This study examines skills shortages as well as growth and transformation in the manufacturing industry in Lao PDR and explores training preferences of employers in the sector. The research draws on a survey of 144 formal sector companies, focusing on the Garment, and Food & Beverage industries. The results reveal that both industries have undergone significant growth and transformation. The Food & Beverage sector has witnessed remarkable expansion, while the Garment industry has demonstrated resilience and adaptability. Although some skills shortages exist, particularly in the Food & Beverage industry, the study finds surprisingly few challenges in filling positions despite rapid economic growth. Manufacturing companies prioritize hands-on skills and experience over formal education when hiring.

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It is generally recognized that TVET teachers are better suited to impart relevant professional competencies if they themselves have extensive experience in the world of work (e.g., in industry or the trades). In many parts of the world, however, this is not the case, not least because many teachers go straight into teaching after an academic education. For this reason, policy makers have tried to integrate the acquisition of professional experience into the training of TVET teachers. The following article discusses this topic using the example of Lao PDR, in particular through an assessment of current levels of industry experience of TVET teachers in Lao PDR. The study used mixed methods: a quantitative survey (n = 74) and qualitative semi-structured interviews (n = 9). The article finds that the main reason for lack of industry experience amongst TVET teachers is poor cooperation between training providers and industrial enterprises. The article proposes ways to improve cooperation, so that teachers gain more experience in industry as part of their professional development. 

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