STAF - Skills for Tourism and Agriculture and Forestry
Switzerland, Luxembourg and the European Union are joining hands to reform the TVET sector together with the Government of Laos to increase the employability and income of the Lao people. Switzerland’s long-term experience in poverty reduction, vocational training and private sector engagement will support youth to access improved vocational skills development and reach employment through stronger employment service delivery.
| Country/region | Topic | Period | Budget |
|---|---|---|---|
|
Laos |
Vocational training Employment & economic development
Vocational training
Employment creation |
01.01.2023
- 31.12.2027 |
CHF 9’250’000
|
- National State Institute North
- Foreign private sector North
-
Sector according to the OECD Developement Assistance Commitiee categorisation EDUCATION
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Vocational training
Employment policy and administrative management
Cross-cutting topics The project also supports partner organisation improvements
Aid Type Project and programme contribution
Project number 7F09176
| Background | Social and economic development in Laos remains limited by the poor competitiveness of its workforce, a predominant small business sector and the low uptake of Vocational Skill Development (VSD) services. Compared to neighbouring countries its education and skills levels continue to lag, reducing growth prospects. By 2025, the estimated working age population will reach 4.7 million drawn from a population size of 7.2 million (female 49%). However, this potentially positive demographic prospect is challenged by an estimated post-COVID-19 unemployment rate of 21.8% in 2021 as compared to a level of only 9.4% in 2017. Both the quality of available labour and the quality of existing VSD service providers is weak, thus resulting in little trust and demand for VSD which then leads to poor employment outcomes. The future competitiveness of the Lao economy depends on VSD services and products that are better aligned with the needs of employers and the self-employed. To reach the full potential of economic recovery, labourer from all backgrounds must be able to access these services. Tourism and Hospitality, and Agriculture and Forestry are among the sectors with expected high growth and continued high needs for skilled labour. |
| Objectives | A strengthened VSD system aligned with labour market needs that enhances employability and economic inclusion providing greater opportunities for diversified and sustainable income and employment, particularly for women and young people. |
| Target groups |
Direct beneficiaries: 20,000 disadvantaged youth having access to improved VSD leading to gainful employment for at least 65% (13’000). 50% of the beneficiaries shall be women. 75% shall be from vulnerable groups in line with the SDC’s Leave No One Behind commitment. Indirect beneficiaries: 200’000 jobseekers and entrepreneurs will have received job market information and services through a well-established social media platform. |
| Medium-term outcomes |
Outcome 1: Vocational Skills Development services and their delivery are relevant and of good quality. Outcome 2: The demand for quality Vocational Skills Development services has increased amongst employers, job seekers and entrepreneurs. Outcome 3: Investment in Vocational Skills Development services, including those directed to disadvantaged communities, are more cost- effective. Outcome 4: Lao people, including those living in disadvantaged communities, have access to Vocational Skills Development services. Outcome 5: Lao people are better aware of opportunities for secure and decent wage employment. |
| Results |
Expected results: - Local VSD providers provide short-term tailored trainings related to local labour market needs. - Job-seekers, entrepreneurs and start-ups recognise the value of employability and life-skills. - Communities, school bodies and relevant institutions promote VSD. - Lao people living in poor rural areas can afford to pay for VSD services. - Online employment platforms have been developed and are operational. - Job seekers actively and regularly seek work opportunity information and advice. Results from previous phases: - 12’000 people (72% female, 82% from disadvantaged backgrounds) trained in Tourism/Hospitality skills development courses. 89% of the graduates were employed within three months after graduating and had income above the minimum wage. 82% of the employers were satisfied with the relevance of the trained students’ abilities and knowledge. - Full suites for the skills development programmes in T/H were developed from the certificate to diploma levels and were implemented at public and private institutions. 17 technical education schools have improved training facilities and equipment to deliver more practical and better quality T/H lessons. - 120 ASEAN Common Competency Standards were translated into Lao and disseminated to 638 teachers to deliver skills development programmes based on international standards. |
| Directorate/federal office responsible |
SDC |
| Project partners |
Contract partner Private sector Foreign state institution Other partners Luxembourg Development Cooperation Agency (LuxDev) |
| Coordination with other projects and actors |
SDC: Vocational Training and Employment Support Services (VTESS), Lao Upland Rural Advisory Service (LURAS). Other DPs: Skills for Growth (WB); Vocational Education Financing Facility (KfW). |
| Budget | Current phase Swiss budget CHF 9’250’000 Swiss disbursement to date CHF 1’409’106 |
| Project phases | Phase 2 01.01.2023 - 31.12.2027 (Current phase) Phase 1 01.12.2014 - 31.12.2022 (Completed) |
