Lao businesses looking to hire large foreign workforce
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Businesses and project operators have asked for permission to hire a large number of foreign workers to fill job vacancies, a senior government official has said.
From September 2014 to March 2015, the government has approved requests by various projects and businesses to hire 40,690 foreign workers of various nationalities, according to the Ministry of Labour and Social Welfare.
This figure represents a significant increase compared to last year when permission was granted for only 24,609 foreign workers to be hired over the whole year.
Deputy Director General of the ministry's Skill Development and Employment Department, Ms Keo Chanthavixay, said more and more businesses have been asking for foreign workers following an amendment to the Labour Law, which allows employers to take on a larger number of foreign hires.
“Businesses actually requested an even larger number, but the ministry needs to give the matter appropriate consideration before giving authorisation,” Keo told the Vientiane Times recently, referring to authorisation allowed under the law.
The National Assembly passed the amended Labour Law in December 2013, giving employers the right to hire more foreign nationals.
Under the amended law, a workplace or enterprise can hire workers engaged in physical labour up to a number that constitutes 15 per cent of the total workforce, compared to 10 per cent as permitted under the old law.
In addition, foreign professionals may now make up 25 per cent of white-collar employees, up from 20 per cent previously.
Keo said the ultimate number of foreign hires could be considerably more than the number approved so far as the door remains open for further requests.
“Consideration and approval of further requests will be undertaken accordingly and appropriately,” she said.
Officials noted that the surge in demand for foreign workers reflects the fact that the Lao economy is expanding and the local workforce does not meet the growing demands of the job market.
Although a significant number of Lao workers will enter the job market from 2016-2020, this is estimated to be far from sufficient.
A s many as 716,000 additional Lao workers will enter the job market from 2015-2020, bringing the total to 4.11 million, according to the ministry's five-year plan which was presented recently at a national meeting of the ministry.
At least 31,130 workers will be needed by 2015 to work in nine sectors, according to information reported previously by the Lao National Chamber of Commerce and Industry.
The garment sector will require the large st number of workers at an estimated 9,900, followed by construction with 5,500, while the furniture production sector requires about 5,000 people.
