With the Laos garment industry facing acute labour shortages, the industry itself has started to shrink, according to the Association of the Lao Garment Industry.
Notwithstanding the initial growth of the industry from 2003 to 2011, the garment industry has since 2012 displayed a downward trend.
Speaking at the group’s annual meeting in Vientiane recently, the ssociation’s President Dr Xaybandith Rasphone said “Labour shortage issues have caused new investors to lose interest in Laos, instead shifting their capital to neighbouring countries, especially Cambodia, Vietnam and Myanmar.”
“The sector is also struggling with low labour skill issues as most workers have no experience and have to learn on the job, and many employees don’t want to take on responsibility,” Dr Xaybandith noted.
One of the main reasons for this decline is the mindset of the majority of the people, which still remains pretty easygoing, not acclimatised to the modern industrial and technological ways. Besides, workers now have a variety of options before them.
Currently, there are 92 garment factories operating in Laos, which is six less than 2014. Around 60 of these make apparel for export. Among the exporters, 12 are solely owned by Lao nationals, 10 are joint ventures, while 38 are foreign owned, Dr Xaybandith said.
The value of garment exports in 2015 amounted to about US$174.2 million, a drop of 7.25 per cent compared to 2014. Most products are exported to the EU, the US, Canada, Japan and some Asean countries.
