Lao banks, VISA, ATM, accounts, SWIFT, kip exchange rates, cash, debit, credit cards, banking, transfers to Laos

In Vientiane and Laos there are only two 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. JDB, the other Lao bank with ATMs in the city, have lower charges for withdrawals.

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 is on the same road, near the Lane Xang Hotel; the international ATM is outside the bank entrance in Pangkham Road. More Laos ATM information below under Banks, Banking, ATM's. BCEL now has more machines than before, but JDB gives a better effective exchange rate. Map of JDB ATM locations.

Currency Usage in Laos
The Lao Kip (LAK) is the official currency of the Lao PDR, but it is not an international market instrument and exchange rates against other currencies are set daily by the Bank of the Lao PDR for use by commercial banks. Money comes into and leaves the country as foreign currency only.

Prices for goods and services in the Lao PDR are quoted in kip. However, higher priced items may be shown in either Thai baht or US dollars; these are accepted in payment in most places. 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 by the end of February. The Lao kip/dollar rate was around 8600 in July. Kip to Thai baht rate is now below 260 with 33 baht 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 37). Thai baht as well as US$ bills are in common use in Laos. Exchange rates for many currencies are available from BCEL and other banks in Laos. See some current Lao bank exchange rates on the right.

Now much more stable, the kip  devalued by 87% after the 1997 economic crash, in line with other Asian currencies. 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 at ATMs which sometimes issue 10,000 or 20,000 kip notes (worth one or two dollars each)! 50,000 kip notes ($5) are 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 a first 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 in any of these currencies, and depending on what you offer, the converted 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; 'mistakes' are almost 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 and possibly dollars.

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 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 Bank (ANZV). 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, opening an account with the Vientiane branch of a Thai bank, does not give you access to the Thai banking network and so far, no 'foreign' banks in Laos are allowed to have ATMs. The first exception may be ANZVCB.

For transfers to a Vientiane bank account from overseas it may be possible via your bank account in Thailand (SWIFT), then arranging a transfer to Laos, but you should check with the Thai bank and compare the charges (and degree of difficulty) with a direct transfer using an overseas correspondent or intermediary bank direct.

An easy way to get money from Thailand in Laos, is to use Lao ATMs; however Bangkok Bank for example charges 100 baht per transaction and uses a low exchange rate. Save money by drawing baht from a Thai ATM before crossing the border and use that for purchases in the Lao PDR.

Thai banks in Vientiane include Bangkok Bank, Siam Commercial Bank, TMB (ex-Thai Military Bank) and Bank of Ayudhya. Thailand bank account holders with VISA or MasterCards can use them in the two 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 ANZV 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 Laos have SWIFT codes (see below) but transfers can be made only via 'correspondent' or 'intermediary' banks in different countries. This usually adds extra cost to transfers. For example, UK transfers are made via Barclays Bank, London who charge a minimum £35. If you originate the transfer from another UK bank, you will pay its fees too. This applies to other countries including the USA where Wachovia Bank in New York is the main intermediary bank.

MoneyGram (agencies at BCEL, Thai Military and Siam Commercial Banks) or Western Union with agencies at banks and post offices, may in some instances be cheaper.

As money is must be transferred to Laos in a major foreign currency, it can usually be received in that currency or exchanged at the local bank for Lao kip.

Transfers to Laos for non-bank-account holders
It's possible to transfer funds to a Vientiane bank for collection as cash in USD, THB or LAK) by a named beneficiary, quoting passport or ID number only (address and phone number recommended). e.g. from Bangkok Bank, Bank of Ayudhya, ANZV Bank.

Banks, ATM Cash Machines in Lao cities and towns
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.

Vientiane has only two banks with ATMs, JDB and BCEL. They accept PLUS and CIRRUS network cards for VISA, MasterCard, JCB and Diners Club, but users need to make sure they select the right type of account to withdraw funds from. 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 (several ATMs now), Pakse and one in Vang Vieng. As power supply and phone/data lines can be unreliable outside Vientiane, it's always advisable to carry cash and possibly some travellers checks. Credit card cash advances can be obtained from bank branches and exchange kiosks. Map of JDB ATMs in Vientiane.

Lao ATMs dispense local currency in denominations between 10,000 and 50,000 kip, up to about $100 or £50 per transaction.

Cash limits for Lao ATMs – JDB allows up to 1 million kip ($115) per transaction and 3 million kip per day per card. BCEL is maximum 700,000 kip per transaction, daily maximum 2 million, making it more expensive than JDB due to higher transaction fees.

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 or open a new account at a different 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 the ATMs are near Thai Exit Immigration. Baht are readily accepted for purchases in Lao and less confusing for tourists than Kip. However there is now an ATM on the Lao side of the bridge and several on the way into Vientiane.

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

Occasionally a particular ATM or group of them will give error messages: unable to process your transaction, or ask your bank to link to our network. These are temporary network 'outages'; try later or use another ATM.

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 in Thai baht, but at a 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 over 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 BANKS IN LAOS,  LAO SWIFT CODES (VIA INTERMEDIARY BANKS)

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/international bank)
VCB Building, 33 Lane Xang Ave, Ban Hatsadi
Vientiane Capital (opp Morning Market)
Tel. (021) 22 2700   Fax. (021) 21 3513
Email: customer@anzvcb.com

SWIFT CODE: VCBBLALA via Intermediary Bank
(USD): Wachovia Bank, New York
SWIFT CODE: PNBPUS3NNYC

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
Branches in 12 provinces.

SWIFT via Intermediary Banks: COEBLALAXXX
UK (GBP/USD): Barclays Bank, London, BARCGB22
USA (USD): Wachovia Bank, New York, PNBPUS3NNYC

Joint Development Bank (Lao govt 30%, Thai private 70% bank)
75/1-5 Lane Xang Ave, Ban Hatsadi
Vientiane Capital (opp Morning Market)
Tel. (021) 21 3536   Fax. (021) 21 3534, 21 3530

Lao Development Bank (Lao govt bank)
19 Pangkham Rd, P.O Box 2700, Vientiane
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 via Intermediaries

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

THAI & FOREIGN BANKS IN LAO PDR
(Some may be able to transfer to the Vientiane branch)

Bank of Ayudhya (Ayuttya) (Thai bank)
084/1 Lane Xang Avenue, P.O. Box: 5072, Vientiane
Tel: (856-21) 213521, 214575, Fax: (856-21) 213520          
E-mail:    mng802@krungsri.com
SWIFT CODE (TH): AYUDTHBK

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

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

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
SWIFT CODE (TH): TMBKTHB

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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 via Intermediary

(USD): Wachovia Bank, New York, SWIFT: PNBPUS3NNYC
Deutsche Bank Trust Co, New York, SWIFT: BKTRUS33

Others for transfers from Thailand, Malaysia, Germany (EUR)

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
SWIFT CODE: SCBLGB2L (UK), SCBLUS33 (US), SCBLTHBX (TH)

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