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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Selling Factors & Techniques
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American products generally enjoy a good reputation for technological sophistication and high quality in Laos. The consumer products of Laos’s regional neighbors are far better known, however, and the Lao market can be difficult for American products due to their relatively high prices.  To compete successfully, some U.S. firms have combined routine advertising with workshops, training programs, trade shows, and product launching events for wholesalers and distributors, as well as customers. U.S. products that enter the Thai market are often found in the Lao market as well.  Though new product labeling requirements are under consideration, Thai products with Thai language packaging are ubiquitous in Laos as most educated Lao can read Thai, so Thai language packaging often suffices.  American products that include Lao-language packaging and/or promotional materials are likely to be positively received.

Trade Promotion and Advertising

Advertising and trade promotion are important marketing tools for American products. Radio, print, SMS, social media, and internet advertising are widely used in Laos. Since nearly all Lao who own televisions watch Thai advertisements, a good reputation and strong advertising campaign in Thailand will likely have a positive effect on Lao consumers as well.

To reach the large youth population in urban centers, advertisers increasingly use social media and popular websites.  Many large companies advertise in local newspapers and magazines, though distribution is dwarfed by the readership of popular internet sites.

Pricing

In December 2021, Laos amended the value-added tax (VAT) law following Presidential Decree no. 231/P, which reduced the VAT rate from 10 to 7 percent as part of the government’s effort to promote economic recovery. In 2024, this decree was reversed, and the 10 percent VAT rate was re-instituted to increase government revenues. The amended law exempts certain activities, while certain mineral and electricity-related activities are subject to a specific basis for VAT calculation. VAT is not uniformly collected.

Local Professional Services

The legal community is small in Laos, and it is wise to seek recommendations. Please see the U.S. Citizen Resource website for information on local professional services.

Principal Business Associations

LNCCI is the main business association in Laos, and several other organizations work on business issues within Laos, including:

•              The American Lao Business Association (a member of the Asia Pacific Council of American Chambers of Commerce)

•              The U.S.-ASEAN Business Council

•              The European Chamber of Commerce and Industry in Laos

•              The Australian Chamber of Commerce in Laos

•              Other foreign chambers, including Vietnam, Thailand, China, Japan, Korea, and others.

Limitations on Selling U.S. Products and Services

“Strategic” industries may be subject to special requirements.  Consult the Lao Trade Portal and the official gazette for the latest information.

Resources

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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.

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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.

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