Laos Video

Cultural Etiquette: Doing Business in Laos

Laos, officially known as the Lao People’s Democratic Republic, is a landlocked country located in Southeast Asia. With its rich history, stunning landscapes, and unique cultural heritage, Laos has become an attractive destination for business ventures. However, to be successful in doing business in Laos, it is crucial to understand and respect the local cultural etiquette. This article will provide you with a comprehensive guide on navigating the cultural norms and practices when conducting business in Laos.

Greetings and Communication

When meeting someone in Laos, it is customary to greet them with a “Nop” (palms pressed together in a prayer-like gesture) and a slight bow. This gesture shows respect and is often accompanied by the phrase “Sabaidee” (Hello). Maintaining eye contact during conversations is important, as it signifies attentiveness and sincerity.

• Personal Space: Laotians value personal space and maintain a relatively close proximity during conversations. However, it is important to gauge the comfort level of the person you are interacting with and adjust accordingly.
• Respect for Hierarchy: Laos has a hierarchical society, and it is essential to show respect towards elders and those in positions of authority. Use appropriate titles when addressing individuals, such as “Boun” for men and “Nang” for women, followed by their first name.
• Indirect Communication: Laotians tend to communicate indirectly, often using non-verbal cues and subtle hints to convey their thoughts or opinions. It is crucial to be attentive to these cues and read between the lines.
• Avoiding Confrontation: Conflict and confrontation are generally avoided in Lao culture. It is important to maintain a calm and harmonious atmosphere during business discussions. Diplomacy and patience are key attributes to possess.
• Business Cards: Exchanging business cards is a common practice in Laos. Ensure that your business cards are printed in both English and Lao, with the Lao side facing upwards when presenting it to someone. Receive business cards with both hands and take a moment to study the card before keeping it respectfully.

Business Attire and Appearance

In Laos, the dress code for business occasions tends to be conservative and formal. Here are some points to consider:

• Men: Men are expected to wear a suit or a long-sleeved shirt and trousers. Ties are not always necessary, but it is better to be overdressed than underdressed. Avoid wearing shorts or revealing clothing.
• Women: Women should dress modestly, with knee-length skirts or dresses and conservative tops. Avoid clothing that is too tight or revealing.
• Footwear: Closed-toe shoes are preferred for business meetings. Sandals and flip-flops are considered too casual.
• Jewelry and Accessories: Keep jewelry and accessories minimal and tasteful. Laotians appreciate simplicity and understated elegance.
• Personal Grooming: It is important to maintain good personal hygiene and grooming. Neatly groomed hair, clean nails, and fresh breath are essential.

Meetings and Negotiations

When conducting meetings and negotiations in Laos, it is crucial to approach them with patience and respect for the local customs.

• Punctuality: While it is important to be punctual, meetings in Laos may start a little later than scheduled. However, as a foreigner, it is advisable to arrive on time to demonstrate professionalism.
• Building Relationships: Relationship-building is highly valued in Laos. Take the time to establish a personal connection with your business partners before diving into business matters. Socializing and small talk are common before getting down to business.
• Consensus Building: Decision-making in Laos tends to be a collective process. It is important to involve all stakeholders and allow time for discussions and consensus building.
• Gift Giving: Presenting gifts is a common practice in Laos, particularly during festivals or as a token of appreciation. Gifts should be given and received with both hands. It is advisable to offer gifts that are not overly expensive or extravagant.
• Respecting Elders: When in the presence of older individuals or those of higher rank, it is important to show deference and listen attentively to their opinions.

Business Dining Etiquette

Business meals in Laos are an opportunity to build relationships and strengthen connections. Here are some key points to keep in mind:

• Seating Arrangements: The host usually determines the seating arrangement. Wait to be directed to your seat and do not sit until the host does.
• Table Manners: Follow the lead of your host and wait until they start eating before you begin. Chew with your mouth closed and avoid speaking with food in your mouth. Do not leave any food on your plate as it may be considered wasteful.
• Toast and Drinks: Toasts are common during business meals. When toasting, hold your glass lower than those of higher rank and make eye contact. It is polite to reciprocate the toast. If you prefer not to drink alcohol, you can toast with a non-alcoholic beverage.
• Utensils: Use utensils appropriately and follow the local customs. In Laos, it is common to eat with a spoon and fork. Chopsticks may be provided for certain dishes.
• Respecting Elders: Show respect to older individuals and allow them to begin eating before you start.

Business Gift Ideas

When presenting gifts in a business setting in Laos, it is important to choose items that are thoughtful and appropriate. Here are some gift ideas:

• Traditional Crafts: Handcrafted items such as silk scarves, woven textiles, or wood carvings showcase the unique craftsmanship of Laos.
• Local Food and Beverages: Specialty teas, coffee, or traditional snacks can be a delightful gift.
• Books or Literature: Books about Laos’ history, culture, or business practices can be a thoughtful gift for business partners.
• Office Supplies: High-quality pens, notebooks, or desk accessories can be practical and appreciated gifts.
• Artwork: Paintings or prints depicting Lao landscapes or cultural motifs can be a unique gift.

Conclusion

Doing business in Laos requires an understanding and appreciation of the local culture and customs. By respecting the cultural etiquette, building relationships, and conducting business with patience and diplomacy, you can establish successful business ventures in this beautiful country. Remember, cultural sensitivity and adaptability are key to forging strong and lasting partnerships in Laos.

References

– Lao People’s Democratic Republic: www.laopdr.gov.la
– Laos Tourism: www.laos-tourism.net
– World Business Culture: www.worldbusinessculture.com
– Asia Briefing: www.asiabriefing.com
– Ministry of Foreign Affairs, Lao PDR: www.mofa.gov.la