Essay on Laos: The New Frontier for U.S. Companies

Essay on Laos: The New Frontier for U.S. Companies

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The Ministry of Labour and Social Welfare (MSLW) establishes the minimum wage for workers in Laos. In 2009 along with Federation of Lao Trade Union (FTLU) and Laos Chamber of Commerce the minimum daily wage was set to 13,385 kip (approximately $1.60) with the minimum monthly wage being 348,000 kip. In addition employees pay 8,500 kip ($1) meal allowance per day. Civil servants and state employees are paid 405,000($47.80) per month. They receive a stipend for housing and other government benefits. Immigrant employees country, particularly from
Vietnam, China, and Burma, that are labor workers jobs such as on construction sites often earn less than the minimum wage (U.S Department of State, 2011).
The Laos people are not permitted to form or join a union unless given permission by the government and are sanctioned by the FLTU. Foreign workers may not participate in unions at all. Approximately 5 % of the Lao workforce belongs to a union. If a dispute occurs it must be resolved though workplace committees with representatives present for the employer, labor union and FLU. When disputes occur the FLTU representative must request permission to enter the facility and provide advance notice of the visit often times rendering them helpless to protect workers who filed the complaints (U.S Department of State, 2011).
Economic Disparity
The economy of Laos relies heavily on natural resources including mining and hydro-electricity. While the export of the resources produces revenue, total dependence on them will hinder the growth of the country. Laos must diversify itself into other sectors such as agriculture, manufacturing, tourism and garments to succeed as a nation. If these sectors are strengthened investments can be m...

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....d.). Retrieved October 26, 2011, from Laos:
Sisouphanthong, B., & Myers, C. N. (2006). Retrieved Octobe r26 2011, from INTERNATIONAL TRADE:
U.S Department of State. (2011, April 8). Retrieved from 2010 Human Rights Report: Laos:
United Nation in Lao PDR. (n.d.). Retrieved October 26, 2011, from Progress towards the MDGs in the Lao PDR:
Wikipedia. (n.d.). Retrieved from Human Trafficking in Laos:
Future Trends . (2011). Retrieved November 1, 2011, from
Land Statistics . (n.d. ). Retrieved November 1, 2011, from

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