Laos has a civil law system And besides, Laos has a policy that prevents the impact the stability of the country.Both domestic and foreign Such as
Since 1986 the Lao Government has introduced and open-door policy and has taken a number of measures to achieve a market economy by reforming its administrative structure and policy accordingly. The government’s policy has emphasized both revenue raising and expenditure containing measures. Meanwhile, structural reforms have been accentuated, notably in creating an atmosphere for investment, privatization, liberalization, decentralization, and the initiation of an appropriate regulatory framework to meet the immediate needs of the emerging private sector. Following the open-door policy, in 1988 the Lao Government adopted a code for foreign direct investment (FDI), hoping to have revenue generated and job opportunities created in the country. Since then the FDI in various fields has increasingly flowed into the country.
In parallel to the FDI, the government has begun to transform the centrally planned economy into the market one by fostering the private sector and reforming the public administrative machinery. The primary purpose of public sector reform in the Lao context is to facilitate a market-oriented economy by initiating more private investment, mainly for export-oriented production, and improving public sector performance. In order make private FDI viable, the Lao Government has to take a number of necessary measures to tailor its administrative machinery to facilitate international business transactions as follows: