Lack of labour threatens garment industry investment
Lack of labour threatens garment industry investment
A lack of young factory workers in Laos may negatively affect potential investment in the garment industry if sufficient local labour can't be found.
The Lao garment industry needs more than 10,000 tailors each year to supply factories.
According to a Lao Garment Industry Association report, presently, there are 30,000 labourers working at garment factories mainly in Vientiane and Savannakhet, and there are also plans for more factories to open but investors are concerned about the supply of local tailors.
Deputy Chief of Employers' Bureau Activities of the Lao National Chamber of Commerce and Industry, Ms Keomanivone Sayavongsa explained the lack of domestic workers would have a negative impact on investors' decision making regarding opening factories.
However, Ms Keomanivone believed the garment industry would continue to grow into the near future after Laos became a part of the Asean Economic Community.
Laos is also attracting investors to the garment industry as it has received special rights as a developing country on exports which will be except from tax in destination countries.
On the other hand, Ms Keomanivone pointed out that young workers in provincial areas still can't access information on vacant positions in factories, so they continue to travel to work in Thailand to seek perceived better opportunities.
Some factories do not need labourers with work skills, because they can train them, but are still failing to attract young workers.
“This is an important point. Concerned authorities cooperating with factories need to provide employment information to young people living in rural areas,” Ms Keomanivone explained.
If possible, job fairs should be arranged in provincial centres to make young people aware of actual employment opportunities in the factories.
According to a teacher at the Lao-German Technical School, young people are currently showing interest in vocational subjects, but it is still far short of the factories' requirements.
He hoped that concerned authorities wo uld continue promoting the importance of learning vocational subjects to young people, which would help to increase the supply of Lao labour to the country's garment industry.
