General Information

Laos is an under-developed country. Its economy is the smallest in South East Asia. The country prioritises large projects for the exploitation of hydraulic, mineral, agroforestry and infrastructure development resources. It is increasing the liberalisation of its economy in light of adherence to the WTO.

Over the past few years the country has made much progress on combating money laundering and preventing the financing of terrorism. The country has reinforced its control of local financial institutions. Today the banking sector includes around forty banks as opposed to around thirty in 2013.

Means of Payment & Banking Specificities

Payment terms with Laos can be via transfer, documentary remittance or even by documentary credit.

However, as Laos remains a country under foreign exchange control, any entry or exit of currencies must be justified (specifically via import/export licences).

We always recommend that our clients work on the basis of documentary credit, even if this type of payment is relatively costly locally in relation to other payment modes.

For, with a documentary credit, the relation between cost and payment security remains the most secure, particularly for initial transactions.