Manila, November 21 (AseanAll) — The Asian Development Bank (ADB) has approved a $36 million financing package to align technical and vocational education and training (TVET) with labor market needs in the Lao People’s Democratic Republic (Lao PDR). Through the Skills Enhancement for Inclusive and Green Economic Development Project, the initiative will boost local employment for young people, particularly women. It will provide climate-resilient school facilities and equip graduates with future-ready skills to drive the country’s inclusive growth and build a resilient, competitive economy.
The package includes a $30 million concessional funding from ADB’s ordinal capital resources, a $3 million grant from the Asian Development Fund, and a $3 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific.
“This project embodies ADB’s shared vision with the Government of Lao PDR to invest in the country’s greatest asset—its people,” said ADB Country Director for Lao PDR Shanny Campbell. “By equipping young people, especially disadvantaged women, with practical skills for the green economy, this initiative drives job creation, fosters resilience, promotes inclusive growth, and builds a competitive workforce that will shape Lao PDR’s sustainable and prosperous future for all.”
In the Lao PDR, many TVET graduates lack job-ready skills, leading to high unemployment and underemployment. Access to skills for employment is limited—about four in every ten young people are not in education, work, or training. Young women are disproportionately affected, facing social and financial barriers that leave them underrepresented in growing fields such as information and communications technology (ICT), construction, and green jobs. Additionally, most TVET schools still rely on outdated teaching methods and equipment, offering limited practical training.
The project will address these challenges by preparing students for high-demand, green jobs and by upgrading school infrastructure to be climate-resilient. It will offer advanced courses in e-vehicle maintenance, ICT, and industrial electrical, integrating green skills for the future. Teachers will receive training in advanced technologies and updated pedagogical methods, while schools will offer short courses for youth and adults. Partnerships with businesses will facilitate practical learning and job fairs.
To improve access, 11 schools will be upgraded with disaster-resilient features, energy-efficient tools, and modern dormitories for girls from rural areas. The project will also provide life skills training, encourage women to enroll in advanced courses, offer stipends to returning students, and run campaigns to break down barriers and ensure equal opportunities for all.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
