The labor situation in Laos underscores significant concerns as foreign companies opt to employ their own workers rather than local labor, primarily due to skill deficiencies among domestics. The Lao government is criticized for inadequate workforce training amid a pressing worker shortage, compounded by potential corruption among local officials facilitating this trend.
A labor official in Laos has expressed concerns regarding the employment of local workers by foreign firms, asserting that businesses bring in their own employees due to a lack of skills among domestic workers. This situation particularly affects Houaphan province, where foreign companies, largely from China and Vietnam, are observed to prioritize their workers while the local population remains inadequately trained. The government has been criticized for its negligence in providing necessary training to Lao workers, contributing to this ongoing issue.
On March 6, Sounthone Xayachack, vice president of the Lao National Assembly, urged local authorities to address the labor shortage and curb the influx of foreign workers. Despite the Lao government estimating that only around 26,000 jobs will be available for domestic workers in 2024, a substantial need persists; a 2023 report indicated over 153,000 positions needed to be filled across 2,600 companies in the country. Alarmingly, the World Bank noted over 42,000 people were unemployed out of a labor force exceeding 3.5 million.
An official from the Department of Labor and Social Welfare highlighted that, despite the pressing demand for labor, foreign firms are hesitant to hire Lao workers because of perceived inadequacies in their skills and experience. It was noted that the government does not possess the financial resources needed for effective workforce training initiatives. A provincial official echoed these sentiments, stating that it would be “impossible” to prevent foreign firms from employing their own workers since local talent fails to meet job requirements.
Moreover, a high-ranking labor ministry official acknowledged a worker shortage in Houanphan but did not clarify whether this referred to general labor or skilled labor specifically. The reluctance among Lao workers to accept jobs at foreign companies is attributed to lower wages and job security concerns, given the proximity to Vietnamese competition.
In addition, further complications arise from unofficial practices where local officials reportedly accept bribes to overlook foreign firms that do not abide by work permit regulations. This lack of effective oversight raises concerns about accountability, as those responsible for monitoring labor practices are often reluctant to confront foreign investors. Evidence of this tension is seen where a Vietnamese firm contracted for a governmental project employed mostly Vietnamese workers despite being obligated to hire Lao citizens for certain roles.
In conclusion, the labor dynamics in Laos highlight significant challenges regarding the employment of domestic workers by foreign firms. The primary factors include a lack of skilled labor, insufficient government training initiatives, and apparent corruption among local officials. As the government seeks to increase job availability, addressing these underlying issues will be crucial for enhancing workforce capabilities and ensuring equitable employment opportunities for Lao citizens.
Original Source: www.rfa.org
