Laos and China Launch Cross-border Digital Payment Link
Laos and China have launched a cross-border digital payment connection to facilitate payments and strengthen financial cooperation, trade, tourism and investment, according to a report by the Vientiane Times. Citing the Global Times, which drew on information from the People’s Bank of China, the report states that the initiative was officially launched on 18 September 2026 in Nanning, Guangxi Zhuang Autonomous Region, China. The connection links China’s digital yuan (“e-CNY“) with Laos’ local quick response (“QR“)-payment system, enabling Chinese visitors to pay participating Lao merchants using digital-yuan wallets. Both countries are also working to expand payment functions and use cases to facilitate travel, tourism and other economic exchanges.
The new link builds on earlier cooperation between the two countries. In late 2025, Bank of China’s Vientiane branch was among the first institutions to connect to China’s digital-yuan cross-border payment platform and complete a QR-code payment in Laos. The service provided real-time exchange rates and clearing, enabling Chinese visitors to pay Lao merchants directly using e-CNY.
The latest development extends cooperation beyond consumer payments to include trade settlement, and investment and financing services through the Cross-border e-CNY Transfer Services (“CBETS“) platform. Some Lao banks have already connected to CBETS and activated these services.
Opened to an initial group of 26 financial institutions in June, CBETS supports round-the-clock cross-border digital payments and settlement.
MOIC Issues Decision on Trade Inspection Affairs
The Ministry of Industry and Commerce (“MOIC”) has issued the Decision on the Implementation of Trade Inspections Affairs No. 2997/MOIC, dated 1 September 2026 (“Decision 2997“). Decision 2997 replaces the Decision on the Implementation of Trade Inspection Affair No. 0019/MOIC.DIT, dated 6 January 2025.
Decision 2997 sets out the principles and regulations governing the activities, rights, and duties of trade officers, the imposition of fines, and enforcement of measures for violations of laws and regulations relating to trade inspection affairs.
Individuals, legal entities, and organisations that violate applicable laws, the Decree on Trade Inspection, or Decision 2997 may be subject to a range of sanctions, including warnings, re-education measures, disciplinary action, fines, civil liability, or criminal penalties, depending on the nature and severity of the violation.
Examples of violations under Decision 2997 include the following:
- Failure to display product price tags: fine ranging from LAK 500,000 to LAK1 million per item for each violation.
- Advertising goods using false or misleading information (e.g. type, nature, characteristics, quality, or standards of the goods): fine ranging from LAK500,000 to LAK5 million per violation. The goods may also be confiscated or destroyed. Where the advertising of goods and services is conducted through electronic means, the applicable laws and regulations shall be complied with.
- Unlabelled, incorrect price labelling, or the absence of product labels in Lao language (especially in relation to goods that may pose risks to consumers’ life, health, or safety of consumers): fine ranging from LAK500,000 to LAK5 million per item. The goods may also be confiscated.
Notices on Enterprises' Registered Capital Contributions Issued
The Department of Industry and Commerce of Vientiane Capital (“DOIC“) has issued the Notice on Enterprise’s Registered Capital Contribution No. 2536/VTE DOIC, dated 24 August 2026 (“Notice“), addressed to domestic and foreign enterprises operating in Lao PDR.
The Notice reminds enterprises operating within Vientiane Capital that, following their registration, they must comply with their obligations under the Law on Enterprises No. 33/NA dated 29 December 2022, the Decision on the Contribution of Enterprise Registered Capital No. 2025/MOIC, dated 9 September 2025 (“Decision”), and other applicable laws and regulations.
Enterprise owners, partners, or shareholders are reminded to contribute the registered capital in full to the enterprise’s bank account with a commercial bank in Lao PDR within one year of enterprise registration. Capital remitted from abroad requires a capital importation certificate from the Bank of Lao PDR.
Failure to contribute the registered capital within the prescribed period may require the non-compliant entity’s manager or director to notify the relevant registrar to amend its enterprise registration certificate or proceed with the dissolution of the enterprise within 60 days from the expiry of the contribution period.
The Notice also outlines potential enforcement measures for non-compliance.
Additional Notice on Compliance with Registered Capital Contribution Requirements
Subsequently, the Ministry of Industry and Commerce (“MOIC“) has issued the Additional Notice to Relevant Enterprises to Expedite Compliance with Registered Capital Contribution Requirements No.2250/DOEM, dated 13 October 2026 (“Additional Notice“). The Additional Notice refers to the previous MOIC-issued Notice on Monitoring Procedure, Notification of Registered Capital Contribution, Application of Measurement Against the Violators and Usage of the Printed Forms Regarding Registered Capital Contribution of Enterprise No.1243/DOEM, dated 8 June 2026 (“Notice No. 1243“)
The Additional Notice reminds enterprises to comply with the registered capital contribution requirements within the following deadlines:
- Enterprises registered before the effective date of the Decision, i.e. 24 October 2025: within one year, by 23 October 2026.
- Enterprises registered on or after 24 October 2025: within one year from enterprise registration, by the corresponding anniversary date in the subsequent year.
Enterprises must promptly notify the officer who issued their Enterprise Registration Certificate of their compliance with the contribution requirements by submitting a hard-copy application with the supporting documents required under Notice No. 1243.
BOL Issues Decision on the Management of Foreign Borrowing
The Bank of the PDR (“BOL”) has issued the Decision on the Management of Foreign Borrowing No. 707/BOL, dated 5 August 2026 (“Decision 707“). Decision 707 replaces the provisions relating to foreign lending, borrowing, and trade credit previously set out in the Decision on Bringing of Capital into-out Lao PDR and Lending, Borrowing, and Trade Credit with Foreign Countries No. 453/BOL, dated 30 May 2019.
Decision 707 sets out the principles, regulations and measures regarding direct and indirect borrowing arrangement between individuals and legal entities in Lao PDR and non-residents.
Under Decision 707, foreign borrowing may take two forms:
Direct borrowing, which comprises lending and borrowing arrangements; and
- Indirect borrowing, which comprises issuance of bonds abroad, the granting or receipt of trade credits, and guarantees.
Both direct and indirect borrowing activities are subject to the approval of BOL. For indirect borrowing, this includes overseas bond issuances, the granting or receipt of trade credits, and the issuance of guarantee letters with a term exceeding one year.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
