investment policy

LAOS: Land of Ample Opportunity and SuccessLAOS: Land of Ample Opportunity and Success

• Land Area : 236,800 sq. km

• Population : 6.3 Millions (2011)

• Religion: Buddhism as majority

Country snapshot

Historical Event in 2012


No.158th WTO member in 2013


ASEAN Economic Community 2016

Unilateral Trade Agreements with 39 nationsBilateral Investment Treaties with 28 nationsUnilateral Trade Agreements with 39 nationsBilateral Investment Treaties with 28 nations

Comparative & Competitive Advantages- Political stability- High safety- Low risk from natural disasters- Low labor cost (Minimum wage: $85.7/month)

Country of rich natural resources: • Fertile land, Minerals, Water, and forest,

giving development potential in agriculture, mining, and hydropower.

Key successful investment factors


Good Policies Framework

The 7th National Socio-Economic Development Plan (NSEDP) 2011-15:•Quality investments to drive sustainable development and a diversified economy

•Annual GDP growth targets at least 8% where 60% is from private investments

FDI By Sectors (1989-2012)


Improvement in Legislation


• Recently revised law on Investment Promotion 2009, and it’s implemented decree in 2011

• Law on Minerals (2008), revised Law on Minerals (2011)

• Environmental and Social Impact Assessment Decree (2010)

• Land Law (2003), Decree on Implementation of the Land Law (2008) and Decree on Land Concessions (2009)

• National Land Policy, currently under revision• National Policy on Environmental and Social

Sustainability of the Hydropower Sector• Law on Forestry (2007)• Agricultural Law (1998), revised 2012• Law on Electricity (2011)

• Combined the domestic investment law and foreign direct investment law into one to create a “level playing field” for both domestic and foreign investors;

• Shorten procedures to open new businesses;

• No terms of investment for promoted activities;

• Foreigners can have access to local financial sources;

• Foreigners can invest in the real estate sector;• Promotion of the development of SEZ and

Industrial Park.

Extended Investment incentives: Corporate income tax exemption up to 10 years, additional 5 years for Education and Health care sectors as top priorities;

Exemption from import duties and taxes on raw materials and capital equipments using for production;

Exemption from export duty on export products;

Additional tax holidays, reduced tax rates for large projects with special concession are available upon negotiation

More Investment Incentives

Investment Promotion Zoning

Zone 1: Mountainous, plateau zones with no economic infrastructure.

Zone II: Mountainous, plateau zones with a moderate level of economic infrastructure.

Zone III: Mountainous, plateau zones with good economic infrastructure.

Promoted Sectors Zone Level Period of exempt (years)

Industry

Agriculture

Service

1 1 10

2 6

3 4

2 1 8

2 4

3 2

3 1 4

2 2

3 1

Incentive on Cooperate Incentive on Cooperate

Profit taxProfit tax

Granting additional Granting additional incentivesincentives

Education & Healthcare

sectors

Exempt land lease or land concession

Zone 1 = 15 years

Zone 2 = 10 years

Zone 3 = 3 years

• Provide additional 5 years for cooperate profit tax exempt


Special Economic Zones (existing)

1. Savan-Seno Special Economic Zone 20032. Boten Beautiful Land Specific Economic

Zone 20033. Golden Triangle Special Economic

Zone20074. Vientiane Industrial and Trade Area 20115. Saysetha Development Zone 20106. Phoukhyo Specific Economic Zone 20107. Thatluang Lake Specific Economic Zone

20118. Longthanh- Vientiane Specific Economic

Zone 20129. Dongposy Specific Economic Zone 201210. Thakhek Specific Economic Zone 2012

15

Investors

IPD/DPI’s OSS

Investment Promotion Committee (IPC) meeting

Government/Provincial Authority

Technical Comments from Concerning

AuthoritiesS&E Division (IPD)

25 days

Joint the meeting

Negotiation

General Projects

Mining Projects Hydropower Project

MOU

PDA

Prospecting & ExplorationMOU

CA

Exploration & Production

PDA

Concession Projects not on the Investment Calling List

Concession Projects not on the Investment Calling List

Approved

Reje

ct *

(1)(2)

(3)(4)

(5)

(6)

(7)

(8)

(9)

(10)

One Stop Services


Government’s Office Lao National

Committee for Special Economic Zone

Investment in Specific Economic Zone

Enterprise Registration License

www.sncsez.gov.la

Ministry of Industry and

Commerce

Enterprise Registration

License for General

Business

www.moic.gov.la

Ministry of Planning and Investment

Concession License&

Representative Office License

www.investlaos.gov.la

MOIC


THANKS

Investment Promotion Department

Ministry of Planning and Investment

www.investlaos.gov.lawww.facebook.com/

investlaos.gov.laEmail: [email protected]

[email protected]: 856-21-217012Fax: 856-21-215491

investment policy

Documents