i
Foreword
The Investment Promotion Department at the Ministry of Planning and
Investment is committed to providing investors with relevant information to
support the development of successful business operations. This guide will assist
investors to understand some of the general costs associated with doing business
in Vientiane, Laos.
Investors will find information on the costs of visas, permit cards registration,
labor registration and employment, taxation, utilities, as well as transportation
and communication. The general costs of hotels, health services, schools,
insurance and sport membership fees have also been supplied.
We hope you find the 2015 Cost of Doing Business handbook useful. If the
Investment Promotion Department can be of any further assistance please do not
hesitate to contact our One Stop Service.
Thank You
Mr. Manothong VONGSAY
Director of Investment Promotion Department
i
Foreword
The Investment Promotion Department at the Ministry of Planning and
Investment is committed to providing investors with relevant information to
support the development of successful business operations. This guide will assist
investors to understand some of the general costs associated with doing business
in Vientiane, Laos.
Investors will find information on the costs of visas, permit cards registration,
labor registration and employment, taxation, utilities, as well as transportation
and communication. The general costs of hotels, health services, schools,
insurance and sport membership fees have also been supplied.
We hope you find the 2015 Cost of Doing Business handbook useful. If the
Investment Promotion Department can be of any further assistance please do not
hesitate to contact our One Stop Service.
Thank You
Mr. Manothong VONGSAY
Director of Investment Promotion Department
ii
Contents
Part 1: The Typical Cost of Starting a Business in Vientiane ..................................... 1
Type of Investment ........................................................................................................... 1
Starting a Business ........................................................................................................... 1
Part 2: Cost of Visa, and Permits .......................................................................................... 2
Part 3: Office Space Rental Fee in Vientiane Capital .................................................... 2
Part 4: Labor ............................................................................................................................... 3
Labor Overview in Vientiane Capital ......................................................................... 3
Sources of Labor Supply in Vientiane Capital in 2014 ..................................................... 3
Policy to Import Foreign Labor ................................................................................................. 3
Application Costs to Import Foreign Workers .................................................................... 4
Wage Rates .......................................................................................................................... 4
Wage by Position ............................................................................................................................ 4
Translation Cost .............................................................................................................................. 4
Oral Translation Costs .................................................................................................................. 5
Overtime Regulation ........................................................................................................ 5
Severance Payment Entitlement ................................................................................. 5
The Minimum Wage ......................................................................................................... 5
iii
Part 5: Utilities Costs ............................................................................................................... 6
Water Tariff......................................................................................................................... 6
Electricity Tariff ................................................................................................................ 6
Fuel Cost ............................................................................................................................... 7
Cooking Gas Cost ............................................................................................................... 7
Garbage Collection Costs ................................................................................................ 7
Part 6: Cost of Communication ............................................................................................. 8
Bus Fares .............................................................................................................................. 8
Local Bus Fare in Vientiane Capital ........................................................................................ 8
Domestic Bus Ticket (From Vientiane Capital to Other Provinces)............................ 8
Taxi Rates ............................................................................................................................ 9
Flight Ticket Fares ............................................................................................................ 9
Domestic Flight Ticket Fares ..................................................................................................... 9
Flight Ticket Fare from Vientiane Capital to Selected Countries in Asia ............... 10
Air Cargo Shipping from Vientiane Capital ............................................................ 10
Domestic Air Shipping Cargo .................................................................................................. 10
World -wide Air Cargo Shipping Rates with Lao Airlines ............................................ 11
World-wide Air Cargo Shipping Rates with Thai Airway ............................................ 11
Cargo Shipping Rates ..................................................................................................... 12
Express Postal Rates from Vientiane ....................................................................... 13
iv
Domestic Express Postal Rates from Vientiane ............................................................... 13
International Express Postal Rates from Vientiane Capital ........................................ 13
Part 7: Costs of Communication ......................................................................................... 14
Telephone Rates .............................................................................................................. 14
International Telephone Rates ............................................................................................... 14
Domestic Fixed Line Service ................................................................................................... 14
Domestic Cellular Mobile Service .......................................................................................... 15
Internet Service ............................................................................................................... 15
ADSL and Direct to Home Internet ....................................................................................... 15
Fiber High Speed Internet ........................................................................................................ 15
Part 8: Taxation ....................................................................................................................... 17
Profit Tax ........................................................................................................................... 17
Income Tax ........................................................................................................................ 17
Value Added Tax .............................................................................................................. 17
Custom Tax ........................................................................................................................ 17
Part 9: Living in Vientiane Capital .................................................................................... 18
Accommodation ............................................................................................................... 18
Apartment Rental Fees .............................................................................................................. 18
House Rental Fees ....................................................................................................................... 18
International School Fees in Vientiane Capital .................................................... 19
Health Services ................................................................................................................ 20
v
Part 10: Annex ......................................................................................................................... 21
Hotel Rates ........................................................................................................................ 21
Fitness Club Membership ............................................................................................. 21
Golf Club Membership ................................................................................................... 22
Vehicle Rental Fees......................................................................................................... 22
Annual Motor Insurance Fees ..................................................................................... 23
Annual Health Insurance Fees ................................................................................... 23
Bank Holiday in 2015 .................................................................................................... 24
Lao Language Instruction ............................................................................................. 24
Emergency Number in Vientiane Capital................................................................ 25
State Offices for Investment Registration .............................................................. 25
1
Part 1: The Typical Cost of Starting a Business in Vientiane
Type of Investment
Three Investment Types in Lao
PDR
Business License issued by
Concession business activities One Stop Service, Investment Promotion Department,
Ministry of Planning and Investment
General business activities Registration and Management of Enterprises
Department, Ministry of Industry and Commerce
Business activities for development in
Special Economic Zone (SEZ)
Developers (A)
Secretariat to National Committee for Special Economic
zones, Government Office
Investors (B) The Administrative Assembly of each Special Economic
Zone
Source: OSS Guidebook, Investment Promotion Department, Ministry of Planning and Investment.
Starting a Business
Forms/Fees/Certificates
Fees
1Gerneral
Business
()
2Concession
Business
()
3Business
in SEZ
()
LAK US$ A B
Company stamp seal 75,000 9.375
Enterprise registration
certificate* 20,000 - 5,000,000 2.5 – 625
Enterprise registration form 10,000 - 60,000 1.25 – 7.5
Enterprise registration service fee 40,000 - 90,000 5 – 11.25
Investment application form 50,000 6.25
Investment regulation 30,000 - 50,000 3.75 – 6.25
Enterprise registration number 10,000 1.25
Tax identification number 30,000 3.75
Assets registration 250,000 2.5 – 65
Concession registration certificate 70,000 8.75
Registration service fee 250,000 31.25
Concession registration certificate
for developers in SEZ
1,000,000 - 2,500,000 125 – 312.5
Other services
Note: * Fee of enterprise registration certificate depends on capital registration of the company
Source: 1
Registration and Management of Enterprises Department, Ministry of Industry and Commerce 2OSS Guidebook, One-Stop-Service, Investment Promotion Department, Ministry of Planning and Investment.
3Lao National Committee for Special Economic Zone, Secretariat, Government’s Office
Note: All US$ conversions are calculated at US$ = LAK 8,000
2
Part 2: Cost of Visa, and Permits
Source: One-Stop-Service, Investment Promotion Department, Ministry of Planning and Investment.
Part 3: Office Space Rental Fee in Vientiane Capital
Note: The rates above are calculated as
the survey average.
Source: Rentsbuy.com. www.rentsbuy.com/
*Vientiane Industrial and Trade Area
Visas/Permits Fees (US$)
VISA LA B2 / NI-B2
VISA certificate (US$/person) 120
Work Permit Work permit registration (US$//card/person) 6.50
Work permit certificate for 12 months (US$//card/person) 120 Stay Permit Card
Stay permit certificate (US$/person) 63
Multiple Entry Visa Multiple entry visa registration application form (US$/person) 0.65
Multiple entry visa certificate for 12 month (US$/person) 120
Total expense (US$/person) 430
(Price/m2/month) Commercial Spaces
Grade A
LAK 120,000 – 400,000
US$ 15 – 50
Grade B
LAK 40,000 – 120,000
US$ 5 – 15
Land Leasing in Special Economic Zone*
LAK 304 – 352
US$ 0.038 - 0.044
3
Part 4: Labor
Labor Overview in Vientiane Capital
Sources of Labor Supply in Vientiane Capital in 2014
Note: the chart above displays the number of senior students from state colleges in Vientiane Capital.
Source: Education Statistic and Information Technology Center, Ministry of Education and Sport
Policy to Import Foreign Labor
In order to ensure sufficient supply of labor force to fill technical positions, the government
is implementing policy through the decree of Laos’ president on the promulgation of the
amended labor law, No 068, issued 28 January 2014. Some of the policy requirements on
foreign workers include:
Source: Ministry of Labor and Social Welfare
Bachelor's Degree
Technical Degree
Vocational Diploma's
Degree
Master's Degree
668
(Female:329)
739
(Female:177)
8,053
(Female: 3,391)
3,364
(Female: 1,477)
Not more than 15% of the enterprise’s labor force Physical Labor
Not more than 25% of the enterprise’s labor force Intellectual Labor
4
Application Costs to Import Foreign Workers
Fees
LAK US$
Application form: Quota for foreign workers (fee/form/work unit) 10,000 1.5
Approval certificate: Quota for foreign workers (fee/ form/work unit) 50,000 6.5
Application form: Importing foreign workers (fee/ form/work unit) 10,000 1.5
Source: Ministry of Labor and Social Welfare
Wage Rates
Wage by Position
Average minimum and maximum monthly salaries in the private sector
LAK US$
Min Max Min Max
Manager Position 900,000 18,000,000 112.5 2,250
Technical Position 900,000 8,000,000 112.5 1,000
Unskilled workers 900,000 3,000,000 112.5 375
Note: The information above is the summary of labor section of the 5th
Lao Expenditure and Consumption Survey
(LECs V)*.
Source: Lao Statistic Bureau, Ministry of Planning and Investment.
Translation Cost
A4-sized Paper (300 Words)
with Non-technical Texts
A4-sized Paper (300 Words)
with Technical Texts LAK US$ LAK US$
English – Lao
Lao – English 126,000 - 146,000 15.75 – 18.25 168,000 - 240,000 21 – 30
Viet – Lao
Lao – Viet Start from 100,000 Start from 12.5 Start from 100,000 Start from 12.5
Chinese - Lao
Lao – Chinese Start from 180,000 Start from 22.5 Start from 180,000 Start from 22.5
Other – Lao
Lao – Other Start from 220,000 Start from 27.5 Start from 220,000 Start from 27.5
English - Other
Other - English Start from 220,000 Start from 27.5 Start from 220,000 Start from 27.5
Note: The above rates exclude 10% VAT.
Source: Center Link Company
5
Oral Translation Costs
Source: Center Link Company
Overtime Regulation
Overtime rate during regular working day
17:00-22:00 150% of hourly wages for regular working day
22:00-6:00 200% of hourly wages for regular working day
Overtime rate during holidays or weekends
8:00-16:00 250% of hourly wages for regular working day
17:00-22:00 300% of hourly wages for regular working day
22:00-6:00 350% of hourly wages for regular working day
Source: Amended Labor Law, No 068, issued 28 January 2014, Ministry of Labor and Social Welfare.
Severance Payment Entitlement
If an employee has been working for three years or more, but less than 15 years and
resigns from his job, the employ would receive a severance entitlement of 1.5 x monthly
wage (an average of the last six months’ salary) x number of years worked.
Source: Amended Labor Law, No 068, promulgated on 28 January 2014, Ministry of Labor and Social Welfare
The Minimum Wage
The minimum wage is 900,000 LAK/month/person.
Source: Notification on the amendment of the minimum wage of workers in Lao PDR, No 808, promulgated on 09
February 2015.
1 hour
LAK 800,000
US$ 100
Half day (4 hours)
LAK 1,600,000 - 2,800,000
US$ 200 - 350
Full day (8 hours)
LAK 2,400,000 - 4,800,00
US$ 300 - 600
6
Part 5: Utilities Costs
Water Tariff
Note: - Type 2 customers are subject to pay fixed rate.
- The above rates exclude 10%VAT.
- Water capacity in Vientiane Capital is 180,000 m3 per day
Source: Nam Papa Nakhoneluang.
Electricity Tariff
Price /KWH /month
LAK US$
Customer Type 1 : Low voltage (household)
0-25 KWH 341 0.04
26-150 KWH 405 0.05
>150 KWH 979 0.12
Customer Type 2: Low voltage (non-household)
Enterprises related to temporary electricity service 1,058 0.13
Enterprises related to education and sports 831 0.10
Enterprises related to entertainment 1,401 0.18
Enterprises related to agriculture and irrigation 506 0.06
Enterprises related to industry 749 0.09
Customer Type 3 : Medium voltage
Enterprises related to temporary electricity service 898 0.11
Enterprises related to education and sports 706 0.09
Enterprises related to entertainment 1,331 0.17
Enterprises related to agriculture and irrigation 431 0.05
Enterprises related to industry under 5 MW 636 0.08
Enterprises related to industry over 5 MW 687 0.09
Note: - Type 2& 3 customers are subject to pay the fixed tariff
- The above rates exclude 10% VAT
- Electricity supply in Vientiane Capital (2014) was 1,187,030,381 KWH /Year
Source: Electricite du Laos (EDL)
Price /m3 /month
LAK US$
Customer Type 1: Household
1-10 m3 1,339 0.16
11-30 m3 1,854 0.23
31-50 m3 2,369 0.3
Over 51 m3 2,884 0.36
Customer Type 2: Hotels, restaurants, ice and drinking water
enterprise 2,884 0.36
7
1.29 1.26
1.23 1.20
1.17 1.15 1.13 1.10
1.07 1.05 1.03
1.01 1.01 0.98 0.95
0.92 0.90
0.88
8/1 19/1 30/1 13/2 27/2 25/3
Rate of Gasoline 95 Rate of Gasoline 91
Rate of Diesel
Fuel Cost
Note: All rates above are calculated in Lao currency (Kip)
Source: Lao State Fuel Company
Cooking Gas Cost
LAK US$
Price per kg 11,000 – 14,000 1.4 – 1.8
Note: The price above is the average price from some of the cooking gas services in Vientiane Capital.
Source: Bounnum Gas, Pasansack Gas, Khamsai Khualuang Gas.
Garbage Collection Costs
Note: Household units are subject to pay according to type 1, business units such as offices, hotels, companies are
subject to pay according to type 2.
Source: Vientiane Urban Development and Administration Authority.
LAK
US$
Type1: less than
20 liters per time
Type2: less than
60 liters per time
7,000 10,000
0.9 1.3
(Date/Month)
8
Part 6: Cost of Communication
Bus Fares
Local Bus Fare in Vientiane Capital
Source: Vientiane Capital State Bus Enterprise.
Domestic Bus Ticket (From Vientiane Capital to Other Provinces)
Price /ticket
Destination LAK US$
Vientiane Province (Vang Vieng) 50,000 6.5
Louang Pra Bang Province 110,000 - 150,000 14 – 19
Oudomxai Province 150,000 - 190,000 19 – 3
Luang Num Tha Province 200,000 25
Borkeo Province 230,000 - 250,000 29 – 32
Phongsaly Province 210,000 - 230,000 26.5 – 29
Xieng Kuang Province 150,000 19
Hua Phan Province 170,000 - 210,000 21.5 – 26.5
Xaiyabouly Province 110,000 - 130,000 13.5 – 16.5
Xaysomboun Province 80,000 10
Khammuan Province (Tha Khaek) 60,000 7.5
Savannakhet Province 75,000 - 120,000 9.5 – 15
Champasak Province (Pakse) 110,000 - 170,000 13.5 – 21.5
Salavan Province 130,000 16.5
Sekong Province 130,000 16.5
Attapeu Province 140,000 - 200,000 17.5 - 25
Source: North Bus Station & South Bus Station
Local Bus Fare Depends on Routes
2,000 – 6,000
LAK
0.3 – 0.8
US$
9
Luang Num Tha Louang Pra Bang
Oudomxai Pakse Savannakhet Xieng Kuang
Taxi Rates
Flight Ticket Fares
Domestic Flight Ticket Fares
Note:
- Airport tax and fuel surcharge are included
- Prices are subject to daily changes.
Source: http://www.laoairlines.com
LAK
US$
Round Trip Fare/ticket
1,920,000 1,856,800 1,920,000 2,200,800 1,920,800 1,536,800
LAK
240 232 240 275 240 192
US$
One Way Trip Fare/ticket
1,028,400 988,400
1,028,400 1,180,400 1,028,400 828,400
LAK
129 124 129 148 129 104
US$
Note: The rates above are the rates by meter.
Source: Vientiane Capital Taxi group.
First
Kilometer
Every 300
Meter
15,000
2,000
1.9 0.3
10
Flight Ticket Fare from Vientiane Capital to Selected Countries in Asia
Round Trip Fare /ticket
Destination LAK US$
Siem Reap 2,512,000 – 2,752,000 314 - 344
Kunming 3,238,400 – 5,278,400 405 – 660
Guangzou 4,038,400 – 6,358,400 505 – 795
Seoul (South Korea) 4,420,000 – 8,460,000 553 - 1,058
Singapore 2,764,000 – 6,684,000 346 – 836
Bangkok 1,968,000 – 3,568,000 246 – 446
Hanoi 2,644,000 – 3,084,000 331 – 386
Ho Chi Minh 2.,132,000 – 3,212,000 267 - 402
Note:
- Airport tax and fuel surcharge are included
- Prices are subject to daily changes. Source: Commercial Department, Lao Airlines
Air Cargo Shipping from Vientiane Capital
Domestic Air Shipping Cargo
Luang Pra Bang Pakse Xieng Khuang Huay Xay
LAK US$ LAK US$ LAK US$ LAK US$
1-6 kg 30,000 3.75 30,000 3.75 30,000 3.75 30,000 3.75
7-44kg 4,800 0.6 4,400 0.55 4,300 0.54 4,500 0.54
+45kg 4,500 0.56 3,300 0.41 3,200 0.4 3,600 0.45
+100kg 3,800 0.48 2,800 0.35 2,700 0.34 3,200 0.4
+500kg 3,000 0.38 2,500 0.31 2,400 0.3 2,800 0.35
Oudomxai Luangnumtha Savannakhet
LAK US$ LAK US$ LAK US$
1-6 kg 30,000 3.75 30,000 3.75 30,000 3.75
7-44kg 4,500 0.56 4,500 0.56 4,500 0.56
+45kg 3,600 0.45 3,600 0.45 3,300 0.41
+100kg 3,200 0.4 3,200 0.4 2,600 0.33
+500kg 2,800 0.35 2,800 0.35 2,400 0.3
Note: -The prices exclude AWB surcharge (LAK10,000 or US$1.25 /bill)
- The above prices exclude 10% VAT
Source: Cargo department, Lao Airlines
11
World -wide Air Cargo Shipping Rates with Lao Airlines
Bangkok,
Hanoi Kunming Singapore Phnom Penh Incheon
Price/kg LAK US$ LAK US$ LAK US$ LAK US$ LAK US$
1-44 8,320 1.04 10,400 1.3 10,160 1.27 7,360 0.92 14,480 1.81
+45kg 6,720 0.84 9,120 1.14 7,840 0.98 6,960 0.87 13,040 1.63
+100 kg 5,760 0.72 8,240 1.03 7,440 0.93 5,920 0.74 11,040 1.38
+300kg 5,120 0.64 7,040 0.88 6,720 0.84 5,280 0.66 9,360 1.17
+500kg 4,400 0.55 5,920 0.74 5,360 0.67 4,480 0.56 8,000 1
+1000 kg 4,160 0.52 5,040 0.63 5,120 0.64 4,320 0.54 6,400 0.8
Note: The above rates exclude 10% VAT, service surcharge (US$1/kg for weight under 44 kg, US$0.05/kg for weight
over 45 kg), fuel surcharge (US$ 0.01/kg for weight over 45kg only) and AWB surcharge (US$2/bill)
Source: Cargo Department, Lao Airlines
World-wide Air Cargo Shipping Rates with Thai Airway
Hong Kong Philippines Malaysia* Japan** Australia ***
Price/kg LAK US$ LAK US$ LAK US$ LAK US$ LAK US$
+45kg 21,200 2.65 22,000 2.75 18,800 2.35 27,600 3.45 29,200 3.65
+100 kg 20,800 2.6 21,200 2.65 14,800 1.85 26,800 3.35 27,600 3.45
+300kg 20,400 2.55 20,400 2.55 14,000 1.75 26,000 3.25 26,800 3.35
+500kg 18,400 2.3 19,600 2.45 13,600 1.7 24,400 3.05 25,200 3.15
+1000 kg 17,200 2.15 19,200 2.4 13,200 1.65 23,600 2.95 24,400 3.05
Note: -* Kuala Lumpur, Penang
-** Osaka, Fukuoka, Narita, Nagoya, Haneda,
-*** Melbourne, Sydney
-The above rates exclude VAT, X-ray surcharge (US$0.21/kg), AWB surcharge, (US$2/bill) and other
charges for import control system code (for European country only US$6.57/bill).
Source: Thai Air way
Paris London New York Dubai Africa
Price/kg LAK US$ LAK US$ LAK US$ LAK US$ LAK US$
+45kg 40,400 5.05 41,200 5.15 42,800 5.35 31,600 3.95 51,600 6.45
+100 kg 36,400 4.55 35,600 4.45 42,000 5.25 29,600 3.7 48,400 6.05
+300kg 34,000 4.25 34,000 4.25 41,200 5.15 28,800 3.6 46,000 5.75
+500kg 32,400 4.05 32,400 4.05 39,600 4.95 28,000 3.5 43,600 5.45
+1000 kg 30,000 3.75 30,000 3.75 37,200 4.65 27,200 3.4 41,200 5.15
12
Cargo Shipping Rates
From Vientiane Capital to:
Note: - The above price is for general non-hazardous cargo.
- The prices exclude 10% VAT
- The freight rates are subject to changes base on market condition and without prior notification
Source: Lao Nissin SMT Co., LTD
China (Shanghai)
China (Huangpu)
Hong Kong
Singapore
Malaysia (Port Kelang)
Thailand (Bangkok)
Vietnam (Hanoi)
Cambodia (Phnom Penh)
Myanmar (Yangon)
Japan (Osaka)
Japan (Tokyo)
Japan (Yokohama)
India (Nhava Sheva)
Australia (Melbourne)
New Zealand (Auckland)
France (Le Havre)
Germany (Hamburg)
England (Southampton)
USA (New York)
USA (Los Angeles)
Canada (Vancouver)
Mexico (Lazaro Cardenas)
United Arab Emirates Dubai
Spain (Barcelona)
14,000,000 14,400,000 12,880,000 14,000,000 14,400,000 10,800,000 14,800,000 20,800,000 20,400,000 14,640,000 13,840,000 14,640,000 18,000,000 16,400,000 17,200,000 19,600,000 21,200,000 18,400,000 39,600,000 22,480,000 25,720,000 19,800,000 18,000,000 16,400,000 27,600,000
1,750 1,800 1,610 1,750 1,800 1,350 1,850 2,600 2,550 1,830 1,730 1,830 2,250 2,050 2,150 2,450 2,650 2,300 4,950 2,810 3,215 2,475 2,250 2,050 3,450
16,400,000 16,800,000 14,000,000 16,400,000 16,400,000 11,200,000 16,800,000 23,600,000 26,800,000 16,800,000 16,400,000 16,800,000 24,000,000 21,200,000 22,800,000 27,600,000 30,800,000 25,200,000 43,200,000 24,400,000 28,000,000 24,400,000 23,600,000 20,400,000 41,800,000
2,050 2,100 1,750 2,050 2,050 1,400 2,100 2,950 3,350 2,100 2,050 2,100 3,000 2,650 2,850 3,450 3,850 3,150 5,400 3,050 3,500 3,050 2,950 2,550 5,225
20 –foot Container 40 -foot Container
LAK US$ LAK US$
13
Express Postal Rates from Vientiane
Domestic Express Postal Rates from Vientiane
Weight
(kg) LAK US$ Kg LAK US$
Weight
(kg) LAK US$
0.02 16,000 2 3.5 110,000 13.75 7.5 166,000 20.75
0.1 43,000 5.38 4 116,000 14.5 8 172,000 21.5
0.5 58,000 7.25 4.5 122,000 15.25 8.5 187,000 23.38
1 70,000 8.75 5 129,000 16.13 9 193,000 24.13
1.5 80,000 10 5.5 141,000 17.63 9.5 199,000 24.88
2 87,000 10.88 6 147,000 18.38 10 205,000 25.63
2.5 93,000 11.63 6.5 153,000 19.13 15 281,000 35.13
3 99,000 12.38 7 159,000 19.88 20 344,000 43
Note: All domestic destinations are calculated with the same rates.
Source: EMS Service, Enterprise des Postes Lao.
International Express Postal Rates from Vientiane Capital
Weight
(g)
0.5
(US$/g)
1
(US$/g)
2.5
(US$/g)
5
(US$/g)
10
(US$/g)
25
(US$/g)
Additional
after 10g
or 25g
(US$/g)
Zone 1 30.52 38.9 64.08 116.75 152.62 259.47 7.3
Zone 2 68.77 78.71 108.47 165.67 228.98 411.88 8.53
Zone 3 76.40 92.42 140.54 191.8 228.98 411.9 10.27
Zone 4 76.4 93.19 143.61 199.19 229.02 411.91 11.66
Zone 5 84.04 104.64 166.48 236.11 305.44 565.00 16.22
Zone 6 91.67 113.04 177.18 250.88 305.4 564.96 17.11
Zone 7 99.33 123.8 197.11 273.08 382.01 718.01 20.47
Zone 8 106.96 135.23 220.02 295.2 381.99 717.99 22.24
Source: DHL Service, Enterprise des Postes Lao.
Zone Index
Zone1 : Cambodia, Thailand, Vietnam, Burma
Zone2: Brunei, China, Hong Kong, Indonesia, Macau, Malaysia, Philippines, Singapore, Taiwan
Zone3: Australia, Bhutan, East Timor, India, Korea south, New Zealand
Zone4: Japan
Zone5: Canada, Mexico, U.S.A
Zone6: France, Germany, United Kingdom
Zone7: Norway, Poland, Russia
Zone8: Cuba
14
Part 7: Costs of Communication
There are four main telecommunication companies providing telephone and 4G internet
services throughout Laos.
The fees shown below are average telephone and internet rates in Laos
Telephone Rates
International Telephone Rates
Country 1. Code Price /minute
Country 2. Code Price /minute
LAK US$ LAK US$
1 Australia 61 2,000 0.25 18 Mexico 52 2,000 0.25
2 Bhutan 975 2,000 0.25 19 New Zealand 64 2,000 0.25
3 Brunei 673 2,000 0.25 20 Philippine 63 2,000 0.25
4 Cambodia 855 2,000 0.25 21 Russia 7 2,000 0.25
5 Canada 1 2,000 0.25 22 Singapore 65 2,000 0.25
6 Chile 56 2,000 0.25 23 South Korea 82 2,000 0.25
7 China 86 2,000 0.25 24 Sweden 46 2,000 0.25
8 France 33 2,000 0.25 25 Switzerland 41 2,000 0.25
9 Germany 49 2,000 0.25 26 Taiwan 886 2,000 0.25
10 Greece 30 2,000 0.25 27 Thailand 66 2,000 0.25
11 Hong Kong 852 2,000 0.25 28 UK 44 2,000 0.25
12 Hungary 36 2,000 0.25 29 USA 1 2,000 0.25
13 India 91 2,000 0.25 30 Vietnam 84 2,000 0.25
14 Indonesia 62 2,000 0.25 31 Burma 95 3,000 0.38
15 Italy 39 2,000 0.25 32 North Korea 850 5,000 0.63
16 Japan 81 2,000 0.25 33 Cuba 53 10,000 1.25
17 Malaysia 60 2,000 0.25 34 East Timor 670 20,000 2.5
Source: Lao Telecommunications Company
Domestic Fixed Line Service
Installation Fee and Call Rate
LAK US$
Installation fee 350,000 43.75
Fixed line to fixed line/Cellular
mobile 250 0.031
Source: Lao Telecommunications Company
15
Domestic Cellular Mobile Service
Pre-paid Post-paid
LAK US$ LAK US$
SIM card 10,000 1.25 10,000 1.25
Same-network call (per Minute) 800 1 300 0.04
Different-network call (per
Minute)
100 0.013 100 0.02
Same-network texting (per time) 200 0.025 200 0.03
Source: Lao Telecommunications Company
Internet Service
ADSL and Direct to Home Internet
Pre-paid 1
month
Pre-paid 3
month
Pre-paid 6
month
Pre-paid 12
month
256 kbps LAK 150,000 240,000 380,000 1,440,000
US$ 18.75 30 47.5 180
1 Mbps LAK 420,000 690,000 1,080,000 2,400,000
US$ 52.5 86.25 135 300
2 Mbps LAK 780,000 1,320,000 2,040,000 3,840,000
US$ 97.5 165 255 480
Source: Lao Telecommunications Company
Fiber High Speed Internet
1Mbps 2Mbps 3-4Mbps 5-6Mbps 7-10
Mbps
Pre-paid 1 month
LAK 250,000* 350,000* 550,000* 900,000 1,500,000
US$ 31.25 43.75 68.75 112.5 187.5
Pre-paid 3
month
LAK 720,000* 1,020,000 1,620,000 2,670,000 4,200,000
US$ 90 127.5 202.5 333.75 525
Pre-paid 6
month
LAK 1,380,000 1,920,000 3,120,000 5,280,000 7,800,000
US$ 172.5 240 390 660 975
Pre-paid 12
month
LAK 2,400,000 3,600,000 6,000,000 10,200,000 14,400,00
US$ 300 450 750 1275 1800
Note: The prices above exclude IP surcharge (LAK 50,000 or US$6.25 /month) and (*) modem surcharge
(LAK 500,000 or US$ 62.5) which is to be paid as the initial fee
Source: Lao Telecommunications Company
16
Lease Line Data (International Private Leased Circuit: IPLC)
Monthly Fee
Speed LAK US$
512 kbps 1,170,000 146.25
1 - 4 MB 1,800,000 225
5 - 9 MB 1,710,000 213.75
10 - 49 MB 1,530,000 191.25
Over 50 MB 1,350,000 168.75
Source: Lao Telecommunications Company
17
Part 8: Taxation
Profit Tax
Types of Enterprises Tax Rate
Businesses of domestic and foreign legal entities 24%
Businesses of legal entities related to production, import and purchase of tobacco
products 26%
Sole-trader enterprises and freelancers
3,600,000 Kip and below Exception
3,600,001-8000,000 Kip 5%
8,000,001-15,000,000 Kip 10%
15,000,001-24,000,000 Kip 15%
24,000,001-40,000,000 Kip 20%
Above 40,000,001 Kip 24%
Source: Law on Tax Decree (amendment) No 058, Issued 16 January 2012
Income Tax
Taxable Salary at Each Level Tax Rate
1,000,000 Kip and below Exception
1,000,001-3,000,000 Kip 5%
3,000,001-6,000,000Kip 10%
6,000,001-12,000,000 Kip 12%
12,000,001-24,000,000 Kip 15%
24,000,001-40,000,000 Kip 20%
Above 40,000,000 Kip 24%
Note: Incomes from dividends, profit from sales shares, loan Interests, commissions and leases of house, heavy
equipment, and other assets are subject to 10% tax.
Source: Law on tax Decree (Amendment) No 058, issued 16 January 2012
Value Added Tax
Value added tax for goods and general service 10%
Note: Material, chemicals, machines and other fix assets for the manufacturing and investment are exempt.
Source: Law of Value Added Tax (Amendment) No 033, issued 30 January 2015
Custom Tax
The import of equipment, materials and vehicles used directly for the manufacturing and
investment are exempt from import tariff. Furthermore, some export/import goods in the
Special or Specific Economic Zones may be subject to other benefits as addressed in the law.
Source: Law of Domestic and Foreign Investment promotion, No 02, promulgated on 8 July 2009
18
Type
Grade A
Grade B
LAK /month
10,880,000 - 20,000,000
5,200,000 - 9,600,000
US$ /month
1,360 - 2,500
650 - 1,200
Part 9: Living in Vientiane Capital
Accommodation
Apartment Rental Fees
Note: The prices are average survey rates.
Source: Rentsbuy.com
House Rental Fees
Rent /month
House Type LAK US$
Modern House with Garden and Swimming Pool 28,000,000 – 32,000,000 3,500 – 4,000
Villa House
In business areas 4,800,000 – 11,200,000 600 – 1,400
On alleyways 2,000,000 – 4,800,000 250 - 600
Note: The prices are average survey rates
Source: Rentsbuy.com
19
International School Fees in Vientiane Capital
The fees below show the annual school fees for selected schools (2014-2015)
Vientiane International School (International Curriculum)
Registration Fee LAK US$ Tuition Fee LAK US$
Application 8,000,000 1,000 Kindergarten 64,000,000 8,000
Annual capital
fee
20,000,000 2,500 Pre-primary 118,800,000 14,850
Primary 1-5 118,800,000 14,850
Year 6;7;8 136,160,000 17,020
Year 9;10;11;12 151,680,000 18,960
PANYATHIP International School (International Bilingual Curriculum)
Registration Fee LAK US$ Tuition Fee LAK US$
Application 4,000,000 500 Kindergarten 1 &2 19,200,000 2,400
Kindergarten 3 22,400,000 2,800
Primary 1-5 20,000,000 2,500
Year 6;7;8 22,000,000 2,750
Year 9;10;11 24,000,000 3,000
Year 12 26,000,000 3,250
French International School
Registration Fee LAK US$ Tuition Fee LAK US$
Application 4,800,000 600 Kindergarten 32,360,000 4,045
Primary 1-5 35,280,000 4,410
Year 6;7;8 47,880,000 5,985
Year 9;10;11;12 52,080,000 6,510
There are more than 10 international schools
registered with the Ministry of Education and
Sport, Laos. There are three types of international
schools: international curriculum schools,
international bilingual curriculum schools and
French curriculum schools.
20
Health Services
Consultation Fee 250,000 31.5 Health Check Package
Under 30 years old (Standard Check) 640,000 80
30-40 years old (Detailed Check) 1,280,000 160
Above 40 years old (Comprehensive Check)
2,000,000
250
Male above 50 years old (Vital Health Check)
3,360,000
420
Hospital Ward Charge (Single Bed) *
For Lao citizens 150,000/night 19/night For foreigners 280,000/night 35/night
Source: Alliance International Medical Centre
*International Clinic Department (Mahosot Hospital)
LAK US$
21
Part 10: Annex
Hotel Rates
Fitness Club Membership
Source: Sengdara fitness & Recreation
Lao Plaza Fitness Service
LAK US$
Daily pass 80,000 - 220,000 10 – 27.5
Monthly pass 800,000 - 2,200,000 100 – 275
Note: The prices are average survey rates
Source:
- Lao Plaza Hotel, Settha Palace Hotel, Green Park, Rashmi the Plaza Hotel
- Luxay Hotel, Vientiane Plaza, DHAVARA Hotel
- Chanthapanya Hotel, Mekong Hotel, City Inn Hotel, Vansana Riverside Hotel
Single/Double
Level LAK /night US$ /night
1,320,000 – 2,424,000 165 - 303
520,000 – 1,200,000 65 – 150
360,000 – 800,000 45 - 100
22
Golf Club Membership
Source: Sea Game Golf Club & Lao Country Club
Vehicle Rental Fees
LAK /day US$ /day
Bicycle* 10,000 1.5
4-door vehicle
Car (up to 2000 cc)* 440,000 - 560,000 55 - 70
Car (over 2000 cc) 680,000 - 880,000 85 - 110
Van **
15 Seats 800,000 100
12 Seats 680,000 85
Note: * The rental of bicycle and car up to 2000 cc is available only in Vientiane Capital area
** Van rental fee excludes driver fee (US$ 40/ day) and this rate is for travelling from Vientiane capital to
other provinces.
Source: Asia Vehicle Rental Co Ltd
Daily pass LAK US$
Week day 120,000 - 390,000 15 - 49
Weekends 120,000 - 500,000 15 - 62.5
Membership
One nominee
per annual 17,600,000 - 24,000,000 2,200 - 3,000
23
Annual Motor Insurance Fees
Compulsory
LAK US$
Private Automobile ( Up to 2000 cc ) 184,000 23
Private Automobile ( Over 2000 cc ) 200,000 25
Heavy Equipment ( up to 10Ton) 200,000 25
Heavy Equipment (Over 10 Ton) 244,000 30.5
Note: - These prices are annual tariffs for the third-party liability
- Exclusive of 10% VAT & US$ 0.8 Registration fee
Source: Lao-Viet Insurance Company
Annual Health Insurance Fees
Male Female
Age LAK US$ LAK US$
Hospitalization
1 month 1 day - 5 years 537,000 67.5 537,000 67.5
6 – 15 years 322,000 40.5 322,000 40.5
16 - 35 years 269,000 4 349,000 44
36 - 40 years 322,000 40.5 419,000 52.5
41 - 45 years 349,000 44 454,000 57
46 - 50 years 403,000 50.5 524,000 66
51 - 55 years 430,000 54 559,000 70
56 - 60 years 537,000 67.5 698,000 87.5
Out Patient
1 month 1 day - 5 years 457,000 57.5 457,000 57.5
6 – 15 years 357,000 45 357,000 45
16 - 60 years 328,000 41 460,000 57.5
Note:
- These prices are the annual tariffs.
- Exclusive of 10% VAT & US$ 1.25 Registration fee
Source: Allianz General Laos
24
Bank Holiday in 2015
New Year 1 January
International Women’s Day 9 March
Lao New Year 14,15,16 April
International Labor Day 1 May
Lao Women Union’s Day 20 July
Bank of Laos Establishment Day 7 October
Boat Racing Festival Day 28 October
Thatluang Festival Day 25 November
Lao National Day 2 December
Source: Banque Pour Le Commerce Exterieur Lao (BCEL)
Lao Language Instruction
Note: Average class rate
Source: ANOU language Center & Masters class
Fee per hour per person
LAK
US$
67,000 – 75,000
8.5 – 9.5
25
Ministry of Planning and
Investment
Investment Promotion
Department (IPD)
One Stop Service (OSS)
Souphanouvong Road,
Sikhotthabong District,
Vientiane Capital,
Lao PDR
Call: (856-21) 21 7012
Fax: (856-21) 21 5491
www.investlaos.gov.la
Emergency Number in Vientiane Capital
Fire 1190
Police 1191
Electricity 1199
Water Supply 1169
Avian Influenza 166
Rescue 1623 Operator 178
Source: Yellow Page 2014/15
State Offices for Investment Registration
Lists Call
Ministry of Industry
and Commerce
Registration and
Management of
Enterprises
Department
Phonxay Village,
Saisethta District,
Vientiane Capital
Lao PDR.
Call: (856-21) 41 2011
Fax: (856-21) 45 3865
www.ero.gov.la
Government Office
Lao National
Committee for Special
Economic Zone
Secretariat (SNCSEZ)
Chanthabouly District,
Vientiane Capital,
Lao PDR
Call: (856-21) 25 4474
Fax: (856-21) 25 4474
www.sncsez.gov.la/
First published in July 2015
i
Foreword
The Investment Promotion Department at the Ministry of Planning and
Investment is committed to providing investors with relevant information to
support the development of successful business operations. This guide will assist
investors to understand some of the general costs associated with doing business
in Vientiane, Laos.
Investors will find information on the costs of visas, permit cards registration,
labor registration and employment, taxation, utilities, as well as transportation
and communication. The general costs of hotels, health services, schools,
insurance and sport membership fees have also been supplied.
We hope you find the 2015 Cost of Doing Business handbook useful. If the
Investment Promotion Department can be of any further assistance please do not
hesitate to contact our One Stop Service.
Thank You
Mr. Manothong VONGSAY
Director of Investment Promotion Department