Laos Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in laos, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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General Overview

Prior to the COVID-19 pandemic, electronic commerce was not widely used in Laos, due to underdeveloped telecommunications infrastructure and the low rate of formal banking and credit card use. Since 2021, the number of vendors proffering household wares through Facebook pages, WeChat, and WhatsApp has grown, with vendors typically relying on bank transfers or cash on delivery for payment. QR code-enabled transfers are most common but registering for the necessary local bank accounts can be cumbersome. In Laos, where traditional retail infrastructure is less developed compared to other Southeast Asian nations, online shopping has gained popularity despite the country’s limited e-commerce presence.  This trend is primarily fueled by social media platforms and creative approaches to cross-border shopping. Many commercial banks in Laos participate in cross-border QR code payments systems with neighboring countries.

With few established e-commerce platforms available domestically, Lao PDR citizens have turned to social media, especially Facebook and TikTok, as informal marketplaces. Numerous groups and pages have emerged, facilitating the buying and selling of a wide range of products, from clothing to electronics, and fostering a unique online shopping environment. However, the lack of a secure, universal payment platform, coupled with pervasive opportunities for nefarious actors to engage in digital fraud, continues to hamper growth. 

Legal & Regulatory

The Lao PDR government passed a Law on Electronic Transactions in 2012 and a Decree on Electronic Commerce in 2021 and has sought ways to encourage growth and capture revenue from electronic commerce. The 2021 decree mandated electronic commerce entities register with the Ministry of Industry and Commerce. On February 2024, the Ministry of Finance in Laos released a new instruction numbered 0558/MOF outlining VAT obligations for foreign suppliers of digital goods and services, digital platforms, and e-commerce to users in Laos. 

Consumer Behavior

Facebook is the most common and effective tool used for businesses to communicate with their customers. Across the country most internet users access the web by mobile device.  Broadband internet access is widely available in Vientiane, although Laos has some of the most expensive and slowest internet speeds in ASEAN.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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