LAO PDR

Amended Law on Electronic Transactions

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: 

1. register for the provision of electronic transaction service system the relevant ministries;
2. operate the system in a regular, safe, and continuous manner;
3. post the necessary information relating to electronic transactions including legal information on its official website;
4. maintain the confidentiality of users of the service;
5. ensure business activities are fair, equal, and non-discriminatory; and
6. 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.

1. 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").
2. Digital identity verification and authentication services: Apply for enterprise registration and business operating license with MTC.
3. Electronic signature certificate issuance service: Obtain business registration and business operating license with MTC.

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Decision on Management of Telecommunications and ICT Equipment No.3583/MTC

On 21 February 2023, the Decision on Management of Telecommunications and ICT Equipment No.3583/MTC which was issued on 13 December 2022 by the Ministry of Technology and Communications ("MTC") ("Decision"), was published in the Official Gazette of Lao PDR. The Decision applies to individuals, legal entities or organisations, both domestic and foreign, conducting the production, importation, exportation, use and distribution of telecommunications and information and communications technology ("ICT") equipment (collectively, "Equipment") in Laos. It replaces the Decision on Inspection and Certification of Technical Standards ICT Equipment No.2118/MTC dated 8 August 2018.

The Decision defines the principles, regulations and measures regarding the management of telecommunications and ICT equipment.

Equipment are categorised into two categories: (i) those that must be certified and declared compliant with technical regulations; and (ii) those that only need to be declared compliant with technical regulations.

The technical inspection (which relates to the technical parameters set by the Technical Regulation Inspection Office designated or approved by MTC) of Equipment is the inspection of a sample equipment or a test of a specific model or version (Type Testing) that the applicant has sent to the Technical Regulation Inspection office for inspection. The sample represents the same model or version of equipment that will be produced, imported or exported. The Equipment must be inspected before their production, importation, export, use, and distribution in Lao PDR.

The six main categories of inspection are as follows:

1. Inspection of use of radio frequency (RF);
2. Inspection of electromagnetic compatibility (EMC);
3. Inspection of electromagnetic field (EMF);
4. Safety inspection on specific absorption rate (SAR);
5. Checking the connection; and
6. Electrical safety inspection.

Technical regulation verification will be conducted after the Equipment have passed the technical regulation inspection. Once they are verified to be compliant, the following will take place: 

1. Issuance of a technical regulation certificate (Type Approval Certificate);
2. Declaration of compliance with technical regulations (Declaration of Conformity (DoC)); and
3. Use of a technical regulation label.

Individuals, legal entities or organisations that intend to import Equipment must undergo inspection and have their equipment certified  by MTC first (except for the equipment specified in Article 26 of the Decision) before they can import such equipment. A licence to import the Equipment shall be issued after the inspection and verification under the technical regulations.

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Terminating the Currency Exchange Business of the Currency Exchange Shop Representatives of Commercial Banks

On 13 January 2023, Notice on Terminating the Currency Exchange Business of the Currency Exchange Shop Representatives of the Commercial Banks No.01/BOL ("Notice 01") was issued by the Bank of Lao PDR ("BOL") to commercial banks and currency exchange shop representatives ("Representatives"). To implement the amended Law on Foreign Exchange No.15/NA dated 7 July 2022, Notice 01 provides the following:

1. BOL will terminate the currency exchange business of all 113 Representatives which are currently under Lao PDR's six commercial banks.
2. Commercial banks that have Representatives will not renew their currency exchange shop representative contracts ("Contracts"). They will (i) cancel their Contracts with all their Representatives; (ii) proceed to close the deposit accounts issued in the name of the Representatives at the relevant commercial banks; and (iii) send memoranda on the cancellation of the Contracts between the commercial banks and the Representatives. The business licenses of the Representatives belonging to the commercial banks should have been returned to the Department of Currency Policy or relevant branches of BOL by 31 January 2023.
3. Commercial banks intending to establish a currency exchange unit must comply with the Decision on Currency Exchange Service No.1026/BOL dated 28 December 2022.

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Ministry of Public Works and Transport Modernises Transport Management System

The Ministry of Public Works and Transport ("MPWT") has changed the management, monitoring and inspection of cargo, cargo containers and cargo vehicles passing through international crossings by land, water, rail and air with the use of the cross border transport management ("CBTM") system.  This is to facilitate the transport of goods in a convenient and efficient manner, and be compliant with laws and regulations by recording, storing and reporting transport information electronically or printing documents from the system.

The CBTM system refers to the web-based application system of the Lao International Truckers And Freight Forwarders Association ("LITFA") with a centralised database, which is used for recording entry-exit information and maintaining goods, cargo containers and cargo documents through an electronic system. The CBTM system can be accessed through mobile phones (Smart Phones), computers, tablets and other electronic devices.

According to the Instruction on Cross Border Transport Management, No. 2525/MPWT, dated 30 January 2023, for foreign cargo vehicles that temporarily enter the customs territory of Laos, cargo carriers must comply with the following requirements and conditions:

1. Be members of LITFA and have paid the association maintenance fee in full within one quarter (for old members). New ordinary members must have paid the registration fee and association maintenance fee in full after the approval of their membership;
2. They are a contracting party with a foreign shipping company that (i) has been authorised to operate the shipping business properly and (ii) has a document certifying that it is a guarantor for the contracting party in accordance with the LITFA agreement form in the CBTM system;
3. Pay the costs, system usage fees and other obligations issued by LITFA;
4. Attend the CBTM system training, pass the exam and have their own access code;
5. Issue shipping documents on behalf of the foreign carriers, and be responsible for ensuring transportation as well as insurance for each trip; and
6. No criminal record issued by the court indicating that they have been prosecuted or sentenced in relation to violations in transporting goods.

Users of the User ID system in the CBTM system are classified into three categories: (i) User ID of the Trade and Transportation Facilitation Committee Secretariat; (ii) User ID of the international checkpoint; and (iii) User ID of the operator.

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