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​ 

April 9, 2020
On April 8, 2020, Cambodia’s Ministry of Labor and Vocational Training (MLVT) issued an instruction to its staff not to impose any late penalties on non-Cambodian workers who want to renew their 2019 foreign work permits, but have failed to meet the initial renewal deadline, effective until further notice. The MLVT states that the instruction is intended to assist non-Cambodian workers that may not have been able to return to Cambodia to continue their work due to the global COVID-19 situation.
Read More
April 8, 2020
Vietnam’s Ministry of Labor, Invalids and Social Affairs (MOLISA) is considering a draft circular that would change regulations on working hours, including overtime, and breaks required for seasonal manufacturing workers and workers that process goods according to orders. The new regulations, if passed, would replace the current regulations under Circular No. 54/2015/TT-BLDTBXH of MOLISA, which was issued on December 16, 2015, and it is envisioned that the new regulations would come into effect on January 1, 2021.
Read More
April 8, 2020
On April 7, 2020, Cambodia’s Ministry of Labor and Vocational Training (MLVT) released an urgent notification to postpone the Cambodian New Year holiday, and require all employers and employees to treat April 13 to April 16, 2020, as regular working days. The postponement is in light of the current circumstances regarding the COVID-19 global pandemic, and presumably to prevent widespread travel during the holiday. 
Read More
April 7, 2020
Last week, the Prime Minister of Vietnam issued Directive No. 16 providing regulations on a social distancing campaign during the COVID-19 global outbreak. Later, the Prime Minister issued guidelines on issues such as which businesses may continue to operate during the campaign. Additionally, many localities, such as Hanoi, Ho Chi Minh City and Binh Duong Province, have issued their own local guidelines.
Read More