Business leaders' group highlights need for skilled workers
Business leaders' group highlights need for skilled workers
The Young Entrepreneurs Association of Laos (YEAL) says the development of human resources and skilled labourers in various companies within the association are priorities to boost business operations in Laos.
This was the main message from the association's recent annual meeting held in Vientiane, as stated in a speech delivered by the newly elected YEAL President Dr Hongkham Souvannavong.
According to the association's strategic plan, the development of businesses that are members of YEAL is part of the strategic development plan for small and medium d enterprises in Laos.
“We (local businesses) are still limited in domestic and international competition and access to foreign markets, while foreign investors and businesses are continuously moving to Laos,” he said.
Dr Hongkham also said that the limited knowledge of technical skills and low productivity remain challenges for business competition.
“Young business operators are critically in need of professional business management training,” he said.
YEAL is now looking into the potential benefits of local businesses to enhance the capacity of production, product quality and services.
At the same time, YEAL will also encourage businesses to partner with each other to build larger d companies.
Access to business information provided by the government is also crucial for the sector to better understand government policy on business promotion and the links between the public and private sector.
Meanwhile, the Vice President of the Lao National Chamb er of Commerce and Industry (LNCCI), Mr Thanongsinh Kanlagna, told the media on behalf of the former management board of YEAL, that the management will remain mostly unchanged but will follow more international standards.
“Our association has to become more professional when it comes to encouraging our members to cooperate with international trade partners,” he said. Building the capacity of local businesses is essential, he added.
He also said that YEAL had organised several important seminars and workshops for entrepreneurs to ensure they are equipped for international integration in the years to come.
According to a national firm survey unveiled recently, the chronic labour shortage is still a challenge for many companies in Laos when it comes to filling job vacancies and easing labour uncertainty.
The national survey was conducted last year by the Enterprise and Development Consultant Co Ltd, assigned by the LNCCI and funded by the International Labour Organisation (ILO).
The 2014 National Firm Survey reported that over 56 percent of companies involved said they had faced labour shortages and could not source interested job applicants.
The firm surveyed a total of 400 business units nationwide, with a small majority of companies expressing concern about the lack of workers.
Some 84 percent of medium-d enterprises and 60 percent of large scale enterprises have faced a shortage of labourers because of fluctuating employee numbers, with people hired but leaving soon afterwards.
The survey also reported that the garment industry employed 30,000 workers in 2014 and the industry's demand for labourers is expected to rise even further by 2017.
The majority of owners of private businesses were seriously worried that the worker shortage would have a negative impact on their business operations as well as lower the confidence of foreign investors about setting up a business in Laos.
According to the five-year plan of the Ministry of Labour and Social Welfare, over 716,000 additional Lao workers will enter the job market from 2015-2020, but this is estimated to be far from sufficient.
Many public and private companies have called on the government, especially the Ministry of Education and Sports, to offer more vocational and training courses to meet the employment targets of both domestic and foreign companies.
