Business culture in Laos

Laos is a developing country located in Southeast Asia. It is less known than other Asian countries in terms of business, tourism and culture. However, recently there has been significant economic growth, which has opened up new business opportunities.

Features of mentality

Laos is a Buddhist country. Even in business culture, people follow Buddhism, which teaches love, peace and respect for each other. Never disrespect or try to degrade such religious sentiments. Even if it's a joke, locals won't accept insults to their religion and will take action against you. Therefore, always be careful when it comes to religion and culture.

In Laos, social events such as dinner or golf are used to build a level of mutual trust and understanding between business partners.

It is generally accepted here that referring to one’s own mistakes or the mistakes of colleagues is a loss of face and self-respect. In Laos it is considered humiliating to point out someone's mistake.

Unlike the fast-paced environment that most people in the west live in, the environment in Laos is relatively slow-paced and you shouldn't expect things to happen quickly. People in Laos take everything slowly and patiently. Instead of rushing and trying to do everything instantly, Laotians are patient and think that sooner or later something will happen. So, if you ask someone for a favor or want something done urgently, it won't be that urgent. In Laos, even urgent matters are rarely resolved immediately.

In the West, everything is done digitally using email and other resources, leaving very little paper documents. However, this is not the case in Laos. The amount of paperwork in Laos is enormous, and almost everything needs to be signed manually. Email and other online resources are virtually non-existent. Almost everything is done in paper form, including notes, receipts, forms, invitations, etc. Along with this, there is also a requirement to deliver important documents and invitations in person.

Meet and greet

Punctuality is highly valued in Lao business culture. Especially when it comes to your first day of dating. Never be late.

By being on time, you show that you are serious about your job and make a good impression. Punctuality will help you make good connections. Being late without a good reason is considered disrespectful towards Laotian colleagues.

Traditional greeting in Laos — "nop". However, in a business setting, this custom was replaced by a handshake. Learning a few local greeting terms will also help you make a good first impression.

In Laos, it is considered acceptable for foreigners to shake hands with people regardless of gender.

During the meeting, always wait for the senior representative to initiate conversations about sensitive issues during your meetings. It is better not to start it yourself as it may lead to unintentional violations that could affect your partnership and reputation. Join in and be polite only when necessary.

Meetings tend to be tight-knit and strictly follow a schedule or agenda. Discussion of topics can continue until all participants feel that everything they are interested in has been discussed satisfactorily.

In Laotian business culture, negotiation is expected in most business transactions. However, Laotians are generally polite traders.

It is best to double-check the clarity of statements if you are not sure of the meaning of what was said. Laotians use the term "yes" in different meanings, not all of which indicate agreement.

Business cards

Business cards are usually handed out during the first meeting. Try to imagine a business card written in English and Laotian.

Handling your business card correctly reflects your character. Always act compliantly, accepting the business card with both hands as a sign of respect for the person doing business with you. They say that the way you treat someone else's business card shows how you will build a relationship with the person who gives it to you.

Also, when you receive another person's card, always look at it and show interest rather than just putting it in your pocket. The latter makes a bad impression.

Cultural hierarchy

You must understand that there is a hierarchy in Lao business culture that cannot be ignored. In each sector you will find a hierarchy where the most senior person has the final say on specific issues. This system is respected by everyone, and it continues to exist throughout the country. Communication should be directed only at top-level decision makers. Keep in mind that decision making in Laos — quite a long process. It can take considerable time as information is passed up and down the organization's hierarchy.

It is also customary in this country to hire family members or close friends.

Business communication

The concept of “face” plays a central role in business interactions in Laos. Most people present themselves and behave in a way that preserves their reputation and the reputation of their business. Sensitive or difficult topics of conversation will be initiated by elders. Direct refusals should also be avoided. It is important to understand what emotions you are displaying and how they may be interpreted when interacting with your Laotian business partner. Behave as is usually customary in business communication in the West — respectable, calm and patient.

Body language

For the Laotians, the head — the most sacred part of the body. Touching the head is considered taboo. You should sit so that your soles are never pointed at another person.

Various types of smiles are used to indicate embarrassment, disappointment, or happiness.

Dress code

Another important point — maintaining proper dress code. Laos — tropical-monsoon country with high temperatures all year round and fewer winter months.

On normal occasions, men should wear collared shirts and trousers. When it comes to formal or special occasions, they are more inclined to wear Western attire with suits and ties. For women, covered clothing is accepted, such as long skirts, long-sleeved blouses and long trousers that cover the shoulders and knees. Laos is a conservative country and women are not allowed to wear anything too stylish or revealing.

Gifts

A small token of appreciation in the form of a gift is always welcome when visiting a Laotian business partner. When offering a gift, present it with your right hand.

Always wrap the appropriate gift in green and red wrapping paper. You should avoid white, which is considered unlucky in most Buddhist cultures.

If you are visiting, a basket full of fruits or flowers presented as a gift will make a good impression on your partners.

Working hours

In Laos, working hours are from Monday to Friday. Opening hours usually start at 8 a.m. and end at 5 p.m. Although this is a standard schedule for almost all types of work. Sometimes employees exceed eight hours of work per day, resulting in 48 hours per week. However, in Laos, labor laws stipulate that an employee's working hours should not exceed eight hours and remain within the established productivity limits.

In the West, lunch break — this is not some kind of event, it’s just an attempt to find some time between work and meetings in order to have lunch. However, if you work in Laos, you will be more than happy to know that lunch break — this is the real highlight of the day.

Lunch lasts about 90 minutes, when everyone stops working and sits down together. This is the break during which most people chat, gossip, make friends and relax.