Investments set to create 55,000 jobs next fiscal year
The Lao government is planning to initiate several major public and private investments next fiscal year which will create more than 55,000 jobs nationwide.
According to the National Social-Economic Development Plan for 2010-11, which the Lao National Assembly approved last month, the government plans to implement the state and private investment projects worth 19,610 billion kip to secure GDP growth of above 8 percent next fiscal year.
Investment projects will provide more job opportunities for Lao workers.
About 11 percent of the total investments will be state investment projects, with the remainder private domestic and foreign investments.
The government estimates that the investments will create more than 55,000 jobs in the 2010-11 fiscal year, which begins in October, providing opportunities for new graduates to gain employment.
About 44,000 students graduate from vocational schools, colleges and universities nationwide every year, according to statistics from the ministries of education, and labour and social welfare.
Economists believe the government needs to encourage private investment to sustain strong GDP growth over the next five years and also create jobs for new graduates; otherwise the nation may face a high unemployment rate in coming years.
The sectors with the highest potential for investment in Laos are hydropower, mining, industry, and the processing of agricultural goods.
Economists say there is a need to develop a skilled workforce that can meet the demands of the labour market to ensure investments will bring benefits at the local level.
At present, many investors employ foreign workers, as the Lao workforce is ill-equipped to use the latest modern technology.
The government is simplifying investment procedures as one measure to encourage more private investment in the country. One new initiative is a ‘one stop service' at the Ministry of Planning and Investment.
According to a study by the Ministry of Industry and Commerce, a major challenge facing the labour sector is the fact that many Lao people consider it too risky to launch their own business, preferring to work as employees.
The study points out that there is a need to promote entrepreneurship in the younger generation to encourage them to establish businesses which will create jobs and income for Lao people.
The Ministry of Education is currently working with other sectors to develop a curriculum for secondary schools aimed at boosting business skills and encouraging more young people to establish their own businesses.
Source: VTETIMES
By Ekaphone Phouthonesy
(Latest Update July 29, 2010)
Author
Topic: Investments set to create 55,000 jobs next fiscal year (Read 179 times)
