Lao garment industry targeting increased exports to US
Lao garment industry targeting increased exports to US
The Association of the Lao Garment Industry hopes exports to the United States of America (USA) wi ll increase this year as its economy picks up, boosting demand for clothing.
The association is hoping to increase exports despite the ongoing labour shortages in the sector.
Garment exports to the USA last year reached US$5.4 million, an increase of 52.38 percent compared to 2014, and are expected to increase further this year, the association's President, Dr Xaybandith Rasphone told Vientiane Times yeste rday.
Garment exports to Japan also increased after Japanese investors expanded their business operations in Laos, he said.
Last year, garment exports to Japan reached about US$10.3 million, an increase of around 31.75 percent compared to 2014, Dr Xaybandith said.
However, exports to the major European Union market decreased in line with orders, according to the association.
“To produce garment products for sufficient exports we have to solve the labour issue,” he explained.
Garment manufacturers are still suffering from labour shortages, hindering their ability to export, while many workers have to be trained-up at factories.
About 28,000 people were working in the sector last year, down by around 2,000 people compared to the year before. The number of garment factories decreased by six compared to the previous year.
To solve the problem, the association requires more assistance and cooperation from its members and the government, Dr Xaybandith said.
“We plan to improve mechanisms and policies to attract new investors and encourage more people to work in garment factories,” he said.
“We have to stabilise the number of workers and provide training and develop their skills,” he added.
In the past, people approached factories for a job but now factories had to reach out to potential workers, he observed.
The shortage of labour has caused investors to shift their focus to other countries, especially Cambodia, Vietnam and Myanmar.
As the Lao economy expands, people have other job opportunities that offer a better income.
From 2003 to 2011, the garment industry expanded but since 2012 a downward trend has prevailed.
At present, there are 92 garment factories operating in Laos, of which 60 factories are producing goods for export.
