Many foreigners often describe the Lao work ethic as lazy or more laid back characterized by incomplete work hours, absenteeism, disdain for doing certain tasks, etc. However this is NOT the case generally speaking. There are a lot of hardworking people who work long hours each day and yet still have to struggle to make ends meet because income wages are so low in the country. Lao workers are typically quite loyal towards an employer who they see as fair and friendly, even if that employer pays low.
You see people in Laos work in what we would characterize as low jobs and of course high ranking jobs too. You see lazy people but you also see a lot of hardworking people who are infinitely appreciative of whatever good paying position they have been able to get.
The economy is a poor one and so are its general populace. Therefore, people are very appreciative of whatever stable and 'relative' income and job they have. They all comment on how low the pay/wages are - which is completely true because people are paid very low in Laos. This low pay however is what gives Laos a competitive advantage over other countries in terms of labor costs. It makes it a cheap place to do business in, in that regard.
As everyone is looking for work, it is somewhat easy to replace workers however like in any country it is dfficult to find good, long-term employees. Employers/bosses, whether Lao or non-Lao, can be described by how they treat their employees. Typically the Lao worker (although not in all cases) tends to be somewhat submissive towards authority especially towards the boss for whom they draw a paycheque from.
Those that are in control, the bosses or those who have more money then most others, have a very interesting superiority complex believing that they are better (we do see this everywhere in the world). And those at the other end sometimes believe this as well and believe that they are somehow therefore inferior because they are poor. All of this, of course, is wrong. In fact you see this across all of Asia.
However because this type of attitude exists you do see employers and bosses treat their workers with very little care. They can fire an employee, lower their wages arbitrarily, delay pay (which is a very common complaint also) and only those who have an inside connection are often hired or are able to move up the ladder in the company. There are no fringe benefits and packages, and no say in where/when you prefer to work. Working conditions are often poor and employee input is rarely sought.
A Lao worker often works long hours and sometimes has to do multiple jobs outside of what one was originally hired to do. In other words you have no choice and are under complete control of what the boss tells you to do as long as you remain in that job.
Being poor makes them susceptible to being/staying in bad work positions or taking up risky jobs. In spite of that though, you still see many hardworking people doing whatever they have to do. It is disheartening to read comments by other writers saying that Lao workers are lazy when in fact the opposite is true. And in fact many of them have such great patience to stay in bad paying jobs, being mistreated at work, extreme labor intensive jobs, simply because they need an income.
Conclusion/Solution: If the employers treat their employees better and increase pay more comparable to living costs and allowing one to save some money, no doubt many of the current problems in the labor market would disappear (1). You would probably see less employee turnover, less abenteeism, less switching from one job to another, more loyalty, more people taking up those hard-to-fill positions, and fewer educated people in underemployed positions, and less people going to other countries to earn money. And while Laos' low wages give it a competitive advantage in low labor costs, low wages means there is an inability to save and forcing the economically disadvantaged to borrow which increases their debt. Thus, the poor will continue to remain poor (2).
(1) Note: Contrary to what people believe that the low pay is enough to pay for living costs, this is not entirely true throughout the economy. Many will work all day and earn equivalent of perhaps a few dollars. But when you add up the cost to travel to work, vehicle gas, food/groceries, home costs ie. water/electricity bill, having family, etc. then you can see that the low wages are very insufficient. This also prevents many from taking certain positions as they see the economic benefit as being too low. Which oddly enough, inspires some people to write/say that Lao workers are lazy.
(2) Remember: Worker's unions and employee rights are very limited-to-non-existent in Laos. Therefore working conditions will most likely remain generally poor until employers see the light of treating their employees better and creating a more vibrant workplace to ensure productive and loyal employees.
They are welcomed as most if not all groups are in Laos. It's rare to hear prejudice against any specific groups in Laos. Admittedly, there are some sly or quiet comments among the locals and foreigners. However among the locals it is somewhat rare, especially in regards to ethnicity - this could be the simple fact that Laos is very multi-ethnic. There have even been Taiwanese investors in Laos since the mid-70s.
For the Chinese the decision to be a part of the Lao community or the Chinese one, is often a matter of economics and business rather than just cultural or linguistical. The case of dual identities is a beneficial one. For example, it is often beneficial for Chinese to gain Lao citizenship because doing business, and more specifically the price of doing business, is much better. Paper work is often much easier, cheaper and less cumbersome if you are Lao than a foreigner. There are instances of families who set up marriages specifically to marry into certain circle groups, political/ethnic/commercial, in order to become more accepted.
But on the flip side, with some Chinese lineage, Chinese/Lao entrepreneurs can more easily tap into special resources such as contacts in China for exports/imports and they also tap into the general Chinese business circle especially those in Yunnan, China and other neighbouring countries.
The Chinese community is quite vibrant both in the north, central and south of Laos. Although their numbers are considerbly lower compared to other satellite Chinese immigrant communities in other countries. However they still practice their religions, speak their language and celebrate special occassions like Chinese New Year and have Chinese schools. In the past, such as in a 1959 Royal order and during the initial years of the communist regime especially when Laos and China relations were strained in the 1980s, foreigners including Chinese were forbidden to take certain professions. Although this does not mean that the Chinese were not able to gain a strong foothold among several industries. Today as in the past, you see Chinese being key players in industries like import/exporting commerce, construction, banking, etc.
Some Lao-Chinese appreciate their Lao heritage while others have a disdain towards their Lao heritage and Lao people and think rather negative things. It depends on the individual.
While many Chinese join part in the Lao community, they never truly assimilate into the hegemonic culture that exists in whichever country they choose to live in. They maintain and utilize the dual identities they have, both the Chinese one and that of the host country. This often gives them leverage in maneuvering through life and opportunities that both identities offer.
Many, Lao and non-Lao alike, continue to see the economic potential, however cumbersome it may be, of starting commercial enterprises in Laos. Therefore, even today you do see Chinese (and Vietnamese) enter Laos to live in and to do business. Many of them however do not speak Lao. It's also been noticed that some construction contracts, such as the recent Don Chanh Shopping Mall and Hotel in Vientiane, are being given to Chinese businesses or joint Lao-Chinese businesses. In these instances, you see, not only Lao people, but many Chinese people being employed to do the construction. This is similar to the past when road construction in the north was performed by Chinese workers and Chinese army men from China's People's Liberation Army.
