Lao garment industry in need of doubled workforce
Lao garment industry in need of doubled workforce
Foreign companies are ready to invest hundreds of millions of dollars in the Lao garment industry if the country can provide sufficient manpower, a business leader has said.
“Many countries, such as Japan and Thailand, want to relocate their production bases to Laos but are asking whether we can supply a large enough workforce,” President of the Lao Association of Garment Industry, Mr Onesy Boutsivongsakd, told Vientiane Times yesterday.
He said many countries are interested in relocating their garment production bases to Laos because of the cheap labour available here.
The government recently increased the minimum wage from 340,000 kip (US$43) to 626,000 kip (US$77) per month, but this is still considered low compared to the wages offered in neighbouring countries. In Thailand, for example, the minimum wage is the equivalent of about 78,000 kip per day.
Mr Onesy said that providing sufficient labour to meet the needs of overseas businesses operating in Laos was not only the job of the garment industry but also the authorities. A growth spurt in the industry would be a strong boost for economic development, he added.
“There are now about 200,000 Lao nationals working in Thailand illegally. We should encourage them to return to Laos so they can work without fear of being arrested.”
He said those working in Thailand illegally would not have any social security or legal protection, so they would be better off working in Laos where they will be offered social benefits and protection.
In addition to a fixed wage, garment workers can get social security, free accommodation and transport, Mr Onesy said. Workers could accumulate savings if they worked hard and did not make extravagant purchases.
“I've heard a number of stories about illegal workers in Thailand not earning any money because their employers broke their promise and didn't pay them,” he said. In some cases, workers had to ask their relatives in Laos for help so they could return home.
Mr Onesy said that by 2015 the garment industry would require about 60,000 workers if investment in the sector maintained its current rate of growth.
At present, the garment industry employs about 30,000 people; most of them are young and come from rural areas.
Mr Onesy said he had talked to the Lao Youth Union about encouraging young people to work in the garment industry. He said one of the main challenges garment factories face is getting employees to comply with workplace rules so that operations run smoothly.
“Lao people have to understand that if they work in industry, they have to come to work regularly. They have to understand that a job in industry is different from working on their farms,” he said.
vientiane times
