weighted score 5.7 · nine dimensions
Country Risk Profile
Laos
Sourcing risk, regulatory exposure and audit intelligence for Laos-origin supply chains.
Forced & child labour
6
TVPRA listings for bricks, garments, rubber, and sugarcane. One-party state limits independent monitoring. Child labour documented in agriculture and brick production.
Worker rights & FOA
6
Independent trade unions not permitted under one-party rule. All labour organisations operate under LPRP control. Freedom of association effectively suppressed.
OHS & audit transparency
6
Occupational health and safety regulation exists but enforcement is very limited. Xe-Pian dam collapse (2018) exposed weak construction and environmental oversight.
Food & product safety
5
Very limited domestic food safety regulatory capacity. No significant food export sector to the EU. Product safety standards underdeveloped.
Environmental & regulatory
5
Hydropower-driven deforestation and dam construction risks. Mekong river ecosystem impacts. EUDR exposure limited but rubber is a regulated commodity.
Governance & anti-corruption
8
TI CPI 28/100. One-party state with pervasive corruption risk. Weak institutional independence. Regulatory capture across sectors.
Tariff & preferential access
2
EU EBA duty-free, quota-free access. ASEAN member with intra-ASEAN tariff preferences. Significant tariff advantage for garment exports.
Non-tariff barriers
6
Landlocked geography creates effective non-tariff barriers. China debt dependency raises questions about policy independence on trade matters.
Supply chain traceability
7
Very limited traceability infrastructure. One-party state restricts independent monitoring. Multi-tier supply chain visibility extremely difficult.
Labour & Social Risk
Labour & Social Risk
- TVPRA listings
- US Department of Labor TVPRA list includes Laos for bricks, garments, rubber, and sugarcane — all produced with child or forced labour indicators.
- Worker rights
- One-party state (LPRP) — independent trade unions are not permitted. All labour organisations operate under state control. ILO C087 (Freedom of Association) not effectively implemented.
- Xe-Pian dam collapse
- The 2018 Xe-Pian Xe-Namnoy dam collapse killed dozens and displaced thousands. The incident exposed weak construction oversight and environmental governance in the hydropower sector.
Governance & Trade Access
Governance & Trade Access
- Corruption perception
- TI CPI score of 28/100 — indicating very high perceived corruption. Governance score of 8 on this index reflects weak institutional capacity and pervasive corruption risk.
- EU trade preferences
- Laos benefits from EU EBA (Everything But Arms) preferences — duty-free, quota-free access. Tariff dimension scored at 2, reflecting this preferential access.
- Regulatory environment
- One-party state regulatory framework. Labour inspection and environmental enforcement capacity is very limited. Factory-level compliance depends almost entirely on buyer-driven audit programmes.