Speech at the Inauguration of “Samdech Akka Moha Sena Padei Techo HUN SEN - ROTA High School and Technical School-Ksach Kandal”

Ksach Kandal District, Kandal Province, April 4, 2011

Your Venerable Monks,
Mr. Essa Al-Mannai, Director of ROTA and Representative of H.E. Sheika Al Mayassa Bint Hamad Bin Khalifa Al Thani, Chair of the Board of Director of ROTA, Qatar,
Excellencies, Ladies and Gentlemen, National and International Guests,
Dear Teachers, Students and Compatriots!

Today, my wife and I are very pleased to be in this auspicious event to inaugurate “Samdech Akka Moha Sena Padei Techo HUN SEN - ROTA High School and Technical School-Ksach Kandal”, which is located in Sonlung Village, Sonlung Commune, Ksach Kandal District, Kandal Province.
I would like to congratulate with the people living in Ksach Kandal district on the recent historic achievements such as Cambodia - China Friendship Bridge and National Road No.8, which links the eastern end of the bridge to Anlung Chrey with this magnificent school.

Taking this valuable opportunity, I would like to convey my sincere and deep gratitude, through the director of ROTA who is present here, to H.E. Sheika Al Mayassa Bint Hamad Bin Khalifa Al Thani, Chair of the Board of Director of ROTA, Qatar for providing grants of USD 4.78 million to support the initiative of building this High School and Technical School, including the infrastructure in package, class buildings, administration building, student and lecturer dormitories, canteen and sport playground. This marvelous asset will indeed provide knowledge to and enable young people who live in this and nearby areas, especially those living in Ksach Kandal, to find jobs.

Moreover, the Royal Government believes this achievement will be a tremendous contribution to human resource development, which is a key determinant of national competitiveness and assurance for sustainable development in the long run. Therefore, I strongly hope that ROTA Organization will continue supporting and funding this High School in the future in order to be the symbol of friendship and close cooperation with fruitful result between the Kingdom of Cambodia and Qatar.

The objective of this school is to provide both the general knowledge and technical skills to those who live in Ksach Kandal and come from nearby districts such as Lvear Em, Muk Kampoul (Kandal Province), Srey Santhor (Kampong Cham Province), and Pea Riang (Prey Veng Province). In this regard, students, who have successfully finished lower secondary education, can be admitted into this school, either in general knowledge or technical skill training according to their preferences. This indeed provides more opportunity to our youths and contributes to growth in this region.

Another advantage is the existence of dormitories for female students and lecturers, who live far from school. Specifically, two dormitory buildings are for female students and one dormitory building is for teachers. This is a new concept, which has been gradually incorporated into the education development policy of Cambodia. Therefore, I would like to encourage and provide my utmost support to this school to carry on its activities and expand education programs for national interest, especially for our youths and people living around this area.

Along with this, what we achieve today also requires contribution from students. In this connection, my wife and I strongly believe that all students will study hard in order to make yourself a good child, a good student, a good friend, a good citizen and a good intellect, who are full of competency, skills, knowledge, know-how, morality, virtue, dignity, gentle, firm and suitable to be a well-deserved Khmer citizen, who can effectively and efficiently contributed to the national development to be more prosperous like other civilized countries in the world.

All students must remember that USD 7.4 million has been invested on this school, a substantial figure of investment on the future. Therefore, you must grab the opportunity and maximize your gain for your own future, your family and the nation as a whole. You must always remember you are the bamboo shoots of the nation. You are the nation’s scarce “resources”. You cannot allow yourself to become the “burden” of your family and your nation. All students must work and study hard to absorb knowledge and skill, as well as eliminating all kinds of bad deeds, which will bring about disaster. What the Royal Government must and can do is to ensure the prerequisite and equitable condition for human resource development so that each of you may become a nation’s resource with efficiency and quality. The final outcome depends on your respective efforts.

The Royal Government has given high priority to socio-economic development in all provinces, especially development of physical infrastructure such as pagodas, schools, hospitals, roads, bridges, water wells, ponds and irrigation systems to provide a favorable and appropriate environment to enhance the livelihood of the people, who desire peace and prosperity and be away from poverty. The inauguration of this school reflects the practical result of participation and support from all domestic and overseas corners inside and outside the country for the right policy designed by the Royal Government in its pursuit of poverty reduction and sustainable socio-economic development. Therefore, we can evaluate with confidence that we have been moving on the right path and we will not lessen this effort.

In this sense, the Royal Government will do more to mobilize contribution from development partners, private sector and domestic and overseas donors to fill out the gap in the development of physical infrastructure to doubly accelerate socio-economic development.

As I have already mentioned, the Royal Government clearly understands that education development is the key to promoting Cambodia’s competitiveness, especially the importance of increasing rural schools in ensuring that all children complete high schools. In this connection, we will continue to implement some practical measures to ensure we have enough teachers with modest salaries and suitable means in living and teaching, which is the most effective measure to ensure education quality in Cambodia.

In this regard, I would like to reiterate the importance of the linkage between general knowledge and technical skills. This further moves theoretical education closer to actual implementation, which is a key factor in promoting productivity and job opportunity. Our immediate task is to further promote this linkage by linking general knowledge and skill training to market demand and region’s economic potentials. For example, for general education and technical high schools, we should check them if we can establish a better link between vocational technical skills in school with the practical needs and potential of the economy in the surrounding bases. If we can do that, this link will become an important impetus and movement for the promotion of activities and productivity of the economy in the surrounding regions, which will provide lots of practical benefits for the people in the area.

Before ending, on behalf of the Royal Government of Cambodia, my wife, and myself, I would like to take this opportunity to highly value the achievements made so far by the Local Community Strengthening Body of Ksach Kandal District, led by H.E Dr. Aun Porn Moniroth, complying with the recommended directions of the Cambodian People’s Party and the Royal Government. I would like to express my admiration to the Moni thapana Foundation for the initiative to construct this “Samdech Akka Moha Sena Padei Techo HUN SEN – ROTA High School and Technical School-Ksach Kandal”, and to fulfill the obligation to implement the project effectively until we have received such a proud achievement.

Also, I would like to highly value the Ministry of Education, Youth and Sports, and the Ministry of Economy and Finance for providing cooperation, support and facilitation to all necessary tasks for completing this project. Along with this, I would like to thank and admire the local authorities and all compatriots at this community as well as other related donors for providing cooperation and support in all kinds to the preparation and implementation of this project until it became completely successful and can be put into operation today.

Once again, I would like to remind the management, civil servants and all branches of armed forces at all levels throughout the country, provinces/municipalities, districts/khan, communes/sangkat to further focus on your work, including placing high value on security and safety of the people, particularly in this upcoming Khmer New Year occasion, without discriminating against skin colors, religions and political ideologies, with the aim to ensure the primary objective of the “Village-Commune with Safety” of the Royal Government. In parallel, we also need to continue with greater focus on the implementation of protective and preventive measures for traffic accidents that have become a new focal point of our society.

Finally, together with the official inauguration of “Samdech Akka Moha Sena Padei Techo HUN SEN – ROTA High School and Technical School-Ksach Kandal” now, I would like to wish the Vulnerable Monks, Excellencies, Ladies and Gentlemen, National and International Guests, Teachers and Students the four gems of Buddhist blessing: Longevity, Nobility, Health and Strength.

Address at the Conferment of Diplomas and Degrees to Technical Trainees and Students of the National Technical Training Institute

Phnom Penh, March 28, 2011

Excellencies, Ladies and Gentlemen,
The Board of Directors, Lecturers and Students of the Institute!

I am pleased to be here to confer diplomas and degrees to 2,562 trainees and students of the National Technical Training Institute (NTTI). Today’s event will award junior technical trainees and students of technology to 424 students of which 61 students are female, advanced pedagogic diplomas of technology to 960 students of which 177 students are female, advanced diplomas of technology to 405 students, bachelor degrees of technology to 749 students of which 24 students are female, and master’s degrees of technology to 24 students which include 2 females. I can recall that I have conferred degrees and diplomas to the institute’s students twice, the first on November 28, 1996 and the second on October 24, 2005. Although this is my third time, I am still pleased to attend such event which represents our hard-earned achievement in human resource development effort because I clearly understand that knowledge and know-how are the key investment to promote social welfare and poverty reduction in the era of peace and political stability.

I take this opportunity to praise the board of directors, the management and lecturers of the institute for the hard work that helps realize today’s achievement. On behalf of the Royal Government, I sincerely congratulate the institute for the prideful achievement in the area of human resource development.

The conferment is merely an evidence of human resource development for socio-economic development, while Cambodia is seeing a full-fledged development progress and needs more skilled labors to accommodate growth. I strongly believe that in the short and medium terms, demand for skilled labor will be on the rise as growth is predicted to be 6% in 2011 following the end of the crisis. In this spirit, we need firm contribution from both private and public vocational training institutes in terms of quality programs and ethical conduct as did by the institute.

The rapid growth requires some pre-requisite factors such as macro-economic stability, good governance, favorable condition for the private sector, investment on human capital and so forth. I believe that before Cambodia can achieve high growth, we need to invest in skill development as it is a pre-requisite for productivity improvement and better competitiveness; while the private sector sees it as an important incentive for investment and participation in economic activities. To achieve this target, we must have adequate resources, especially financial resource, to invest in skill development before we can attract investment and promote economic growth.

The Royal Government has introduced a number of measures to promote skill development, either through the implementation of its own programs or assistance provided by development partners, ranging from technical skills such as construction, decoration, electricity, tailors to other skills such as marketing, accounting, management, rural development, tourism and so forth. However, we can also note the limitation of our technical skill resources, both in terms of quality and quantity, for the demand of labor market and socio-economic activities. Moreover, Cambodia over relies on basic skilled workforce to fulfill the demand of garment and construction sectors. In the long run, I think we need to further develop our vocational training based on the concept of “expanding quantity and strengthening quality” and transform Cambodia froma country abundant in labor force into a country abundant in skilled, knowledgeable and innovative labor.

Therefore, I think skill development needs to connect with actual employment and business knowledge to facilitate students find a job and earn income. This initiative is designed to help the Royal Government in the area of human resource and skill developments, especially to cushion the people’s living standard during any economic crisis. For instance, in 2008, the Royal Government implemented a short-term vocational training program under the “Special Fund of Samdech Techo Prime Minister” by incorporating “Entrepreneurship” into the program, while Cambodia was affected by the global economic crisis which resulted in a number of investors closing down their factories or reducing their employees. For example, in 2008 the Royal Government introduced a short-term technical and vocational training project under a project called “Samdech Techo Prime Minister Hun Sen Special Fund” by including “Enterprise Initiative” program in the time that our country was affected by the impact of global economic crisis, resulting in merchants, businessmen, companies, factories and enterprises closed down or retrenched their employees and workers. This project was created to enable employees and workers to obtain new experiences so that they succeed in their businesses and know how to choose a business by relying on resource management skills and market needs, calculating, budget management and so on. In this spirit, I would like to appeal to all relevant ministries and institutions to focus on the skill development task in the direction of labor markets and career creation aimed to increase work productivity to attract investment and promote economic growth.

Taking this opportunity, in order to take part in the development of education training sector, in particular technical skill development in line with the Rectangular Strategy of the Royal Government, I would like to leave some comments for the National Technical Training Institute, other training institutions and the students as below:

First: The institutes have educated students and university students to have knowledge, know-how, intellect, and optimism in living in society, and has taught whatever good for the future of students and university students, so you all need to stick to the principles of good citizens, know how to live in harmony in the society in order to take part in building the country for the future.

Second: Truly, educating human beings is difficult, and it requires patience and diligence serving as a model including attitude and the talking. In addition, educating human beings is a difficult task that is different from planting trees and vegetables; planting trees and vegetables if we do not take good care of them, not enough watering or fertilizers, then we do not get the yields without having any big impact on the society. In this spirit, the National Technical Training Institute and other training institutions need to pay attention on their education to ensure good quality in order to make them become active people, and conduct good deed by not causing troubles for society.

Third: I also would like to advise all students to always do good, deserving as human resources with quality, knowledge, know-how, unification and good morality for living, know how to live in harmony in the society in order to serve a good role model for youths who are the descendents of our country.

Fourth: I hope all students continue the efforts in study, which is “Life-Long Learning” in order to upgrade your knowledge and become a good role model for younger generations to stick to this customs in order develop yourselves so that our Cambodia has plenty of human resources with high knowledge for taking part in social development.

Fifth: I strongly hope that all technical trainees and students of technology who have just completed their studies with success at the National Technical Training Institute and will play role as human resource developer in the capital city of Phnom Penh, provinces-municipalities, district-khan and other ministries and institutions. At the same time, those who start with teaching career have to be aware of their roles and obligation in order to build the foundation of growing human resources with good morality and transfer your knowledge to train the students who are our new human resources within the framework of the technical and professional training institutions in the cities-provinces to make sure they will gain knowledge, experiences, good morality, quality and efficiency in order to be able to support their living with modest conditions, based on the policy of poverty reduction of the Royal Government.

Sixth: As I have mentioned above that the human resource and skill development is the foundation for building society and national development as a whole. In this spirit, I would like all levels of management and lecturers to pay attention to institutional and human resource development. I strongly believe that the National Technical Training Institute, which is the institution for technical and professional training, is the model institute in training technical trainers and students of technology with quality on professional skills aiming to contribute to the national development based on Rectangular Strategy-Phase II.

Seventh: I would like the National Technical Training Institute to continue further efforts in order to achieve the vision set for 2010-2015 by making sure that trainers are more competent in technicalities, foreign languages, use of computer and research. In this connection, the Institute has to support the education quality at high school level nationwide by creating Center for Multi-Information and electronic based academic curriculum. This modern curriculum must be attached with the training cooperation program and pedagogy in order to improve quality, efficiency and responsibility.

Before ending, I would like to take this opportunity to highly appreciate and value the Bachelor Students of Technology who are a bit old but take your busy time to pursue studies until success. I strongly hope that you will put the knowledge and experiences gained so far into practice with success and contribute to the nation building.

At the end, I would like to wish Excellencies, Ladies and Gentlemen, Distinguished National and International Guests, Lecturers, Trainees, Teachers and Students the four gems of Buddhist blessing: Longevity, Nobility, Health and Strength.

Address at the 2009 – 2010 Stocktaking and 2010 – 2011 Direction Setting Conference of the Ministry of Education Youth and Sports

Address at the 2009 – 2010 Stocktaking and 2010 – 2011 Direction Setting Conference of the Ministry of Education Youth and Sports

Phnom Penh, March 24, 2011

Excellencies, Ladies and Gentlemen Distinguished National and International Guests,
Dear all Participants!

Today, it is my pleasure to be in the “2009-2010 Stocktaking and 2010-2011 Direction Setting Conference”, which is organized by the Ministry of Education, Youth and Sports. The conference is indeed a great opportunity for all of us, especially the Ministry’s local-level officials, to discuss, exchange experiences and come up with new measures to further education development. Through this, we can also review past progress and identify issues and challenges to ensure equity, quality and efficiency at all levels of education.

In spite of some challenges during the last academic year, the Ministry has made a very encouraging achievement, which will help realize the Rectangular Strategy-Phase II. The development of human resources and physical infrastructure is the key to poverty reduction and improved living standard.

In this spirit, on behalf the Royal Government, I sincerely praise H.E. Im Sethy, Minister of Education, Youth and Sports and all levels of the Ministry’s officials, lecturers, students’ parents and guardians, community, civil organizations, donors and local authorities as well as national and international organizations and development partners for last year’s concerted effort to deliver outstanding result in the education sector that will become a key contribution to future development. All material, financial and technical assistances clearly indicate the ongoing implementation of the “Education for All, All for Education” spirit. In this sense, we expect that all the people will have access to education as set forth in the Millennium Development Goals 2000 – 2015, that were agreed in the 2000 World Education Forum held in Dakar, Senegal. The goal is to ensure all children have access to equitable and quality education regardless of race, color, sex, language, religion, politic, origin and social status. In this spirit, I further encourage the management and all levels of official of the Ministry, related ministries – institutions, related organizations, development partners and the private sector to continue the cooperation and assistance to realize the vision of the education sector development. The rehabilitation and expansion of the education’s physical infrastructure, and human and institutional capacity building not only timely respond to socio-economic development but also promote harmony, anti-violence and anti-discrimination culture in our society.

As I have often mentioned, the Royal Government gives high priority to education, youth and sport sectors as it still remains our strategic front to reduce poverty incidence. Along with this, human resource development remains the determinant for national development since “a country’s richness in natural resources does not guarantee that it will become prosperous and developed if quality human resources do not exist, and vice versa”

Particularly, in the face of the global economic crisis, many Cambodia’s sectors have been affected but the education sector remained strong and a notable progress has been made. This stems from the concerted effort of all levels of officials in promoting the education sector. As a result, we managed to achieve sustained smoothness in the education sector, which is another proud achievement.

Moreover, we must continue to promote and develop all levels of the education sector. By realizing this, we will be more capable and in better position to conserve, protect and develop our culture and customs. These not only raise the image and dignity of the country, but also allow us to stand alongside other nations based on egalitarian status. These will not only upgrade the prestige and dignity of our nation, but also make us stay on equal footing with equal rights in the international affairs with other countries in the region and the world. For this vision, I would like to appeal to parents and sponsors of all students to participate and continue educating their children to be better educated and on the right path by cooperating with schools in order to build a new generation of youth with development in all sectors, meaning that we have to provide them education, experiences, virtues, morality, dignity and harmonization, to particularly achieve the 4 principles of the basic foundation of education “good children, good students, good friends, and good citizen”.

For the issue of training, I would like to appeal to all levels and sectors of formal and non-formal education system in both public and private sector, starting from primary to higher education, to increase quantity and ensure quality of goods in the context of highly competitive market economy. Thus, we have to be aware that in order to facilitate the export of goods, we have to produce goods with high quality first. These are not different from human resource development, which ensures quality, capability of students in order that they able to be employed according to the social requirement, meaning that they have to study hard and smart with specific skills, not just learn to gain degrees. In this context, I am of the view that education and training must be further improved within the framework of deep reform for quality by paying special attention to the orientation for professional training and jobs for our students, which could be used in families and society by starting from simple technical issues in labor works, production, agriculture and craftsmanship. Along with that, the Ministry of education, youth and sports must actively implement the policies put up so far, in which the education equity in all levels, improvement and promotion of education quality and efficiency, capacity building and institutional development, development partnership with the private sector as well as with national and international organizations, development partners and donors will be ensured.

With the objective to strengthen and expand the quality and efficiency of education sector and additional basis for direction setting of plan of action for 2010-2011 today, I would like to provide a number of key recommendations as follows:

First: continue the policy to ensure the possibility of receiving equitable education service more comprehensively, in which we have to enlarge the small children education programs, especially for the kids of 5 years old by paying attention to the commune/sangkat where the enrolment rate is low and high class repetition in primary schools in cooperation with commune/sangkat in doing census of children regularly and rightly. At the same time, we have to provoke and encourage the commune/sangkat to be aware about the importance and value of education through implementation of incentive program, provision of scholarship for outstanding students, students who face difficulties, especially female students, and enlarge the participation from the private sector and community in all levels of education through good cooperation with the commune/sangkat and national and international community in order to develop education sector based on the principle of “school is connected to families and society”.

Second: continue to build schools in order to response to the increasing number of students annually, in which we have to pay attention to the construction of more schools located close to the houses of the people for the reduction of cost for students and families as well as contributing to the objective of education equality. At the same time, we have to strengthen the non-formal education to be in line with the formal education system by increasing cooperation with the development partners in collecting students, who have dropped their schools, and people, who have lost their opportunity for learning, to study in the illiteracy classes. If these could be done, we will not only be able to strengthen the non-formal education, but also solve the issues of children and youth, who are outside schools, prone to being addicted to drugs, immoral acts as well as being gangsters.

Third: continue to implement the policy of quality improvement and education efficiency, in which there should be the arrangement of good governance, effective institutions and high responsibility in all levels of central level, municipal/provincial level, district/khan level and school level. The actual implementation must be paid attention, especially to ensure stability and safety in schools and education centers in order to improve the activities of teaching and learning in schools and education centers with quality and efficiency. In this regard, the Ministry of Education, Youth and Sports must strictly control the safety, stability in all public and private education centers, in particular, kindergarten and primary schools, which mainly focus on children.

Fourth: continue the capacity building policy and institutional development for decentralization, in which we have to increase the possibilities and means of fulfilling tasks in materials, budget resources and human resources, monitoring management, inspection, education assessment, staff management, financial utilization, right use of skilled officials and dissemination of staff to the local community in order to ensure more effective and efficient education services.

Fifth: continue to implement with high efficiency the utilization of cooperation financing by illustrating about the necessity among the suitable and achievable cluster of priorities, based on the priorities stated in the Education Strategic Plan 2009-2013, especially by sharing these efforts in the process of education reform in all levels.

These five recommendations, that I have raised above, are meaningful, significant and in line with each priority activity of education sector. Hence, I would like the conference to take these recommendations for consideration in order for us to clearly see the practical tasks for the implementation of the direction of duties of this new academic year and in years ahead because education is long-lasting work that need to be continuously done from year to year and from generation to generation. Truly, these tasks will provide perspectives and spirit to the participants of this conference, education officials and personnel, teachers, professors, and the management at all levels to integrate into the direction, duty and action plan so that we can continue implementing the work with better quality, more effectiveness and productivity to contribute to social growth and development.

Along with that, regarding the commitment to standardize writing, reading, word creations, and borrowing words from other languages, I would like to take this opportunity to thank Excellency Deputy Prime Minister Sok An, the Chairman of Khmer National Language Committee and Excellency Professor Prum Meol, Permanent Vice-Chairman of the Khmer National Language Committee, for their leading efforts in collecting words that are used in Khmer language together along with steady determination of the standardization of writing, reading and meaning of Khmer language. However, with respect to the conservation and progress of Khmer language and words, it would take a long time and require lots of resources including human and financial resources. In this spirit, in order to bring together public figure experts in Khmer language from all places and establish a permanent institution to be responsible for this vital work, I would like to support and encourage the creation of the National Khmer Language Council as soon as possible in order for this council to determine the standardization of the use of Khmer language and words, aiming to conserve and develop the use of Khmer language and words with continuity and sustainability.

Before ending, I would like to appeal once again to the management of the Ministry of Education, Youth and Sports, education officials at all levels together with professors, teachers, and education personnel to continue their efforts for the implementation of duties with cares and high responsibility by having clear understanding of the future destiny of socio-economy, which is depending on the operation of education system with the involvement of Excellencies, Ladies and Gentlemen, who are the management, government officials, education personnel, teachers, professors working in this education sector. In this regard, we need to always remember that people of the whole country have provided strong hope for the education service provision that can promote the capacity, knowledge and know-how, as well as upgrading the living standard, community development and national socio-economy in the future. In this sense, our education system needs to be in good shape, vigorous, and responsive to all aspects at present and in the future. At the same time, I would like to appeal to parents, custodians, communities, local authorities, national and international organizations, development partners and all donors to continue close cooperation, and support the education sector in order to continue the mission with success and prosperity.

Finally, together with the closing of the 2009-2010 Stocktaking of Education, Youth and Sports and 2010-2011 Direction Setting Conference now, I would like to wish Excellencies, Ladies and Gentlemen, Government Officials, Education Personnel, Professors and all Participants the four gems of Buddhist blessing: Longevity, Nobility, Health and Strength.

Keynote Address at the Closing of the 2010 Stocktaking and 2011 Direction Setting Conference of the Ministry of Labor and Vocational Training

Phnom Penh, March 23, 2011

Excellencies, ladies and gentlemen,
Dear all the participants!

Today, it is my honor and pleasure to be here in the Closing of the 2010 Stocktaking and 2011 Direction Setting Conference which has been organized over the last two days by the Ministry of Labor and Vocational Training. This event is an opportunity for all of us to review current progress so that we can learn and discuss together, exchange experiences, identify challenging issues and lay down new measures and targets for the upcoming years. In this spirit, I give my strong support and encouragement to the management and all officials of the Ministry of Labor and Vocational Training to work harder for more achievements in public service delivery, which is a significant contribution to growth, socio-economic development and poverty reduction.

I would like to take this opportunity to thank related ministries – institutions, the private sector, national and international organizations, and development partners, especially ILO for the close and fruitful partnership in labor and vocational training sector development. Along with this, I also praise the management and all level of officials of the Ministry of Labor and Vocational Training for the concerted effort in realizing the national development strategies.

Along with this, I am pleased to note strong contribution from the private sector, development partners and national/international organizations in promoting the vocational training sector as well as growth and socio-economic development. In this sense, we must further explore all means and methodologies and mobilize development partners and the private sector that can complement the more important role of vocational trainings.

In general, the government clearly understands that human resource development is the core of socio-economic development and regards it as a priority area in the Rectangular Strategy Phase II. The Royal Government must continue to implement market-based vocational training policy by closely cooperating with all stakeholders to focus on four policy measures including: (1). Providing basic vocational training to rural dwellers to increase incomes, (2). Providing vocational training to factory workers with cooperation from their employers, (3). Continuing to expand the geographical coverage of this service and incorporate entrepreneurship skill into the program, and (4). Establishing the national employment agency and provincial/municipal employment centers to facilitation job advertisement. In connection to the four measures mentioned above, I note that the Ministry has done exceptional job. Looking ahead, the Royal Government will regard employment and vocational training sector as the main managing and protecting mechanisms of labor. As a result, these works correctly respond to capacity development among the youths so that they will become more skillful and professionally capable for domestic and overseas labor markets.

Currently, Cambodia’s labor force (people aged between 15 and 64) amounts to 7.4 million and at the beginning of each year, around 200,000 people enter into the labor market. This is one of our comparative advantages. This also requires a clear planning for vocational training to avoid migration from rural to urban areas in order to find jobs in the service and industry sectors. Among the challenges, we must continue to strengthen the private sector, promote SMEs and attract new investments to create more jobs and ensure good working atmosphere for all workers. To support this task, the Royal Government has already implemented a number of policy packages to support the private sector, in particular and in general, such as garment factories. The assistance includes the deferment of income withholding tax payment up to two more years till 2012 and the contribution of 0.3% out of 0.8% for the payment of job insurance for two years, 2009 and 2010. Moreover, 40,140 laid off and unemployed work force have received vocational training supported by my special fund called “Samdech Techo Prime Minister Special Fund” and we have given approval to this fund to operate for three more years from 2011 – 2013. At the same time, we have also established and started the operation of a self-employment generation fund, managed by the National Committee of Training, in order to provide microfinance to trainees who have been trained, and examined to have adequate capacity for the management of their own employments.

Furthermore, we have also allowed workers to go to work overseas through private companies that have received licenses from the Ministry of Labor and Vocational Training. Now we have cooperation with the Republic of Korea on this, sending workers through the “Employment Permit System” in order to make sending workers to overseas more effective and safe because this system is managed by the state. In the past through this mechanism, we are proud of our compatriots who have gone to work legally abroad and brought back lots of incomes to their families in the home country, on average 180 million dollars a year; and when coming back to Cambodia they also brought along new skills that they have received from practical work in overseas. In parallel, I would like to appeal to all Cambodians, in particular youths, not to believe hoax of bad people finding jobs outside the country illegally because this kind of act is susceptible to all kinds of risks.

With this goal, the Royal Government is implementing a comprehensive reform of public administration including retiring people reaching the retired age and substituting with officials next in line who have been trained and have in-depth knowledge and know-how in order to ensure efficiency and effectiveness of public services.

In the aim to solve the issues sustainably and long lasting, Cambodia needs to modernize its economy, which is the “Promotion the Development of Industry Sector”. In this regard, we will promote industry sector and ongoing and new services because this sector is a foundation for the long-term development and rapid progress. Besides, we will continue promoting the development of handiwork, agro-industry and agro-business sectors in the medium term ahead because these sectors will support the growth of other sectors such as agriculture, garments, and tourism sectors that are important inputs of Gross Domestic Product. In parallel to this goal, we have to configure the labor force properly in order to ensure they possess capacity, talents and hard-working attitudes and patience that are must-have factors for production. Our joint efforts on all these tasks not only ensure the growth of national productivity but also maintain safety and social order as well.

In this spirit, the Ministry of Labor and Vocational Training together with relevant ministries and institutions need to work hard continuing maintaining the harmony on vocational relations, and minimizing work disputes from now on. At the same time, we need to ensure the health of the workers and employees through the promotion of safety condition inspections and hygiene at workplace by having aid-kit boxes or nurses at the factories and enterprises. With this, the Royal Government will continue promoting the draft of legislations on enterprises, and then submit them to the legislative branch for adoption at the end of this 2011 in order to promote vocational relations sector effectively.

Moreover, we have also begun the implementation of social safety net system for the workers and employees in private sector, which is a new turning of history of social safety in Cambodia that ostensibly shows the concern of the Royal of Government on workers and employees in the private sector. Because this is new work for Cambodia, and in order to avoid the burden of the financial crisis context, and parallel with the beginning of the implementation of social safety net system for the first time in 2008 we have prepared the operation of this system through three major steps: (1) implement work risks insurance, (2) health insurance, (3) pension. Based on the experience of the implementation of the first step in the past two years, this system has been well-received by companies, factories, enterprises and has provided insurances to workers and employees of about 10, 000 people. The Royal Government clearly understands that certainly the implementation of social safety net system contributes significantly to promoting work productivity through the provision of warmness and confidence of employees on jobs in private sector. This can eliminate the stereotype thinking that only government jobs get protection, in particular receiving pensions. Through this, the Royal Government will work hard preparing the implementation the remaining steps, making sure they are in line with the practical socio-economic situation.

I believe that, the two days conference has fruitfully discussed, evaluated and developed action plans, measures and targeted objectives to be achieved in 2011 and in the future. In this regards, I would like to take this opportunity to put up some more practical recommendations for the management and officials of the Ministry of Labor and Vocational Training to consider for further implementation, aiming at improving development of this sector to actively contribute to economic growth, in particular employment generation and professional training. The recommendations are as the followings:

First, continue to pay attention to the improvement of professional training program which can be linked to the job market requirement in order to be effective, attractive, publically recognizable, and parallel to the government vision to upgrade Cambodia’s economy. Moreover, the ministry should continue to implement focus-growth strategy, improving comparative advantage, and diversifying skills, professions and business activities to catch up market mechanism evolution, which would enable us to sustain economic development and capture as much benefit as from economic growth.

I also believe that agricultural development, which is dynamic force in the world market and that Cambodia has advantage in this sector due to its endowment of land and about 80 percent depending on agriculture, has provided opportunity for Cambodia to rapidly increase income for its people and higher value added in the short and medium term.

Within this strategy, we has offered opportunity to our farmers, rice millers and exported companies through rice production and export promotion policy, which is able to create a good model for other crops and agri-business development in Cambodia. At the same time, the ministry should continue to improve professional training program for industrial development in the medium and long term, including engineering, construction, service, and information and communication technology. In this regards, the Ministry of Labor and Professional Training has to pay higher attention to as such skills, aiming at supporting our development policy.

Second, improve the quality of professional and skill training program, aiming at increasing job opportunity, productivity and higher income generation for our citizens. In the future, the ministry should create vocational training program to offer to vulnerable group, youth, and poor women, creating a room for them to be able to open their own business and have more opportunity to get employment, which would reduce their vulnerability and maximize their participation in productivity and enhance their social welfare.

Third, strengthen the principle of equitable training provision and make further effort to enhance social safety net, focusing on women, vulnerable group, poor youth, dropped class students, demobilized soldiers, retired civil servant, disable and handicapped person, dead militant family, and vagrant to improve their living standard and effectively and actively support public welfare.

Fourth, Ensure participation of the private sector on professional training program since many companies have pledge with the government. Within this, the Ministry of Labor and Vocational Training and relevant ministries have to cooperate with private sector to create training program which respond to the company requirement, utilizing fund given by the company. For instance, when an animal feed producer invests in a particular location and provides training to their own staff, we can avoid sending our citizens from other part of the country by just allowing the company to recruit people on the spot. If the recruitment process is able to implement, scale of training program will be intensified and can be guaranteed that more people will get different training program, enabling us to diversify our worker skills.

Fifth, make continued efforts to finalize the union law in cooperation with related ministries/institutions, international labor organizations at the end of 2011. Moreover, the ministry has to strengthen law enforcement to guarantee peace in production process and service to comply with the rights and benefits of employees.

Sixth, make further effort to solve wage conflict for workers, utilizing the mechanism of labor consulting committee. At the same time, the ministry should strengthen social safety net system by creating health insurance and pension scheme to guarantee that our workers have income security in the present and the future.

In this regards, as public service provider, I think that my proposal would suit and contribute to the benefit to our nation and people. I strongly believe that the conference will consider my recommendations as important points, which would be included in your action plan for implementation in 2011.

In this regards, I would like to appeal to Excellencies, ladies, gentlemen and all participants to actively implement your proposed action plan and share information, knowledge and experience with your colleagues to achieve further achievement in compliance with the development of our vocational training.

Last but not least, I would like to express, once again, my appreciation to the management and all level of civil servant of the Ministry of Labor and Vocational Training for your strong effort to implement the assigned tasks and responsibilities with high moral responsibility as public service provider. I also would like to appreciate the private sector, development partner, local and international organization to support and promote labor and vocational training to move forward in Cambodia.

In conclusion, together with the closing of the 2010 Stocktaking Conference and 2011 Direction Setting of the Ministry of Labor and Vocational Training now , I would like to wish Excellencies, ladies, gentlemen, all civil servants of the Ministry of Labor and Vocational Training and participants the four gens of Buddhist blessing: Longevity, Nobility, Health and Strength.

Address at the Ground Breaking Ceremony of the National Road No 57B

Address at the Ground Breaking Ceremony of the National Road No 57B
with the length of 176.35 km from the National Road No 5 at Thmor Kol-Borvel-Sampauv Loun and Borvel-30 Village-Phnom Preuk and 30 Village-Kam Reang-O Dar

March 21, 2011

Venerable Monks,
H.E PHAN GUAN XIA, Ambassador of the People’s Republic of China to the Kingdom of Cambodia,
Excellencies Members of the Senate, Members of the Parliament and Members of the Royal Government,
Excellencies, Ambassadors, Distinguished National and International Guests,
Civil Servants, Armed Forces, Compatriots, Teachers and Students!

It is my great pleasure today to once again participate in the ground breaking ceremony of the National Road No 57B with the length of 176.35 km from the National Road No 5 at Thmor Kol-Borvel-Sampov Loun and from Borvel-30 Village-Phnom Preuk and from 30 Village-Kamreang-Odar in the northern part of the Kingdom of Cambodia. At the same time, I am pleased to note that in only the first 3 weeks of March 2011, I have participated with H.E PHAN GUAN XIA, Ambassador of the People’s Republic of China in the inauguration ceremony of infrastructure construction of the Ministry of Public Works and Transport for 4 projects, which is the concessional loan from the Government of China for the construction, along with the counterpart fund of the Royal Government for dealing with resettlement and people’s accomodation, demining of the unexploded weapons as well as the responsibility of custom duty imported for the construction. Those four projects include Prek Tamak Bridge, National Road No 59 with the length of 144 km from the National Road No 5 at Kaun Damrey Village, Banteay Meanchey Province to the National Road 57 at Steung Karch Village, Pailin Province, Container Terminal of the Phnom Penh Autonomous Port, and the contrsuction project of the National Road No 57B, which is being celebrated to start the constrcution.

Taking this opportunity, on behalf of the Royal Government and people of Cambodia, I would like to express my deepest thanks to the people and Government of the People’s Republic of China, who have always been our historically close friend long time ago, is the potential development partner, unconditional financing owner, who is always timely responding to the need and request for the development of all sector in Cambodia, especially the agenda for rebuilding and developing socio-economic infrastructures such as roads-bridges, ports and electricity network ...etc. These achievements are not only the evidence of our friendship and economic and trade cooperation between Cambodia and China, but is also the key contribution with potential to sustain the process of socio-economic development aiming to reduce poverty of our people.

The People’s Republic of China, so far, has been supporting to construct lots of National Roads-Bridges in Cambodia with the length of 1,400 km as well as building irrigation systems, electricity, and continually has received many human resources in these sectors to be trained in the People’s Republic of China every year. Moreover, the Government of China has also paid attention to encourage Chinese investors to invest in Cambodia with the first rank.

Based on the perspective of the Royal Government to transform the former fighting frontline to be an area of development, and transform all Cambodian borders to be the areas of peace, cooperation and economic development, I strongly believe that the National Road No 57B is another significant strategic road in the northern border of cambodia. This area used to be the hot frontline during the war, and after 7 January 1979-1996, it was controlled by Khmer Rouge, leaving the ditches of grenades, bullets, and mine plantations with hundred tons of all kinds. Therefore, it is true that this road is the road network that has history and geography of closer relation, and is interconnected with complementary potential with the National Road No 57, which is almost completed and the National Road No 59, which has just recently been started with the construction. This shows that the achievement of this National Road No 57B is another additional input to support the people’s living in this area.

I strongly believe that these road networks will jointly contribute tremendous interest to transform this northern border of Cambodia to be more developed as other areas through out the country as well as the nearby areas of the neighboring countries. The National Road Passage No 57B, which is from Thmor Kol of Battambang Province to Borvel and then Sampauv Loun, will connect with the Cambodia-Thai border, which is called Damrey Border Pass, as for the Road Passage from Borvel to 30 Village and then Phnom Preuk, will connect with Cambodia-Thai border called O Rumduol Border Pass, and the third Passage from the 30 Village to Kam Reang and then O Dar, which is another Cambodia-Thai border pass, where the people of the two countries exchange their products constantly.

The situation of these roads is truly the economic vein for the nation and families and people as a whole. Furthermore, this reflects the practical result of the stategic implementation of the internal integration within the Kingdom of Cambodia and with the neighboring countries as well as the integration in GMS, ASEAN and the whole world. In fact, the interconnected and potential economic veins will truly contribute to the transformation of the far-flung area and border to be areas of fast development as it will make our people easy to generate income to support and upgrade their living by exchanging goods at the border. In this regard, the area located next to the National Road No 57B is crowded with people who are mostly doing farming and trade with Thai people, especially the exchange of agricultural products, which are being planted by our people at the border with high yield such as corn, bean, cassava, mulberry tree, and lead to planting rubber that can be exported up to more than 10,000 tons per year.

Along with this, this economic vein will also provide opportunity for the Royal Government of Cambodia to build hospitals, schools and the connection of other roads which may help attract investment in all sectors and bring about richness in business with harmonization between our people and thai people. This achievement is the fruit of the successful implementation of the Win-Win Policy of the Royal Government that completely closed down the political and military organization of the Pol Pot genocidal regime and build the national unity, which is the cause of the maitaining peace, political stability, safety and social order, which is the pre-requisite for socio-economic development for our people and nation. All these pre-conditions have realized the interconnected connectivity of this communication infrastructure and it will pose favorable condition with lots of options for the transportation to Battambang provincial town and continue to Pailin and then to the National Road No 57 toward Cambodia-Thai border at Psar Prom border pass. In addition, this interconnected road networks will facilitate the traffic of our people in this area to get to all parts along the Cambodia-Thai border, other provinces of the country and to Phnom Penh capital city for working relation, job seeking, businesses, products exchange, trade, industry, education, health, and especially tourism because beside the tourism resorts in Siem Reap and other provinces, there are also attractive tourism resorts for the trips of national and international tourists as well in the northern provinces.

In fact, the construction of this road as well as other roads all over the country can be successful due to the active contribution from our people, local authorities and all kinds of armed forces, especially the support and warm confidence of our people on the policies and implementation of the Royal Government. These supports are the essential impetus to the Royal Government in continuing its historical mission to restore development, protect sovereignty and territorial integrity for our people and nation. Taking this opportunity, on behalf of the Royal Government I would like to express appreciation and deepest gratitude to our countymen, armed forces and civil servants in all ministries-institutions, who have contributed to socio-economic development, especially to make every socio-economic infrastructure development projects a success like today. I would like to continue giving priority to the restoration and development of transport infrastructures such as roads-bridges, railroads, waterway, airways, in order to promote the connectivity of the rural areas to the city and various pre-historical tourism resorts, aiming to promote the flow of tourists and connectivity to the neighboring countries for internal economic and social integration of Cambodia, region and the whole world, as well as to create condusive environment and cooperation along the border and businesses, trade, investment and other jobs creation for our people.

Taking this opportunity, I would like to congratulate the two Chinese companies (CHINA ROAD AND BRIDGE CORPORATION), which has conducted research and implement the project, and (Guangzhou Wanan Construction Supervision Co. Ltd), which is technical controller. I would like the two companies to work hard to implement their duties in order to be able to complete this National Road construction as planned with high quality. Along with that, I would like to thank and appreciate the efforts made by the Exim Bank of China, especially H.E PHAN GUAN XIA and all his Colleagues of the Embassy of the People’s Republic of China, who have cooperated and coordinated to provide fast loan approval so that we can process the construction of bridges in many places as well as for the construction of this National Road 57B today and other bridge construction projects in the future.

Before ending, I would like to once again remind all people who are living along the road to be highly careful in the traffic and transportation of products, and respect the traffic law such as wearing helmet while riding motorbikes, and must drive within the speed limit of 90 km per hour outside the people living area and more than 40 km per hour in the crowded area. At the same time, you have to take further care about dust due to the traffic of machineries along the road during this construction process. After the road is gradually completed, there will be the increase in traffic, and the cars will be of higher speed. If we don’t take care, there will be traffic accidents causing loss of lives and injuries to brothers, sisters and children, which is your hard burden as well as the worry of the Royal Government.

At the end, together with the Ground Breaking Ceremony of the National Road 57B with the length of 176.35 km: Thmor Kol-Borvel-Sampauv Loun-30 Village-Phnom Preuk-Kam Reang-O Dar today, I would like to wish the Venerable Monks, Excellencies, Ladies and Gentlemen, Distinguished National and International Guests, Civil Servants, Teachers and Students, especially His Excellency Ambassador of the People’s Republic of China and his Colleagues, Chinese Experts and Technicians, who have been on mission to the Kingdom of Cambodia, the four gems of Buddhist blessing: Longevity, Nobility, Health and Strength.

Address at the Closing of the 2010 Stocktaking and 2011 Direction Setting Conference of the Ministry of Public Works and Transport

Phnom Penh, March 16th, 2011

Excellencies, ladies and gentlemen,

It is my pleasure to be here in the closing of the 2010 Stocktaking and 2011 Direction Setting Conference of the Ministry of Public Works and Transport that has been held over the last two days.

First of all, I would like to commend the management and all level of officials of the Ministry who have been working hard and making noticeable progress on rebuilding and developing the public work and transport sector of Cambodia. This conference is a good opportunity for all of us to reassess the progress, exchange ideas and experiences, identify the weaknesses and strengths, and lay down the measures for future years. In this spirit, I strongly support and encourage the management and all levels of officials of the Ministry to continue your hard work to achieve more successes for the sake of socio-economic development and poverty reduction.

The physical infrastructure, especially roads and bridges, is crucial to the pace of growth and social development as roads and bridges link all corners of the country and link Cambodia to its neighboring countries which will accelerate internal, regional and global integration. In this sense, Cambodia can grab the opportunity to promote trade and cooperation in all sectors.

This indicates that infrastructural construction is a prioritized area that aims at delivering public goods and maximizing the national interests. In particular, transport infrastructure such as roads, railways, waterway, international ports and airports has seen a noticeable development progress. According to the report of H.E. Tram Iv Teuk, Minister of Public Works and Transport, Cambodia has made numerous achievements including asphalt pavement of 2,852.18 Km which is equivalent to 52% of the total length of our national roads and construction of some landmark bridges such as Prek Kdam and Prek Tamak bridges. These achievements perfectly respond to the needs of the people. Moreover, I have recently opened the construction site of Neak Loeung Bridge which is financed by grant of the Government of Japan. This bridge will link the eastern part with the western part and rice production base of the country. The new bridge will promote growth and provide enormous benefits to the people.

Taking this opportunity, on behalf of the Royal Government and the people of Cambodia, I would like to convey my deepest condolences to the people of Japan, especially the families affected by the quake and tsunami on March 11.

As I have already raised, the “Rectangular Strategy” prioritizes the rehabilitation and construction of the transport network including roads, bridges, railways, waterway, ports and airports that link all parts of the country and neighboring countries. The stable, safe and economically efficient transport network are key to the promotion of trade, tourism, rural development, regional and global integration, and protection of national sovereignty and integrity. In this sense, we prioritized the construction and maintenance of rural roads to maintain the stability of transport.

Along with the implementation of this vision, the Royal Government has undertaken multifaceted reform to ensure and directly underpin the sustainable phase of economic growth, of which the construction of roads and bridges is the priority. Therefore, I am still of the view that “Wherever there is road, there is hope” which transform this concept into one of priorities of water, electricity and human. Indeed, these four priorities are keys for socio-economic development at any time and at any stage of development. If there is no physical infrastructure of road, water and electricity together with human resource, then the society will not develop. Someone may argue that if peace, stability and social order are necessary for development, then road, water, electricity and human resource are the key foundations for generating, maintaining and sustaining development. When society has achieves diversified development, they will need more physical infrastructure as well as human resource of higher quality and efficiency.

Nevertheless, as for Cambodia, the goal of developing complete infrastructure nation-wide remains a long way to go due to our limited capability to answer all demands in a short time period. Therefore, we must encourage and mobilize capable development partners and private sectors to complementarily develop physical infrastructures to allow for active participation in shortening the time of socio-economic development for the better.

Against this backdrop, the Ministry of Public Works and Transportation must pay further attention to maintaining roads/bridges to maintain their existence and durability as well as to ensure the traffic flow and freighting. In parallel, new infrastructure development projects must accommodate the increase in traffic and freighting activities, follows legal procedure socio-economic impact assessment standard, to be in conformity with public procurement procedure, inventory book and appropriate technical standard, and must be transparent and efficient, by having mechanism to regularly check work activities. Indeed, to follow this spirit, we must have clear policies, management mechanism and concrete measure to efficiently maintain roads in the cities, provinces and at rural areas.

Through such enthusiastic discussion during these last 2 days, I strongly believe that the conference has evaluated and set new plan of actions, measures and directions toward realizing new achievements for 2011 and the year ahead on the development and rehabilitation of public work and transportation sector. In addition to what we have already implemented, the comments raised in the conference and with the objective to promote the development of this sector, I would like to take this opportunity to provide more recommendations as the follow:

First. Continue to cooperate and share experiences with development partners, private sectors and engineering units on the rehabilitation and construction of transport infrastructure to ensure that all construction projects meet the required quality condition and designed for long-lasting use. The ministry has to cooperate with local authority to create traffic accident data compiling system to record all traffic accidents which allows us to deter traffic directions and improve road condition to avoid future accidents.

Second. Continue to pay more attention to traffic safety and transport management, by doing further researches on technique and the cause of traffic accident, to put more traffic signs and lights along main roads. Moreover, the ministry has to deepen reforms to improve the management of all forms of transportation including on-land transportation services and business, waterway and small ports. At the same time, the ministry should plan and encourage the creation of dry ports, warehouses, and cargo services. In particular, the ministry must also pay high attention on the existence of used vehicles and illegal overloading trucks, and those illegal altered vehicles by preparing a particular policy and tough measure which strongly comply with traffic and land transport regulation. “In this regards, I would like to remind the Ministry of Public Works and Transport, local authority and traffic police to continue to take tough measures on traffic offenders such as illegal overloading, and the alteration of original vehicle appearances. I am wondering why we cannot eradicate this problem after having seen all the causes that damaged our roads/bridges so far. I think it is about time to solve these issues. I would like to urge Excellencies, Ladies, Gentlemen who are responsible to find the best way and to take measure to immediately solve these issues and permanently control them, and not acting as the “ten legs official” as I had often mentioned”.

Third. Improve access to transportation services for a whole year with affordable price. At this point, the ministry should pay attention to the preparation of municipal public transportation action plan to help reduce pollution, traffic accidents, and traffic jams at local communities and rural areas. We can attract investors in transport sector, in which there are many options such as the investment on bus service, airbus and air rail. The Royal Government will continue encouraging the participation from the private sector on transport development and infrastructures as well as posing favorable conditions for free and fair competition along with encouragement and concession.

Fourth. Continue to strengthen and improve safety and security of the shipping services of goods and passengers through strengthening the security on car, ships as well as in the ports and garages ...etc as well as to promote working activities of maintaining small infrastructures and increase road construction, which could be used in all seasons and to promote development of small ports in provinces.

Fifth. Cooperate in trade facilitation and cross border trade, in which we have to inspect, negotiate, and implement the multi-lateral and bilateral international agreements, aiming to upgrade and improve the cooperation for cross border transportation of goods and people, transfer and supply of the regional logistics, international trade, and international tourism facilitation. Along with that, the transportation facilitation and trade along the southern economic corridor, southern sea corridor, central corridor from Vientian - Streung Treng - Phnom Penh - Sihanoukville and a number of important corridors of the Greater Mekong Sub-region (GMS) and ASEAN and in the framework of triangle development area Cambodia-Lao-Vietnam, ACMECS Cooperation ...etc in order to boost the transformation from transport corridor to be economic corridor, contributing to the regional and global integration.

Sixth. Improve the capability of transportation institution and human resource development, by providing skills training in transportation, and strengthening the human resources in both public and private sector with the vision to provide transportation services with good quality for the people and society. At the same time, we have to implement the competition movement to gain masterpieces in building infrastructure and transportation system of the officials in charge in all municipalities-provinces. Through this, we will be able to find the highly productive officials who have to be given suitable incentives, but those who are passive should be advised.

The Royal Government will actively pay attention to the restoration and development of infrastructure and transportation in order to promote and strengthen domestic and foreign trade as well as regional and global integration, which is the significant interest of the nation and people. In this regard, I strongly believe that the conference will take these recommendations as the spirits for implementing their own roles according to the objectives set by the conference for 2011 and for the social interest.

Once again, I would like to appeal to Excellencies, ladies and gentlemen and all participants to participate in actively implementing the plan as set in order to achieve new achievements based on the strategy for infrastructure development of the Royal Government. In this spirit, I strongly believe that Cambodia will move ahead with optimism, progress, and prosperity in a more comprehensive and favorable basis as well as ensuring peace, political stability, harmonization of the national fold and sustainable development.

In this occasion, I would like to congratulate and continue to support the management, civil servants, ministries and institutions, and all officials, who have been working together to visit and support our soldiers stationing at the border to protect our territorial integrity at the frontline of Preah Vihear region. I am proud and delighted while the people all over the country get together and support the position taken by the Royal Government in protecting sovereignty, territorial integrity of our Kingdom of Cambodia.

Taking this opportunity, on behalf of the Royal Government and people of Cambodia, I would like to highly value and express deepest gratitude to the development partners and friend countries who have actively contributed in time that Cambodia is in need to restore and develop its physical infrastructure. These contributions are truly supporting economic growth and have promoted the livelihood of the people of Cambodia based on the set objective.

Before ending, I would like to, one again, thank the management, civil servants, engineering forces, and department and institution, public enterprises, department of public works and transport of Phnom Penh Municipality-provinces of the Ministry of Public Works and Transport, related ministries-institutions, private sector, which have supported and promoted the infrastructure sector in Cambodia to be further developed.

Finally, together with the closing of the 2010 Stocktaking Conference and 2011 Direction Setting of the Ministry of Public Works and Transport now, I would like to wish Excellencies, Ladies and Gentlemen and all Participants the four gems of Buddhist blessing: Longevity, Nobility, Health and Strength.

Keynote Address at the 2011 Cambodia Outlook Conference

Keynote Address at the 2011 Cambodia Outlook Conference: A Partnership of CDRI and ANZ Royal Bank «Driving High Growth and Sustainable Development for Cambodia – Opportunities and Challenges»

16 March 2011, Phnom Penh HotelPhnom Penh, Cambodia

Excellencies, Distinguished Guests,Ladies and Gentlemen,

It is for the fifth time that I have delivered the opening keynote address to the 2011 Cambodia Outlook Conference on “Driving High Growth and Sustainable Development for Cambodia – Opportunities and Challenges”. I would like to congratulate CDRI and ANZ Royal Bank on their initiative in hosting this important annual conference, which brings together officials from the Royal Government of Cambodia, the private sector, the research community, civil society and international development partners to consider Cambodia’s achievements and the challenges we face, and to seek good approaches we can work on together for the benefits of our nation.

I would like to take this opportunity to convey to the People of Japan, particularly the victims and members of bereaved families, my deepest sympathy and condolences for the loss of lives and colossal damages caused by the most powerful earthquake and tsunami that struck Japan in the afternoon of 11 March.

Today’s conference and its theme, Driving High Growth and Sustainable Development for Cambodia – Opportunities and Challenges, are both timely and relevant. We have recently gone through and mitigated the negative impacts of the global financial crisis and economic downturn of 2008-9 and are moving confidentially but carefully forward. We survived well for some important reasons - the stability and quality of our macro-economic management and the early policy responses of the Royal Government with the support of our international development partners; good governance and stability of our financial institutions; our economic and geo-political location in the East Asian region, the dynamism of our private sector, and the industry and resilience pf the Cambodian people.

However our experience of the crisis taught us some very important lessons that now drive government priorities.

Firstly we learnt that the economic growth of the prior decade would not be sustainable and inclusive without economic reforms.

Secondly, we understood better the need for a focused growth strategy and industrial policy to increase competitiveness and diversify the economy Cambodia if sustainable inclusive growth is to be achieved.

Thirdly, we now see more clearly than ever that Cambodia is well positioned to benefit from three important opportunities - harnessing the benefits of regional integration in our dynamic East Asian region; the management of our considerable natural resources in a sustainable way; and investment in the future through agriculture, infrastructure, education, and higher savings.

I am pleased to see that the priorities arising from these lessons are well reflected in the agenda of today’s conference and I welcome your specific ideas and suggestions of how we best respond to the opportunities and challenges they present.

The Cambodia economy is performing well. Growth for 2010 has recently been revised upward from 5.5% to 5.9% of GDP.

The future outlook for Cambodia is positive – the economy is projected to grow between 6% to 7% annually over the medium term. It is expected that Cambodia will benefit from future global investment and credit flows which will favours Asia due to the weakening of demand in the other parts of the world. The growth of the traditional US and EU markets could remain below its earlier trend at least for some time. With the growing regional cooperation and integration and faster growth of the Asian economies, Asian markets could offer more prospects of export and income growth to Cambodia. Thus, we have to diversify Cambodia’s economic structure to focus not only on serving the US and EU markets, but also Asian market.

International price for both oil and non-oil commodities rose considerably in 2010, partly in response to strong global demand and the situation in the Middle Est, but also due to supply shocks for selected commodities. Despite that, in 2010, Cambodia’s inflation has maintained an annual average at around 4%. If compared to December 2009, inflation in December 2003 was only 3%. In the coming years, we need to carefully watch the inflation as rapid rise of regional inflationary pressures coupled with the hike in food and oil prices could have an adverse spillover into our domestic economy disturbing macroeconomic stability.

Real sectors of Cambodian economy are on the strong path of recovery. Agriculture, which has maintained sound growth even during the crisis, in 2010 grew at around 4%. Asia's demand for agricultural products is set to grow rapidly. This would result with the prevailing high prices of food and persisting food security concerns. Price of raw materials for industrial use (like rubber) also expected to increase along with the increased trend of oil prices. The changing economic environment and its implications for food supply will likely also increase demand for agricultural products. Taking all this factors into account, the agricultural sector projected to maintain good performance in 2011 and in medium term. Agricultural product exports, including rice exports, expected to increase owing to high priority has been given to this sector by the Royal Government.

Industry grew by 13.5% in 2010 as compared to negative growth of -9.5% in 2009. Main subsector which underpins the growth in the industry sector is the garment exports, which increased by 15.2% in 2010. Industry sector expected to grow robustly in 2011 as the textile exports projected to rise further as the result of the EU’s “Everything But Arms” initiatives, where Cambodian garment exports, as from 1st of January 2011, will be subject to 0% of customs duties (compared to 12% previously).

The services sector expanded in 2010, supported by good performance in the tourism sector. Tourists' arrival into Cambodia increased by 16% in 2010 and reached around 2.5 million. Visit to Angkor (main tourist destination) increased by 26% to 1.15 million. In 2011, service projected to grow at around 5.7%.

Cambodia has already established a firm base in cultural tourism; the diversification can be based on clustering other tourism attraction such as leisure and eco-tourisms with cultural tourism. The government plans to develop a comprehensive tourism policy to transform the tourism industry to a high value added sector with linkages to the domestic economy.

As I said earlier, today’s conference agenda reflects some of the key challenges and opportunities Cambodia faces in ensuring a positive enabling environment to achieve our goals of high inclusive growth and sustainable development, and how we build on successes and remove constraints to position Cambodia to better achieve our goals. Let me deal first with the enabling environment to achieve our shared goals.

The maintenance and deepening of a positive enabling environment for business, as the driver of growth, employment and economic diversification is critical to our future success. We have provided business with political stability and responsible economic management it requires to thrive. We remain one of the most open economies in the world. The government’s Rice Production and Export Promotion Policy provides opportunities for rice producers, millers and exporters and will be a useful model for other crops and for the development of agribusiness.

Our strategic location in an increasingly integrated Grater Mekong Sub-region, in ASEAN and in our proximity to China, the world’s second largest economic power and the world’s largest market for agricultural surpluses is a major asset in private sector development and investment. We have an abundance of good arable land but this will only be effectively utilised if we better manage economic and social land concessions to ensure they contribute to productive land use that benefits investors, the private sector and local communities.

We have competitive low labour costs but we need to ensure that we make a more strategic investment in vocational education and training in to meet real labour market needs, through collaboration between the government and its development partners, and through creative public-private partnerships. We have provided the private sector with useful consultative mechanisms and direct access to government through the Government Private Sector Forum and its Working Groups, but we also need to more often get together the best thinkers, the most strategic planners, and the most entrepreneurial business people in focused ‘think tank’ processes to target our industry policy and private sector development support more effectively.

We need to ensure that the message that Cambodia is a safe travel destination with rich cultural assets and diverse tourism experiences is better broadcast regionally and internationally. We must keep up the pace of infrastructure and human capacity development, and mobilise more savings for domestic consumption and investment, to drive economic productivity and diversification in the transition to a new set of comparative advantages in the medium term.

The revised National Strategic Development Plan (NSDP) 2009-13 provides a supportive policy, legal and regulatory framework to achieve these objectives, with its focus governance, private sector development, human development, and agriculture. The passing of anti-corruption legislation and the establishment of the Anti-Corruption Commission send a clear message to the nation, to investors and to the international community that we take anti-corruption measures seriously. However we also need to work harder, in cooperation with the private sector, to continue to government and business governance and practice to a higher international standard, strengthening institutions and building the capacity of government officials to build a healthy and dynamic but well-regulated environment for business.

Success in dealing with the related challenges of vocational education and training, tertiary education, human resource development and labour market responsiveness, in response to the country’s growing need for a skilled and educated workforce, will also be fundamental to our success. The government’s new Technical and Vocational Education and Training (TVET) initiative, supported by a grant of USD 24.5 million grant from the Asian Development Bank will deliver vocational and skills training to ensure continuing improvement in national productivity, to promote the creation of jobs in the formal and non-formal sectors, to increase agricultural productivity by creating jobs in rural areas. It will establish technical vocational education and training (TVET) networks to assist both men and women, especially the poor, disabled and vulnerable, to respond to labor market needs. We will provide an expanded and more integrated training system that is endorsed by industry and better aligned with the skill requirements of the formal and informal economies, focusing initially on three industrial sectors - mechanics, construction and business services and information and communication technology.

As part of our commitment to a more pro-active human resource policy we are also now working with our development partners, and the private sector to enhance the quality and relevance of tertiary education to meet our nation’s needs. In response to out changing economic and demographic circumstances we need to rationalise the tertiary education sector to ensure that it delivers quality education for young Cambodians through both state and private universities, so that so that their graduates will be competitive in the domestic and international labor markets. This will require a significant investment in both the physical infrastructure and quality of academic leadership and management in our tertiary institutions, and in ensuring that tertiary education offers a more appropriate balance of physical and social sciences education on the one hand, and business and management on the other.

I believe these human development strategies will help deliver the skills and job opportunities to the younger generation of Cambodians that they deserve.

As an open, export-oriented market economy, building on our past success in trade and investment will be a strength for us as we move forward. Cambodia’s trade with China, South Korea and Vietnam all increased significantly in 2010, along with a recovery in garment exports to Europe and North America. The government’s rice policy reflects our high potential in agricultural production and the needs to continue promoting and attracting investors to invest in the agricultural sector, in the production of both rice, and other high demand export crops in our region such as cassava, soy beans and rubber, and in broader agribusiness and food processing. However we also need to focus our efforts, through more strategic industry policy, on the creation of new industrial sectors such as vehicle assembly and electrical appliances and other light industry, and further reforms to improve trade facilitation and the investment climate.

Underpinning the push for trade-based growth and economic diversification will be the continuation of the significant progress we have made on infrastructure development, along with associated improvements in both the hard and soft infrastructure that promotes a better logistics environment for the smooth movement of people and goods within Cambodia and across our borders. The progress we have made in the construction and rehabilitation of roads, railways, ports, and irrigation systems must continue, with cost-effective and environmentally responsible energy generation now also a priority. A $141 million project to repair 650 km (400 miles) of railway linking Cambodia's capital, Phnom Penh, to its borders with Thailand and Vietnam is now in train. Cambodia’s entire railway system is being rebuilt and expanded.

We must ensure that, along with this ‘hard’ infrastructure, we make further progress in the ‘soft’ infrastructure, the regulatory reform and capacity building of government agencies and officials responsible for the smooth, transparent and cost-effective movement of goods and people across our borders. This is now more an imperative that ever with the increasing pace of GMS, ASEAN and East Asian connectivity and integration.

Energy generation infrastructure to widen national access to reliable and affordable electricity is also now an imperative to help drive economic development, particularly in rural areas. While the benefits of exploitation of off-shore oil and gas resources, and their potential use in energy generation, may be a long-term opportunity, in the short term we will focus on significantly enhancing our hydro-power generation capacity and managing associated environmental impacts.

These are just some of the key opportunities and challenges that we face together in doing all we can to ensure a future of high inclusive growth, sustainable development for Cambodia.

I am advised that at tomorrow’s meeting of CDRI’s Board of Directors, the current Chair of the Board, His Excellency Dr Hang Chuon Naron, will step down as Chair, after serving two terms for 6 years allowable under the Anukret establishing CDRI concludes. I would like to express my sincere gratitude and congratulations to His Excellency Dr Naron for the very significant contribution he has made to the growth and development of CDRI over the past 6 years, and for the role model he has played for CDRI staff. I am confident that, even though he is stepping down, he will continue to work in close collaboration with CDRI in the years to come. I am also pleased to note that H.E. Dr. Sok Siphana, wil be nominated as Chair of the CDRI Board to replace H.E. Dr Hang Chuon Naron. I wish Dr Siphana every success in working with the CDRI Board, management and staff in taking CDRI forward.

May I conclude my opening keynote address here. I wish the conference a success in exchanging views and dialogue on the future of Cambodia. Once again, I congratulate the organising partners of the 2011 Cambodia Outlook Conference, ANZ Royal Bank and CDRI, and look forward to receiving good policy recommendations and ideas for action generated by the conference. I am now declaring the 2011 Cambodia Outlook Conference open. Thank you for your attention!