LAO/336
Skills for tourism, agriculture and forestry (STAF)

With continued low school enrolment and completion rates, and even lower uptake of post-school vocational education, education and skill levels in Laos continue to lag behind its regional neighbours, reducing the country’s economic competitiveness and growth prospects.

The five-year Skills for Tourism, Agriculture and Forestry programme (STAF) 2023-2027 will focus on two key areas of future economic growth in Lao PDR:

• tourism and hospitality sector (addressed by Luxembourg Aid & Development and the Swiss Agency for Development and Cooperation during multiple previous years);
• agriculture and forestry sector.

Both these key sectors are directly relevant and important to large numbers of some of the poorest, most disadvantaged and vulnerable workers and entrepreneurs. These sectors also offer significant potential for both green and digital growth and innovation.

The tourism industry has been hard-hit by the Covid-19 pandemic, with a significant contraction in employment. However, as the industry recovers over the next five years, a quality supply of graduates will ensure a continued increase in the skills profile of the sector, strengthening the regional and international competitiveness of Lao PDR as a tourism destination.

The agriculture, agroindustry and processing, and forestry sectors remain major economic drivers in the four target provinces. These sectors not only employ large numbers of women, men and youth but also support large numbers of micro- and small enterprises, providing upstream and downstream services in the respective value chains. With trade and movement controls now lifted, buoyed by the investments in key road and rail transport links with China, Thailand and Vietnam, these sectors are widely expected to enjoy significant, export-driven growth in the coming years.

The programme is, therefore, ideally positioned to ensure that disadvantaged individuals and communities in rural Lao PDR have the necessary skills and capacities to take advantage of this growth and to ensure ensuing rural economic development is both inclusive and equitable.

The geographical focus will be on the four priority provinces of Bolikhamxay, Bokeo, Khammouane and Vientiane. Support to tourism and hospitality Vocational Skills Development (VSD) strengthening will extend beyond these provinces to all those where tourism is a key economic driver. Support activities in agriculture and forestry will similarly extend to Luang Prabang province where significant growth is observable in these sectors.

Interventions will necessarily target support and capacity development of a broad array of VSD stakeholders including both public and private VSD providers, key employers and value chain actors in key sectors, and both national and provincial Government agencies with VSD-related mandates. In addition, relevant line ministry and mass organisation partners will be mobilised to support and strengthen the relevance of services.

The final beneficiaries are the thousands of young women and men receiving VSD services in addition to unemployed job seekers undergoing VSD training and coaching towards self-employment and increased employability. Particular priority will be given to strengthening access to VSD for women and girls, ethnic minorities and people with disabilities.

The STAF programme will focus on five key intermediate changes in pursuit of an enhanced and more industry facing VSD system:

• VSD services and their delivery are relevant and of good quality;
• the demand for quality VSD services is increased amongst employers, job seekers and entrepreneurs;
• investment in VSD services, including disadvantaged communities are more cost-effective;
• Lao people, including disadvantaged communities, have access to VSD services;
• Lao people are aware of opportunities for secure and decent wage employment.

This approach is further complemented by the collaborative investment of multiple development partners including Luxembourg Aid and Development, the Swiss Agency for Development and Cooperation and the European Union.