HEADLINE: PHNOM PENH, Laos- Migrant workers expect to send US$4.55 million a month to Laos
Many Lao workers continue to seek jobs in other countries to earn more income for their families.
| Mr Phongsaisack Intharath. |
Lao nationals working in other countries are expected to send remittances worth about US$4.55 million to Laos, which are an important source of foreign exchange.
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The overall development impact of remittances, however, has not been well established.
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Remittances are spent primarily on day-to-day consumption expenditure, housing, land purchase, and debt repayment.
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Addressing the National Assembly last week, Deputy Minister of Labour and Social Welfare, Mr Phongsaisack Intharath, gave this response in reply to questions raised by Assembly members during the ongoing 3rd Ordinary Session of parliament.
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Although only a small proportion of remittances are directed into productive investments, this does not warrant the conclusion that the developmental value of remittances is negligible.
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Remittances given to workers’ parents for the purchase of domestic goods and services in Laos are an important economic stimulus.
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The Lao Foreign Employment Agency manages and monitors at least 30 government agencies and private recruitment agencies and issues permits under the Labour Law, Mr Phongsaisack said.
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Remittances sent by Lao workers abroad must go through the Lao Foreign Employment Agency, which tracks and manages recruitment agencies.
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Before a company begins to recruit workers for jobs both within and outside of Laos, it must submit a letter from the Ministry of Labour and Social Welfare to the Department of Labour Protection and Welfare in Vientiane or the relevant province to track and facilitate the recruitment of workers in each province, he added.
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In addition, all workers must have an employee card issued by the Department of Employment.
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The Ministry of Labour and Social Welfare can take action to prevent employers from misleading workers after applying and filling out authorisation documents issued by local authorities, which are required before workers can be relocated.
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Training manuals are provided before sending workers to other countries. Recruitment agencies are also required to inform new recruits about the rules of employment and other regulations in their destination country, as well as travel and living conditions, and ways to contact the authorities if they encounter a problem.
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An online programme records data about workers sent abroad by a recruitment company and there is periodic monitoring and evaluation of the activities of each company.
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Employment of Lao nationals in other countries has many advantages, both for the workers themselves and for Laos, but at the same time there is a shortage of labour in some sectors of the Lao economy.
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If workers continue to seek jobs in other countries, the government will need to formulate policies to expand the Lao labour market abroad like any other Asean country.
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By Phetphoxay Sengpaseuth
(Latest Update June 20, 2022)
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