Lao PDR Legal System Overview
There is a moderate risk of corruption in the judicial system and bribery is widespread. Political interference is a problem for businesses, the judicial system is formally independent but is in practice subject to the ruling LPRP party.
Laos’s legal system does not meet the needs of a modern market. Legally, contractual rights are provided for however, in practice companies struggle with political interference. Even though there are commercial courts in place, legal administrators lack training and knowledge. Achieving justice against arbitrary government decisions is not always efficient. Given the low capacity of the judicial system, arbitration outside Laos can prove to be more efficient. Laos is not a member state of the International Centre for the Settlement of Investment Disputes. It signed the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention) but has not yet been asked to enforce a foreign arbitral award.
Laos has many laws against corruption that are in place, but they lack enforcement. The Law Against Corruption criminalizes public sector abuse of power, embezzlement, passive bribery and fraud. In 2015, the Law on Anti-Money Laundering and Combatting the Financing of Terrorism took effect, requiring companies to provide information on and to act against money laundering and the financing of terrorism. Companies must now perform due diligence on customers before entering into a business relationship.
Only a few officials of lower positions have been prosecuted under the existing anti-corruption law. No appointed or elected officials are under any legal obligation to disclose their assets or income. Laos has ratified the UN Convention on Anti-Corruption but has not signed the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.
References
Laos Corruption Report, https://www.ganintegrity.com/portal/country-profiles/laos/
Laos Corruption Report, https://www.ganintegrity.com/portal/country-profiles/laos/
Laos Corruption Report, https://www.ganintegrity.com/portal/country-profiles/laos/
Laos, https://oec.world/en/profile/country/lao/
Lao PDR, https://www.doingbusiness.org/en/data/exploreeconomies/lao-pdr
Country rankings, https://www.heritage.org/index/ranking
Global index of economic openness, file:///Users/sumitasaini/Downloads/GIEO-2019-2%20(1).pdf
Laos Corruption Report, https://www.ganintegrity.com/portal/country-profiles/laos/
Laos country profile, BBC, https://www.bbc.co.uk/news/world-asia-pacific-15351898
Laos country profile, BBC, https://www.bbc.co.uk/news/world-asia-pacific-15351898
Laos country profile, BBC, https://www.bbc.co.uk/news/world-asia-pacific-15351898
Laos country profile, BBC, https://www.bbc.co.uk/news/world-asia-pacific-15351898
Laos country profile, BBC, https://www.bbc.co.uk/news/world-asia-pacific-15351898
Laos country profile, BBC, https://www.bbc.co.uk/news/world-asia-pacific-15351898
Reporters without borders, https://rsf.org/en/laos
Laos profile-media, https://www.bbc.co.uk/news/world-asia-pacific-15353971
Laos Corruption Report, https://www.ganintegrity.com/portal/country-profiles/laos/
Reporters without borders, https://rsf.org/en/laos
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