The opening of the second ordinary session of the 10th National Assembly in Vientiane, Lao PDR, on October 5, 2026. (KPL)
Addressing the second ordinary session of the 10th National Assembly on October 9, Lao Minister of Labour and Social Welfare Phoxay Sayasone outlined the government’s action plan to tackle domestic labour shortage issues.
The remark was made following the official report by the Lao Ministry of Labour and Social Welfare issued a day prior, in which it disclosed that out of 119,382 people who secured employment during the first nine months of 2026, 103,610 of them chose to work abroad, citing better wages.
This massive imbalance also points to structural problems in the Laotian economy, notably the chronic currency depreciation driven by an external debt burden.
Minister Phoxay noted that the government has been reserving specific fields for local workers through its pilot programme since 2024, focusing specifically on rural job opportunities tied to cultural promotion and traditional knowledge.
Furthermore, to boost self employment, the ministry is committed to encourage entrepreneurship, namely by providing vocational training for economically vulnerable populations, as well as assisting small businesses requiring minimal technology or capital.
What does this mean for businesses?
For domestic enterprises, this structural drain triggers a severe talent crunch and forces aggressive wage competition. To survive, local employers must look beyond traditional cash compensation by enhancing workplace conditions, offering non-monetary incentives, and modernising operations to reduce dependency on manual labour. However, the government plays a foundational role here, namely to first confront systemic issues such as corruption and the external debt burden.
Kala Advisory helps investors turn macroeconomic challenges like these into targeted, country-by-country entry plans across Southeast Asia. Visit kala-advisory.com.
About The Author
One thought on “Laos National Assembly Addresses Severe Domestic Talent Crunch ”