Law on Investment Promotion (Amended)

No. 62/NA Vientiane Capital, 28 June 2024

Part I General Provisions

Article 1. Objectives

This Law defines principles, regulations and measures regarding the promotion and management of domestic and foreign investments in order to ensure that investments are carried out in a convenient, expeditious, transparent and proper manner, fully protected, and enjoy the State’s supportive policies. These aim to attract quality investments; to entrench protections to rights and interests of the State, public, people, and investors; to connect with the regional and global economy; and to contribute to the continuous growth of the country’s socio-economic development in line with the green and sustainably growth directions.

Article 2. Investment Promotion

Investment promotion refers to the formulation of incentives, and the creation of an enabling environment and favorable conditions that facilitate various investment aspects in order to enable investors to carry out their business operations in a convenient, expeditious, transparent, fair and lawful manner.

Article 3. Definitions

The terms used in this Law shall have the following meanings:

1. Investment refers to funds, tangible and intangible assets brought in by investors for their business operations in Lao PDR or abroad;

2. Investor refers to a domestic or foreign natural person or legal entity in Lao PDR and abroad that lawfully invests in Lao PDR or abroad;

3. Domestic Investor refers to a Lao natural person or a Lao legal entity registered as an enterprise under the relevant law of Lao PDR;

4. Foreign Investor refers to a foreign natural person or legal entity having invested in, and registered as an enterprise under the relevant law of Lao PDR;

5. Developer refers to a legal entity authorized by the Government of Lao PDR to invest by conducting a feasibility study for a special or specific economic zone development in accordance with a memorandum of understanding or investment to carry out the development of a special or specific economic zone under a development agreement;

6. Investor in a Special or Specific Economic Zone refers to a natural person or legal entity authorized to invest in production, trade, and service operations within a special or specific economic zone in accordance with the laws of Lao PDR;

7. Investor’s Assets refers to both tangible and intangible capitals owned by the investor, which may be used as a collateral for a bank’s loan;

8. Tangible Capital refers to a currency, a movable asset, and a real estate;

9. Intangible Capital refers to an intellectual property, future revenues, leasehold rights, commercial rights, and a concession value;

10. Concession Agreement refers to an agreement signed between a legal entity and a designated state authority granting the right to operate a business or to develop a certain project under the laws of Lao PDR;

11. Memorandum of Understanding refers to a documented record of agreement between a legal entity and a designated state authority that grants the right to conduct a project’s feasibility study;

12. Vehicle Directly Used for Production refers to machinery or vehicle that is directly employed in an investment operation;

13. Direct Investment refers to contribution into a capital for business operation, resulting in the investor becoming the owner of the enterprise to be able to oversee the management or expansion of such an enterprise;

14. Working Days refer to days designated as working days according to Lao PDR’s work calendar;

15. Zone Management Committee refers to an organization established by a state authority to promote and manage a special or specific economic zone, of which establishment is authorized in a province or Vientiane capital;

16. Lease refers to an arrangement between a lessee and a lessor of a land plot allowing the lessee to use such a land plot for a specified business purpose such as, commerce, services, residence, tourism, sports, diplomacy, or international organization in accordance with the arranged contract and the laws;

17. Concession refers to an authorization granted by the State for a concessionaire to use a certain state-allocated area for a concession business operation such as, in agriculture, tree plantation, tourist attraction, industrial zone or park, special or specific economic zone, new town development, electricity development, or mining in accordance with a concession agreement and the laws;

18. Investment inducement list refers to a list of general and concession business projects developed and created by sectors and local administrations as a reference for attracting targeted investments;

Article 4. State’s Policies on Investment Promotion

The State promotes both domestic and foreign investments in all economic sectors by formulating policies to create a conducive environment and enabling conditions such as, building infrastructures, providing necessary information, customs duty, tax and labor incentives, land and water source usage rights, access to finance, and equal treatment including recognition and protection of ownership relating to users’ rights, rights to interests, inheritance, transfer and other rights as provided for in the law

The State promotes investments in all sectors, businesses and zones nation-wide with exception of zones and businesses that compromise the national and public security, or pose significant immediate and long-term adverse impacts on the environment, human health and the nation’s fine cultural heritage.

Article 5. Principles on Investment Promotion

Investment promotion shall observe the following principles:

1. Being in line with the policy direction of building a self-reliant economy, overall policy directions, laws, strategies, the national socio-economic development plan, sectoral and regional development plans, geo-graphical advantages and the country’s periodic socio-economic growth at any time;

2. Fostering a centralized and uniform state administration across the country while granting rights and delegating management authorities to local administrations;

3. Protecting the legitimate rights and interests of the State, public, people, and investors;

4. Ensuring that the One-stop Investment Service operation is delivered conveniently, succinctly, expeditiously, transparently, effectively, and in compliance with the laws;

5. Ensuring a fair business competition;

6. Ensuring stability, social peace, public order, expanding the nation’s fine cultural heritage, and efficiently protecting and utilizing natural resources in line with the green and sustainable directions.

Article 6. Scope of Application

This Law applies to domestic and foreign natural persons, legal entities, and organizations investing or being involved with investment activities in Lao PDR, as well as to investors based in Lao PDR who intend to invest abroad.

Article 7. International Cooperation

The State promotes foreign, regional, and international cooperation on investment promotion activities by sharing lessons, information, technologies and experiences relating to investment promotion and management, marketing, commerce, and source of funds in compliance with treaties that Lao PDR is a state party to, and other relevant international agreements

Part II Investment Incentives, Supporting Policies and Protection

Section 1 Investment Incentives

Article 8. Investment Incentives

Investment incentives refer to customs duty, tax, State land lease or concession incentives, and other sectoral or zonal based incentives as prescribed in Article 9 and 10 of this Law. Eligible investments for such incentives include investments in general businesses as well as those in the controlled list and those not in the controlled list, concession businesses, special and specific economic zones.

Article 9. Sectoral-based investments

Sectoral-based investments eligible for incentives are as follows:

1. Clean agriculture, seed production, animal breed production, industrial crop production, forestry development, environmental and biodiversity protection;

2. Environmentally friendly industrial processing and agro-processing, animal feed production, natural fertilizer production, bio-fertilizer production, scientifically formulated fertilizer production, manufacturing of agricultural production inputs, and production of handicrafts depicting the unique national identity, “One District, One Product” or import substitute and export potential goods;

3. Hospitals, pharmaceutical and medical device manufacturing plants, production of traditional medicine and medical practices with usages thereof;

4. Education, sports-gymnastics, skill development, and a manufacturing of educational and sports equipment;

5. Adoption of digital technology, scientific research and development, and an application of an environmentally-friendly, natural resource and energy efficient innovation;

6. Development of the natural, cultural and historical tourism industry that is environmentally friendly and sustainable;

7. Public infrastructure development, operation and maintenance such as construction of national roads, railways, water supply, wastewater treatment, and waste management;

8. Special or specific economic zone infrastructure development to support other investments in such a zone;

9. Logistics services, freight transport, warehousing systems for goods in transit and dry port, transit service and cross-border connecting road operation, passenger and freight transport by road, water, rail, and air.

The Government shall introduce a separate regulation to detail a list of sectoral-based investments eligible for incentives.

Article 10. Zonal-based Investments

Zonal-based Investments eligible for incentives are as follows:

• Zone 1: A zone where socio-economic infrastructures do not facilitate investments;

• Zone 2: A zone where socio-economic infrastructures facilitate investments.

The Government shall determine and reassess such a zone quinquennially.

Article 11. Profit Tax Incentives for sectoral and zonal based investments

An investor who undertakes a sectoral and zonal based investment defined in Article 9 and 10 of this Law shall enjoy a profit tax exemption as follows:

1. Investment in Zone 1: Eligible for a profit tax exemption for a maximum period of ten (10) years. A sectoral-based investment defined in Article 9 (1), (2), and (3) of this Law shall enjoy an additional profit tax exemption for a maximum period of five (5) years. An investment in the education sector shall enjoy a profit tax exemption throughout the entire investment period.

2. Investment in Zone 2: Eligible for a profit tax exemption for a maximum period of four (4) years. A sectoral-based investment defined in Article 9 (1), (2), and (3) of this Law shall enjoy an additional profit tax exemption for a maximum period of three (3) years. An investment in the education sector shall enjoy a profit tax exemption throughout the entire investment period.

A profit tax exemption period shall commence from the year that the granted enterprise generates its business revenues or incomes

Upon an expiration of a profit tax exemption period as defined in this article, the Law on Income Tax shall be enforced.

The Government shall issue detailed regulations and procedures for the implementation of the tax exemption incentives as prescribed in this Law

Article 12. Customs Duty, Income Tax, and Value-Added Tax Incentives

An investor who undertakes a sectoral and zonal based investment shall enjoy customs duty incentives as follows:

1. An importation of materials not available domestically, which are to be used in creating fixed assets as well as machineries and vehicles that are directly applied in connection with the manufacturing processes is to enjoy a customs duty exemption. An importation of fuel, gas, lubricants, chemicals, administrative vehicles, other materials or equipment, and a temporary importation of machineries and vehicles shall be subject to the Law on Customs;

2. An importation of raw materials, minerals, materials, equipment, and spare parts to be used in manufacturing for exports shall enjoy a custom duty exemption;

3. An importation of raw materials, minerals, materials, equipment, and spare parts to be used in manufacturing for import substitutes for a domestic distribution shall enjoy a custom duty exemption;

4. An exportation of produced, cultivated or raised agricultural products, ready-made industrial goods which have gone through manufacturing or development processes, handicraft products shall enjoy a customs export duty exemption, but excluding certain goods or non-commercial goods exclusively defined in a periodically issued specific regulation.

Specialists working in promoted sectors shall enjoy a personal income tax incentive at a rate of five percent (5%). Such specialists and their eligibilities shall be defined in a specific regulation. Value-added tax incentives shall observe the Law on Value-Added Tax.

Article 13. Access-to-Finance Incentive

An investor obtains incentives in terms of gaining access to finance by borrowing from commercial banks and other financial institutions in Lao PDR and abroad in accordance with the relevant law.

Article 14. Investment Expansion Incentive

Investors who reinvest their net profits in order to add new businesses or expand existing business operations are entitled to a profit tax exemption for a period of one year in the following accounting year. Such an exemption is based on an actual proportion of the reinvested profit in a legal business operation as certified by a concerned sector.

Investors registering losses from their business operations may carry such losses forward and for them to be deducted against the profits of the following accounting year as provided for in the Law on Income Tax and other relevant laws.

An investment and/or business expansion by means of an additional capital injection shall also receive the investment promotion incentives as stipulated in paragraph one of this Article.

Article 15. Rental or Concession Fee relaing to State Land Exemption

An investor that undertakes a sectoral-based investment as prescribed in Article 9 of this Law shall be entitled to rental or concession fee relating to state land exemption as follows:

1. Investment in Zone 1: Eligible for such an exemption for a maximum period of ten (10) years. A sectoral-based investment defined in Article 9 (1), (2), (3) and (4) of this Law shall enjoy an additional exemption for a maximum period of five (5) years.

2. Investment in Zone 2: Eligible for such an exemption for a maximum period of five (5) years. A sectoral-based investment defined in Article 9 (1), (2), (3) and (4) of this Law shall enjoy an additional exemption for a maximum period of three (3) years.

The details relating to a state land lease or concession fee exemption period are stipulated in a separate regulation.

Article 16. State Land Use Incentives

An investor that invests in a concession business in Lao PDR shall receive the state land use incentives as follows:

1. An investor has the right to a state land lease or concession for an investment operation. After investing and successfully implementing more than fifty percent (50%) of the concerned project development master plan, its feasibility study, or the approved business plan and such an implementation is validated by the relevant sector, and satisfying all obligations under the lease or concession agreement and other relevant obligations, the investor may request to the Government or the concerned Provincial Administration Committee to consider granting land use rights for the remaining tenure of lease or concession with respect to the total land area granted under the lease or concession agreement. Any undeveloped land area or such land area, where the usage of which is not in line with the objectives of the lease or concession, must be to the State without conditions and such an area must be fully rehabilitated prior to a release to the State;

2. An investor has the right to use a granted state land under the lease or concession agreement only for constructing office and residential buildings within an investment term. In addition, an investor also has the right to lease or concession as approved by a provincial administration committee.

The Government shall issue an implementing regulation on state land use incentives.

Section 2 Investment Supporting Incentives

Article 17 Investment Supporting Incentives

Investment Supporting Policies include:

1. Incentives on information;

2. Other supporting Incentives.

Article 18 Incentives on Information

To ensure that investors receive complete, uniform, timely, and up-to-date information about investments in order to make informed investment decisions, an Investment Information Center shall be established at the relevant One-stop Investment Service Office.

The Investment Information Center is responsible for collecting and compiling investment-related information in order to create an information network, provide, and exchange relevant information such as through websites, guidebooks, journals, brochures, and other means for the benefits of interested parties, or for embassies, Lao consulates, or Lao trade representative offices situated abroad to further share with potential investors.

Article 19 Other Supporting Incentives

Investors shall receive other supporting incentives as follows:

1. Being considered for the State’s various appropriate awards to recognize their complete and timely financial obligation fulfilments to the State, contributions to community and social development, attentions to address environmental issues, or develop Lao labor skills, as confirmed by the relevant sectors and local administrations;

2. Being given special considerations for obtaining residence permits and multiple-entry business visas during their investment terms with respect to foreign investors.

Foreign investors along with their family members, foreign specialists, or experts involved with their investments shall be given special considerations for Lao PDR entry and exit including being granted a multiple-entry visa. Such a multiple-entry visa’s validity per time shall not exceed five (5) years. Qualified investors based on the relevant regulation may apply for an honorary citizenship.

In the event it is deemed necessary to grant additional special incentives for certain sectoral or zonal based investments, the Government will propose to the National Assembly or its Standing Committee for consideration and approval.

The Government shall define a separate regulation to implement other supporting incentives for investors.

Article 20 Implementation of Investment Incentives

An Individual or legal entity eligible for investment incentives and supporting incentives as provided for in this Law may submit an application requesting an Investment Promotion Certificate with the relevant One-stop Investment Service Office.

The Government shall define criteria, procedure and timeframe for granting investment incentives in a separate regulation.

Section 3 Investment Protection

Article 21 Investment Protection

The State protects the legitimate rights and interests, and equal rights of both domestic and foreign investors under the laws of Lao PDR, treaties that Lao PDR is a state party to, and relevant international agreements.

Article 22 Forms of Investment Protection

The State fully recognizes and protects an investor’s lawful investment against any expropriation, seizure or nationalization by means of administration actions.

In the event the Government needs to utilize an investor’s assets located within a project area for the public interests, the investor shall be compensated based on the actual investment value at the prevailing market price at the time of asset handing-over, and through a mutually agreed payment method.

Article 23 Intellectual Property Protection

The State recognizes and protects an investor’s intellectual property lawfully registered in accordance with the Law on Intellectual Property of Lao PDR, treaties that Lao PDR is a state party to, and relevant international agreements.

Part III Investment Operation

Article 24 Investment Operation

An investment operation refers a conduct of investment activities based on a form of investment, a type of investment business, requirements, procedure, registered capital, and a capital importation

Section 1 Forms and Types of Investments

Article 25 Forms of Investments

Forms of investments are as follows:

1. Wholly domestic or foreign-owned investment;

2. Joint investment between domestic and foreign investors;

3. Contract-based business cooperation investment;

4. Joint investment between a state-owned enterprise and a private enterprise;

5. Public-Private Partnership (PPP) investment

The Government may hold shares in a concession business on a case-by-case basis as prescribed in the relevant laws.

Article 26 Wholly Domestic or Foreign-owned Investment

A wholly domestic or foreign-owned investment is an investment in a business or project in Lao PDR, that is entirely owned by single or multiple domestic or foreign investors.

Article 27 Joint Investment between Domestic and Foreign Investors

A joint investment between domestic and foreign investors is a shared investment between domestic and foreign investors to conduct a business, with a joint ownership, and establishment of a new legal entity under the laws of Lao PDR.

An establishment, business operation, management, and the rights and obligations of joint investors are defined in a joint venture agreement and the newly established legal entity’s articles of association

Article 28 Contract-Based Business Cooperation Investment

A contract-based business cooperation investment is a joint business arrangement between a foreign legal entity and a domestic legal entity, including both state and private parties, through a business cooperation contract under the laws and regulations of Lao PDR for a defined period of time. Such an arrangement does not require an establishment of a new legal entity or a branch office in Lao PDR. Such a contract must clearly define the rights, obligations, and benefits of each party towards one another and the Government. After such a business cooperation contract is signed, the One-stop Investment Service Office shall be notified for its management and monitoring purposes; in addition, the signed contract shall be notarized in accordance with the relevant law of Lao PDR.

Article 29 Joint Investment between State-Owned Enterprise and Private Enterprise

A joint investment between a state-owned enterprise and a private enterprise is a joint investment between a state-owned enterprise and a private enterprise to conduct a business, with a joint ownership, and establishment of a new legal entity under the laws of Lao PDR.

An establishment, business operation, management, and the rights and obligations of the concerned state-owned enterprise and private enterprise are defined in a joint venture agreement and the newly established legal entity’s articles of association.

Article 30 Public-Private Partnership Investment

A Public-Private Partnership (PPP) investment is a joint investment between the public sector and the private sector under a PPP agreement to implement a new infrastructure development project, renovate existing infrastructures, or deliver public services. Sectors, criteria, and procedures for PPP investments are prescribed in separate regulation.

Article 31 Types of Investment Businesses

Investment businesses are classified into two types as follows:

1. General business;

2. Concession business.

Sectors and local administrations shall be in charge of developing their respective investment inducement lists for each type of investment business based on the alignment with the national socio-economic development strategy, sectoral development plans, the national and local socio-economic development plans, and their comparative advantages, whereupon they will be used as information bases for the department of planning and investment to induce targeted investments.

Section 2 General Business

Article 32 Types of General Businesses

Types of general businesses are as follows:

1. Business listed in the controlled list;

2. Business not listed in the controlled list.

Article 33 Business Listed in the Controlled List

A business listed in the controlled list is a type of business activity that has impacts on the national security, public order, and the natural and social environments. To ensure a balanced socio-economic development, such a business shall undergo a review and consideration by relevant sectors before being granted an investment license by the Ministry of Planning and Investment or a Provincial Administration Committee in accordance with the delegated management authority. The Government shall determine the controlled list periodically.

Article 34 Business Not Listed in the Controlled List

A business not listed in the controlled list is a business activity that is open for an investment, in which a business registration and business operating license can be pursued in accordance with the Law on Enterprise and other relevant laws.

Section 3 Investment Procedures for General Businesses

Article 35 Application for Investing in Business Listed in the Controlled List

An individual or a legal entity intending to invest in a business listed in the controlled list shall first apply for an enterprise registration with the Industry and Commerce Sector in accordance with the Law on Enterprise, then submit an application for an investment license with the Central or Provincial One-stop Investment Service Office. The One-stop Investment Service Office shall coordinate with relevant sectors to review such an application, and then propose to the Ministry of Planning and Investment or the concerned Provincial Administration Committee for consideration in accordance with the delegated management authority as prescribed in the relevant regulation. Once the investment license is granted, the applicant shall apply for a business operating license with the relevant sector authority in accordance with the relevant law

Article 36 Timeframe to Consider Investment Application Relating to Business listed in the Controlled List

The timeframe to consider an investment application relating to a business listed in the controlled list is as follows:

1. An investor applicant is to receive an investment license within twenty-five (25) working days from the date the concerned One-stop Investment Service Office receives a complete investment application;

2. Within two (2) working days after receiving the complete investment application, the concerned One-stop Investment Service Office shall forward the application to the relevant sectors and local administrations to review and return feedbacks in writing within eight (8) working days starting from the date the latter receives the application;

3. Upon receiving the favorable feedbacks from the relevant sectors and local administrations, the One-stop Investment Service Office must review and propose to the Ministry of Planning and Investment or Provincial Administration Committee to issue an investment license within five (5) working days.

4. In the event of contradicting feedbacks by the relevant sectors and local administrations or no feedbacks within the timeframe prescribed in Item 2 of this Article, the One-stop Investment Service Office shall proactively coordinate and convene a joint meeting with the relevant sectors and local administrations to reach a conclusion, then propose to the Ministry of Planning and Investment or the Provincial Administration Committee for consideration within five (5) working days.

In the event that the investment lisense is not approved, the concerned One-stop Investment Service Office shall notify the investor applicant in writing within three (3) working days starting from the date of the decision being made.

Article 37 Investment Change in relation to Business Listed in the Controlled List

An investment in a business listed in the controlled list may be changed owing to various reasons, such as a change to business operation purposes or registered capital. Such a change needs an approval by an authority that grants an investor a business operating license in the first place. Changes to shareholders and other changes shall observe the relevant laws, then the concerned investor shall seek an update to its investment license and enterprise registration certificate with the Planning and Investment sector and the Industry and Commerce sector accordingly.

Article 38 Application for Investing in Business not listed in the Controlled List

An investor intending to invest in a business not listed in the controlled list shall submit an application to the Industry and Commerce sector to register its enterprise in accordance with the Law on Enterprise, and then obtain a business operating license from the relevant sector in accordance with the relevant law. For a business not listed in the controlled list and identified as a promoted sector, after obtaining a business operating license, the concerned investor may apply for an investment promotion certificate with the One-stop Investment Service Office.

Article 39 Enterprise Registration Consideration for Business not listed in the Controlled List

A consideration procedure and timeframe relating to an enterprise registration and business operating licensing for a business not listed in the controlled list shall observe the Law on Enterprise and other relevant laws.

Article 40 General Business Investment Term

An investment term in a general business has no limit unless being defined in other relevant laws.

Section 4 Concession Business

Article 41 Concession Business

A concession business is a business, in which the investor is granted a concession by the State in accordance with the relevant law in order to develop or operate a certain business such as land concession, special or specific economic zone development, mining, airport or road service, power development, or technology or communication operation

Under the concession business type, there is a special concession business. Such a concession business may be strategic by nature, involve the nation’s exclusive rights which relate to the national security as well as concession of high value natural resources, or a project’s area covering a number of provinces.

The Government shall determine the list of concession businesses and special concession businesses.

Article 42 Investment Term for Concession Business

An investment term for a concession business shall be subject to a business type, size, investment value, conditions, feasibility study in accordance with relevant laws but shall not exceed fifty (50) years.

An investment term for a concession business may be extended subject to its performance evaluation and a decision by the Government or the National Assembly or Provincial People’s Assembly, within delegated authority as prescribed in the relevant laws.

Section 5 Requirements and Procedure for Concession Business

Article 43 Concession Business Investor Requirements

A concession business investor shall satisfy the following requirements:

1. Being a legal entity;

2. Possessing experiences and proven successful track records in business operations as verified by the relevant authorities;

3. Possessing financial capacity or source of funds as verified by domestic or foreign financial institutions ;

4. Being a winning bidder in accordance with the relevant law;

5. Satisfying other requirements as prescribed in the relevant laws.

Article 44 Investment Application and Supporting Documents

An investment application and its supporting documents are as follows:

1. An investment application in provided form;

2. An investor’s profile and experiences, an enterprise registration certificate, a managing director’s copy of ID card or passport, and a criminal record certificate;

3. A joint-venture agreement;

4. A power of attorney issued to the representative or shareholders of an enterprise in the event that the concerned person is not in the enterprise’s highest management position;

5. Preliminary business plan and business operation model;

6. A financial status certificate, sources of funds certificate and audited financial statements for the last two years;

7. A copy of the enterprise’s articles of association;

8. Other documents as required for each type of concession business, and relevant laws

Article 45 Application for Signing Memorandum of Understanding or Agreement to Conduct Concession Business Feasibility Study

An investor intending to sign a Memorandum of Understanding (MOU) or Agreement to conduct a feasibility study relating a to special concession business shall submit an investment application together with supporting documents to the central One-stop Investment Service Office. For any other concession business that is not a special concession business, an investment application together with supporting documents are to be submitted to the provincial One-stop Investment Service Office

For a concession business governed by a specific law, an investment application is to be submitted to the relevant sector or local administration in accordance with delegated authority stipulated in the relevant law

For any project that the State already has complete information, a tender shall be announced to select a winning bidder in accordance with the relevant law

For any concession business that within a thirty (30) day timeframe attracts multiple investment proposals purporting to conduct the same business or within the same area, a competitive selection or tender shall be held in accordance with the relevant law.

The Government shall define specific regulations relating to tender

Article 46 Procedure and Timeframe for Considering and Approving Investment Application Relating to Concession Business

The procedure and timeframe for considering and approving an investment application Relating to a concession business are as follows;

1. Procedure for considering and approving a signing of an MOU or Agreement to conduct a project’s feasibility study: An investor shall receive an approval to sign an MOU or Agreement to conduct a concession business project’s feasibility study within sixty-five (65) working days starting from the date the 21 relevant One-stop Investment Service Office receives a complete investment application. Such a procedure is as follows:

• 1-1 Special Concession Business: The central One-stop Investment Service Office shall forward the investment application to the relevant sectors and local administrations within two (2) working days for their reviews and feedbacks. Such feedbacks shall be delivered to the former within thirty (30) working days. After receiving favorable feedbacks from the relevant sectors and local administrations, the central One-stop Investment Service Office shall review and report to the Ministry of Planning and Investment for a consideration and approval in principle. The former will then convene a meeting to discuss the MOU or Agreement with the investor, in the presence of the relevant sectors and local administrations. After that, the report will be sent to the Government to consider and approve a signing of MOU or agreement within thirty (30) working days. The Ministry of Planning and Investment, on behalf of the Government, shall sign the MOU or Agreement, witnessed by representatives of the concerned provincial administrations and ministries. In the event of contradicting feedbacks by the relevant sectors and local administrations or no feedbacks within the timeframe, the central One-stop Investment Service Office shall proactively coordinate and convene a consultation meeting, then report to the Government for consideration.

• 1.2 Concession Business that is not Special Concession Business: The provincial One-stop Investment Service Office shall forward an investment application to the relevant provincial or Vientiane Capital departments for their feedbacks within two (2) working days. Such departments shall review and consult their sectors at the central level, and return their feedbacks within thirty (30) working days. After receiving favorable feedbacks from the relevant departments, the provincial One-stop Investment Service Office shall review and report to the Provincial Administration Committee for a consideration and approval in principle. The former will then convene a meeting to discuss the MOU or Agreement with the investor, in the presence of the relevant sectors and local administrations. After that, the report will be sent to the Provincial Administration Committee to consider and approve a signing of MOU or agreement within thirty (30) working days. The Provincial Department of Planning and Investment, on behalf of the Provincial Administration Committee, shall sign the MOU or Agreement, witnessed by representatives of the Ministry of Planning and Investment and other relevant ministries. In the event of contradicting feedbacks by the concerned parties or no feedbacks within the timeframe, the provincial One-stop Investment Service Office shall proactively coordinate and convene a consultation meeting, then report to the Provincial Administration Committee for consideration.

• 1.3 The investor applicant shall deposit a monetary security at the National Treasury Department before the date of the MOU or Agreement signing

2. Procedure for Considering and Approving a Concession Agreement Signing: After signing the MOU or Agreement, the concerned investor shall satisfy the obligations and requirements set forth in the MOU or Agreement. The investor’s performance shall be validated by the relevant sectors to obtain the feasibility study approval certificate, the environmental and social impact assessment report approval certificate and the environment and social management plan approval certificate, and the concession land area certificate. After that, the investor shall submit a request to the central or provincial One-stop Investment Service Office in accordance with the delegated management authority over concession businesses to consider signing a concession agreement. At the central level, the central One-stop Investment Service Office shall review such a request and report to the Ministry of Planning and Investment for consideration and approval in principle; similarly, at the provincial level, the provincial One-stop Investment Service Office shall review such a request and report to the Provincial Administration Committee for consideration and approval in principle. Upon an approval in principle, the respective One-stop Investment Service Office shall convene a meeting to discuss the concession agreement with the investor, in the presence of the relevant sectors and local administrations. After that, it shall report to the Government or the Provincial Administration Committee for consideration and approval a signing of a concession agreement. The Planning and Investment Sector representing the Government or The Provincial Administration Committee shall sign such a concession agreement. The investor shall deposit a monetary security at the National Treasury Department and satisfy all contractual obligations before the date of the concession agreement signing.

3. The Planning and Investment Sector is to issue a business license for a concession business in accordance with the delegated management authority.

Article 47 Investment Change in relation to Concession Business

An investment in a concession business may be changed owing to various reasons, such as more businesses being added, a change to shareholders or registered capital, or other changes as proposed by the investor. Such proposed changes shall be subject to an approval by a licensing authority that granted the original investment license in accordance with the delegated management authority as provided for by the law.

Article 48 Transfer of Rights or Concession Business under Concession Agreement

An Investor in a concession business may transfer its rights or concession business in part or in whole to another investor under the following requirements:

1. It must be approved by the Government or the concerned Provincial Administration Committee in accordance with the delegated management authority;

2. It must satisfy Article 16 (1) of this Law, and all financial obligations and other obligations under the agreement, and the relevant laws and regulations;

3. It must not be involving in a dispute resolution, litigation or prosecution.

For a concession business in mining, energy, land, and agriculture and forestry sectors, such a transfer shall comply with the relevant laws and regulations.

In the event of being granted an approval for such a transfer, the concerned One-stop Investment Service Office shall inform the investor applicant to complete a payment of all taxes, fees, and service charges as stipulated by the relevant laws and regulations before referring to the Planning and Investment Sector for an amendment of investment documents. After that, the amended documents shall be notarized by the notary office of Lao PDR in accordance with the law.

Article 49 Approval Right of the National Assembly

The National Assembly has the approval right in relation to a concession business as follows:

1. Consider and approve the State’s equity contribution in a Public-Private Partnership investment in accordance with the relevant laws and regulations;

2. National-level investment projects;

3. Nuclear energy power plant construction project;

4. Establishment of special or specific economic zones related to item 6, 7, and 8 of this Article;

5. Extension of a concession term for a special or specific economic zone;

6. Activities involving a conversion of the national protection and protected forests, and the provincial cultivation, protection and protected forests;

7. Activities involving a natural waterway diversion in a large watershed, a relocation of more than five hundred households, or a land concession with an area of ten thousand hectares or more, and other activities that may cause severe environmental, natural, and social impacts as defined by the relevant laws;

8. Projects that require special investment incentives

For projects not listed in this Article, the relevant laws entering into force at the time shall be observed.

Article 50 Approval Right of the Provincial People’s Assembly

The Provincial People’s Assembly has the approval right in relation to a concession business as follows;

1. The Provincial Administration Committee’s proposed conversion of land, the protection and protected forests at provincial level, degraded forest that cannot be regenerated on its own, and barren forest as defined by the Law on Forestry;

2. Activities involving a natural waterway diversion in a small watershed and a relocation of fewer than one hundred households, as well as other activities that may cause severe environmental, natural, and social impacts as defined by the relevant laws;

3. The Provincial Administration Committee’s proposed lease or concession of land area in a degraded forest that cannot be regenerated on its own as defined by relevant laws.

For a concession business in relation to land, electricity, and mining sectors, the relevant laws entering into force at the time shall be observed.

Section 6 Registered Capital and Capital Importation

Article 51 Registered Capital required for General Business

A registered capital required for a general business shall comply with the Law on Enterprise and other relevant laws

Article 52 Registered Capital required for Concession Business

An investment project in a concession business shall have a minimum registered capital as follows;

1. An investment project with value less than USD 50,000,000 (fifty million), the registered capital shall be at least 30% of the total investment;

2. An investment project with value from USD 50,000,000 (fifty million) to USD 100,000,000 (one hundred million), the registered capital shall be at least 20% of the total investment, but no less than USD 15,000,000 (fifteen million);

3. An investment project with value from USD 100,000,000 (hundred million) to USD 500,000,000 (five hundred million), the registered capital shall be at least 5% of the total investment, but no less than USD 20,000,000 (twenty million);

4. An investment project with value over USD 500,000,000 (five hundred million), the registered capital shall be at least 2% of the total investment, but no less than USD 25,000,000 (twenty-five million).

The registered capital required for a concession business shall be clearly represented as assets. Throughout such a business operation period, the value of the assets shall not fall below the registered capital

Article 53 Capital Importation for General Business

A foreign investor investing in a general business shall import at least 30% of the registered capital within ninety (90) days staring from the date of receiving a business operating license or an investment license. The remaining capital shall be imported within one (1) year, unless the relevant laws provide for otherwise. A capital may be imported in a monetary and/or in assets form in accordance with the relevant laws. Each capital importation shall be certified by the Bank of Lao PDR.

Article 54 Capital Importation required for Concession Business

An investor investing in a concession business shall import the registered capital within ninety (90) days starting from the date the concession agreement coming into force, at the following minimum ratios:

1. Three precent (3%) of the registered capital in the event of an investment project with value less than USD 50,000,000 (fifty million);

2. Two percent (2%) of the registered capital in the event of an investment project with value from USD 50,000,000 (fifty million) to USD 100,000,000 (one hundred million);

3. One point five percent (1.5%) of the registered capital in the event of an investment project with value from USD 100,000,000 (one hundred million) to USD 500,000,000 (five hundred million);

4. One percent (1%) of the registered capital in the event of an investment project with value over USD 500,000,000 (five hundred million)

The remaining registered capital shall be imported within two (2) years from the date of the concession agreement coming into force. A capital may be imported in a monetary and/or in assets form in accordance with the relevant laws. Each capital importation shall be certified by the Bank of Lao PDR

Section 7 Representative Office

Article 55 Representative Office of Foreign Legal Entity

A representative office of a foreign legal entity is an office that coordinates on behalf of its parent company to study investment potentials, follow up on a project that its parent company has a signed agreement with the State, or its parent company’s operations relating to a business, investment, trade and services, and liaise with various public and private actors in Lao PDR.

Article 56 Representative Office Establishment Application

A foreign legal entity intending to establish a representative office in Lao PDR shall submit an application to the relevant One-stop Investment Service Office for consideration and issuance of a representative office establishment license within fifteen (15) working days starting from the date of receiving such an application.

The representative office establishment license is a document recognizing the legal rights to operate as a representative office in accordance with its functions, rights and duties as prescribed in Article 55 of this Law, but not the right to engage in any business operation. Establishment guiding principles, rights and duties, the term and required capital of a representative office shall be defined in a separate regulation.

Part IV Special and Specific Economic Zones

Article 57 Special Economic Zone

A Special Economic Zone (SEZ) is an investment area within the sovereignty and territory of Lao PDR that has a specific investment governance mechanism and incentives introduced by the State’s decision.

SEZ may consist of industrial parks, technological and information development areas, logistics areas, service areas, commercial areas, tourism areas, and others based on the State’s decision.

SEZ creates conditions to attract investments that use high technologies and innovations in commercialization of agricultural production or clean manufacturing, which is resource and energy efficient for the purpose of sustainable and environmentally friendly development.

“Special Economic Zone” abbreviated in Lao as “ຂສພ” and in English: “Special Economic Zone” and abbreviated in English as “SEZ.”

Article 58 Establishment of Special Economic Zone

The Government shall decide to establish SEZ based on a study and proposal by the Ministry of Planning and Investment in collaboration with relevant ministries and local administrations, and an approval by the National Assembly as stipulated in Article 49 (4) of this Law.

Article 59 Requirements on Special Economic Zone Establishment

An establishment of a Special Economic Zone is subject to the following requirements:

1. Clearly defined objectives of a proposed SEZ;

2. Suitable location, and clearly defined boundaries and area consistent with the objectives;

3. Clearly defined concession term for a proposed zone;

4. Clearly defined benefits for the State, a developer, and people;

5. Approved economical-technical as well as environmentalsocial assessment report;

6. In line with the national socio-economic development plan, the national land use master plan, and SEZ development strategy;

7. Assured the socio-economic management, stability, public security, social safety and public order;

8. Completed capital importation as stipulated in Article 54 of this Law;

9. Assured sustainable development, promotion and preservation of fine national cultures

Article 60 Investment Management Arrangement for Special Economic Zone

The Government centrally and uniformly manages SEZs nationwide by delegating management authorities to ministries, agencies, and local administrations in accordance with the relevant laws.

Investment management arrangement for a SEZ is as follows:

1. The Central Special Economic Zone Promotion and Management Office

2. The Provincial Zone Management Committee or Authority;

3. The One-stop Investment Service Unit located at SEZ.

SEZ management arrangement is defined in the relevant law and regulations

Article 61 Specific Economic Zone

A Specific Economic Zone (SpEZ) is an investment area established by the Government and located outside a Special Economic Zone for a specific business operation, such as an industrial park or a high technological zone.

Regarding an establishment and management of SpEZs, the relevant law and regulations shall be observed.

Article 62 Land Concession Term for Special or Specific Economic Zone Development

A land concession term for a SEZ or SpEZ development shall be determined based on the type, size, investment value, requirements, and economical-technical feasibility study of a business in accordance with the relevant laws, and shall not exceed fifty (50) years.

A land concession term for a SEZ or SpEZ development may be extended based on a performance evaluation and the National Assembly’s approval upon the Government’s proposal, provided that a developer has fully complied with a concession agreement in a lawful and effective manner, and generated benefits for the State and society

Twelve (12) months before an expiration of a concession agreement’s term, both parties shall complete a settlement of all assets belonging to a development project, and a transfer of land use rights and ownership of buildings and built infrastructure pertaining to the project and for them to be officially owned, assumed, liquidated and managed by the Government.

Article 63 Investment Applications in Special and Specific Economic Zones

A domestic or foreign individual or legal entity intending to invest in the Special Economic Zone or the Specific Economic Zone shall submit an investment application together with supporting documents to the Zone Management Committee through the One-stop Investment Service Unit located in the SEZ or SpEZ for consideration in accordance with the One-stop Investment Service mechanism.

A developer wishing to invest in any business within an SEZ or SpEZ other than those stipulated in the development contract is required to establish a new legal entity

Article 64 Additional Incentives for Special and Specific Economic Zones

In addition to the incentives stipulated in Part II of this Law, the Special Economic Zone and the Specific Economic Zone shall receive additional incentives as follows:

1. A developer shall receive a profit tax exemption for an additional period of six (6) years, altogether a total period of sixteen (16) years in the event of an investment in Zone 1, and for an additional period of four (4) years, altogether a total of eight (8) years) in the event of an investment in Zone 2. A developer investing in a SEZ or SpEZ shall receive a profit tax exemption for an additional period of two (2) years in addition to the incentives for sectoral or zonal-based investments stipulated in Article 11 (1) and 11 (2) of this Law, except for sectors specified in Article 9 (9) of this Law

2. An investor investing in a SEZ or SpEZ shall receive incentives related to land lease fees in accordance with the relevant agreement and regulations, and may use the land use rights, sub-lease or transfer the granted land use rights to another investor within the term of the land lease agreement subject to the concerned Zone Management Committee’s approval;

3. A foreign developer or investor investing in a SEZ or SpEZ, together with their family members shall receive special considerations for foreigner registration, stay permit and multiple-entry visa issuances. Such a multiple-entry visa’s validity term per time shall not exceed ten (10) years. An individual foreigner who owns a real estate in a SEZ or SpEZ, having paid in a full amount equivalent to at least one hundred thousand (USD 100,000) US dollars, shall receive a multiple-entry visa for an initial term of ten (10) years. The term may be renewed.

For industrial parks and high technological zones that the Government wishes to give special promotions by offering better incentives than the ones stipulated in this Law and other relevant laws, such as incentives relating to taxes, customs duties, a development of infrastructure, self generating-energy supply, and self-water supply, research and development, environmental protection, waste treatment and recycling, the Government may propose specific legal instruments to the Standing Committee of the National Assembly for consideration.

Part V Overseas Investments

Article 65 Application for Overseas Investment

An investor in Lao PDR intending to engage in overseas investment shall submit an application to the One-stop Investment Service Office for consideration and issuance of a license. An investor in Lao PDR intending to invest in securities abroad shall comply with the Law on Securities and related regulations.

Article 66 Requirements for Overseas Investment

An investor in Lao PDR intending to engage in overseas investment shall satisfy the following requirements:

1. Have a defined overseas investment project target;

2. Possess audited financial statements for the last two (2) years by the finance sector or an external auditor;

3. Fulfill all financial obligations to the Government of Lao PDR accurately and completely;

4. Comply with the regulations of Bank of Lao PDR, and other relevant laws and regulations of Lao PDR.

Article 67 Rights and Obligations of Investors in Lao PDR Engaging in Overseas Investments

Investors in Lao PDR engaging in overseas investments have the following rights to;

1. Export funds and assets for overseas investments, and repatriate funds and assets after satisfying obligations in accordance with the laws and regulations of host countries;

2. Repatriate profits and other revenues from their business activities back to Lao PDR;

3. Enjoy facilitation and incentives in accordance with the national laws and regulations of Lao PDR;

4. Employ Lao workers to work in their overseas enterprises in compliance with relevant laws and regulations of Lao PDR and host countries

Investors in Lao PDR engaging in overseas investments have the following obligations:

1. Comply with the laws and regulations of host countries;

2. Report their financial and business operations to the One-stop Investment Service Office to inform Ministry ofFinance and the Bank of Lao PDR.

Upon a termination of overseas investments, investors may repatriate funds and assets in accordance with the relevant laws.

Part VI Rights and Obligations of Investors

Section 1 Rights of Investors

Article 68 Overall Rights of Investors

Investors have the following overall rights:

1. To apply for investments in any sector or zone not prohibited by the laws of Lao PDR;

2. To apply for investments by type, form, and business model as provided for by the relevant laws and regulations;

3. To apply for concessions from the Government or the Provincial Administration Committee as the case may be for the purpose of project development;

4. To apply for concessions to establish SEZs or SpEZs with the Government;

5. To apply for an establishment of representative offices or branches in Lao PDR;

6. To apply for changes in investment objectives or businesses in the event of changes to the Government’s relevant policies, laws affecting their business operations resulting in inefficiency in its investments;

7. To receive protection of their lawful rights and interests arising from their investments from the State;

8. To receive suppors from the State various aspects in connection with their lawful investments;

9. To receive benefits relating to lease or concession agreements in accordance with the laws and regulations of Lao PDR;

10. Those with land lease or concession agreements have the land use rights in accordance with leased terms or concession period, or may assign or transfer their lease or concession rights to others within the term of the agreements in accordance with the relevant laws and regulations, and with the competent authority’s approval;

11. To hold ownership of their assets, including buildings or constructions located on leased or concession land, and to transfer the ownership to domestic or foreign persons in accordance with the relevant laws;

12. To use funds in deposit accounts opened at commercial banks in Lao PDR in accordance with the relevant laws and regulations;

13. To submit complaints to relevant authorities in the event of perceived damages to their investments;

14. To receive other rights as provided for by the relevant laws.

Article 69 Rights of Investors to Their Business Operation Management

Rights of investors to their business operation management are as follow:

1. To plan investments

2. To procure and use materials, vehicles, machineries, and technologies to support the investments

3. To access domestic and international markets

4. To manage workers to ensure order and safety in order to enable business operations

5. To convene meetings to discuss investment issues;

6. To assign or transfer shares to other investors;

7. To decrease or increase the capital of their investment enterprises;

8. To request an approval from relevant authorities for merger, suspension, dissolution, or changing the form of their enterprises;

9. To exercise other rights as provided for by the relevant laws

Article 70 Rights of Investors to Employment

Rights of investors to employment are as follows:

1. To sign employment contracts with workers, professionals, or experts to work for their enterprises;

2. To import workers in accordance with the Law on Labor. In the event of exceeding a quota, investors shall request to Ministry of Labor and Social Welfare for consideration and approval; the latter’s decision is based on a consultation with relevant ministries;

3. To rearrange or deploy workers into different positions as needed by their enterprises

4. To apply policies or measures to workers lawfully

5. To exercise other rights as provided for by the relevant laws and regulations of Lao PDR

Article 71 Right of Foreign Investors to Residence

Foreign investors together with their family members have the right to residence in the territory of Lao PDR in accordance with their investment terms. Foreign professionals and experts have the right to residence in the territory of Lao PDR in accordance with the terms of their employment contracts.

Article 72 Rights of Foreign Investors to Repatriation of Capitals, Assets, or Revenues

Foreign investors have the rights to repatriation of their capitals, assets or revenues, such as profits, funds, or other assets under personal or enterprises’ ownership to overseas through banks located in Lao PDR and other relevant organizations, upon complete payments of customs duty, tax and charge to the Government, as provided for by the relevant laws and regulations of Lao PDR.

A repatriation of capitals and/or funds includes:

1. Capitals as certified by the Bank of Lao PDR;

2. Profits, dividends, revenues relating to copy right license, intellectual property, technical services, interest, and other incomes from the investments;

3. Funds derived from the sale of businesses, or dissolution of businesses in whole or in part

4. Funds received from contractual payments, including loan agreements, or arbitral awards or court decisions that may or may not relate to their businesses;

5. Compensations or other payments received before confiscation in accordance with a court decision or nationalization;

6. Incomes and other remunerations of lawfully employed foreign employees.

Section 2 Obligations of Investors

Article 73 Economic Obligations

An investor has the following economic obligations

1. Pay land lease or concession fees, natural resource fees, customs duties, taxes, fees and service charges in full and on time in accordance with the relevant laws and regulations;

2. Maintain accounts in accordance with the Law on Accounting of Lao PDR. If necessary, international accounting standards can be implemented subject to an approval by the finance sector of Lao PDR;

3. Open specific deposit accounts at commercial banks located in Lao PDR, and use the funds in such an account in accordance with the relevant laws and regulations;

4. Cooperate and coordinate closely with relevant sectors and local administrations with regards to a business operation, and establish a coordination office at the locality where the project is located, especially in relation to a concession business;

5. Promote the use of Lao workers, especially female and ethnic workers; pay attention to labor skill development, upgrading professional qualifications, and transferring technologies to Lao workers

6. Cooperate in assessing the performance of contractual parties, financially contribute to the investment supervision, monitoring and inspection activities;

7. Report financial matters during and after the profit tax exemption period to the finance sector in accordance with the relevant regulations

8. Summarize and report a business operation quarterly, semi-annually, and annually to the One-stop Investment Service Office and the relevant sectors;

9. Implement other obligations as provided for by the relevant laws

Article 74 Social Obligations

An investor has the following social obligations:

1. Comply with the social security and labor insurance regime for those working within own organizations as provided for by the relevant laws and regulations;

2. Facilitate an establishment and operation of mass organizations within the enterprise, especially a grassroot trade union;

3. Respect and uphold local fine traditions, and cultures;

4. Compensate affected parties for their damages or losses caused by the business operation;

5. Contribute to a promotion of local businesses, an alleviation of people’s poverty, and a local community development where the project is located;

6. Contribute financially to a social development as required by agreements and laws;

7. Fulfil other obligations as provided for by the relevant laws

Article 75 Environmental Obligations

An investor has the following environmental obligations:

1. Strictly comply with environmental obligations in accordance with the law, treaties to which Lao PDR is a state party to, or relevant international agreements, promote the green and sustainable development

2. Take necessary measures to address environmental problems timely in accordance with the relevant laws and regulations;

3. Cooperate with authorities in the annual environmental and social impact assessments as per the established plan, and contribute financially to the environmental supervision, monitoring and inspection activities;

4. Fulfill other obligations as provided for by the relevant laws

Part VII One-stop Investment Service

Article 76 One-stop Investment Service Office

The One-stop Investment Service Office is a State agency established for the purpose of investment facilitation and service in Lao PDR. The One-stop Investment Service Office is abbreviated as “OISO”.

There are two levels of OISO namely:

1. The Central One-stop Investment Service Office, abbreviated as C.OISO; and

2. The Provincial One-stop Investment Service Office, abbreviated as P.OISO

An establishment and operations of the Central and Provincial OISOs are to be provided for by a separate regulation.

Article 77 The Central One-stop Investment Service Office

The Central OISO is the Investment Promotion Department that acts as the central coordinating body in collaborating with the one-stop investment service coordinating committees of relevant ministries and State agencies, such as the Ministry of Industry and Commerce, the Ministry of Finance, the Ministry of Natural Resources and Environment, the Ministry of Energy and Mines, the Ministry of Agriculture and Forestry, the Ministry of Labor and Social Welfare, the Ministry of Public Works and Transport, the Ministry of Information, Culture and Tourism, the Ministry of Public Security, and other ministries and ministerial-level equivalent agencies

Ministries and ministerial-level equivalent agencies shall establish their own one-stop investment service coordinating committees.

Article 78 The Provincial OISO

The Provincial OISO is the Provincial Planning and Investment Department that acts as the central coordinating body in collaborating with the one-stop investment service coordinating committees of relevant provincial departments, such as the provincial department of Industry and Commerce, the provincial department of Finance, the provincial department of Energy and Mines, the provincial department of Natural Resources and Environment, the provincial department of Agriculture and Forestry, the provincial department of Labor and Social Welfare, the provincial department of Public Works and Transport, the provincial department of Information, Culture and Tourism, the provincial department of Public Security.

Provincial departments shall establish their own one-stop investment service coordinating committees.

Article 79 Principles of One-stop Investment Service

The principles of One-stop Investment Service are as follows:

1. Be a centralized investment service center to succinctly, expeditiously, transparently and timely serve investors investing in general and concession businesses, including a special or specific economic zone development

2. Be in charge of coordinating with the relevant sectors and local administrations on the basis of complying with the relevant laws and regulations;

3. Centralize data collection, monitoring and evaluation of investment and private investment project performance.

Article 80 Rights and Duties of One-stop Investment Service Office

The One-stop Investment Service Office has the following rights and duties:

1. Clarify investment-related laws and regulations to investors;

2. Receive investment applications for controlled and concession businesses;

3. Forward application documents to the relevant sectors and local administrations for their feedbacks;

4. Review investment applications to recommend to the Ministry of Planning and Investment or the concerned Provincial Administration Committee for consideration and approval;

5. Coordinate with the relevant sectors and local administrations to issue enterprise registration certificates, business operating licenses, and other permits in accordance with the relevant laws after investment licenses being issued;

6. Facilitate document processing, provide investment-related information to investors by coordinating with the relevant sectors;

7. Explain and advise how to complete a provided investment application form and supporting documents relating to investments;

8. Receive and review an application to assign or transfer ownership of a business, to amend a concession agreement, an investment license, or an enterprise registration certificate in relation to an addition or reduction of businesses in a controlled list;

9. Receive and review a foreign legal entity’s application to establish a representative office;

10. Receive and review an application for an overseas investment by a domestic legal entity;

11. Receive and review an investor’s application for an investment promotion certificate, and import master list;

12. Receive and process applications by foreign investors, their family members, foreign professionals and workers for visas, work and residence permits;

13. Receive investors’ complaints or grievances related to investment disputes, coordinate with the relevant sectors and local administrations to resolve them;

14. Provide initial support to resolve investment-related complaints or grievances by coordinating with the relevant sectors and local administrations;

15. Provide other relevant investment services to investors in accordance with the relevant laws and regulations;

16. Monitor and inspect investments, and then periodically report to the Ministry of Planning and Investment or the concerned Provincial Administration Committee in accordance with the delegated authority;

17. Collect fees and service charges in accordance with the relevant regulation;

18. Exercise other rights and perform other duties as provided for by the relevant laws or being assigned.

Part VIII Suspension, Cancellation, Termination of Investment, and Dispute Resolution

Article 81 Suspension of Investment Project Implementation

An implementation of any investment project shall be suspended in the following events:

1. The investment or business operating licensing authority may suspend an investment project implementation based on the following events:

1.1A recommendation by the relevant sector or local administration due to a failure to meet investment objectives or a breach of agreement or a violation of relevant laws, in which the licensing authority has issued a warning in writing with a clear timeframe for the concerned investor to take corrective actions. In the event that the investor fails to deliver within the established timeframe, the investment project in question shall be suspended.

1.2 A request by the investor, to which the licensing authority shall coordinate with relevant sectors to undertake an evaluation before granting a suspension

2. A local administration in coordination with relevant sectors at the central level may suspend an investment project implementation in whole or in part in the event that the project causes severe social or environmental impacts.

Article 82 Reasons for Investment Cancellation

An investment shall be canceled in the following events:

1. At a request by the investor or a contracting party in the event of a breach of contractual commitments by the other party as provided for by the relevant agreement or law;

2. Failure to timely complete corrective actions as prescribed in the investment suspension notice as provided for by Article 81 of this Law;

3. Failure to pay taxes, customs duties, or other financial obligations as provided for by the relevant laws;

4. A final court decision ordering a cancellation of the investment

5. Bankruptcy in accordance with the relevant law

In any cancellation event of the investment, the concerned investor is not exempted from obligations and debts owed to individuals, legal entities, or the State

Article 83 Cancellation of Investment

An investment cancellation shall be as follows:

1. The investment licensing authority shall issue an investment cancellation notice;

2. After receiving the investment cancellation notice, the concerned investor shall continue to fulfill their obligations to the State and complete payments to creditors in full.

Article 84 Termination of Investment

An investment is terminated in the following events:

1. Failure to submit an investment term extension application before the expiration of the term as provided for by MOU, project development or concession agreement without requiring a prior notice from the State;

2. An expiration of the investment term as provided for by the investment license, or the completion of the investment project;

3. A revocation of the investment license, or an investment cancellation as prescribed in Article 83 of this Law;

4. A dissolution of the investment enterprise in accordance with the Law on Enterprise;

5. A cancellation at the request of the investor or a contracting party, with an approval by the relevant sector;

6. A final court decision ordering a dissolution of the investment enterprise or a cancellation of the investment.

Article 85 Dispute Resolution

An investment dispute resolution shall observe the Law on Economic Dispute Resolution, and other relevant laws their sub-legislations then in force.

Part IX Prohibitions

Article 86 General Prohibitions

Individuals, legal entities, or organizations are prohibited to perform the following acts:

1. Agrees to or operate businesses that are prohibited, or contradicts with relevant laws and regulations;

2. Obstruct investment promotion in Lao PDR in any form;

3. Engage in any other acts that violate relevant laws and regulations.

Article 87 Prohibitions relating to Investors

Investors are prohibited against:

1. Bribing officers, government officials or civil servants responsible for concerned tasks;

2. Conspiring with officers, government officials or civil servants to gain unlawful benefits;

3. Foreign investors are prohibited against buying, selling or subleasing land that does not satisfy agreements’ objectives;

4. Neglecting, being negligent, evading obligations, or concealing incomes, profits, or wrongdoings related to tax or customs duty liabilities;

5. Delaying or stalling a project development, or holding a project development right without any development in accordance with the plan;

6. Defaming or spreading misinformation about government organizations, officers, government officials or civil servants;

7. Committing acts or engaging in movements that harm the society, the environment, the nation’s customs or cultures, public safety, or public order;

8. Engaging in any other acts that violate the laws.

Article 88 Prohibitions relating to Officers, Government Officials, and Civil Servants

Officers, government officials or civil servants are prohibited against:

1. Being negligent, neglecting, abusing power, duties or positions for personal, family or their associate gains;

2. Conspiring with or favoring investors to gain unlawful benefits;

3. Accepting bribes from investors or those seeking benefits from investments;

4. Disclosing confidential documents of the nation, government or investors;

5. Unreasonably delaying or hindering a processing of investors’documents;

6. Engaging in any other acts that violate the laws.

Part X Investment Promotion Management and Inspection

Section 1 Investment Promotion Management

Article 89 Investment Promotion Management Authorities

The Government centrally and uniformly manages investment promotion activities nationwide by assigning the Planning and Investment Sector as the main regulatory authority in collaboration with the Industry and Commerce Sector, the Finance Sector , other sectors, and local administrations.

Investment promotion management authorities include:

1. The Planning and Investment Sector

2. The Industry and Commerce Sector;

3. The Finance Sector;

4. The Provincial Administration Committee

Article 90 Rights and Duties of The Planning and Investment Sector

Regarding investment promotion management, The Planning and Investment Sector has the following rights and duties within its jurisdiction as follows:

1. Study and formulate policies, laws, strategies, investment inducement lists, and regulations related to investment promotion and management in Lao PDR and abroad;

2. Disseminate policies, laws, strategies, and regulations related to investment promotion and management in Lao PDR and abroad;

3. Develop and introduce standard forms related to an investment license application in Lao PDR or abroad;

4. Serve as a central coordinator with relevant sectors to study and discuss concession agreements and represent the Government to sign such agreements as being assigned;

5. Study and recommend a suspension, change , or cancellation of an investment project or business that fails to meet investment purposes, breaches an agreement, or violates relevant laws and regulations;

6. Develop and manage an investment information management system, and provide information on investment incentives in order to attract investments, and facilitate overseas investments;

7. Monitor and inspect the implementation of laws and their sub-legislations related to investment promotion nationwide;

8. Encourage, promote, and coordinate with other concerned sectors and local administrations in evaluating investment project or business implementation, and resolving issues occurred in such a project, investments nationwide, including rendering protections to those investing overseas;

9. Guide and facilitate an expeditious, transparent, fair, and effective One-stop Investment Service implementation;

10. Develop, train, and upgrade staff’s knowledge on investment promotion;

11. Collaborate internationally on investment promotion;

12. Manage special economic zones;

13. Consider and approve investments in controlled lists, concession businesses, as well as investments in special or specific economic zone development;

14. Guide an implementation of the One-stop Investment Service to ensure effective and efficient investment promotion and attraction;

15. Consider changing, suspending, or cancelling investments in controlled lists, concession businesses, as well as investments in special or specific economic zone development, and investments in such zones for export;

16. Consider and approve a foreign legal entity’s application to establish its representative office;

17. Consider and approve a domestic legal entity’s application to invest abroad;

18. Consider issuing an investment promotion certificate and approving an investor’s import master list;

19. Collect information on registered capital of investors investing in controlled and concession businesses, and share such information with relevant sectors;

20. Engage in foreign, regional and international cooperation relating to investment promotion as being assigned;

21. Coordinate with relevant sectors in studying and proposing controlled lists and concession businesses for the government’s consideration;

22. Summarize and report investment promotion activities to the Government regularly;

23. Exercise other rights and perform other duties as prescribed by the relevant laws

Article 91 Rights and Duties of the Industry and Commerce Sector

The Industry and Commerce Sector has the following rights and duties within its jurisdiction as follows:

1. Study and formulate its policies, strategies and laws related to investment promotion;

2. Disseminate policies, laws, strategies, sub-legislations, plans, programs and projects related to investment promotion in industry and commerce sector;

3. Manage an establishment of all types of enterprises related to a business incorporation, amendment of enterprise registration certificate, and an enterprise dissolution in accordance with the Law on Enterprise;

4. Coordinate with relevant sectors and local administrations in managing, monitoring and inspecting enterprises

5. Facilitate, and consider issuing, amending an enterprise registration certificate, and dissolving an enterprise;

6. Encourage, manage, monitor and inspect enterprise registration activities, collect and protect enterprise registration information, and share such information with higher authorities and the public;

7. Encourage, monitor, and inspect an importation, adjustment and use of capital by an investor investing in general businesses, and share such information with relevant sectors

8. Suspend a use or extension of enterprise registration as prescribed in the Law on Enterprise;

9. Remove an enterprise name from the National Enterprise Database, or extend an enterprise registration in the database as prescribed in the Law on Enterprise

10. Revoke or propose a revocation of an enterprise registration certificate, summarize and report investment promotion and management activities to the Government regularly;

11. Exercise other rights and perform other duties as prescribed by relevant laws.

Article 92 Rights and Duties of the Finance Sector

The Finance Sector has the following rights and duties within its jurisdiction as follows:

1. Study and formulate its policies, laws, strategies, and legislations connected with the financial sector that relate to investment promotion;

2. Review and provide comments on an investment application, an agreement’s extension and amendment

3. Encourage, advise, disseminate, and monitor the implementation of its laws and legislations connected with the financial sector that relate to investment promotion for the benefits of investors and other stakeholders;

4. Encourage, promote, and facilitate an investment project or business implementation, monitor and manage tax and customs duty incentive compliance in accordance with relevant laws and regulations;

5. Coordinate with the Ministry of Planning and Investment, other concerned ministries, agencies and local administrations to resolve issues occurred in investment projects or activities nationwide;

6. Propose to relevant parties a suspension, change, or cancellation of an investment project or business that fails to meet its objectives, breaches an agreement, or fails to pay taxes, custom duties and other financial obligations as prescribed in relevant laws and regulations;

7. Engage in foreign, regional and international cooperation related to the finance sector’s roles in investment promotion;

8. Implement investment incentives as prescribed in relevant laws and regulations;

9. Summarize and report investment promotion and management activities to higher authorities regularly;

10. Exercise other rights and perform other duties as prescribed by the relevant laws.

Article 93 Rights and Duties of the Provincial Administration Committee

The Provincial Administration Committee has the following rights and duties within its jurisdiction as follows:

1. Implement, disseminate policies, laws, strategies, and regulations on investment promotion;

2. Develop and manage an investment incentive information management system, and share such information to attract investments to its locality;

3. Serve as a central coordinator with relevant sectors to study and discuss a concession agreement, and represent its province to sign such an agreement as being assigned;

4. Encourage, monitor, inspect and evaluate an investment project or business implementation, including the enforcement of laws and regulations related to investment promotion;

5. Coordinate with sectors at the local level in managing and resolving issues occurred in investment projects or activities within its locality;

6. Consider a change, suspension, or cancellation of an investment in controlled or concession businesses within its approval authority, a temporary suspension of a centrally approved investment in controlled or concession businesses that causes severe environmental or social impacts, then request to relevant sectors at the central level to consider further actions;

7. Study and propose a change, suspension, or cancellation of an investment project or business that fails to meet its objectives, breaches an agreement or violates the relevant laws and regulations;

8. Facilitate an expeditious, transparent, fair and effective One-stop Investment Service operation;

9. Engage in international cooperation related to investment promotion as being assigned by higher authorities;

10. Develop, train, and upgrade staff ’s investment promotion capacities;

11. Consider and approve an investment application for a controlled or concession business under its jurisdiction;

12. Guide the implementation of One-stop Investment Service for an effective and efficient investment promotion and attraction;

13. Guide, monitor and inspect the implementation of laws, regulations, and agreements related to investments under its jurisdiction;

14. Summarize and report investment promotion activities to higher authorities regularly;

15. Exercise other rights and perform other duties as prescribed in the relevant laws and regulations

Article 94 Rights and Duties of Other Sectors and Parties

Other relevant sectors and parties have the rights and duties to cooperate, facilitate, and coordinate with the Ministry of Planning and Investment in managing investment promotion activities within their respective roles and responsibilities

Section 2 Investment Promotion Inspection

Article 95 Investment Promotion Inspection Authorities

The investment promotion inspection authorities include:

1. The internal inspection authorities are the same as the investment promotion management authorities as stipulated in Article 89 of this Law;

2. The external inspection authorities include the National Assembly, the Provincial People’s Assembly, the State Inspection Authority at each level, the State Audit Organization, the Lao Front for National Development, the Lao Veterans’ Federation, mass organizations, the Chamber of Commerce and Industry, mass media, and general public.

The investment promotion inspection authorities have the right to propose remedial measures to relevant sectors in the event violations of the laws relating to investment promotion and management are found.

Article 96 Scope of Inspection

The scope of inspection includes:

1. Compliance with of incentives, laws, strategies, and regulations related to investment promotion;

2. Compliance with investment agreements and obligations of investors;

3. Economical-technical feasibility studies, environmental protection including impacts on the assets of the State, people, investors, and developers;

4. Compliance with labor safety measures;

5. Other necessary matters.

Article 97 Forms of Inspection

There are three forms of inspection:

1. Regular inspection is normal inspection which is planned and regularly conducted in a certain timeframe;

2. Prior-notice inspection is an unplanned inspection when necessary, in which a prior notice is served;

3. Surprise inspection is an unplanned and urgent inspection, in which a prior notice is not served

An investment inspection must strictly comply with the Law.

Part XI Awards for Good Performances and Sanctions Against Violations

Article 98 Awards for Good Performances

Individuals, legal entities, or organizations demonstrating outstanding compliance with this Law such as, showcasing effective investments, significantly contributing to the socio-economic development, further attracting and promoting investments shall receive recognitions and other awards in accordance with relevant regulations.

Article 99 Sanctions Against Violations

Individuals, legal entities, or organizations violating this Law shall be subject to education, warning, disciplinary action, fines, civil liability for caused damages, or criminal liability according to the relevant laws.

Part XII Final Provisions

Article 100 Implementation

The Government of Lao People’s Democratic Republic is responsible for implementing this Law

Article 101 Entry into Force

This Law shall enter into force on 1 October 2024 after being promulgated by the President of Lao PDR and published in the Official Gazette

This Law shall replace the Law on Investment Promotion No. 14/NA, dated 17 November 2016, and the Law on Amending Article 12 of the Law on Investment Promotion (Amended 2016) No. 80/NA, dated 4 December 2019.

Developers or investors whom have already received incentives under agreements with the Government shall not be affected until such agreements come to an end. If they wish to receive investment incentives under this Law, they must request to the relevant sector within one hundred and eighty (180) days. The relevant sector shall then notify the applicant an entry into force.