Legal System of the Lao People’s Democratic Republic

By Aristotle T. David & Novah Rose S. De Leon-David

Aristotle T. David, Managing Partner at ZICOlaw in Lao PDR. Aris studied at the Int’l Institute of Social Studies of Erasmus University in The Hague, Netherlands where he earned his postgraduate diploma and holds his Masters of Law from Universitiet van Amsterdam in Amsterdam, Netherlands. Aris is an international lawyer who brings over 16 years of legal experience including more than 10 in Lao PDR. He was admitted to the Bar in the Philippines in 2000 and practiced in the Philippines until 2004. In 2005, he relocated to Laos and has been practicing as a foreign legal adviser in Laos since. Aris joined DFDL in 2005 and VNA Legal in 2012 as a partner and head of legal. He joined ZICOlaw in Lao PDR as the managing partner on September 2015. He combines his local knowledge and experience with international expertise. He has experience in project financing, investment regulatory compliance, investment and project coordination, due diligence, infrastructure, company establishment, corporate and commercial, investment structuring, contracts, real estate, labor, intellectual property registration, energy, mining, international non-governmental organizations, administrative and other government proceedings in the Lao PDR and Philippines. He is lifetime member of the Integrated Bar of the Philippines, admitted to the Supreme Court of Republic of the Philippines, and registered foreign lawyer in Lao PDR.

Novah Rose S. De Leon-David, Policy and Institutions Expert; Food and Agriculture Organization of the United Nations. Novah studied at the Int’l Institute of Social Studies of Erasmus University in The Hague, Netherlands, where she earned her postgraduate diploma and holds her Masters of Law from Erasmus University in Rotterdam, Netherlands. Novah has 16 years of legal experience and worked on legal and policy reforms with the United Nations for more than 10 years in Lao PDR. Novah is lifetime member of the Integrated Bar of the Philippines, and admitted to the Supreme Court of Republic of the Philippines.

Published January 2016
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1.     Background

The Lao People’s Democratic Republic (“Lao PDR”) is a land linked country located in Southeast Asia bordered by Cambodia, China, Myanmar, Thailand, and Vietnam. It has an area of approximately 236,800 square kilometers with an estimated population of 6,809,054 as of 2014.[1]

Lao PDR can trace its roots in the ancient Lao kingdom of Lane Xang, established in the 14th century under King Fa Ngum.[2] The Lane Xang Kingdom had influence reaching into present-day Cambodia and Thailand.[3] Lao PDR came under the domination of Siam (Thailand) from the late 18th century until the late 19th century when it became part of French Indochina.[4] The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand.[5] In 1975, the communist Pathet Lao took control of the government ending a six-century-old monarchy and instituting a strict socialist regime closely aligned to Vietnam,[6] with the Lao PDR being established on 2 December 1975.[7] A gradual, limited return to private enterprise and the liberalization of foreign investment laws began in 1988.[8] The Political Report to the 9th Party Congress (March 2010) sets the policy direction on trade liberalization and commercialization. Lao PDR became a member of ASEAN in 23 July 1997[9] and the WTO in 2 February 2013[10]. Lao legislation are being amended towards facilitating trade and investments following the WTO accession and ASEAN integration with the goal of graduating from the status of least developed country by 2020.

2.     State

The Lao PDR is a socialist State[11] under the one party system of the Lao People’s Revolutionary Party[12]. Under the current 2003 Constitution[13], the State consists of the National Assembly, President, Government[14], Local Administration, People’s Court and the Office of the Public Prosecutor.

2.1  National Assembly

The National Assembly is the legislative branch of the State which has the right to make decisions on fundamental issues of the country, and to oversee the activities of the executive organs, the People’s Courts and the Office of the Public Prosecutor.[15] The members of the National Assembly are elected by Lao citizens and have a term of office of 5 years.[16] There are currently 132 members representing 17 provincial constituencies.[17]

The National Assembly has the following rights and duties:[18]

·       To prepare, adopt or amend the Constitution;

·       To consider, adopt, amend or abrogate the laws;

·       To consider and adopt the determination, amendment or abrogation of taxes and duties;

·       To consider and adopt strategic plans for socio-economic development and the State budget;

·       To elect or remove the President, the Vice-President and members of the National Assembly Standing Committee;

·       To elect or remove the President and Vice-President of the State based on the recommendation of the National Assembly Standing Committee;

·       To consider and approve the proposed appointment or removal of the Prime Minister based on the recommendation of the President of the State, and to consider and approve the organizational structure of the government and the appointment, transfer or removal of members of the government based on the recommendation of the Prime Minister;

·       To elect or remove the President of the People’s Supreme Court and the Supreme Public Prosecutor based on the recommendation of the President of the State;

·       To decide on the establishment or dissolution of the ministries, ministry-equivalent organizations, provincial authorities and city authorities, and to determine the boundaries of provinces and cities based on the recommendation of the Prime Minister;

·       To decide on granting amnesties;

·       To decide on the ratification of or withdraw from treaties and agreements signed with foreign countries in accordance with the laws;

·       To decide on matters of war or peace;

·       To oversee the observance and implementation of the Constitution and laws; and

·       To exercise such other rights and perform such other duties as provided by the laws[19].

The National Assembly elects a National Assembly Standing Committee which consists of the President and Vice President of the National Assembly and a number of members.[20] The National Assembly Standing Committee is the permanent body of the National Assembly, and is to carry out duties on behalf of the National Assembly during the recess of the National Assembly.[21]

The National Assembly Standing Committee has the following rights and duties:[22]

·       To prepare for the National Assembly sessions and to ensure that the National Assembly implements its work plan;

·       To interpret and explain the provisions of the Constitution and the laws;

·       To oversee the activities of the executive organs, the People’s Courts and the Office of the Public Prosecutor during the recess of the National Assembly;

·       To appoint, transfer or remove Judges of the People’s Courts at all levels and of the military courts;

·       To summon the National Assembly into session; and

·       To exercise such other rights and perform such other duties as provided by the laws.

The National Assembly convenes its ordinary session twice a year[23] at the summons of the National Assembly Standing Committee.[24] The National Assembly Standing Committee may convene an extraordinary session of the National Assembly if it deems it necessary.[25]

National Assembly sessions shall be convened only with the presence of more than one-half of the total number of the National Assembly members.[26]

Resolutions of the National Assembly shall be valid only when they are voted for by more than one-half of the number of the National Assembly members present at the session,[27] except in the cases of the election of new members prior to the expiration of its term by the incumbent National Assembly legislature[28]; and election of the President of the State[29], where vote of at least two-thirds of all members of the National Assembly attending the session is required; and the amendment of the Constitution which requires the affirmative votes of at least two-thirds of the total number of the National Assembly members[30].

Draft laws may be proposed by the following:[31]

·       President of the State;

·       National Assembly Standing Committee;

·       Government;

·       People’s Supreme Court;

·       Office of the Supreme Public Prosecutor; and

·       Lao Front for National Construction[32] and the mass organizations at the central level.

Legislative drafting and amendment are conducted as follows:[33]

·       Planning for law making and amendment;

·       Drafting a law;

·       Reviewing the consistency of the draft law by the Ministry of Justice;

·       Reviewing the draft law by the Government;

·       Reviewing the draft law and adoption of the law by the National Assembly;

·       Promulgation of the law by the President of the State.

All promulgated legislation of general application at national, provincial and capital levels comes into legal force only after 15 days from the publication date in the Official Gazette.[34] Districts/municipalities and villages have the option to bring their legislation into legal force by publishing legislation on the Official Gazette or by posting their approved legislation for 15 days in other local media or in a way that people can access it easily.[35]  In special cases where there are necessary or urgent conditions, legislation may be brought into legal force immediately, but in these cases, such legislation must be published in the Official Gazette as quickly as possible.[36]

2.2  President of the State

The President is the Head of State and representative of the multi ethnic Lao people.[37] The President of the State is elected by the National Assembly with two-thirds of the votes of all members of the National Assembly attending the session, with a term of office of 5 years[38].[39]

The President of the State has the following rights and duties:[40]

·       To promulgate the Constitution and laws already adopted by the National Assembly;

·       To issue presidential edicts and decrees;

·       To propose the appointment or removal of the Prime Minister to the National Assembly for consideration and decision;

·       To appoint or remove the Prime Minister, and to appoint, transfer or remove members of the government after approval by the National Assembly;

·       To appoint or remove the Vice-President of the People’s Supreme Court based on the recommendation of the President of the People’s Supreme Court, and to appoint or remove the Deputy Supreme Public Prosecutor based on the recommendation of the Supreme Public Prosecutor;

·       To appoint, transfer or remove provincial and city governors based on the recommendation of the Prime Minister;

·       To be the head of the people’s armed forces;

·       To decide on promotions or demotions at the rank of general in the national defense and security forces based on the recommendation of the Prime Minister;

·       To convene and preside at the government’s special meetings;

·       To decide on conferring national gold medals, orders of merit, medals of victory and the highest honor titles of the State;

·       To decide on granting amnesty;

·       To decide on general or partial military conscription and to declare states of emergency all over the country or in any particular locality;

·       To issue the ratification of or secession from treaties and agreements signed with foreign countries;

·       To appoint and recall plenipotentiary representatives of the Lao PDR to or from foreign countries based on the recommendation of the Prime Minister, and to accept the plenipotentiary representatives of foreign countries accredited to the Lao PDR; and

·       To exercise such other rights and perform such other duties as provided by the laws.

The President of the State may have a Vice-President as elected by the National Assembly with the votes of more than one-half of the number of National Assembly members attending the session. The Vice-President of the State executes all tasks assigned by the President and acts on behalf of the President if the latter is occupied on other matters.[41]

2.3  Government

The Government is the executive branch of the State.[42] The government consists of the Prime Minister, Deputy Prime Ministers, Ministers and chairmen of the ministry-equivalent organizations.[43] The term of office of the Government is 5 years.[44]

The Government has the following rights and duties:[45]

·       To implement the Constitution, the laws and resolutions of the National Assembly, and presidential edicts and decrees;

·       To submit draft laws and Presidential Edicts to the National Assembly and to submit draft Presidential Decrees to the President of the State;

·       To determine strategic plans on socio-economic development and annual State budgets and to submit them to the National Assembly for consideration and approval;

·       To report on its performance to the National Assembly, or to the National Assembly Standing Committee (during the recess of the National Assembly), and to report to the President of the State;

·       To issue decrees and resolutions on State administration, socio-economic management, and management in the fields of science and technology, national resources, environment, national defense and security, and foreign affairs;

·       To organize and oversee the activities of the sectoral organizations and local administrations;

·       To organize and oversee the activities of the national defense and security forces;

·       To sign treaties and agreements with foreign countries and guide their implementation;

·       To suspend the implementation of or cancel decisions or instructions of the ministries, ministry-equivalent organizations, organizations under the government’s management, and local administrations if they contradict the laws; and

·       To exercise such other rights and perform such other duties as provided by the laws.

The Prime Minister is the head of the Government, and represents the Government; leads and manages the work of the Government, Ministries, ministry-equivalent organizations, departments and other organizations attached to the Government; and leads and manages the work of provinces and cities.[46] The Prime Minister is appointed or removed by the President of the State after the approval of the National Assembly.[47]

The Prime Minister appoints, transfers and removes Vice-Ministers, Vice-chairmen of the ministry-equivalent organizations, heads of department, deputy governors, and deputy mayors of cities, and promotes and demotes colonels in the national defense and security forces and other ranks as provided by the laws.[48]

The Deputy Prime Ministers[49] are the assistants of the Prime Minister and execute the tasks assigned to them by the Prime Minister.[50] The Prime Minister may assign a particular Deputy Prime Minister to carry out work on his behalf in the event that he is occupied on other matters.[51]

The National Assembly may pass a vote of no confidence in the Government or any member of the Government if the National Assembly Standing Committee or one-fourth of the total number of National Assembly members raises the issue.[52]

Within twenty-four hours after such vote of no confidence, the President of the State has the right to bring the no confidence question to the National Assembly for reconsideration. Such reconsideration must be held within forty-eight hours from the first consideration.[53] If the new vote of no confidence is passed, the Government or the member of the Government must resign.[54]

2.4  Local Administration

Local administration is divided into three levels, namely:[55]

·       Provincial level consists of provinces and cities;

·       District level consists of districts and municipalities; and

·       Village level consists of villages.

Provinces are governed by governors, cities are governed by governors of cities, districts are governed by mayors, municipalities are governed by chiefs of municipalities and villages are administered by village chiefs.[56] Governors, mayors, chiefs of municipalities and village chiefs have deputies to assist them in their work.[57]

If it deems it necessary, the National Assembly may decide to establish a Special Zone. The Special Zone is equivalent to a province.[58]

A key policy direction on decentralization, Decree No. 9/PMO 2012 known as the Sam Sang Policy (Three-builds), assigns the provinces as strategic units, districts as comprehensively strong units responsible for planning and budget preparation, and villages as development units. The rationale of the Decree is to strengthen government ownership and accountability in local implementation of national programs, priority development projects and projects covered in the Public Investment Programs (PIP) relative to the local needs and priorities, good governance and socio-economic management of local administration, and improve public service delivery. Recent developments included formulation of rules and mechanisms on village administration and revision of administrative arrangements on empowering local administrative units and decision-making capacity.

2.5  People’s Court

The People’s Courts constitute the judicial branch of the State and consist of:[59]

·       People’s Supreme Court;

·       Appellate Courts;

·       People’s Provincial Courts and City Courts;

·       People’s District Courts; and

·       Military Courts.

In the event that it is deemed necessary, the National Assembly Standing Committee may decide to establish a special court.[60]

The People’s Supreme Court is the highest judicial organ of the State.[61] The People’s Supreme Court administers the people’s courts at all levels and the military courts, and examines and reviews the decisions reached by them.[62]

The National Assembly Standing Committee appoints, transfers and removes the following judicial positions based on the recommendation of the President of the People’s Supreme Court: Judges of the People’s Supreme Court; the President, Vice-President and Judges of Appellate Courts, Provincial Courts, City Courts and District Courts; and the Heads, Deputy Heads and Judges of the Military Courts.[63]

The Vice-President of the People’s Supreme Court is appointed or removed by the President of the State based on the recommendation of the President of the People’s Supreme Court.[64]

The People’s Courts make decisions in panels. In their adjudication, Judges must be independent and strictly comply with the laws.[65]

Cases shall be conducted in open court proceedings except if otherwise provided by the laws. Defendants have the right to defend themselves. Lawyers have the right to provide legal assistance to the defendants.[66] Representatives of social organizations have the right to take part in court proceedings as provided by the laws.[67]

Decisions reached by the People’s Courts, when final, must be respected by parties, State organizations, the Lao Front for National Construction, mass organizations, social organizations and all citizens, and must be implemented by the concerned individuals and organizations.[68]

Note however that court judgments in Lao PDR are not publicly published and it is difficult to get access to past judgments.

2.6 Office of the Public Prosecutor

The Office of the Public Prosecutor has the duty to monitor the implementation of the laws. The Office of the Public Prosecutor consists of:[69]

·       Office of the Supreme Public Prosecutor;

·       Office of the Appellate Public Prosecutor;

·       Offices of the Public Prosecutor at provincial and city levels;

·       Offices of the Public Prosecutor at district level; and

·       Office of the Military Prosecutor.

The Office of the Public Prosecutor has the following rights and duties:[70]

·       To monitor the correct and uniform implementation of laws and regulations by all ministries, ministry-equivalent organizations, organizations attached to the government, the Lao Front for National Construction, mass organizations, social organizations, local administrations, enterprises, civil servants and citizens; and

·       To exercise the right of public prosecution.

The Office of the Supreme Public Prosecutor supervises the activities of the offices of the Public Prosecutor at all levels.[71]

The Deputy Supreme Public Prosecutor is appointed or removed by the President of the State based on the recommendation of the Supreme Public Prosecutor.[72]

Public prosecutors and deputy public prosecutors at the appellate level, provincial level, city level and district level, and military prosecutors, are appointed, transferred or removed by the Supreme Public Prosecutor.[73]

3.     Sources of Law

The primary source of law is legislation. There are two types of legislation in Lao PDR: legislation of general application and legislation of specific application.[74]

Legislation of general application consists of:[75]

·       Constitution;

·       Law;

·       Resolution of the National Assembly;

·       Resolution of the National Assembly Standing Committee;

·       Presidential Decree;

·       Decree of the Government;

·       Resolution of the Government;

·       Order or Decision of the Prime Minister;

·       Order, Decision or Guideline of the Minister or head of the organization under the supervision of the Government;

·       Order, Decision or Guideline of the Provincial Governor or Mayor;

·       Order, Decision or Instruction of the District Governor or Head of municipality;

·       Regulation of the village.

Legislation of specific application includes:[76]

·       Presidential Decree on the promulgation of a law;

·       Presidential Decree or Decision on granting an award or appointing a person for any position or a specific task;

·       Notification.

Jurisprudence is not recognized as a source of law and is not part of the legal system.

International treaties and agreements[77] which Lao PDR has ratified also form part of the sources of law.

There are no codes in print and no legal journals, however, the following section lists selected online sources of law.

4.     Selected Government Websites

·       Lao Official Gazette

·       National Assembly

·       Government Office

·       People’s Supreme Court of the Lao PDR: www.peoplecourt.gov.la (requires log-in)

·       Office of Supreme People’s Prosecutor

·       Ministry of Justice

·       Lao Securities Exchange

·       Lao PDR Trade Portal

·       Lao Foreign Trade Policy Department, Ministry of Industry and Commerce

·       Investment Promotion Department, Ministry of Planning and Investment

 

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