The Ministry of Industry and Commerce has ordered trade offices nationwide to stop imposing measures that restrict business competition or obstruct the movement of goods.
Issued on 28 October, the order took effect immediately and applies to industry and commerce departments in Vientiane Capital and all provinces, as well as district and city offices nationwide.
The ministry said some local offices had issued notices requiring businesses to buy from or sell through a single supplier. Others had imposed restrictions on quantities, prices, or the movement of goods between districts and provinces.
Under the order, local offices cannot force businesses to trade with a single company, impose restrictions on sourcing or sales areas that undermine competition, obstruct the movement of goods without a legal basis, or grant preferential treatment to individual businesses.
The order also prohibits trade offices from setting up roadside checkpoints or inspection stops to check goods. Officials may still conduct inspections required by law, but they must apply the rules fairly and avoid unnecessarily disrupting trade.
Businesses affected by such measures can file complaints with the relevant departments or provincial and capital trade offices.
Officials who violate the order face penalties under the Law on Business Competition. Local offices must report on implementation every six months and annually, and immediately report any violations.
Calls for Tighter Rules on Foreign Businesses
The order comes amid wider public debate over which businesses and occupations should be open to foreign nationals in Laos.
Some commentators have called for stricter enforcement of rules reserving certain trades, including salons, barbershops, and motorbike repair shops, for Lao citizens. They argue that foreign nationals continue to operate businesses in these sectors despite the restrictions.
Other commentators have called for greater government control over essential consumer prices, limits on imports of goods that Laos can produce domestically, and stronger support for local production and exports.
The ministry’s order focuses on measures that restrict business competition and the movement of goods. It does not address restrictions on business ownership or occupations based on nationality.
