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Japan has granted $1 million to support skills training and job placement for Cambodian migrant workers who have recently returned from Thailand, the Japanese Embassy in Phnom Penh said Wednesday.
The aid follows the return of nearly one million Cambodians last year after border clashes in July and December triggered mass crossings.
The project will offer vocational training and job placement for more than 20,000 returnees in Oddar Meanchey, Pursat and Preah Vihear provinces, the embassy said.
Migrant workers are among those hit hardest by the border conflict. Tens of thousands of border residents remain displaced, while returnees face rising debt and a labor market in which more than 88% of workers are in informal employment.
Labor Ministry spokesperson Sun Mesa said the ministry will lead the Japan-funded project with the International Labor Organization, focusing on preparing workers for jobs in construction, garments and manufacturing over the next two years. He noted Japan is the first country to offer dedicated funding support for returning migrants.
Mesa said ministry figures show 630,000 workers who returned from Thailand since last year have found jobs, while another 320,000 have shifted to “family farming, construction, handicrafts, restaurants and other informal work.”
Phai Rithy, 24, from Banteay Meanchey province, returned from Thailand when border tensions escalated last year. He said he has yet to secure stable employment and relies on income from warehouse work in Prey Veng with his wife to support their household and repay bank debts.
Rithy welcomed the training program but said job placement support will be crucial.
“I earn about $600 with my wife, and I’ve only been in this job for two to three months,” he said. “If a training course exists, I can’t attend because I’m tied to this work.”
Debt among returnees remains a major concern. About 71% of those who previously worked in Thailand are in debt and 85% cannot keep up with repayments, according to a December survey by local labor rights group Central.
Debt ranged from $30 to $35,000, with an average of $5,500 and monthly repayments of $220, the group said.
During the second bout of border clashes in December, before a ceasefire was reached, the National Bank ordered banks and other financial institutions to provide loan relief to those affected by the conflict. Lenders were asked to waive fees and penalties, suspend interest payments, and defer principal repayments until the end of March for civilian customers affected by the violence.
Central’s executive director Moeun Tola said the Japanese assistance is a positive step, but the government and partners must account for workers’ debt burdens.
“For them to learn new skills with peace of mind, they need to receive income while studying,” he said. “Support should be designed as a comprehensive package that considers the job market, working conditions and providing start-up capital once they finish training.”