HelpALittleDavid's Blog · Loving Laos

It seems a common theme in recent reports about Laos loosing out on work opportunists due to a poorly skilled workforce despite in past years being able to secure such investment. The World Bank Climate Assessment report made similar conclusions about the low productivity rate of Lao workers and shortage of skilled workers, including English. it is for this reason that I put my effort into supporting Lao people learning English and computing skills.

Productivity is estimated to be about half what would be expected for a country at this level of development. There has been almost no observable growth in labor productivity during the last decade. In addition, labour costs per worker which include wages, salaries and bonuses have experienced a 70% increase between 2009 and 2012, but without growth in productivity.

Policy makers in Laos face two different options.

• Business as usual which continues the current principally natural resource extraction model, with limited growth in diversified sectors and a focus on “megaprojects.”, or
• Reform the business enabling environment by improving transparency and predictability.

The VNA Article is below.

A grave labour shortage in Laos has spelled doom for the country’s garment industry since 2012 after a robust growth during 2003-2011, according to the Association of the Lao Garment

Dwindling supply of labourers and lack of skillful workers have caused investors to shift their capital to neighbouring countries, especially Cambodia, Myanmar and Vietnam, said President of the association Xaybandith Rasphone.

Business, Employment, Laos

By David

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