Visiting Laos: Business Edition

 Hey everyone, and welcome back to the jungle! This post is a little different from the previous ones in that it isn’t directed at someone who’s going to Laos for pleasure. We’re going to be looking at what business culture looks like. Some of you may find this very useful, as the world is becoming more interconnected and more businesses have foreign partners and deals. Remember, this is just a brief overview of some general guidelines. To really be able to communicate well, I would highly suggest that you do your own research or ask your company if they can be of any assistance. In this post, I’ll cover basic etiquette, some challenges American businesspeople can experience in Laos, and how to help a Laotian should they come to America.

Business Etiquette 101

 This is by no means a comprehensive list, but I will go over what you should know to keep yourself from looking foolish and possibly offending someone.

·       Upon first meeting, wait for your host to introduce you, if applicable. First names are normally used, with the all-around title of Than in front.

·       When greeting someone in a business setting, it is generally acceptable to shake hands. You may also shake hands with someone of the opposite gender. However, the traditional greeting is the Nop. You press your hands together at about chest level and bow slightly. If someone gives you a Nop, it is rude to not return it, unless the person is a child, waiter, or street vendor. The initiator offers the greeting ‘Sabai Dee’, which is like saying ‘Hello’. You also respond by saying ‘Sabai Dee’ Be prepared for either, although the handshake is more common.

·       Upon first meeting, it is common to exchange business cards. Show respect by offering yours to the most senior person in the room first. When you are given a card, look at it for a few moments before tucking it away.

·       Good topics to talk about are your family, work, and home country. One subject to avoid at all costs is the Vietnam War, which devastated the country and the repercussions are still felt today.

·       A small gift is always welcome. When presenting it to the recipient, use your right hand.

·       Punctuality is highly valued in a business setting. Be sure to be there a few minutes early. Further, meetings are often scheduled at least a month in advance.

·       Proper attire is similar to what we wear in America. Men usually wear dark-colored business suits, while women may wear a conservative suit, blouse and skirt/pants, or a dress.

Challenges for Americans

·       Laotians take their time when making a decision. Everything has to be communicated up and down the hierarchy, which can take a while. Consensus among all is very important. In America, we are used to more instant responses from the higher-ups.

·       Expect bargaining in almost every transaction. However, the Lao tend not to haggle too much. Bargaining is not usually a part of the American process; things are either fully accepted or fully declined.

·       Always double-check when your Lao counterpart says ‘yes’. Just because they said ‘yes’ doesn’t mean they agree. Non-verbal cues can also be helpful when trying to discern the meaning of their message.

Helping a Laotian in America

·       Laotians share a similar work attitude to those of us in America. They value punctuality and formality. However, they may be more formal than Americans, so it is a good idea to explain to them what the American style of dress is, as well as how we interact with superiors.

·       Since a Laotian will be used to taking their time with a decision, this could cause some issues. Kindly explain to them and to the other employees that decisions are often made by one or a few individuals here, and not everyone has to agree on it. Make sure your non-Lao team members know about the longer process that is common in Laos.

·       Laotians avoid conflict at all costs. This is in direct contradiction to American business culture, where conflict is expected and even encouraged. Understand that they may struggle with having an individual opinion and navigating a situation where there are multiple sides.

The main differences between American and Laotian business cultures are the level of formality, the decision-making process, and attitudes towards conflict. It can seem foreign to someone who is not from there. Fortunately, the Lao are very forgiving people and will often be lenient with foreigners, as long as they aren’t downright rude. They really appreciate it if you make an effort to comply with their culture, which you should absolutely do! Thanks for enjoying this post on business dealings in Laos, and I look forward to seeing you back in the jungle soon!