1. Investment Policy
LAOS: Land of Ample Opportunity and Success

2. Country snapshot Land Area : 236,800 sq. km
Population : Millions (2011)
Religion: Buddhism as majority

3. Historical Event in 2012
LAOS: Land of Ample Opportunity and Success

4. No.158th WTO member in 2013
ASEAN Economic Community 2016
Unilateral Trade Agreements with 39 nations Bilateral Investment Treaties with 28 nations
LAOS: Land of Ample Opportunity and Success

5. Key successful investment factors
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.

6. Good Policies Framework
The 7th National Socio- Economic Development Plan (NSEDP) :
Quality investments to drive sustainable development and a diversified economy
Annual GDP growth targets at least 8% where 60% is from private investments
LAOS: Land of Ample Opportunity and Success

7. FDI By Sectors ( )
LAOS: Land of Ample Opportunity and Success

8. 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)
LAOS: Land of Ample Opportunity and Success

9. Major Improve in Investment Promotion Law/Policies (2009)
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.

10. More Investment Incentives
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 10

11. 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.
CAMBODIA

12. Incentive on Cooperate Profit tax
Promoted Sectors
Zone
Level
Period of exempt (years)
Industry
Agriculture
Service 1 10 2 6 3 4 8

13. Granting additional incentives
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
Education & Healthcare sectors

14. Special Economic Zones (existing)
Savan-Seno Special Economic Zone 2003
Boten Beautiful Land Specific Economic Zone 2003
Golden Triangle Special Economic Zone2007
Vientiane Industrial and Trade Area 2011
Saysetha Development Zone 2010
Phoukhyo Specific Economic Zone 2010
Thatluang Lake Specific Economic Zone 2011
Longthanh- Vientiane Specific Economic Zone 2012
Dongposy Specific Economic Zone 2012
Thakhek Specific Economic Zone 2012
LAOS: Land of Ample Opportunity and Success

15. Concession Projects not on the Investment Calling List
Investors
Concession Projects not on the Investment Calling List
(1)
(2)
IPD/DPI’s OSS
25 days
Technical Comments from Concerning Authorities
(4)
(3)
S&E Division (IPD)
(5)
Reject *
Joint the meeting
Investment Promotion Committee (IPC) meeting
(6)
(7)
Approved
Negotiation
Government/Provincial Authority
(8)
(9)
General Projects
Mining Projects
Hydropower Project
MOU
Prospecting & Exploration
MOU
(10)
PDA
PDA
Exploration & Production CA

16. One Stop Services MOIC LAOS: Land of Ample Opportunity and Success
Ministry of Industry and Commerce
Enterprise Registration License for General Business
Ministry of Planning and Investment
Concession License
&
Representative Office License
Government’s Office Lao National Committee for Special Economic Zone
Investment in Specific Economic Zone
Enterprise Registration License
LAOS: Land of Ample Opportunity and Success

17. THANKS Investment Promotion Department
Ministry of Planning and Investment
Tel:
Fax:
LAOS: Land of Ample Opportunity and Success