Labor Productivity analysis in Lao PDR Case study: Garment, Furniture and food-beverage industry

Abstract

Growth in labor productivity is crucial to economic growth and has an important role to increase worker incomes. As a result, this study has analyzed the level of labor productivity in three industries, such as furniture, food-beverage, and clothing industry, and studies of factors affecting labor productivity. The study found that only large textile industries with higher productivity and positive value were positive. Generally, manufacturing output is lower than that of manufacturing, with only large garment industry with higher labor productivity than zero, both in manufacturing, manufacturing and outside manufacturing. In addition, all three industries have a higher remuneration than average labor per capita per month, whether for production, manufacturing or outside production. But the small-scale food-beverage industry is characterized by lower labor productivity than labor-intensive remuneration, and the medium-sized garment industry is lower than the third-generation labor productivity of less than three times a month. Thus, the wage determination of these groups should be delineated so that it can provide an incentive to the labor force and increase the level of labor productivity. In addition, the government should focus on building a vocational training promotion and training program for Lao workers, as well as building labor productivity awareness among entrepreneurs, especially Lao entrepreneurs, in order to stimulate labor productivity.