Laos has expanded its registration requirements for importers and exporters by mandating additional registration and financial procedures. Bank of Lao PDR (BOL) Decision No. 677, which was issued on July 24, 2023, requires importers and exporters to register with the BOL and to open a dedicated commercial bank account for their import-export business activities. These requirements are in addition to the May 2023 stipulation ordering importers and exporters to register with the Ministry of Industry and Commerce (MOIC). Registration and Account Opening After registering with the MOIC and receiving their MOIC registration certificate, importers and exporters have 10 days to register with the BOL. Within five working days of receiving a complete application, the BOL will issue a registration notification, after which the importer or exporter has 10 days to present its BOL registration certificate and the required supporting documents to a commercial bank for opening the specified bank account. Banking Requirements and Supporting Documents Payment for goods and services made or received from abroad by importers and exporters must take place via electronic wire transfer via the dedicated bank account opened specifically for import-export activities. The importer must provide the commercial bank with various required documents as evidence for each transaction. Likewise, exporters’ receipt of payment from abroad via bank transfer must take place using the bank account opened for import-export activities within the timeline specified in the sale-purchase agreement, but not exceeding 180 days from the export date. After receiving payment from abroad, the exporter must provide copies of various payment-related documents to the commercial bank. Exporters that wish to use any of this income to repay a loan must submit an application and supporting documents to the BOL for approval. The BOL will decide on the application within 10 working days of receiving the complete application

Counterfeiting activities have been a global concern for many decades, and the problem has not yet gone away despite persistent efforts to suppress it. Significant strides have been made, but the most notable change is in the way that counterfeiters commit these infringing activities, which increasingly involve online technologies and channels. In Southeast Asia, the counterfeit industry is worth hundreds of billions of US dollars and is expected to grow even further. In tracking the size of the global trade in counterfeit goods, the Organization for Economic Co-operation and Development and the EUIPO have noted that many countries in Southeast Asia are important producers of—and have traded heavily in—counterfeit goods. These countries have also traded heavily in counterfeit goods, and advanced technology has enabled these countries to produce more sophisticated goods and sell them in more advanced ways. Consumer shift to online channels One reason for the proliferation of these activities is the demand for online shopping platforms, which increased markedly during the COVID-19 pandemic. Consumer behavior in Southeast Asia has shifted in the past decade due to the growth of online sales channels, such as e-commerce and social media platforms. The pandemic hastened the switch to such channels and many consumers have kept using them ever since. As merchants adapted to this trend, sellers of counterfeit goods also benefited greatly. Instead of having to be physically present in the marketplace, where they risked getting caught by the authorities, they can hide behind websites and sell counterfeit products from a stock of goods anywhere in the world. Counterfeit goods sellers have developed new ways to avoid detection and have improved their strategy for making their online profiles look more trustworthy and descriptions of their goods more convincing. This move to online channels requires consumers to be more knowledgeable and

On August 16, 2023, Laos’ Prime Minister’s Office issued Notice No. 1502/PMO, which increases the minimum wage for all workers in Laos. This increase is a continuation of the stepped increases in the minimum wage that began in mid-2022. The recent notice increases the minimum monthly wage from LAK 1,300,000 (approx. USD 66) to LAK 1,600,000 (approx. USD 82), in accordance with an agreement reached in the government’s ordinary session in July 2023. The new minimum wage rate will take effect on October 1, 2023. This is the third minimum wage increase in Laos since June 2022. Two of the main factors responsible for this heightened frequency of minimum wage increases are the depreciation of the Lao kip against foreign currencies and inflation in the price of goods for daily consumption. These stepped increases also show the government’s proactive approach toward addressing the cost-of-living crisis in Laos and its effect on low-wage workers. For more details on the new minimum wage, or on any other labor and employment matters in Laos, please contact Dino Santaniello at [email protected] or +856 21 262 355.

Tilleke & Gibbins’ insurance specialists in Cambodia, Laos, Myanmar, and Thailand have contributed to the Law and Jurisdiction in Insurance and Reinsurance Contracts – Asia Pacific guide produced by RPC. The guide addresses how governing law, jurisdiction, and arbitration clauses are used in insurance and reinsurance contracts. For each jurisdiction in the Asia Pacific region, the guide addresses the following topics: Governing law; Arbitration; Mediation; and Limitations and time bars on claims. The Law and Jurisdiction in Insurance and Reinsurance Contracts – Asia Pacific guide is available below.