Foreign Firms Prefer Imported Labor Due to Skill Gaps Among Lao Workers
A Lao labor ministry official indicated that foreign firms avoid local workers due to their lack of skills, leading to a substantial problem of domestic worker shortages. Despite government initiatives, many companies prioritize bringing in workers from abroad due to inadequate domestic training and issues of lower compensation. Furthermore, systemic corruption and lack of oversight have exacerbated the reliance on foreign labor.
A labor ministry official in Laos has stated that foreign companies prefer to bring in their own workforce due to the insufficient skills of local workers, leading to a dismissal of calls for intervention. The labor situation in Houaphan province illustrates the lax oversight on foreign investment, with firms from China and Vietnam primarily exploiting natural resources while disregarding environmental and community impacts. The Lao government tends to allow foreign entities considerable operational freedom to attract needed investment.
During an official visit to Houaphan province, Sounthone Xayachack, vice president of the Lao National Assembly, emphasized the need to address local worker shortages and restrict foreign companies from importing their own labor. The Lao government projected in 2024 to offer slightly more than 26,000 jobs against a labor force of over 3.5 million, indicating a significant gap. Despite the evident demand for workers, foreign firms express unwillingness to hire local due to the perceived lack of necessary skills.
An official from the Department of Labor and Social Welfare remarked that many Lao workers lack the experience and qualifications required by foreign companies. The same official suggested that the government does not have adequate budgetary resources to invest in training workers to meet the industry standards. A provincial official echoed this sentiment, noting that it would likely be unfeasible to prevent foreign firms from sourcing workers from abroad due to local workers failing to meet job demands.
Some foreign companies purportedly exhibit a willingness to hire Lao workers, although this remains a rarity. Another senior labor official acknowledged a worker shortage in Houanphan, though it was unclear whether this was in terms of numbers or skill levels. Notably, many Lao laborers opt against joining foreign enterprises because of lower wages compared to their foreign counterparts.
Moreover, it has been reported that some local officials may accept bribes to overlook foreign firms employing workers without proper permits. A response from a Houaphan resident confirmed the prevalence of migrant workers from countries related to the investing companies, further indicating that local Lao individuals are relocating to other provinces in search of better opportunities. The lack of skills among Lao workers is significant; even the government is compelled to hire foreign labor for certain developments.
The situation in Laos highlights systemic issues surrounding labor shortages and skills training for local workers. Foreign companies favor their own skilled workforce, primarily due to the inadequacy of domestic worker training. This dynamic continues to exacerbate challenges for Lao workers seeking employment while allowing foreign companies to dominate the local labor market. Addressing these deficiencies requires urgent government action to enhance training programs and improve local employment conditions.
Original Source: www.rfa.org
