ADB: Skilled workers key in competitive AEC
ADB: Skilled workers key in competitive AEC
Laos needs more permanent, skilled workers as well as the usual flow of seasonal workers to boost productivity and compete with foreign workers when the Asean Economic Community comes into effect at the end of this year, the Asian Development Bank (ADB) has said.
“Laos is set to enjoy relatively robust growth in 2015 and 2016, but more workers must be professionally trained,” ADB's Senior Economics Officer Mr Soulinthone Leuangkhamsing said on Tuesday.
Mr Soulinthone made the comment during a press conference on the Asian Development Outlook 2015 report, held at the ADB office in Vientiane.
“Laos has at least 2.4 million labourers but 70 percent come from the agriculture sector, and are considered to be seasonal labourers,” he said.
He explained that seasonal workers move from place to place. For example, they may find work in garment factories in the dry season but then return to tend to their rice fields in the wet season.
When asked how Lao labourers could compete with those from other Asean countries, Mr Soulinthone said short-term vocational training courses were needed to give them a competitive edge in the workplace.
“Every year, students graduate from degree programmes but that doesn't fulfil the requirements of the job market,” he said.
This means the government must encourage more young people to enroll in vocational training courses so they learn the skills needed by employers.
“To be more competitive, Lao workers not only need professional skills but they should be trained in more practical aspects such as self-discipline, responsibility, and reliability,” Mr Soulinthone said.
ADB's outlook for 2015 predicts that the Lao economy will remain solid as the service and industrial sectors continue to contribute strongly.
Growth is expected to moderate to around 7 percent in 2015 due to continued weakening domestic demand in some sectors, before picking up to 7.2 percent in 2016, according to the ADB report.
The government is working to improve various regulations, disciplines and legal processes to fulfil WTO standards and comply with other international economic structures.
The ADB report also advised that the private sector would be part of the steady growth of the Lao economy but said less complex business registration procedures, easier access to finance, and transparent tax administration would be key factors in the level of participation by the private sector.
More education and training reforms will also play a vital role in the socio-economic development of Laos.
Better coordination among government sectors will enable the government to effectively achieve the goals set out in strategic economic development plans.
ADB Country Director Ms Sandra Nicoll, together with ADB Country Senior Specialist Mr Shunsuke Bando, also addressed the press conference.
