The Asian Development Bank (ADB) has approved a $36 million financing package to align technical and vocational education and training (TVET) with labor market demands in the Lao People’s Democratic Republic (Lao PDR). The Skills Enhancement for Inclusive and Green Economic Development Project aims to increase local employment opportunities for young people, particularly women, by providing climate-resilient school facilities and equipping graduates with future-ready skills to support inclusive growth and a resilient, competitive economy. The financing package includes $30 million in concessional funding from ADB’s ordinary capital resources, along with $3 million grants each from the Asian Development Fund and the Japan Fund for Prosperous and Resilient Asia and the Pacific.
ADB Country Director for Lao PDR, Shanny Campbell, emphasized that the project reflects a shared vision with the Lao government to invest in the country’s human capital. By providing young people, especially disadvantaged women, with practical skills for the green economy, the initiative aims to drive job creation, strengthen resilience, promote inclusive growth, and build a competitive workforce capable of shaping Lao PDR’s sustainable future.
Currently, many TVET graduates in Lao PDR lack job-ready skills, resulting in high unemployment and underemployment. Approximately four in ten young people are not engaged in education, work, or training, and women face additional social and financial barriers that limit their participation in growing sectors such as information and communications technology (ICT), construction, and green jobs. Many TVET schools still rely on outdated teaching methods and equipment, offering limited practical training for students.
The project will tackle these challenges by preparing students for high-demand, green jobs while upgrading school infrastructure to be climate-resilient. It will introduce advanced courses in areas such as e-vehicle maintenance, ICT, and industrial electrical, incorporating green skills for the future. Teachers will receive training in modern technologies and updated pedagogical approaches, and schools will provide short courses for youth and adults. Partnerships with businesses will facilitate practical learning experiences and job fairs.
To enhance accessibility, eleven schools will be upgraded with disaster-resilient features, energy-efficient tools, and modern dormitories for girls from rural areas. The project will also offer life skills training, promote women’s enrollment in advanced courses, provide stipends to returning students, and conduct awareness campaigns to break down barriers and ensure equal opportunities for all.
ADB, founded in 1966 and owned by 69 members, including 50 from the region, is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Through innovative financial tools and strategic partnerships, ADB works with members and partners to address complex development challenges, transform lives, build quality infrastructure, and safeguard the environment.
