Lao PDR

Ease of Doing Business in

Lao PDR

This page summarizes Doing Business 2014 data for Lao PDR. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region East Asia & Pacific
Income Category Lower middle income
Population 6,645,827
GNI Per Capita (US$) 1,260
City covered Vientiane
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
159 163 down 4

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
49.84 49.21 down 0.63
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
 

Protecting Investors

Info

The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection.

DB 2014 Rank 187 DB 2013 Rank*** 187 Change in Rank 0
DB 2014 DTF** (% points) 16.67 DB 2013 DTF** (% points) 16.67 Change in DTF** (% points) 0.00
Indicator Lao PDR East Asia & Pacific OECD

This measure of the transparency of transactions has 5 components.

View methodology
Extent of disclosure index (0-10)
2 5 7

This measure of liability for self-dealing by directors has 7 components.

View methodology
Extent of director liability index (0-10)
1 5 5

This measure of shareholders’ ability to sue officers and directors for misconduct has 6 components.

View methodology
Ease of shareholder suits index (0-10)
2 6 7

This index is an average of the Extent of Disclosure index, the Extent of Director Liability index, and the Ease of Shareholder suit index.

View methodology
Strength of investor protection index (0-10)
1.7 5.3 6.2
Score Score Description
Extent of disclosure index (0-10) 2
What corporate body provides legally sufficient approval for the transaction? 0 CEO
Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 1 Existence of a conflict without any specifics
Whether immediate disclosure of the transaction to the public and/or shareholders is required? 0 No disclosure obligation
Whether disclosure of the transaction in published periodic filings (annual reports) is required? 1 Disclosure on the transaction only
Whether an external body must review the terms of the transaction before it takes place? 0 No
Extent of director liability index (0-10) 1
Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to the company? 1 Yes
Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? 0 Not liable
Whether shareholders can hold members of the approving body liable for the damage that the Buyer-Seller transaction causes to the company? 0 Not liable
Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 0 Not possible or only in case of Seller's fraud or bad faith
Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff? 0 No
Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff? 0 No
Whether fines and imprisonment can be applied against Mr. James? 0 No
Ease of shareholder suits index (0-10) 2
Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? 1 Yes
Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 0 No
Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 0 No documents available
Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 0 No
Whether the plaintiff can directly question the defendant and witnesses during trial? 1 Yes
Whether the level of proof required for civil suits is lower than that of criminal cases? 0 No
Strength of investor protection index (0-10) 1.7

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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