Core area: Sustainable economic development, training and employment Modernising vocational training, preventing labour migration abroad

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Major progress was made in the education system in Laos in the years preceding the pandemic. However, the COVID-19 crisis set this progress back by about 10 years. State funding for education has been cut drastically, from 3.2 per cent of GDP in 2013 to around 1.23 per cent in 2024. This has led to a high number of children dropping out of school, particularly in rural areas, with up to 20 per cent of children leaving education at primary school age.

Links are also lacking between educational institutions and the business world. This means the training young people receive often fails to meet the needs of the labour market, which makes it harder for them to enter the working world. Additionally, the shortage of well-trained teachers and necessary equipment leads to irregular lessons and impacts the learning environment, particularly in rural areas. The quality of education suffers tangibly as a result, which in turn makes it harder for young people to find better jobs.

The lack of training opportunities and job prospects mean the younger generation often see no future in their home country and are migrating abroad in large numbers, especially to Thailand. This is exacerbating the lack of skilled workers in Laos long-term and is holding back the country’s economic development. The high drop-out rate for trainees feeds into this cycle.

Goal of the projects

The projects currently in place aim to modernise the vocational training system in Laos and adapt it to the demands of the future. The intention is to improve the quality of training and the opportunities available to disadvantaged groups. Cooperation between training institutions and the private sector is being fostered so as to align vocational training more closely with the needs and demands of the labour market. Long-term, this will contribute to reducing the amount of migration abroad.

Processes and priority areas

• One of the projects collaborates with the Ministry of Education and the Lao National Chamber of Commerce and Industry to enhance the country’s dual vocational training system. The project supports the private sector in establishing sustainable structures and offers nationwide training on how to carry out dual vocational education. The Ministry of Education is receiving advice on how to improve access to training and integrate topics like soft skills and entrepreneurship into training programmes. Vocational training facilities and businesses are also receiving support when it comes to networking, quality assurance and promoting green, digital and gender-inclusive training opportunities.
  
• To boost participation and equality in the education system, assistance is being offered to vocational training facilities and companies that provide training in order to develop training programmes that are attractive to women and disadvantaged groups.
  
• One project is creating sustainable funding models for vocational training in order to strengthen collaboration between educational facilities and the private sector, leading to closer long-term alignment between vocational education and the demands of the labour market.