On 23 March 2023, the Amended Law on Electronic Transactions No.31/NA, which was issued on 29 December 2022 ("Amended Law"), was published in the Official Gazette of Lao PDR. The Amended Law came into effect on 7 April 2023. It replaces the Law on Electronic Transactions No.20/NA dated 7 December 2012.
Under the Amended Law, "electronic transaction" refers to the provision of services wholly or partially through electronic means such as trading, making payments, and licensing through an online system. The Amended Law applies to domestic and foreign individuals, legal entities or organisations who are conducting activities relating to electronic transactions in Lao PDR.
Elements of Electronic Contracts
The following are the elements of an electronic contract, which is created through the use of electronic tools: (i) offering and accepting of offer to enter into a contract; (ii) notice of intention or other message by the originator of the communication or the recipient of the communication regarding the informational message or electronic document; and (iii) agreement between electronic transaction partners on the choice of technology tools, electronic communication methods and electronic signature requirements. The details on the recognition and use of electronic signatures are set forth in the Law on Electronic Signatures.
It must be noted that the the creation of each type of electronic contract must also comply with the Civil Code. Electronic contracts can be updated electronically unless otherwise specified in the contract. Changing the format of documents, i.e. paper version to electronic format does not change the rights and obligations of each party.
Electronic Transaction System
The electronic transaction system service provider shall comply with the following requirements:
- register for the provision of electronic transaction service system the relevant ministries;
- operate the system in a regular, safe, and continuous manner;
- post the necessary information relating to electronic transactions including legal information on its official website;
- maintain the confidentiality of users of the service;
- ensure business activities are fair, equal, and non-discriminatory; and
- comply with the conditions set forth in Articles 28 and 47 of the Amended Law (i.e. creating its own electronic transaction accounts, determining how to create electronic transactions for users, applying for an enterprise, a business operating license) and other relevant laws.
Proof and Authentication of Digital Identity
Individuals, legal entities or organisations that intend to create a digital identity to conduct electronic transactions must register with a service provider. The service provider will prove the digital identity according to the level of reliability of digital identity verification.
The service provider will register the things (i.e. basic password, on time password, password with tools) that are used to verify identity and connect the digital identity of of individuals, legal entities or organisations that have gone thorugh digital identity verification, to what is being used to verify identity.
Individuals, legal entities or organisations that have passed digital identity verification will change their status to service users with a valid digital identity and receive an identity document to be used for further identity verification.
Businesses of Electronic Transactions
For businesses related to electronic transactions, the requirements in carrying out these businesses are set out below.
- Electronic transaction system service: (i) Obtain an enterprise registration and business operating license from the relevant sectors; and (ii) apply to pass the technical standards of transaction systems from the Ministry of Technology and Communications ("MTC").
- Digital identity verification and authentication services: Apply for enterprise registration and business operating license with MTC.
- Electronic signature certificate issuance service: Obtain business registration and business operating license with MTC.
