KPL
(KPL) The Department of Employment, Ministry of Labour and Social Welfare, signed a Memorandum of Understanding with Indochina Bank to ensure Lao migrant workers can access financial assistance and remit their savings back to the country.
(KPL) The Department of Employment, Ministry of Labour and Social Welfare, signed a Memorandum of Understanding with Indochina Bank to ensure Lao migrant workers can access financial assistance and remit their savings back to the country.
The MoU was signed by Director of Department of Employment Anousone Khamsingsavath, , and General Director of Indochina Bank Chanpheng Vongsombath in the presence of Deputy Minister of Labour and Social Welfare Phongsaysak Inthalath, President of Indochina Bank Tay Hong Heng, and representatives of relevant sectors.
“The Ministry of Labour and Social Welfare has signed labour cooperation agreements with three countries namely Thailand, Japan, and the Republic of Korea. So far, we have sent a relatively large number of Lao workers to these countries,” said Anousone Khamsingsavath.
Last year, the Lao PDR sent over 108,400 workers to the three countries including over 104,000 to Thailand, over 3,000 to the Republic of Korea and 647 to Japan.
Working in Korea is getting popular among the majority of Lao workers. Sending Lao workers to the Republic of Korea has been conducted under two programmes: Employment Permit System (EPS) designed to secure workers for small and medium industrial factories under a 3-5 year employment contract, and Seasonal Workers (SW) programme devised for those wishing to work in the agricultural sector under a 3-5 month contract.
A study has suggested that most Lao workers working in Korea are from low-income families in rural areas of Laos. The workers find it is quite difficult for them to access financial loan to be spent on their application and they also need to pay a high interest for the money they borrow so they are at risk of being exploited. In addition, the understanding of financial things among Lao workers remain limited, especially on how to open a bank account before leaving the country, or how to remit remittances back to homeland using banking system, among others. As a result, the workers find it difficult to remit money back to homeland to help relieve the financial burden of their families.
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