Garment and coffee sectors central to employment growth
Garment and coffee sectors central to employment growth
While the country's primary earnings are from natural resources such as mining, non-resource sectors are considered the key to guarantying further sustainable growth in Laos.
The coffee and garment sectors are currently being strongly promoted, as they are considered to be industries which can contribute substantially to national development, especially in terms of employment opportunities.
A development cooperation programme conducted by the Deutsche Gesellschalt fur Internationale Zusammenarbeit (GIZ) is set to commence, working to promote further growth in the coffee and garment industries.
The Human Resource Development for Market Economy III (HRDME III) project aims to develop the skills and abilities of workers in the sector, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ).Two agreements were signed yesterday to confirm the cooperation project will commence.
They were signed by the Programme Director of GIZ-HRDME III, Mr Armin Hofmann, Secretary General of Lao national Chamber of Commerce and Industry (LNCCI), Mr Khanthavong Dalavong, President of the Association of the Lao Garment Industry (ALGI), Mr One-sy Boutsivongsakd and President of the Lao Coffee Associaton, Mr Sinouk Sisombat.
The signing ceremony took place in the presence of German Ambassador Robert von Rimscha and other senior representatives from the Lao private sector. During the ceremony, the German ambassador to Laos, Mr Robert von Rimscha said that both sectors are important when it comes to Lao economic development.
“Laos is now generating income from natural resources such as mining; however promoting the non-resource sector is a key to ensuring further sustainable growth in Laos. The nation has large amounts of young people and this is a source of great potential,” he said.
“The garment and coffee sectors are two important sectors for Laos that create employment and sustainable development. We see this importance and affirm our continued support, especially in the private non-resource sector,” he added.
Once a leading world exporter, the Lao garment sector has declined considerably since the mid nineties. In line with the Trade Development Facility (TDF), which is a multi-donor trust funding the implementation of training for employees via the Lao Garment Skills Development Centre.
GIZ-HRDME III is helping strengthen the Lao garment industry, especially in terms of capacity building on both the institutional and individual level. ALGI President, Mr One-sy Boutsivongsakd said “this support is important for us and I believe it will strongly develop our sector.”
Coffee production is currently generating the highest income within the area. The leading position of coffee production is driven by a more dynamic private sector, an emerging domestic industry, further foreign investments and growing international demand.
To compete on a global scale, the Lao coffee sector requires support to develop and promote its products for high-value markets.
This also implies relevant stakeholders need to be organised and perform in a coherent way.
Mr Sinouk Sisombat said coffee is one of the most important sectors in Laos. “It has much economic potential for Laos and also creates a lot of employment. Support for the industry will be valuable for us and will have lasting effects.”
GIZ-HRDME III promotes value chain development as a core component area to achieve the programme's objective where “public and private organisations in the fields of private sector development and vocational education and training exercise their mandate in a coordinated and efficient manner.”
In particular, value chain development is thought to improve market opportunities for the two sectors' small- and medium-d businesses, for example through capacity building.
Even though the Lao coffee and Lao garment sectors have been selected to receive HRDME III's support, the German contribution can also have positive effects beyond the two sectors and lead to a higher degree of employment creation, income generation and better functioning of various organisations and institutions.
vientiane times
