A Lao labor ministry official asserted that foreign firms prefer to import workers due to insufficient training of domestic labor. Vice President Sounthone Xayachack highlighted the job shortage in Houaphan and urged limitations on foreign labor. Despite a significant number of job openings, many local workers opt for other provinces due to low wages, while corruption further complicates hiring practices, allowing foreign companies to bypass local employment.
The Lao labor ministry official has rejected the demand for a resolution regarding foreign companies employing their own workers in Laos, attributing the situation to the inadequate training of domestic labor. These foreign enterprises, primarily from China and Vietnam, engage in resource exploitation while neglecting local environmental and societal factors. The Lao government allows such practices due to a pressing need for foreign investment, often leading to an influx of foreign labor.
On March 6, Sounthone Xayachack, Vice President of the Lao National Assembly, urged local authorities in Houaphan to address job scarcity and restrict the influx of foreign labor while identifying that only approximately 26,000 jobs will be available for domestic workers in 2024. The World Bank reported that the Lao labor force consists of over 3.5 million individuals, with around 42,000 unemployed. Moreover, a recent report indicated a demand for over 153,000 positions across 2,600 companies within Laos.
Despite this significant demand, officials from the Department of Labor and Social Welfare noted that foreign firms do not hire local workers due to skill and experience deficiencies. “They don’t meet the requirements of the companies’ needs, so both Vietnamese- and Chinese-owned companies do not want to hire our workers,” stated an anonymous official. Furthermore, they suggested that the government lacks adequate funding to train Lao workers properly.
A local official echoed the sentiment that preventing foreign firms from importing labor is impractical, stating it is because Lao workers do not satisfy the necessary qualifications. Although a few foreign companies hire local staff, many Lao workers are deterred by lower wages offered by these foreign enterprises. Additionally, concerns of job competition from Vietnamese nationals further complicate their employment decisions.
Claims regarding labor shortages in Houaphan were made, although lacking supporting statistics. These claims remained ambiguous between a deficit of workers and skill shortages. Observers have indicated that issues with skilled labor arise alongside corruption, wherein local officials may accept bribes, enabling foreign firms to bypass regulations related to hiring practices. A Houaphan resident corroborated that the local workforce, suffering from limited skills, opts for opportunities in other provinces, while foreign workers predominantly fill roles funded by the Lao government.
In summary, the Lao labor landscape faces significant challenges as foreign firms prefer to bring in their skilled workers rather than employ locals, primarily due to the lack of adequate training among domestic laborers. Calls for intervention from government officials highlight the pressing need for improved vocational training programs. Furthermore, the corrupt practices within the local administration exacerbate the situation, limiting opportunities for Lao workers and perpetuating reliance on foreign labor. Interventions aimed at enhancing workforce skills and addressing governance issues are crucial for developing local employment.
Original Source: www.rfa.org
