The KOREA International Cooperation Agency (Koica) and the Ministry of Education, Youth and Sport on Thursday launched a $7 million "Business Incubation System" to improve the business mindset in Cambodia through academic study.
Koica vice-president Baek Sook-hee and Minister of Education, Youth and Sport Hang Chuon Naron on Thursday inked a record of discussion to officially launch the "Project for the Establishment of a Business Incubation System between Universities and Industry in Cambodia".
The signing took place on the day of South Korean president Moon Jae-in’s arrival in Cambodia on a state visit.
The project is designed to create a start-up ecosystem and market network in Cambodia by developing a system to foster start-up companies in Cambodia’s leading universities, at which Koica plans to construct Cambodia-Korea Incubation Centres (CKICs) and support capacity building in their operations.
This will strengthen start-up competitiveness and promote start-up support programmes in the Royal University of Phnom Penh and the Institute of Technology of Cambodia. The scheme has a total five-year budget of $7 million. The project will contribute to Cambodia’s industrial diversification and help it achieve sustainable development, Baek said.
"The project has great significance. It will create high-quality jobs and foster industry-specific professionals, while Koica plans to lay the foundations for diversifying industries in developing countries to strengthen national competitiveness from a long-term perspective," she added.
She said Koica aims to help Cambodia use the business incubation model and market networks to support industry diversity, as well as bridge the gap between academic ability and market demand. It also seeks to support economic growth and the development of young entrepreneurs.
Naron, the Minister of Education, Youth and Sport, said the project would promote scientific and technological research, generate business partnerships for fresh graduates to explore business ideas and increase job opportunities.
"The project will promote the quality of academics in the fields of science and technology by interconnecting business ideas to cultivate business start-ups. Some of the rewards include solutions to business operation conundrums as well as agricultural product processing," he said.