You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

July 29, 2020

Laos: Positive trends after impact of COVID-19

Subscribe to Updates
Taylor Vinters – International Employment Law Update

On March 29, 2020 Laos imposed lockdown and confinement measures instructing Lao citizens to stay home, and nonessential businesses to cease operations. Certain temporary measures are now being lifted but the borders and international checkpoints remain closed.

The impact on some industries during the pandemic has been severe, but we are also seeing some positives coming out of this which may well continue once the lockdown measures have been lifted:

  • Importance given to hygiene and safety measures. The official Government responses to the COVID-19 pandemic and related guidance which has been published regarding the enforcement of stricter precautionary measures, has reaffirmed the importance of the hygiene and safety of employees in the workplace. In high-risk environments, it is likely that going forward there will be a higher degree of attention on health and safety measures and the obligations that employers must adhere to in protecting its staff.
  • Dialogue with the authorities. While it is usually felt that the Lao bureaucracy poses challenges to investors, this period has proved otherwise. Local authorities have notably been more responsive to the concerns raised by business owners in terms of the controlled easing of lockdown measures and guidance on the operation of essential business during the strict lockdown.
  • Adaptability. Despite the pandemic’s impact on the Lao economy, tech-based companies seem to have maintained business operations and avoided any economic loss by broadening access to resources online whilst staff work from home during the lockdown period. Accordingly, in the coming months and years, it is likely that there will be more options for submitting and dealing with matters entirely online, and a move towards the implementation of more robust IT infrastructures for business owners.
  • Paperless governance. Similarly, the challenges faced by Laos’ businesses operating according to cumbersome paper-based management practices have shed light on the value of electronic document and record management systems, and the potential for more inclusive e-governance in the future.

Comment

We are likely to see a shift to more web-based and online-based businesses, and companies working more flexibly in respect of employees and where they are based. Although the pandemic lockdown   has impacted some businesses negatively, it has also highlighted that there are alternative ways for employers to remain connected with their employees and that their businesses can operate under a different model to their existing one.

Related Professionals

Practices

Employment

Location

RELATED INSIGHTS​ 

May 7, 2020
On April 27, the Government of Myanmar issued its Economic Relief Plan to Mitigate the Economic Impact from the COVID-19 Pandemic. The plan aims to improve the economic environment and ease the strain on businesses and households.The Economic Relief Plan outlines seven broad goals (for example, “Ease the Impact on the Private Sector”) supported by 76 action plans covering a range of extraordinary fiscal measures, as well as measures to support businesses, households, and the self-employed. The key measures are summarized below.
Read More
May 5, 2020
Shortly after the extension of the COVID-19 lockdown measures in Laos on May 1, 2020, the Prime Minister’s Office provided additional details on the post-lockdown period and the relaxation of certain measures in Notification No. 524/PMO.  
Read More
May 5, 2020
The Global Attorney-Client Privilege Guide, published by Lex Mundi, provides information on what constitutes attorney-client privilege in over 65 jurisdictions around the world. The Thailand chapter of the guide was written by Michael Ramirez, counsel in the dispute resolution group of Tilleke & Gibbins’ Bangkok office.
Read More
April 27, 2020
Thailand’s Ministry of Interior has proposed a second round of automatic visa extensions for non-Thai citizens in Thailand whose visas will expire on or after April 30, 2020, along with a temporary exemption from the 90-day report duty, due to the continued travel restrictions in light of the COVID-19 pandemic.On April 21, the Cabinet approved the second automatic visa extension. All types of visas will therefore be automatically extended to July 31, 2020. A temporary suspension of the 90-day report requirement has also been granted until July 31, 2020.
Read More