Both local and foreign investors operating businesses in Laos have been encountering problems stemming from the chronic labour shortage.

“We are experiencing an annual shortfall of labourers in excess of 31,000 people,” said a senior advisor to the Lao National Chamber of Commerce and Industry.

Onesy Boudsivongsakd made the observation at the 8th Lao Business Forum held in Vientiane on Tuesday, aiming to highlight the labour problems to the government and find appropriate solutions.

“This figure does not include the workers required by the two sugar companies operating in Savannakhet province or those needed to harvest latex from rubber plantations around the country, which amounts to several thousand more,” Onesy said.

The 31,000 workers in question are required for the garment industry, processing industry, tourism, steel rod production, furniture production association, construction groups, KP industry group, and the Nikon and Essiloz companies in the Savannakhet economic zone.

These sectors have a current labour pool of 187,750 people, according to a handout distributed at the forum.

Onesy said the garment industry employs 31,000 workers but requires an additional 9,930 people each year. At present, however, only 650 labourers are available.

The industrial processing sector has a labour pool of 20,000 people but requires an additional 300 employees, while the tourism sector currently employs 28,100 people and needs an additional 2,400 each year.

The steel rod production group employs 1,150 people but needs an additional 600 people per annum, and the furniture production association employs 6,000 people but needs an additional 5,000.

The construction sector employs 100,000 people but needs an extra 5,500 workers, while the KP industry group has a labour pool of 1,500 but needs 2,900 more. In addition, Nikon needs about 1,500 people and Essiloz is seeking another 3,000 employees.

Onesy said that in the midst of this labour shortage, som e 100,000 people are crossing the border to seek work in other countries, and there are no controls in place to stop this exodus. Many areas in the central and southern provinces have no young people to work in the rice fields since most prefer to work in other countries, leaving the job of subsistence farming to the older folk.

In Vientiane, the shortage of manpower is creating disputes between companies. The problem is exacerbated by poor discipline in the workplace, inefficiency, and complacent workers, Mr Onesy said. “More often than not, some people don't show up for work for two or three days after receiving their salaries.”

“We are well aware that in 2015 Laos will become part of the Asean Economic Community (AEC). If we allow the current situation to continue, how can we expect to produce quality or competitive goods and commodities for sale within the AEC market?”

The labour shortage and high turnover of employees is a ma jor challenge both for existing investors and those just setting up business in Laos. Even though the Ministry of Labour and Social Welfare has created 15 employment agencies, there is still a serious labour shortfal l.

There are also problems in granting permits to investors and business groups to collaborate with local authorities to recruit labourers in local areas independently, since they come under the legal authority of the employment agencies.

In Savannakhet province, a foreign employment agency uses buses to pick up workers and take them across the border to their place of work.

In Luang Prabang province, foreign employment agencies, in cooperation with Lao recruitment agencies, have arranged for locals to work across the border. More than 700 people in Luang Prabang have been interviewed for employment in other countries.

“I think it's time for us to retain our young workers so that we can build up and develop the country,” Onesy said.

To make them stay to work in Laos, the solution is to increase people's wages in Laos to  standards that are comparable to wages in Tahiland.

I dont see labors in Luan Prabang go other countries to work. China? Thailand?  But I do see 5 days after salary day are vacuum days. They are drinking BeerLao.

Beef Cake wrote on 27^th Aug, 2013 at 6:12pm:

To make them stay to work in Laos, the solution is to increase people's wages in Laos to  standards that are comparable to wages in Tahiland.

Investors in Laos  mean to exploit the advantage of low cost labor.

China man, what's the typical wages for day labourers in China?  In Thailand?

Beef Cake wrote on 28^th Aug, 2013 at 12:01am:

China man, what's the typical wages for day labourers in China?  In Thailand?

Here my town, around 300-500 USD per month.  If working with some construction, higher up to 800 USD per month. in agriculture, much higher in high season. in some sector of agriculture, amazing high beyong your imagination. :laugh1

Thailand has a minimum salary rule aound 300 Baht per day? I can not remember it now.  In Chiang Rai, a newly graduated student could get 300-400 USD per month in 2011 I was told. I did not check it out. 

Beef Cake wrote on 27^th Aug, 2013 at 6:12pm:

To make them stay to work in Laos, the solution is to increase people's wages in Laos to  standards that are comparable to wages in Tahiland.

You hit the nail right on the head  :applause  Problem
is the goverment.If they set a minium wage or bracket what
company should be paying their employee then you wouldn't have people who are leaving for other country to work.Case in point look at Mexico .They have job there but they rather
risk their lives to cross-border to get a higher pay in the United State.Its all come down to rules and regulation .

Low wage problem in Laos is not related to government but due to lack of, or limited, capitalistic activities.  Capitalism will define people's wages.  Government should stay away from this issue, however government should be highly competitive in bringing the 'right' companies to hire the labourers.   Also, government should be highly aggressive in workplace health, safety and environment. 

If government controls people's wages,then we have more corruption problems. ;)

You are a librel?


Beef Cake wrote on 29^th Aug, 2013 at 1:04am:

Low wage problem in Laos is not related to government but due to lack of, or limited, capitalistic activities.  Capitalism will define people's wages.  Government should stay away from this issue, however government should be highly competitive in bringing the 'right' companies to hire the labourers.   Also, government should be highly aggressive in workplace health, safety and environment.  If government controls people's wages,then we have more corruption problems. ;)

I am definitely a Libertarian but I only read 2 books (completely) so far.

Libertarianism is not the solution to the economic problems of Lao. The Lao government, just as any other, has a responsibility to insure the safety of its citizens and this includes regulation of work safety standards. With that said, Laos does have to have competitive wages to appeal to foreign investors and this can only be accomplished if wages stay low for the time being. China took this road under Deng Xiaoping and it has led to the emergence of a sizeable middle class and new service sectors. As Lao gradually increases its wealth, so too will they be able to regulate more and more and increase the peoples' quality of life.

Yes sir I agree.  Libertarianism should work nicely for developed nations and not so for developing nations. 
If there is Libertarianism in Laos then idea is called Communism because the majority of the wealthiest Lao citizens are not really doing anything that could better enhance Lao citizens' living conditions, infrastructures, water quality and etc... 

Beef Cake wrote on 29^th Aug, 2013 at 1:04am:

Low wage problem in Laos is not related to government but due to lack of, or limited, capitalistic activities.  Capitalism will define people's wages.  Government should stay away from this issue, however government should be highly competitive in bringing the 'right' companies to hire the labourers.   Also, government should be highly aggressive in workplace health, safety and environment.  If government controls people's wages,then we have more corruption problems. ;)

Are you serious dude ? So you saying as long as company created jobs then the wages of the workers are gonna be
fix.  :D Google minnium wages and see who set it.
Also i never said for the Goverment to control wages.I was just stating that they should set up rules and regulations.It would be a wonderful world if every company would pay their
employee what they are intitle too.But who are we kidding
this is a dog eat dog world.Its just like paying taxes .Do you
think rich people pay close to the 30 percent what we pay ?
I don't think so buddy. Mitt Romey only pay like 15 percent

Dudes, you guys don't understand that Laos is still under a communist dictatorship? You guys talk like there is freedom there. This is the least developed country in Asia and there is a reason for it. Commies want to keep it that way.
Commies don't want to educate of develop the people of Laos. They want to keep them under control.
Do you know how you get jobs in Laos? You don't just go and apply and hope you have all the right credentials and experience, hell no. Gov't and corrupt officials choose who gets the jobs. Their sons and daughters are first, then whoever gives better head after that. It's not about what you know it Laos, it's who you know. Seen it all before....

For folks living in the US, happy Labour Day y'all!

Here we have the same situation in job hunting.

I felt it and feeling it and hopefully, will feel it.

:'(


Buk Hoo Kee wrote on 3^rd Sep, 2013 at 7:03am:

Dudes, you guys don't understand that Laos is still under a communist dictatorship? You guys talk like there is freedom there. This is the least developed country in Asia and there is a reason for it. Commies want to keep it that way. Commies don't want to educate of develop the people of Laos. They want to keep them under control. Do you know how you get jobs in Laos? You don't just go and apply and hope you have all the right credentials and experience, hell no. Gov't and corrupt officials choose who gets the jobs. Their sons and daughters are first, then whoever gives better head after that. It's not about what you know it Laos, it's who you know. Seen it all before....

I heard you have to pay to get a job.I just feel bad for
the childrens of Laos.

Yeah if you want to work at a bank, you have to pay them $10,000 first. I was like what the hew... Why do you have to pay a job to make money? After a few months then you make enough to get your money back. Only wealthy kids get the jobs, cause their parents know people who know people, you know what I mean? That's so bull....

If only the people would rise up.Look at Burma.Can't they see how well other countries are doing.Instead of waiting for
the IMF to give money so we can build this and that.Why
not open up the country and encourage foreign investment ?
The commie too dam greedy that's why.They don't look to the future like 20 or 30 yrs down the road.They just grab what they can and get fat.While the people are freaking
starving.

My heart is in the right place, but I feel so helpless when thinking about the situation in Laos. Wish I have the resources (money) to help make it a better country to live. I know that money can't buy everything, but it sure can buy a lot of things that will make a lot of people happy.

Bao Evil wrote on 6^th Sep, 2013 at 8:12pm:

My heart is in the right place, but I feel so helpless when thinking about the situation in Laos. Wish I have the resources (money) to help make it a better country to live. I know that money can't buy everything, but it sure can buy a lot of things that will make a lot of people happy.

I understand what you're saying.You can't solve problem
by throwing money at it .Its like putting a bandage on a leak.
You have to plant the seed .The people just need to be given a chance .

Just like Johnny Appleseed?  :laugh3 :laugh3 :laugh3 :laugh3