VTESS, Phase 3

The exit phase of VTESS will further promote an inclusive vocational skills development (VSD) system in Lao PDR. Within the current context of economic crisis, early school leavers from disadvantaged backgrounds will thereby benefit from improved and labour market relevant training, employment support services and a sustainable funding model for VSD.

Región/País Tema Período Presupuesto
Formación profesional
Empleo y desarrollo económico
Formación profesional
Creación de empleo
01.12.2023 - 30.11.2027
CHF  8’800’000
Contexto The country’s economy has not yet been able to resume since COVID-19. Economic growth has decreased drastically from an average of 7.5% to an estimated 2.7% for 2023, and Laos has slipped into a deep financial crisis with a depreciation of the kip and a galloping inflation. Increasing fuel and consumer goods prices are directly impacting the livelihoods of the population, particularly of vulnerable households. Young people are migrating for work in Thailand, where average wages are three times higher. While this trend is challenging for labour-intensive sectors such as garment manufacturing and hospitality, paradoxically the unemployment rate has increased from 15.7% in 2019 to 18.5% in 2022. Indeed, low education levels and skills mismatch with needs of the private sector make it difficult for the latter to grow and create employment. The reduction of school enrolments in secondary education and TVET is an additional element showing the depth of the crisis, with signs of coping strategies of vulnerable households getting exhausted. This context provides the rationale for the continuation of the VTESS project, with a focus on young people who have fallen out of the schooling and skills development system. 
Objetivos Early school leavers (aged 15-35) from disadvantaged backgrounds (gender, ethnicity, income poverty) in the Lao PDR increase their annual net income through productive (self-)employment.
Grupos destinarios Direct beneficiaries: • 3’500 early school leavers from disadvantaged groups (gender, ethnicity, income poverty). • 2’200 unemployed youth and job seekers (including 300 benefitting from seeds money). • 60 local coaches from Non-Profit Associations, government organizations and the private sector equipped for ESS coaching. • 784 IVET trainers & key staff, ESS partners, coaches and enterprises trained on technical skills for service delivery. Indirect beneficiaries: • 2’000 visitors (job seekers, parents, other interested) having access to job fairs and job information.
Efectos a medio plazo 1. Early school leavers from disadvantaged groups benefitting from Integrated Vocational Education and Training (IVET) courses are gainfully engaged in self- or wage-employment or re-enter the education system. 2. Early school leavers from disadvantaged groups benefitting from employment support services (ESS) are gainfully engaged in self- or wage-employment. 3. Graduates from the ESS coaching cycle benefitting from enterprise coaching and seed money successfully established a micro-enterprise. . A sustainable financing model for both IVET and ESS programmes has been endorsed by key stakeholders. 

Resultados previstos:   (1) IVET pathway for early school leavers • Labour market relevant C1 and C2 equivalency program courses implemented in IVET schools. • Outreach Programme for early school leavers from disadvantaged groups implemented. (2) Employment support services (ESS) for early school leavers • Full Coaching Cycle offered, incl. by ESS partners, with a special focus on women • Students complete Enterprise-Based Training. • Selected ESS partners have been capacitated to operate the ESS program on an ongoing basis. (3) Enterprise coaching and seed money for ESS coaching cycle graduates • Entrepreneurially minded ESS graduates enrol in Basic Entrepreneurship Training, with some graduates receiving start-up seed money. • Entrepreneurship partners capacitated to implement BET/seed money on an ongoing basis (4) Sustainable financing model for IVET and ESS programmes: a framework for broader implementation of the TVET Development Fund for IVET and ESS developed and endorsed. 

Resultados de las fases anteriores:   • 2’980 graduates from short courses (40% female, 10% female who completed male-oriented programs); 56% of graduates gained employment. • 1’175 young benefitted from the Employment Support Service coaching programme (12 months full cycle), of whom 72% gained (self)employment. • 404 disadvantaged youth benefited from the Basic Entrepreneurship Training; around 200 with seed money successfully self-employed after 6 months. • The Legal Framework for Equivalency Programme to support lower secondary school dropout was developed, approved and piloted in 2 provinces. • 124 trainers trained on the updated curriculum to support inclusive TVET. • Coaching for Employment and Entrepreneurship model developed by Lucerne University of Applied Sciences and Arts (HSLU) adopted, with 50 coaches trained; 14 coaches received the Certificate of Advanced Studies in coaching from the HSLU. The external evaluation acknowledges the good results. Its two key recommendations at strategic level are: (i) raise awareness on stakeholders and increase their commitment and ownership; (ii) social inclusion to be fostered at all implementation levels. 

Dirección / Officina Federal responsable COSUDE
Contrapartes del proyecto Contraparte del contrato
Sector privado
Organización suiza sin fines de lucro
  • Sector privado extranjero Sur/Este
  • Swisscontact

Coordinación con otros proyectos y actores  SDC: Skills for Tourism, Agriculture and Forestry (STAF); ASEAN-Swiss TVET Initiative (ASTI); other DPs: KfW (Vocational Education Financing Facility), World Bank (Priority Skills for Growth).
Presupuesto Fase en curso Presupuesto suizo CHF    8’800’000 Presupuesto actual suizo ya emitido CHF    1’011’300 Presupuesto inclusive contrapartes del proyecto CHF    8’800’000 Total del proyecto desde la primera fase Presupuesto suizo CHF   20’250’646 Presupuesto inclusive contrapartes del proyecto CHF   29’050’646
Fases del proyecto Fase 3 01.12.2023 - 30.11.2027   (Fase en curso) Fase 2 01.08.2019 - 30.11.2023   (Completed) Fase 1 01.01.2013 - 30.06.2019   (Completed)