set backs of the Asian financial crisis
in the late 90’s and SARS in 2003, the region has rebounded strongly, with regional
tourism growth twice that of world averages.

As the number of tourists visiting Cambodia has risen, so has the number of hotels,
guesthouses and restaurants supporting the industry. The universal appeal of the Angkor
temples attracts people with a wide variety of preferences and budgets, which has helped
to create a highly diverse market for tourism services, ranging from $3 a night
guesthouses and roadside eateries, to $400 a night five star hotels and high class

Employment practices in the industry are dependant largely on the level of the employer,
with the higher end of the market using formal channels, while the more basic
establishments rely on informal hiring. With vastly different employment and recruitment
characteristics, the market will be segmented into premium, standard and budget for the
purposes of this analysis36. No use will be made of the seemingly arbitrary distinction
between guesthouse and hotel.
Selection as High Priority Industry
The stability of the industry and the simplicity of the value chain combined with high
growth prospects and strong donor involvement make this an attractive industry.
Although the numbers for potential employment are not large when compared to other
industries in this report, there is a high degree of surety as to the ability to reach these

In addition to the industry factors, the skills learned in this industry are seen as favorable
considering the high transferability and ability to provide sustainable employment.
Specific Focus
The focus of this study is employment in semi-skilled services in the hotel and restaurant
industry. There are a variety of roles in semi-skilled tourism support services, including:
• Waiters / waitresses
• Bar staff
• Housekeeping
• Cooks / kitchen support
• Reception

Higher skilled positions like management, supervisors, team leaders and experienced
chefs, and unskilled positions like security guards, gardeners, laundry and kitchen
stewards are not included in this industry.

36 36
        The market was segmented on price using standard room rates of $30 and $100

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Geographic Focus
The two major tourist centers of Phnom Penh and Siem Reap attract the bulk of
Cambodia’s tourist market and have the most established hotel and restaurant industry.
With its close proximity to the Angkor temples, and direct international flights, Siem
Reap attracts the majority of the visitors37, although the government is considering
strategies for how to encourage more tourists to include Phnom Penh in their visits rather
than flying straight in and out of Siem Reap.

Other areas that could potentially be interesting are Sihanoukville and Kampong Cham.
The latter is well placed to capitalize on the development of the Asian Highway, which
will link China to Vietnam, while Sihanoukville has the attraction of tourist-friendly
beaches and an airport. Relative to the primary markets, however, these towns are small
and undeveloped.

Industry Sustainability and Growth
Industry experts at the ADB predict growth for the industry over the next 5 years to be
between 8% and 15%, while the Ministry of Tourism has predicted a higher figure of
30%, based on historical data from the past 3 years. While the tourism industry is
relatively strong and stable, the extent of the growth will be dependant on the ability to
deal with several macro level factors which represent possible barriers to further
development of the industry.
Main Barriers to Industry Growth
The tourism industry is limited by the number of tourists and their spending profiles
during their visit. The hotel and restaurant market is able to respond to demand without
overt regulatory control. The key high level barriers are as follows:

Decline in average spend per Tourist: The industry is driven largely by the hotels and
restaurants in the top end of the market. A decrease in spend by tourists, would reduce the
potential impact of these hotels.

Market Saturation: Should exponential growth in the number of hotels continue,
occupancy rates may drop too low for some establishments to be sustainable.

Decline in average length of stay per Tourist: Shorter length of an average visit
equates to lower bookings for hotels and fewer meals demanded in restaurants.

Localized visits: Tourists visiting only Siem Reap deprive Phnom Penh of potential

  Figures from the Ministry of Tourism indicate that visitors to Phnom Penh are almost on a par with Siem
Reap, however, this does not take into account repeat visitors or business travelers. With these factors taken
into consideration, it is generally agreed that Siem Reap attracts the majority of conventional tourists.

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Current and Proposed Industry Support Initiatives
While there are several donor/government funded programs seeking to increase the
tourism industry in Cambodia, they are largely focused on country branding and general
infrastructure improvements to improve the quality of tourist visits. As such, in the view
of the project team, any potential initiatives that could be implemented to address these
barriers are out of scope of potential Plan/COSECAM initiatives.

One of the most influential ways of supporting the industry is to provide a consistently
high level of service, such that the service in itself becomes one of the attractions.
Attaining these standards is a combination of having the necessary skill sets, as well as
the wherewithal to deliver the service appropriately. This will be achieved with micro-
level programs concentrating efforts on raising the employee’s perception of their role,
and raising the general profile of hotel and restaurant positions. In this way, the
employment support initiatives discussed later in the report become indirect industry
support initiatives.

Employment Creation for Disadvantaged Youth
Employment Environment
There are two distinct groups from which individuals are recruited for semi-skilled

•   Formal sector – broadly defined as individuals already possessing transferable skills.
    This includes those already employed in the industry as well as graduates of training
•   Informal sector – individuals who have limited skills, if any, at the time of
    employment and who will be trained by the hotel or restaurant employing them. This
    group is usually sourced from friends and family or word of mouth from existing
    employees and represents a large proportion of the semi-skilled labor market. The
    informal sector typically trades off pre-existing skill in favor of a connection to the
    employee (usually through family) which can be used as a recourse should problems
    arise during employment.

Recruitment methods are dependant on the quality of hotel. The higher service standards
demanded by premium hotels have this group recruiting from the formal sector, while
budget hotels are more dependent on recruiting informally. The mid-tier standard hotels
use varying combinations of the two.

The practice of aggressively recruiting experienced staff from competitors, combined
with low employee loyalty, and high industry growth has created an unusually high rate
of turnover in Siem Reap. Although most hotels are reluctant to reveal their true turnover
rate in interviews, most industry experts believe it to be significantly higher than what is
perceived as a healthy rate of 15%.

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The Phnom Penh market, on the other hand, is significantly less transient. With much of
the hotel and restaurant industry already established, there is less growth and
consequently less aggressive recruitment. Those employees that are ‘poached’ from
premium hotels in the capital are often lured by Siem Reap operations. One of the biggest
five star hotels in Phnom Penh indicated during an interview that their turnover was only
Skill Requirements
Skill requirements in the industry vary slightly depending on establishment. Generally
speaking, industry skills include:

•   Guest relations and communications
•   Reservation systems
•   Cash management / Finance
•   Security standards (housekeeping)
•   Product knowledge (restaurant, bar and kitchen)
•   Service standards and styles
•   Catering
•   Bar / Cocktail service
•   Cooking techniques
•   International and Khmer cuisine
•   Hygiene
•   Nutrition
•   Computer skills
•   Foreign language (English, French)
Quantity and Quality Dimensions of Semi-skilled Tourism Services
The quality of employment in the tourism industry is high. The skills are easily
transferable, the market is fluid and real opportunities exist for skills improvement and
promotion. Relative to the Cambodian market the wages offered are reasonable, starting
at around $50/month for the top hotels, but with strong potential to increase this base
Current Employment Levels
According to the Siem Reap Angkor Hotel and Guesthouse Association (SRAHGA),
there are currently 188 hotels in Siem Reap. The same source indicates that these hotels
employ a total of 4,154 staff. The figures provided by SRAHGA were verified against the
actual employment levels during industry interviews and were found to be slightly, but
consistently, below current levels. To compensate for this underestimate, as well as the
small number of new institutions that have not been included in the report, the
employment figures have been adjusted upward by 10%.

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The Phnom Penh Hotel Association reports that there are 128 hotels and guesthouses in
the capital. While reliable employment numbers are not available in Phnom Penh, the
project team has made the assumption that the ratio of employees to hotels will be the
same in Phnom Penh as for similar types of hotels in Siem Reap. Applying these ratios to
the hotels in the capital gives a figure of 2,949 employees.

From these figures, the more qualified positions like team leaders and managers, and
lower skilled workers like security guards, gardeners and kitchen stewards need to be
extracted to provide estimates specifically for semi-skilled staff. Deducting these skilled
and unskilled staff from the figure above produces a total of 5,071 semi-skilled
employees in the two cities as follows38:

                         Table 1: Semi-skilled employment within the hotel industry
                            Segment              Siem Reap           Phnom Penh              Total
        Number of         Budget                     147                 107                  254
        hotels            Standard                    25                  19                   44
                          Premium                     16                  9                    25
                          Total                      188                 135                  323
        Number of         Budget                     894                 651                 1545
        semi-skilled      Standard                   688                 523                 1211
        employees         Premium                   1481                 833                 2314
                          Total                     3064                2007                 5071

Data for the restaurant industry is less comprehensive than for the hotel market. Using
figures from the department of tourism for the number of restaurants, and ratio’s for the
number of semi-skilled employees from the hotel industry, the project team estimates that
there are roughly 1,616 employees between Siem Reap and Phnom Penh as shown below.

                          Table 2: Semi-skilled employees in the restaurant industry
                   Segment            Siem Reap           Phnom Penh                 Total
                 Budget                  169                  637                     806
                 Standard                 77                  302                     378
                 Premium                 110                  322                     432
                 Total                   356                 1261                    1616

Amalgamating this data produces a total figure of 6,687 employees working in
restaurants and hotels in the two cities currently as shown below.

                              Table 3: Total Semi-skilled Employees in Industry
                 Sector               Siem Reap           Phnom Penh                 Total
                 Hotels                  3064                2007                    5071
                 Restaurants             356                 1261                    1616
                 Total                   3419                3268                    6687

  Averages for the proportion of semi-skilled staff were collated during industry interviews. The
percentages used per segment were 60%, 70% and 80% for premium, standard and basic respectively.

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Job Creation for Disadvantaged Youth
With the high variance in recruitment and training practices and skill requirements, not
all of the semi-skilled positions in the industry are considered high potential for this
study. The practices of the lower end of the market, in particular the desire to have a
trusted link to the employee through friends or family, limit the ability to place the target
group in this market.

This ‘relevance’ characteristic must be factored into the calculation to provide an
estimate of the size of the market that is likely to be appropriate for any proposed
Plan/COSECAM initiatives. Applying specific percentages per segment to calculate
relevant semi-skilled positions produces 3,659 employees as follows:

                        Table 4: Relevant positions in hotel and restaurant industry
Segment                     Portion of         Siem Reap                 Phnom Penh            Total
Budget                          5%                       53                        64                    118
Standard                       50%                      382                       412                    795
Premium                       100%                     1591                      1155                   2746
Total                                                  2027                      1632                   3659

Estimated Growth in Employment
Industry experts at the ADB estimate sustainable growth in the tourism sector to be
between 8% and 15%39. These figures concur with estimates from hotel industry experts.
Using the 8-15% range for annual growth, and the estimates of suitable semi-skilled
positions derived above, the high and low end estimates for the number of new jobs
created in the next 5 years is 3,700 and 1,717 respectively.

                               Table 5: Number of jobs created in five years
Estimate              Growth          Semi-skilled             Semi-skilled             Total jobs in    Total new
                      estimate        jobs in Siem             jobs in Phnom            2009             jobs in 5
                                      Reap - 2009              Penh - 2009                               years
Upper estimate        15%             4077                     3282                     7359             3700
Lower estimate        8%              2978                     2379                     5376             1717

Barriers for Job creation for Disadvantaged Youth
The hotel schools established in Phnom Penh and Siem Reap40 play a significant role in
overcoming barriers that would otherwise prevent disadvantaged youth from securing
employment in the hotel and restaurant industry. As these schools are used as a means of
gaining employment in the industry, it is worth noting the barriers that exist for them as
well as the industry in general. There are therefore two types of barriers:

     Source: Integration and competitiveness study for the Ministry of Commerce, 2002
     These hotel schools will be discussed in more details later in this report.

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1. Barriers to the hotels themselves
2. Barriers to the training schools that are used by hotels to source employees

               Table 6: Barriers to employment in Industry and Schools

Barrier       Description          Detail
Hotel only    Requisite skills     The tourism support services industry requires
              in tourism           specific skills in each discipline, but the level
              support              required differs greatly between high end and low
              services             end of the market. While most hotels and
                                   restaurants will offer training specific to their
                                   organization, a basic level of knowledge and
                                   practical skill is essential for anything above the
                                   budget end of the market

Hotel only    Familiarity          Particularly at the higher end of the market,
              with tourist         employees need to have an understanding of what
              environment          the demands and expectations of the tourist
                                   market are. This is related to aspects such as
                                   customer relations, communication and hygiene
                                   rather than specific skills.

Hotel and     Requirement          A basic level of education is required by the
Schools       for basic            industry. Proficiency in English is important for
              education            all jobs in the premium hotels, and for all client
              particularly         facing roles at the standard and budget end of the
              proficiency in       market.

Hotel and     Need for             As most of the institutions servicing the tourist
Schools       urbanization /       market are based in urban centers, relocation
              social               becomes a barrier. This is mitigated somewhat
              adjustment           when considering the youth that have already
                                   migrated to the cities , particularly in Phnom
                                   Penh, but relocation is still a considerable
                                   obstacle for rural based youth.

Hotel and     Tuition or           One of the schools requires students to pay a
Schools       apprenticeship       tuition fee and some hotels require a fee be paid
              fee                  in exchange for granting an apprenticeship. In
                                   both cases many disadvantaged annual youth
                                   would not be able to afford the fee.
                                   Note: this is not the case for all institutions.

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Current Job Facilitation Programs
There are several programs providing training in semi-skilled hotel services currently in
operation. As these play a major role in shaping employment in the industry, a relatively
detailed description of each is included below.
Sala Bai
Sala Bai is a hotel school operated by Agri Pour Le Cambodge. It is entering its fourth
year of operations having scaled up student numbers significantly since inception. The
focus of the program is to train disadvantaged youth, equipping them with the requisite
skills for the hotel and restaurant industry. Although specifically targeting disadvantaged
youth, Sala Bai has a slightly higher educational requirement than that of the target
group, in order to ensure that students can cope with the demands of the course. The
current requirement is completion of Grade 6.

Agri Pour Le Cambodge intends to hand over the Sala Bai program to the government at
some time in the future. Although no date has been set, it seems unlikely that this will
happen in the next 5/10 years. In order to prepare for this Sala Bai has been working with
the Ministry of Education to align its practices with public policy. One of the stipulations
of this policy is that Grade 9 must be the minimum educational requirement for entrance
to a vocational training school. This requirement would further the gap between their
target group and the Plan / COSECAM focus group, however these conversations are in
the early stages and there may be scope to discuss how and when this is applied.

The details of the program are as follows:

Siem Reap

Target Group
Sala Bai specifically targets disadvantaged youth for their programs. Plan is already
providing assistance to Sala Bai, using its extensive networks in the communities to
recruit high potential candidates. There is a deliberately lengthy application process to
ensure that only the most driven candidates are applicable for selection.

Training includes the following disciplines:
• House keeping
• Waitering / waitressing
• Bar staff
• Cooks
• Reception

Program Size and Costs
90 Students are enrolled in the current program. The cost of educating a student is
roughly $1,500.

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Sala Bai has strong business linkages with the hotel industry in Siem Reap and places all
of their students (90/year) for internships and jobs once they have graduated. There is a
wide range of institutions with whom they have relationships, but the bulk of the
placements are through the premium hotels.

Sala Bai intends to expand operations, in terms of number of students, significantly over
the next few years, with a target of 150. The school is currently running at capacity and
unable to cater for a rise in numbers.

The ideas for expansion have not yet been formulated into a concrete plan, but the
thoughts at this stage include buying land and building a new fully equipped school
outside of the town centre. The current building will still be used as a guesthouse and
restaurant where students will get their practical experience.

Needs / Barriers
Sala Bai has expressed a desire to work with organizations willing to assist them with
current operations or future expansion. Funding is currently needed, and there is a
requirement to secure high quality teachers.
Paul Dubrule Hotel School
Paul Dubrule was established with the aim of giving young Cambodians the opportunity
of receiving high quality training in the fields of hospitality and tourism. Unlike many
other similar institutions, the school has a $500 tuition fee for a one year course, although
only 20% of students actually make this payment. The tuition fee generates an impression
of targeting only more affluent youth, which is potentially damaging when dealing with
donor organizations.

Siem Reap

Target Group
Disadvantaged youth are not specifically targeted by Paul Dubrule, but some of the
students do come from backgrounds similar to the target group. 20% of the students are
fully subsidized through a scholarship program, and 60% of the rest of the class are in
financial difficulty.

The nature of the course, specifically the need for proficiency in English, dictates that
most of the graduates have completed their secondary education.

Paul Dubrule has an extensive program, offering courses in tourism, front office,
housekeeping, restaurant, bar and kitchen. The course also includes instruction in more
general skills like computing, guest relations and communications.

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Program Size and Costs
The facilities are capable of accepting 220 students per year, but resource constraints
have limited this to 103 students in 2004. The cost of educating a student is between $3
500 and $4,000 per year.

All students from the school are placed in jobs (103/year) in the industry - most in Siem
Reap. Students are placed in hotels for internship programs during their course and top
students are often selected before the course has been completed.

Given the spare capacity of the school, there is a clear intention to expand the number of
students and to diversify the program to offer part time and short term courses. At this
stage, there is no concrete plan for this diversification.

Needs / Barriers
There is a pressing and urgent need for funding currently at Paul Dubrule, and they are
actively seeking assistance. A significant cause of the cash flow problems could be the
high running costs of the organization, but two specific areas were identified during an
interview as requiring funding:

1. The scholarship program: At $10,000 this currently supports 20 students, however
   another 40 – 60 students are in need which will require a further $20,000 – $30,000.
2. Teachers: There is a desire to move away from relying on foreign teaching assistance
   and toward greater reliance on Khmer teachers. At the moment there are 3 teachers
   but the recruitment, training and retention of these teachers has proved difficult.
   Higher salaries are required to retain teachers - estimated to be between $250 and
   $600 a month.
Mith Samlanh / Friends
Friends International established the Mith Samlanh program in Phnom Penh with the aim
of providing assistance and opportunities to street children. The program has evolved into
a multifaceted training institution providing children with a wide range of skills. Of the 9
modules covered at Mith Samlanh, only the restaurant module is of relevance to this

Phnom Penh

Target Group
More than any of the other supporting programs for the tourism sector, Mith Samlanh is
highly aligned with the youth that are the focus of this study. The students are all between
14 and 25, poor and many have little or no family infrastructure. There are no educational
prerequisites to joining any of the programs.

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The restaurant course teaches students the basics of kitchen, restaurant and bar. There are
plans to extend the course to offer Tourism and Front Office tuition, but the higher skills
levels required by these may mean that this is offered as a ‘graduate’ course.

Program size and Costs
The restaurant module currently graduates and places 30-40 students per year.

Students are typically placed in restaurants and standard to budget hotels throughout
Phnom Penh. Unlike the other programs, students would not normally be in a position to
work in high end hotels on graduation from the course. All students are placed by the
restaurant manager who has suitable experience and contacts.

Friends is planning on expanding its Phnom Penh based operation to Siem Reap. The
planning phase for this expansion is now complete, and they are in the processes of
securing funding. Although the expansion plan was not made available to the project
team, it appears as if the school will be set up gradually, with outreach teams being the
first installment to initiate contact with the youth, and the training programs being added
in piecemeal fashion. The head of the operation indicated during an interview that he
thought it would be 1 – 2 years before the restaurant training was established in Siem
Reap, although this could be contingent on securing funding.

Needs / Barriers
Apart from requiring funding for the expansion, there do not appear to be specific needs
at this early stage of their expansion.

Pour un Sourire d’Enfant (PSE)
PSE is a school and vocational training centre established in 1995 to provide lifestyle and
education opportunities to children from the Stung Mean Chey garbage dump. The
institution has grown considerably and now educates roughly 2,000 children in its
primary and secondary school, 900 in the ‘catch-up’ schooling program, and 500 in the
vocational training centre. Of the five vocational training programs, Hotel Operations
Training is most relevant, while a small number of graduates of the Secretarial /
Administrative Training course also get placed in hotels.

PSE also has a program in Siem Reap. This is not a training institution, but was
established to cater for PSE students who were given internships or jobs in the town and
required a stable infrastructure to establish themselves. This centre is now used by other
programs like Paul Dubrule who have similarly displaced students.

Phnom Penh, with small support office in Siem Reap

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Target Group
90% of the students for the Hotel training program have graduated through the PSE
schooling system. The other 10% come from a variety of sources including
recommendations from other NGO’s and graduates of universities etc.

The program provides training in cooking, bakery and pastry, service (bar and restaurant)
and housekeeping / laundry, as well as ongoing language instruction.

Program size and Costs
The Hotel Operations course accommodates 90 students, but these are not all graduated
annually. Some courses have different lengths, for example the cooking course is a 3 year
program. The Hotel and restaurant program has a cost of about $1600 per year.

PSE has a Company Registration office which is dedicated to establishing and managing
the business linkages. This team also uses its knowledge of the market to drive program
development and ensure that the skills being trained match market demand. This team
appears to be highly effective as all students are placed into jobs upon graduation
(approximately 90/year depending on enrollment levels) and several hotels interviewed
mentioned PSE as being highly effective in its management of business relations.

There are no major plans for expansion of the program that are relevant to the Hotel
operations Training or Secretarial programs.

Needs / Barriers
Apart from ongoing funding, which does not appear to be in jeopardy, there are no stated
needs for these programs.

The extent to which these current programs address barriers to employment is shown in
the table below.
                 Table 7: Scope of current initiatives in terms of employment barriers
    Barriers to      Specific        Familiarity            Basic            Urbanization     Tuition or
   Growth and        Tourism        with Tourist          Education           and Social    Apprenticeship
Sustainability        Skills        Environment             (inclu.            Support           Fee

Sala Bai                 X                  X                                     X
Paul Dubrule             X                  X                                  Use PSE          Partial
Mith Samlanh /       Rest. not              X                   X                      X
Friends               hotel
PSE                     X                   X                                          X          X

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Potential Job Facilitation Programs
In terms of the gaps and barriers that exist in both the hotel industry and the training
schools, there are four groups of potential programs that could prove effective in
facilitating employment:

1. Build a support structure to help disadvantaged youth prepare for the hotel schools
2. Support the existing hotel school operations and plans for expansion of programs
3. Provide services that are duplicated by hotel schools and/or are not core to their
4. Evaluate expansion into new markets

Each of these groups could potentially have two programs to facilitate job creation.
Build Support Structure
The purpose of the support structure is not only to provide students with the education
demanded by the hotel schools, but also to provide counseling, accommodation, financial
assistance and any other social support required to assist youth to cope with the change of
environment and the demands that will be placed on them in the hotel schools.

Program 1 – Assist with the expansion of the Mith Samlanh / Friends program into Siem
With the planning phase of this expansion complete and the focus now on securing
funding, there is a clear opportunity to support the expansion of this project. There are
three primary areas where assistance could be provided:

1. Utilization of Plan’s network with local youth. Mith Samlanh may be able to use this
   network to establish its relationships with the target group
2. Funding to establish Mith Samlanh in Siem Reap, for example building/refurbishing
   the restaurant
3. Funding for the operational costs of the restaurant training school

• Mith Samlanh has a very close match with Plan/COSECAM in terms of the target
   group, most notably in that there are no educational requirements. Although the
   current program targets street children, it is feasible that this focus could shift to a
   more rural population in Siem Reap
• The establishment of Mith Samlanh provides a possible solution to the gap between
   the education levels of the target group, and those required by the hotel schools
• The close correlation between the target groups of Mith Samlanh and Plan provide an
   ideal opportunity for Mith Samlanh to utilize the existing network of relationships
   with youth that Plan has established in Siem Reap. Plan’s knowledge of the target
   market could provide significant assistance during the initial stages of their
   community outreach work

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•   The Phnom Penh institution includes facilities to accommodate youth that have been
    displaced or are homeless. This will doubtless be extended to accommodate urbanized
    youth in the Siem Reap program, but could possibly be expanded to include facilities
    for other programs

• The restaurant module is not a high priority, and it may be a year or more until this
   program is set up. Although the details of the plan and potential donors have not been
   made available to the project team at this stage, it is understood that the first phase of
   the project will involve community teams doing fieldwork to establish contact with
   the target group. It is possible that by establishing clear support for graduates (in the
   form of hotel schools) and securing funding, Mith Samlanh may raise the priority of
   this module
• The Mith Samlanh program can take a significant amount of time to educate and
   graduate students, as the courses are modular and so there is no set time for
   completion. Added to this is the fact that the course may not even be established in
   the next 1-2 years, meaning that there is a significant time to employment in this
• The number of students graduated from the existing program in Phnom Penh is
   relatively modest at 30 – 40 per year. It is unclear how the proposed Siem Reap
   program would compare to this, but it is unlikely that the program will graduate more
   students in the short term

Program 2 – Investigate opportunities to support a ‘feeder’ institution for the existing hotel
The existing training institutions are extremely effective in providing opportunities for
their students, however, their ability to influence uneducated youth is highly limited
given the educational entrance requirements. A ‘feeder’ institution would help bridge this
gap by providing a basic education (in particular English language) to disadvantaged
youth. This ‘feeder’ institution would have two principle aims:

1. Providing a basic level of education sufficient for acceptance into the hotel school
2. Providing a resource from where all institutions could recruit new students.

The opportunities to support such an institution could include:
• Support for formal schools
• Extension of existing programs (Sala Bai, Paul Dubrule) to include an introductory
• Support for more basic level NGO programs and other literacy organizations
• Support for COSECAM NGO members reintegration/social support programs

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• The hotel schools would have a strong resource pool from where to select, thus
   negating the need for some of their recruitment activities
• There will be significant opportunities to get disadvantaged youth with no level of
   basic education accepted into the hotel school programs. This represents the best
   opportunity for Plan/COSECAM to influence the current recruitment strategies for
   the schools
• Provides an opportunity for COSECAM to identify high potential youth and sponsor
   them in the next level of education

• Any program, existing or new, would need to be designed in close consultation with
   the hotel schools in order to ensure their requirements are met
• Hotel schools may be reluctant to add new programs that are not core to the skills of
   their organization
Support Existing Hotel School Operations
The hotel school model that is currently in operation in Siem Reap and Phnom Penh has
proved highly successful. Most of the institutions have been running for at least 3 years
and now have sufficient experience to be highly productive in their tasks; graduating a
significant number of students, placing them all in the industry and providing varying
degrees of post-placement support. Of the 4 programs interviewed, only PSE indicated
they were not trying to expand their restaurant training program currently. Supporting
these existing institutions and any plans for expansion, could prove to be a more efficient
use of resources than creating a new school or program.

Program 3 – Provide funding assistance to Sala Bai
Sala Bai is actively seeking funding for the general operational costs of the program. The
school is very interested in developing relationships with organizations that can provide

• Sala Bai operates a highly impressive program in terms of its training and its cost
• At around 90 students, the program is not large compared to other industries, but is
   certainly significant, and the expansion plans to increase the number of students to
• With the program currently operational, there is limited risk

     The project team is aware that Plan is already in discussions with Sala Bai.

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• The entrance requirements of Sala Bai (currently grade 6) are slightly above those of
   the target group. Although Plan have introduced over 50 students to Sala Bai, only 2
   of those have been accepted onto the program
• The move towards compliance with the Ministry of Education’s requirement of
   accepting only students with a grade 9 will move the intake further away from the
   target group. A change in focus may be required based on funding alternatives
   available to Sala Bai

Program 4 – Provide funding assistance to Paul Dubrule for scholarships and teachers to
allow continuation and expansion of program
There is a clear and stated need for assistance at Paul Dubrule. Two areas were
highlighted as being in particular need of support:

1. The scholarship program requires funding in order to retain students at the school
   and to make the school more accessible to those from disadvantaged backgrounds. A
   larger scholarship program will directly assist increasing numbers of students to
   attend the school.
2. Competent Cambodian teachers are being sought by Paul Dubrule to facilitate in its
   aim of making the school less reliant on international assistance and build up the local
   staff. There is presently insufficient funding for teachers.

• Like Sala Bai, the Paul Dubrule school is already established and successfully
   operational implying limited risk
• There is spare capacity in terms of facilities at the school at present so the program
   could be expanded with minimal capital outlay
• The scholarship program already exists, so could maximize utilization of the
   COSECAM scholarship funding structure

• The school is currently not actively accessing disadvantaged youth so would need
   assistance in altering their recruiting practices. This could work in conjunction with
   the ‘feeder’ institutions discussed below
• The education standards demanded by Paul Dubrule are reasonably high and could be
   out of reach of many of the target group
• Providing assistance with scholarship programs and teacher salaries may not be
   enough to alleviate all of Paul Dubrule’s financial concerns
Provide Common Services
The purpose of these initiatives is essentially to avoid duplication across the industry
where there are significant similarities and common functions.

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Program 5 – Help negotiate mutually beneficial partnerships between training schools
There is already a solid communication network that exists between institutions like
Friends, Sala Bai and Paul Dubrule. Developing these relations from one of
communication to one of co-operation could have significant mutual benefits for the
schools. The facilities required by these institutions, in particular the kitchen, have high
potential to be utilized by more than one organization in a partnership. Careful
consideration should be given to any program to build new facilities for an expanding
establishment where high-quality, under utilized facilities already exist.

Two examples of the type of partnerships that could be created are as follows:

1. A rental agreement between Sala Bai and Paul Dubrule for kitchen facilities could
   provide a solution for Sala Bai’s expansion plans and assist Paul Dubrule with much
   needed cash flow
2. Guaranteed placement of Mith Samlanh graduates at the hotel schools could negate
   the need for Mith Samlanh to create business linkages, and aid the hotel schools
   recruitment process, particularly by focusing on a group closely aligned with
   Plan/COSECAM’s target group

It should be noted that discussions between some institutions have already taken place but
with no concrete result. Utilizing the leverage of being able to provide funding,
Plan/COSECAM might be able to negotiate more successfully. It appears that the
stumbling blocks at this stage have come down to political differences and concerns
about the image of funding organizations.

• There would be significant cost savings in avoiding the creation of duplicate facilities
• Partnerships could help to make use of underutilized resources
• Funding for joint projects will have greater impact as more students get access to
   facilities and programs
• Co-operative partnerships should allow the schools to expand their programs which
   will lead directly to more youth receiving training

• Certain institutions may be reluctant to have a third party involved given the fact that
   they have previously attempted independent discussions
• Donors contributing to the schools may not want their programs interacting with
   those from other institutions, or to be involved with certain donors from other

Program 6 – Establish a Business Linkages Team
All of the training schools require links to hotels and restaurants in the market place in
order to facilitate internships and job placement at the completion of the program. The
proposed plan involves creating a team that establishes relationships with all the relevant
hotels and restaurants representing the hotel schools. The team would be responsible for

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setting up internships and placements, conducting market research, gathering feedback on
graduates and reporting on market requirements so that schools could shape programs
according to demand.

• Avoid repetitive interviews with common market
• Small team can quickly become experts and can devote more time and attention to the
   industry thereby developing stronger ties
• With a single contact representing all the schools, the leveraging power becomes
   greater. This could be useful should the schools want to initiate changes like getting
   the hotels to make a contribution to the training costs

• All the schools already have established links with the market
• The schools are dependant on the hotels for granting internships and providing
   employment. These ‘services’ are provided based on the image of their institutions,
   and relationships with these hotels are therefore seen as key. It is doubtful whether the
   schools would be willing to let a third party handle what is perceived to be such a
   vital function
• It would be difficult to apportion placements as the schools would vie for the more
   desirable hotels thereby creating a competitive environment
• It appears that it would be difficult to garner the required support from the schools in
   order for this function to be useful
Expansion into New Markets
The majority of activity in the industry is currently focused on the tourist centers of Siem
Reap and Phnom Penh. As tourist numbers grow, however, demand for tourist services is
expected to extend to secondary markets, such as Kampong Cham and Sihanoukville.
Any new market development would potentially be interesting for the development of
new initiatives.

Program 7 – Establish Operations in Kampong Cham
There is speculation within Cambodia that the construction of the Asian Highway, which
will link Vietnam with China, will lead to the economic development of Kampong Cham.
The extent and direction of this development is uncertain, but improved access to the city
and the likelihood of high numbers of people being channeled through it could result in
the development of a tourist industry. Critics argue that the lack of any obvious
attractions and high expected volume of heavy transport vehicles are more likely to result
in the development of facilities catering for the transport industry.

• This is a new market with limited existing hotel infrastructure. Any development
   would require substantial skills training
• Plan already has an office in Kampong Cham, and contacts with youth have already
   been established

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• The lack of potential tourist attractions is a key driver in skepticism over market
   development. Most interviewees in the tourist industry believe that this is more likely
   to become a transport facilitation centre
• The schools interviewed were reluctant to invest time or money in a market that had
   substantial risk associated given the lack of tourist market at present.
• As no institutions are currently established in Kampong Cham, an entirely new
   establishment would need to be set up. This further increases the risk in a market
   where the potential is limited currently and uncertain in the future.

Program 8 – Establish Operations in Sihanoukville
The third largest tourist destination in Cambodia after Siem Reap and Phnom Penh is the
beach town of Sihanoukville. Although out of scope of this report, it is worth noting the
benefits and drawbacks of establishing operations in the town as several people in the
industry indicated that they were analyzing this market with a view to expansion.

• A relatively modest, but growing, number of tourists are creating an expanding
• The industry is reliably supported by residents of Phnom Penh taking weekend breaks
• The primary attraction of the beach has wide appeal
• No programs exist currently, therefore supply of youth and demand for trained staff
   should be high

• Several of the hotel schools have looked at establishing operations in Sihanoukville,
   but the informality of the market has dissuaded them from looking further. Although
   the Sokha Beach Hotel is capable of employing the standard of staff to justify the
   establishment of a school, the absence of other high end establishments is unlikely to
   make the project feasible at this stage
• Neither Plan nor COSECAM have an established presence in Sihanoukville
• The market is highly seasonal, and the ability to support staff during the off season in

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                      Table 8: Influence of Proposed Initiatives on Employment Barriers
    Barriers to        Specific        Familiarity with           Basic            Urbanization     Tuition or
   Growth and          Tourism            Tourist               Education           and Social    Apprenticeship
Sustainability          Skills          Environment               (inclu.            Support           Fee

1. Expansion of      Rest. not hotel            X                     X                 X
Mith Samlanh
2. Support           Will depend on    Will depend on                 X                 X               X
feeder institution     institution       institution
                     partnered with    partnered with
3. Fund Sala Bai            X                 X                                         X
4. Fund                     X                 X                                         X               X
teachers for Paul
5. Negotiate               X                    X                                       X
6. Business                                     X
7. Establish               X                    X                                       X
operations in
Kampong Cham
8. Establish               X                    X                                       X
operations in

    Based on the proposed initiatives detailed above, the following is an outline of the
    recommendations from this analysis for Plan and COSECAM.
    Build Support Structure
    It is clear that this is a vital step in the job facilitation role, in particular for those youth
    who have not had any access to formal education. This also represents the largest gap in
    the employment chain, particularly in Siem Reap, with only PSE and Friends fulfilling
    this role and both of these based in Phnom Penh.

    Both of the listed programs have high potential and discussions should be entered into
    with all suitable organizations to determine the most appropriate solution.

    Recommendation: Support program 1 or 2

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Support Existing Hotel School Operations
The hotels schools represent the core of any program assisting disadvantaged youth to
become employed in the semi-skilled services industry. They have proved the success of
the training programs they run, and are now established enough to support expansion in
different area’s of their organizations. To create a similar institution from scratch would
appear to be inefficient when it is clear there is scope to expand upon and diversify the
existing operations.

Support for both Sala Bai and Paul Dubrule should be investigated. Although Paul
Dubrule has significantly higher costs to train students, if this school does not receive
sufficient funding there is a chance the program could close. A termination of the
program would have consequences not only for the 100 students that it trains annually,
but also for other schools who could stand to benefit from a partnership agreement.

Recommendation: Support program 3 and 4
Provide Common Services
There are clear advantages to maximizing the utilization of resources across this market.
Operating facilities like Paul Dubrule, with high operational overheads, at less than
capacity is needlessly inefficient and provides a prime opportunity to direct expansion.

Facilitating negotiations between the schools is strongly recommended, in particular,
creating a solution to the underutilization of resources at Paul Dubrule. The business
linkages concept received an unenthusiastic response from schools, mostly due to them
wanting to retain ownership of the relationships already established, therefore this is not
recommended at this stage.

Recommendation: Support program 5 only
Expansion into New Markets
It does not appear that the full potential of the existing markets has yet been reached.
With a high degree of uncertainty surrounding the new markets, and the requirement to
set up a new program, this does not seem the best course of action at present. It would be
advisable to continue to research these markets, although most of the schools are
monitoring them currently

Recommendation: Do not support these programs

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Estimated Cost and Impact of Proposed Initiatives
The impact of the recommended initiatives is directly proportional to the size of investment in the programs. The following table
provides a rough estimate of the impact the specified investment in each intervention.
       Project Considerations
                                          How Many                                  Does this
                                         People Can         What is the              Option                What is the    What is the      What is the
                                         Be Assisted         Quality of           Provide Long-            Fixed Cost    Total Subsidy    Total Cost per
                                            With           Jobs Created?           Term Skills             Element?       per Person?       Person?
                                         $200,00042?                              Development?
       Proposed Initiatives
       1. Expansion of Mith                   121              Medium                   Yes,                $50,00043       $1,236             $1,236
       Samlanh                                             (restaurant and         particularly as
                                                              mid range             enabler for
                                                                hotel)            further training
       2. Support feeder institution          133              Low, but            Skills remain                            $1,500            $1,500
                                                           enables further          limited, but                          (Estimate)44      (Estimate)45
                                                               training           provides option
                                                                                     for further
       3. Fund Sala Bai                       133            High quality                Yes                                $1,500             $1,500
                                                   46                                                              47
       4. Fund Paul Dubrule                  372             High quality                Yes                $14,400          $500              $3,500
       5. Negotiate beneficial                51                  N/A                    N/A                 $20,000          N/A                N/A

   The number of people assisted does not take into account the capacities of the schools, so for some initiatives this # would be spread over more than one year
   This is the estimated cost of building the restaurant in Siem Reap
   This figure is an estimate as the details of this feeder program initiative need to be negotiated as per the recommendations
   This figure is an estimate as the details of this feeder program initiative need to be negotiated as per the recommendations
   This number is high as this initiative covers only the scholarship portion of a student’s tuition fee and not the total cost of training.
   This is the estimated average cost of funding 3 teachers for 1 year
   This number is an example of what the result of successful negotiations could be based on a hypothetical agreement whereby Sala Bai rented facilities from
Paul Dubrule and the later used this rental money to fund students at $3,500 each.

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The programmatic recommendations to support employment for disadvantaged youth in
Siem Reap, Kampong Cham and Phnom Penh can be grouped into four broad categories
as follows:
    1. Financial/management support for existing job facilitation programs
    2. New training programs developed and managed by Plan/COSECAM
    3. Financial incentives to existing businesses to drive employment
    4. Industry growth support programs

Recommendation              Handicrafts                    Horticulture         Semi-Skilled Support
                                                            Processing                 Services
Financial/Management    Contract Training                                       Support programs
       Support          Services from                                           building core skill set
                        existing Vocational                                     required to participate
                        Training Centers                                        in Hotel Schools

                                                                                Support Existing Hotel
                                                                                School Operations

                                                                                Negotiate beneficial
                                                                                partnerships between
                                                                                existing Hotel Schools
    New Training        Develop Joint                Small-Scale
      Program           Program with MRD-            Horticulture
                        PASS Project                 Processing Training

                        Develop Rural
                        Workshop Facilities
 Financial Incentives   Subsidized                   Subsidized
                        Employment                   Employment
                        Partnerships                 Partnerships

                                                     Investments in Agro-
                                                     Processing Tied to
  Industry Growth       Support Handicraft
                        Promotion and
                        Organizations in
                        marketing, working
                        capital and training.

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Next Steps
Once the proposed initiatives are analyzed and the choices are made to move forward with project design, the next steps may include:
                        Next Steps                                         Handicrafts              Horticulture           Tourism Support
                                                                                                     Processing                Services
Appoint Project Design Team                                              Could be the same team across industries or three teams focused
                                                                                         exclusively on each industry
Engage potential partners in discussions re: proposed                   MRD-PASS                       MOWA                Mith Samlanh/
programs                                                              Chantiers Ecoles’                  FAO                   Friends
                                                                      RGC-Vocational               Processing Firms            Sala Bai
                                                                      Training Centers                 Donors              Paul Dubrule
                                                                   Handicraft Associations                                     Donors
                                                                  (AAC, CCC, Silk Forum)
                                                                     Donors (Traidcraft,
                                                                  Production Organizations
                                                                    (Artisans D’Angkor)
Identify Mechanisms for how project beneficiaries will be         Within each industry, the recommendations require the identification and
identified and selected from program participation                  selection of beneficiaries for program involvement. It is likely that a
                                                                            standardized process can be utilized across industries
Perform detailed cost benefit analysis of each selected             Given budget constraints, it will be necessary to select a subset of the
initiative and prioritize within industries and across            recommended programs. Selection of these programs should be based, in
industries                                                                  part, on the overall cost of job creation by program.
Define programs and required infrastructure to support              In project definition, it is critical to think long-term and to provide the
implementation and ongoing program management;                     infrastructure necessary to ensure the provision of professional business
establish pilot programs as appropriate.                            development services (for self-employment), management and training
                                                                                        support to program participants

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Agricultural Processing: Horticulture – Contact Details

No.              Organization                                     Contact Person
1     UNDP                                           Sari Laaksonen, Trade and Private Sector
2     Canada – CIDA                                  Srey Chanthy, Agriculture Specialist
3     GTZ CBRDP                                      Ralf Mueller, Economist
4     GTZ CBRDP                                      Edwin de Korte, Agro- Economist
5     Ministry of Women’s Affairs                    Ma Vanny, Department Director
6     Ministry of Women’s Affairs                    Ok KanThoeun, Deputy Director, FAO
                                                     Agri-Processing Project
7     FAO – Thailand                                 Alastair Hicks, Agro-business Officer
8     FAO – Thailand                                 Wim Polman, Rural Development Officer
9     Agriculture Quality Improvement                Peter Ypma, Project Manager, Fruit and
      Project                                        Vegetable Marketing
10    International Trade Council – Mekong           David Van, Senior Technical Advisor
      Region Development
11    Mekong Project Development Facility            Soneath Hor, Project Officer
12    GTZ CBRDP                                      Mr. Simone, Project Officer
13    Department of Women's and Veterans'            Em Ponna, Project Officer
14    Thai Hong Keat Sauces Company                  Mr. Hong Keat, Owner
15    Food Processor (chili, prohoc, fish            Mrs. Heng Leang, Owner
      sauce, sour bean, soy sauce)
16    Food processor (chili sauce, fish              Ms. Buny, Owner
      sauce, vinegar)
17    Healthland Training Center and Food            Mr. Ross, Manager
      Processing Company

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Handicrafts – Contact Details

No.             Organization                                 Contact Person
1   Economic Development Department,        Mrs. Ma Vanny,
    Ministry of Women Affairs.              Director of Family Economic Development
                                            Department and Village Fund Coordinator
2    Administration Department, Ministry of Mrs. Ok Kanthoeun, Deputy Director
     Women Affairs.                         Administration Department.
3    Vocational Training Center, Pursat     Mrs. Em Ponna, Director.

4    MIME-Department of Small Industry & Mr. Chea Dara, Deputy Director.

5    Traidcraft                                        Ms. Jose Vahl, Program Manager

6    Hagar Design                                      Ms. Eng Kunthy, HR Team Leader

7    Artisans Association of Cambodia                  Mr. Men Sinoeun, Project Manager

8    Cambodia Craft Cooperation                        Mr. Seung Kim Yonn, Executive Director

9    NCDP                                              Mr. Yi Veasna, Executive Director

10   Cambodia War Amputees                             Mr. Sam Oeurn Pok, Executive Director.
     Rehabilitation Society                            Mr. Hem Chan Piseth, Project Manager.

11   Chhun Leng Handicraft & Silk                      Chin Chun Leng, Owner
     (Former Manager of Peace Handicrafts
     & Silk Manager)
12   Song Khem Collection                              Ms. Anak

13   Banteay Srey Silk Shop                            Ms. Keo Sok Eng, Owner
     (Retail & Supplier of Yarn)
14   Oxfam Hong Kong – Women Agenda                    Ms. Sun Socheata
     for Change
15   Bunrany Hun Sen Vocational Training               Mrs. Sos Saran, Director
16   Artisans D’Angkor                                 Mr. Phloeun Prim, Deputy General Director

17   Vocational Training for Handicraft–               Ms. Liesbeth Moreaux-van Opstal, General
     Centier Ecole                                     Coordinator
18   Rattan Producers Villages                         10 families

19   AuthentiKhmer, Crafts and Equitable               Ms. Sang-Valy Phan
     Trade                                             Ms. Celine Baleydier

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No.             Organization                                                   Contact Person
20 Proposed Ancient Ceramics - Pottery                 Mr. Eric Llopis
    Factory in Angkor Siem Reap
21 City Money Souvenir Shop (CTM)                      Mr. Phang Piseth, General Manager

22   CNS – National Silk Center                        Ms. Cathrine

23   Tabitha Cambodia                                  Ms. Jane
                                                       Ms. Pou
24   Ministry of Rural Development PASS                Mr. Muth Saroeun
     Project                                           Mr. Keo Mony
25   5 Souvenir Shops whose names were
     not allowed to disclose in the report.
26   Numerous Tourists visiting Siem Reap

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Semi-Skilled Tourism Services – Contact Details

No.           Organization                                                 Contact Person
1   Phnom Penh Hotel Association                          Pierre Bernard, General Manager

2    Siem Reap Angkor Hotel and                           Vann Sophea, Association Secretary
     Guesthouse Association
3    Hotel Cambodiana                                     Michel G. L. Horn, General Manager

4    Ecole d’Hotellerie et de Tourisme Paul               Beatrice Baranger, Director
5    Sala Bai hotel School                                Sandrine Martel, Director

6    Pour un Sourire d’Enfant                             Pin Sarapich, Director of
                                                          Vocational Training Centre
7    Friends International                                Sebastien Marot, International Coordinator

8    Intercontinental                                     Nadine Laycock, HR and Training Manager

9    Mith Samlanh                                         Gustav Auer, Technical Advisor

10   Foreign Correspondents Club                          Michelle Duncan, General Manager

11   Ministry of Tourism                                  Yang Van, Director Tourism Industry Dept.

12   Numerous small Phnom Penh                            Various