Bao is a former ARVN officer who escaped Vietnam after the fall of Saigon and now runs the Yellow Flag Bar in Roanapur, named after the old South Vietnamese flag. It's become the unofficial headquarters for the Lagoon Company and arguably the most dangerous watering hole in the city.
The bar attracts the worst element Roanapur has to offer—pirates, smugglers, prostitutes, and people with nothing left to lose. Weapons sit openly on tables as a matter of course, and the place has a reputation as what Rock once called "the bar at the end of the world" when he first showed up there as a hostage. It's less a safe haven and more a last resort.
Gun battles are basically part of the décor. Bao installed bulletproof steel plating in front of the bar as damage control, but it only does so much—the rest of the place still takes a beating whenever shots start flying. He's learned to bill the Lagoon Company for repairs afterward, though Revy and Dutch rarely pay up. At this point, the damage is just expected overhead.
Content compiled by AnimeList.moe from publicly available sources.