Lao Labor Official Addresses Challenges of Domestic Workforce Skills and Foreign Employment Practices

A Lao official attributed the importation of foreign workers by companies to the lack of skills among local laborers, stemming from insufficient training by the government. The labor situation in Houaphan province reveals issues of foreign investment and insufficient local employment, where workers opt for jobs elsewhere due to low wages and competition. The involvement of corruption further complicates the labor market, as many local officials reportedly accept bribes to overlook regulations on foreign labor.

A Lao labor ministry official has refuted suggestions for addressing the issue of foreign companies importing their own workers, attributing it to the lack of skills among domestic laborers due to inadequate government training initiatives. The current labor landscape in Houaphan province exemplifies insufficient supervisory measures regarding foreign investment, particularly by firms from China and Vietnam, which prioritize resource extraction over community well-being and environmental concerns.

Foreign companies generally operate with minimal restrictions in Laos, largely because of the country’s pressing need for foreign investments. During an official visit on March 6, Sounthone Xayachack, vice president of the Lao National Assembly, instructed local authorities in Houaphan to tackle worker shortages and curtail foreign firms’ reliance on external labor. She indicated that the Lao government could provide only about 26,000 jobs for local workers in 2024, while the labor force numbers approximately 3.5 million, with about 42,000 unemployed according to World Bank data.

A recent report by the Ministry of Planning and Investment indicated that approximately 2,600 companies in Laos were seeking to fill over 153,000 job vacancies. Despite the apparent demand for labor, a Department of Labor and Social Welfare official stated that foreign companies prefer to hire non-Lao workers, claiming that most domestic workers lack necessary skills and experience. This view was echoed by another official who noted a limited willingness from some companies to hire local candidates.

Local officials have expressed doubts about the feasibility of limiting foreign labor imports, often citing the inadequacy of Lao workers to meet company standards. Additionally, it was mentioned that some Lao workers are deterred from accepting positions in foreign firms due to lower wages and the fear of competing with Vietnamese workers along the border. Observations from various sources within Houaphan highlighted that foreign investors, including significant Chinese mining enterprises, tend not to employ local laborers.

Moreover, certain observers pointed to widespread corruption as a contributing factor, suggesting that bribes to local officials help perpetuate the influx of foreign labor by allowing companies to circumvent regulations about work permits. A local resident confirmed that many individuals working for foreign investors are migrants from the countries of these investors, while many skilled Lao workers are leaving the province for better opportunities elsewhere. The confirmation of skill shortages among Lao workers has led even the government to engage foreign workers for various projects, exemplified by a Vietnamese firm employed for government construction tasks, primarily utilizing its own labor force.

In conclusion, the labor situation in Laos, particularly in Houaphan province, reveals critical challenges regarding skill shortages among local workers and the implications of foreign investment practices. The lack of proper training programs and potential corruption may exacerbate these issues, ultimately necessitating a reevaluation of labor policies and training initiatives to enhance domestic workforce capabilities and ensure equitable employment opportunities.

Original Source: www.rfa.org