The L/C is a payment undertaking by the Bank to the foreign importer. The Bank will fulfill its payment obligation when the terms stipulated in the L/C are complied with.

• Improvement of your bargaining position in a negotiation - opening L/C provides the exporter with a conditional payment commitment on top of the commercial credit, giving you better credit by which you may win favorable price terms for your goods.
• Warranty of your cargo - commercial credit is enhanced by bank credit through the product. The trade itself will be warranted by the bank, and the ownership of the cargo, shipping date and quality of cargos are well controlled under the documents and terms.
• Reduction of fund occupation - for the importer who uses the L/C with credit limits, the fund occupation will be minimized during the period between the L/C issuance and payment.

• Importer and exporter wish to promote the level of trade credit by making appointment on each other's business activities.
• The imported commodity is within a seller's market and the exporter insists on settlement with L/Cs.
• Both importer and exporter want to select trade finance out of the lack of liquidity.

1. The importer submits the Application for Issuance of L/C. Bank of China (​Hongkong) Limited Vientiane Branch will issue the L/C based on the margin or credit line after examination and approval.
2. The exporter prepares and ships the goods in accordance with the relevant L/C clauses after having been advised of the L/C.
3. The exporter presents the documents required by the L/C. The transmitting bank mails the documents to Bank of China (​Hongkong) Limited Vientiane Branch to ask for payment or acceptance.
4. Upon receipt of the documents, Bank of China (​Hongkong) Limited Vientiane Branch will make payment or acceptance to the exporters after examination and approval.
5. Bank of China (​Hongkong) Limited Vientiane Branch makes the payment when the acceptance is due.

1. Application Form.
2. Certificate of enterprise legal representative or power of attorney, board of directors resolution and the articles of association.
3. Valid enterprise corporate (legal person) business license (copy).
4. The borrower's audited financial statements of the latest tree years and latest financial statement.
5. Other documents and certificates required by of Bank of China (Hongkong) Vientiane Branch.