Lao ATMs, banks, bank accounts, kip exchange rates, cash, debit, credit cards, offshore banking in Laos

In Vientiane there are two Lao banks, JDB and BCEL, with international ATM's accepting PLUS and CIRRUS cards for VISA, MasterCard, Maestro, Cashpoint, JCB and Diners Club. Some local banks like Phongsavanh Bank have domestic ATMs and debit cards as well. This is the only bank with branches at the Friendship Bridge and Vientiane Airport (you can change money too). BCEL has international ATMs at the airport and now at the Friendship Bridge, but some debit cards won't work in their machines. JDB, the other Lao bank with ATMs in the city, are more flexible.

Vientiane has an increasing number of ATM's in and around the city: opposite the old Morning Market (JDB Head Office) and now inside the new one (BCEL); outside hotels like the Lao Plaza and Novotel; Bor Pen Yang bar restaurant near the Mekong (Fa Ngam Road). BCEL Head Office is on the same road, towards the Lane Xang Hotel. The international ATM is in Pangkham Road near the bank entrance. More Laos ATM information below under Banks, Banking, ATM's. BCEL has more machines than before, but JDB is still better in our opinion. Map of JDB ATM locations.

Currency Usage in Laos
The Lao Kip (LAK) is the official currency of the Lao PDR. However, higher item prices are more often quoted in Thai baht or US dollars. In 2006 the Lao kip exchange rate was around 10,000 kip to one US dollar (USD), 20,000 to the British Pound (GBP), 15,000 to the Euro (EUR) and 250 to the Thai baht (THB).

During 2007, the Lao kip gained 10% against the US dollar, moving down from 10,000 and going to below 9,000 for the first time in many years, on February 29, 2008. The kip to baht rate is around 280. The Thai baht is now around 31 to the US$.

A quick approximate conversion for kip to baht is to ignore the thousands and multiply by 4. e.g. 10,000 kip (10x4) = 40 baht (actual 36). Thai baht as well as US$ bills are in common use in Laos. Exchange rates for many currencies are available from BCEL. You can check some Lao bank exchange rates in the table on the right.

Now quite stable, the kip, along with the Thai baht (THB) and other currencies, devalued significantly after the 1997 Asian economic crash. Kip notes were issued originally in denominations of 500, 1000, 2000 and 5000. When the purchasing power dropped so much, 10,000, 20,000 and, in 2006, 50,000 kip notes were introduced. However, all denominations are still in circulation, often making for large wads of notes given in change or issued by ATMs which sometimes issue 10,000 or 20,000 kip notes (worth one or two dollars each)! 50,000 kip notes ($5) are becoming more common from ATMs now.

Laos is not the only country in SE Asia that suffered significant devaluation after the economic meltdown of the 90's. Visitors to Jakarta or Bali find that the Indonesian rupiah has an exchange rate around 9,000 to the US dollar, similar to the Lao kip, but local buying power is less i.e. prices are higher in Indonesia (even more so in Bali) for basic foodstuffs, clothes, restaurants etc.

Paying with cash in the Lao PDR can be confusing, especially for the first few days of your initial visit! Due partly to the low value of the kip, three currencies are in common use in the main cities. Prices in better restaurants, hotels and guest houses and larger value items are often in US dollars or Thai baht. Prices for every day smaller purchases will be in Lao kip. You can pay for things in any of these currencies, and depending on what currency you have, the price will be shown to you on a calculator. Be careful of all those zeroes and make sure the price relates to what you are paying for. Caveat emptor as 'mistakes' are always in the vendor's favour!

Some hotels, convenience stores and restaurants with modern cash registers or computer terminals will display and print out the total in multiple currencies, making it easier to understand, but the exchange rates may be bad. Change will normally be converted and given in kip, but you can also ask for baht.

Lao Kip tip: Unless you want to keep Lao currency notes as souvenirs, change your local money into baht or dollars before you leave Laos, as Lao kip cannot be exchanged outside the country – not even in Nongkhai. See more TIPS below.

Lao banking centres around three government-owned or partly-owned banks: the Lao Development Bank (LDB), the Bank for Agricultural Development and the Lao Bank for Foreign Trade (BCEL – Banque pour le Commerce Exterieur Lao). BCEL is also a commercial bank with its main branch on the Mekong frontage road.

BCEL has branches in about 12 Lao provinces.

There are also three joint-venture/government  banks: Lao Viet Bank and the Joint Development Bank (JDB). ANZ (Australia & New Zealand Banking Group) and the IFC recently purchased 60% and 10% respectively of the privately owned Vientiane Commercial Bank, now known as ANZ Vientiane Commercial Bank (ANZVCB). These banks are opposite the Morning Market entrance in Lane Xang Avenue. See below for a complete list of Vientiane banks and representative offices with contact details. Lao banking hours are Monday through Friday 0830 - 1530.

Bank Accounts for Foreigners in Laos
Foreigners can open US$, Thai baht or Lao kip savings or fixed deposit accounts with most Lao banks. Some require work permits. Several offer a domestic ATM card for kip accounts. VISA cards may be issued to certain foreign residents after a qualifying period. For Thailand bank account holders, there is little reason to open an account with the Vientiane branch of a Thai bank, as there is no direct link to Thailand and so far, no 'foreign' banks in Laos are allowed to have ATMs. The first exception may be ANZVCB.

Thai banks including Bangkok Bank, Siam Commercial Bank, Thai Military and Bank of Ayuddhaya all have branches in Vientiane, due to considerable Thai investment in the Lao PDR. However they are not connected directly to the Thai banking network and foreign banks in Laos currently are not permitted to have ATMs. Thailand bank account holders with VISA or MasterCards can use them in Lao bank ATMs. Money transfers can be made by wire using SWIFT, MoneyGram or Western Union. Apart from JDB who recently introduced JDB Offshore with online banking, Lao banks do not have internet banking facilities, although eCommerce is available for local businesses (credit card merchant accounts). ANZ Bank with a 60% stake in ANZVCB plans to provide online banking and cash machines during 2008.

Interest rates are high on Lao Kip fixed deposits, 10% per year being the norm; some banks offer up to 16% p.a. for longer periods. In addition, the kip continues to rise against the dollar (over 10% in the past year). For those living in Laos for extended periods, fixed deposits are relatively safe investments as US$ and Kip are freely interchangeable within the Lao PDR.

Bangkok Bank account holders in Thailand can transfer money to the Vientiane Branch for collection by a non-account holder, simply by providing the name and passport number of the beneficiary. Funds will be available in kip, baht or US dollars. Foreigners can open US dollar, baht or kip accounts at this branch too. However, BCEL or JDB are better options because their domestic cash card can be used in their ATMs outside Vientiane. Bangkok Bank tells its account holders that their ATM cards cannot be used in Laos because they, like all foreign banks, are not allowed their own ATM machines. But Bangkok Bank VISA Electron or MasterCards can be used in Laos ATMs or anywhere in the world where PLUS or Cirrus network cards are accepted. Visa or MasterCard logos are usually displayed on ATM's.

Money Transfer to and from Laos
Banks in Lao PDR have SWIFT transfer facilities (see codes below) via 'correspondent banks' in other countries. A word of caution: this adds extra cost. low value wire transfer from the UK to BCEL is expensive. For example, UK transfers are all routed via Barclays Bank, London who charge a minimum £35. If you transfer from a different UK bank, you will pay its fees too. In this respect MoneyGram (agencies at BCEL, Thai Military and Siam Commercial Banks) or Western Union also at banks and post offices, may be cheaper.

It's possible to transfer funds to a Lao bank for collection as cash in USD, THB or LAK) by a beneficiary, quoting a name and passport or ID number only (address and phone number recommended). e.g. Bangkok Bank, ANZVCB.

Major credit cards – Visa, MasterCard are accepted at tourist hotels, restaurants and some shops in the main cities; some take American Express, JCB and Diners Club. Cash advances on most credit cards may be obtained at main bank branches if not accepted at ATMs.

Banks, Banking, ATM Cash Machines in Lao cities
Vientiane has only two banks, JDB and BCEL, that have 24/7 international ATMs which accept PLUS and CIRRUS network cards for VISA, MasterCard, JCB and Diners Club, but some VISA/CIRRUS debit cards don't work in BCEL ATMs. There may be 50 ATMs in and around Vientiane now which accept both VISA and MasterCard. JDB machines work with more card types and may give a better exchange rate than BCEL who also has machines around Vientiane and outside its branches Luang Prabang (2 ATMs, MasterCard only), Pakse and one in Vang Vieng. As power supply and phone/data lines can be unreliable outside Vientiane, it's advisable to carry cash and possibly some travellers checks. It's also possible to get credit card cash advances inside bank branches and exchange kiosks. Here is a map of JDB ATM locations.

Lao ATMs dispense local currency in denominations between 10,000 and 50,000 kip, up to about $100 or £50 per transaction. Because of the low buying power of the notes, and because of note-carrying capacity limits, some Lao ATMs may run out of cash over weekends or holidays.

Cash limits for Lao ATMs – JDB allows up to 1 million kip ($110) per transaction and 3 million kip per day per card. BCEL is 700,000 kip per transaction, daily maximum 2 million.

Some Lao and all foreign-owned banks offer cash advances (in US dollars or kip) on credit cards, but charges are higher than cash or debit cards used in ATM's. The card-issuing bank may make a minimum foreign transaction charge of several dollars, and exchange rates are applied by the local bank ATM network. Getting cash advances on credit cards at a bank or exchange kiosk is possible but can often be a time-consuming and possibly costly exercise. However, the transaction is done in US dollars and you can opt to take dollars in preference to Lao kip. You save further conversion costs and small dollar bills are more convenient to carry than thick wads of kip notes worth approximately $1, $2 or maximum $5.

Always check your bank's ATM foreign withdrawal charges before travelling abroad. You might even want to change your home bank for this reason.

In the Lao PDR, cash is best, with kip, baht or dollars in smaller denominations in every day use in main centres. Upcountry, especially in remote villages it's advisable to carry kip. In the cities, many hotels, tour operators and restaurants quote prices in dollars, or in all three currencies.

LAO KIP TIP: Before crossing the Friendship Bridge into Lao, to get Thai baht from an ATM in Nongkhai (outside the banks in the two main shopping streets or at the Friendship Bridge itself, where there are ATMs near Thai Immigration. Baht are readily accepted for purchases in Lao and less confusing for tourists than Kip. However there is now a BCEL ATM on the Lao side of the bridge.

LAO ATM TIP: In Vientiane, if you cannot withdraw cash from BCEL ATMs, try JDB. For some reason, some VISA and CIRRUS debit cards are not recognised. Credit cards are OK. Note that currently the only ATMs outside the capital are BCEL.

LAO VISA TIP: The cost of a 30 day visa-on-arrival depends on nationality, ranging between $30 and $45, so it's wise to carry $50 or more in notes. You can also pay from 1500 Thai baht, but that is currently worth nearly $50 – a very poor exchange rate!

CAMBODIA ATM TIP: If you're visiting Cambodia before going to Laos, you can get US dollars from ATMs in Siem Reap (Angkor Wat) and Phnom Penh.

On the Lao side of the Friendship (Mittaphab) bridge at Nongkhai, there is a foreign exchange booth, a branch of Phongsavanh Bank with domestic-only ATM but BCEL now has an international ATM there too. ATMs are also outside the gates of several factories on the way into Vientiane. In fact they are springing up everywhere.

Western Union's coverage is extensive throughout most of Asia, and Laos is no exception, with almost 100 agencies in banks and post offices, including the Vientiane Main Post Office opposite the Morning Market (Talat Sao). Another option for money transfer using an ATM card is with iKobo.

LIST OF LOCAL AND FOREIGN BANKS IN VIENTIANE, LAO PDR

Agricultural Promotion Bank (Lao govt bank)
58 Hengboun St, Ban Haysoke
Tel. (021) 21 2024   Fax. (021) 21 3957

ANZ Vientiane Commercial Bank Ltd (private bank)
VCB Building, 33 Lane Xang Ave, Ban Hatsadi
Vientiane Capital (opp Morning Market)
Tel. (021) 22 2700   Fax. (021) 21 3513
SWIFT CODE: VCBBLALA
Email: customer@anzvcb.com

Banque pour le Commerce Exterieur Lao (Lao govt bank)
1 Pangkham St, Vientiane Capital (near Mekong River)
Tel. (021) 22 3190  Fax. (021) 21 3202, 22 3012
SWIFT CODE: COEBLALAXXX
Also branches in 12 provinces.

Lao Development Bank (Lao govt bank)
19 Pangkham Rd, P.O Box 2700
Tel. (021) 21 3300, 21 3302  Fax. (021) 21 3304, 22 2506

Lao-Viet Bank (Lao/Vietnamese govt bank)
05 LaneXang Ave Unit 03 Ban Hatsadi, Neua
Vientiane Capital (near Morning Market)
Tel. (021) 25 1422   Fax. (021) 21 2197
SWIFT CODE: LAOVLALA

Bangkok Bank, Vientiane (Thai bank)
Ban Hatsadi, near JDB, opp Morning Market,
Vientiane Capital
Tel. (021) 21 3560   Fax. (021) 21 3561

Joint Development Bank (Lao govt/private bank)
75/1-5 Lane Xang Ave, Ban Hatsadi
Vientiane Capital (opp Morning Market)
Tel. (021) 21 3536   Fax. (021) 21 3534, 21 3530

Phongsavanh Bank (Lao private bank)
147 10 Samsenthai Rd, Ban Anou,
Vientiane Capital
Tel: (021) 21 2666, 21 2777
Tel & Fax: (030) 525 7753
E-Mail: info@phongsavanhbank.com

Public Bank Berhad (Malaysian bank)
100/1-4 Taladsao St, Ban Hadsadi
Vientiane Capital (near Bangkok Bank)
Tel. (021) 22 3394   Fax. (021) 22 2743
SWIFT CODE: PBBELALA

Siam Commercial Bank Public Corporation (Thai bank)
117 Lane Xang Ave, Ban Sisaket, Vientiane Cap
Tel. (021) 21 3501   

Standard Chartered Bank (UK/Int'l bank representative office)
08/3 Lane Xang Avenue
P.O. Box 6895 Vientiane Lao PDR
Tel. (021) 22 2251  Fax. (021) 21 7254

Thai Military Bank Public Co Ltd (Thai bank)
69 Khounboulom St, Ban Sihom, Vientiane Cap
Tel. (021) 21 7174, (021) 21 6486   Fax. (021) 21 6486

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