LAOS: Land of Ample Opportunity and Success
• Land Area : 236,800 sq. km
• Population : 6.3 Millions (2011)
• Religion: Buddhism as majority
Country snapshot
Historical Event in 2012
LAOS: Land of Ample Opportunity and Success
No.158th WTO member in 2013
LAOS: Land of Ample Opportunity and Success
ASEAN Economic Community 2016
Unilateral Trade Agreements with 39 nationsBilateral Investment Treaties with 28 nations
Comparative & Competitive Advantages- Political stability- High safety- Low risk from natural disasters- Low labor cost (Minimum wage: $85.7/month)
Country of rich natural resources: • Fertile land, Minerals, Water, and forest,
giving development potential in agriculture, mining, and hydropower.
Key successful investment factors
LAOS: Land of Ample Opportunity and Success
Good Policies Framework
The 7th National Socio-Economic Development Plan (NSEDP) 2011-15:•Quality investments to drive sustainable development and a diversified economy
•Annual GDP growth targets at least 8% where 60% is from private investments
FDI By Sectors (1989-2012)
LAOS: Land of Ample Opportunity and Success
Improvement in Legislation
LAOS: Land of Ample Opportunity and Success
• Recently revised law on Investment Promotion 2009, and it’s implemented decree in 2011
• Law on Minerals (2008), revised Law on Minerals (2011)
• Environmental and Social Impact Assessment Decree (2010)
• Land Law (2003), Decree on Implementation of the Land Law (2008) and Decree on Land Concessions (2009)
• National Land Policy, currently under revision• National Policy on Environmental and Social
Sustainability of the Hydropower Sector• Law on Forestry (2007)• Agricultural Law (1998), revised 2012• Law on Electricity (2011)
• Combined the domestic investment law and foreign direct investment law into one to create a “level playing field” for both domestic and foreign investors;
• Shorten procedures to open new businesses;• No terms of investment for promoted activities;• Foreigners can have access to local financial
sources;• Foreigners can invest in the real estate sector;• Promotion of the development of SEZ and
Industrial Park.
Extended Investment incentives: Corporate income tax exemption up to 10 years, additional 5 years for Education and Health care sectors as top priorities;
Exemption from import duties and taxes on raw materials and capital equipments using for production;
Exemption from export duty on export products;
Additional tax holidays, reduced tax rates for large projects with special concession are available upon negotiation
More Investment Incentives
Investment Promotion Zoning
Zone 1: Mountainous, plateau zones with no economic infrastructure.
Zone II: Mountainous, plateau zones with a moderate level of economic infrastructure.
Zone III: Mountainous, plateau zones with good economic infrastructure.
Promoted Sectors Zone Level Period of exempt (years)
IndustryAgricultureService
1 1 102 63 4
2 1 82 43 2
3 1 42 23 1
Incentive on Cooperate Incentive on Cooperate Profit taxProfit tax
Granting additional Granting additional incentivesincentives
Education & Healthcare
sectors
Exempt land lease or land concession
Zone 1 = 15 years
Zone 2 = 10 years
Zone 3 = 3 years
• Provide additional 5 years for cooperate profit tax exempt
LAOS: Land of Ample Opportunity and Success
Special Economic Zones (existing)
1. Savan-Seno Special Economic Zone 20032. Boten Beautiful Land Specific Economic
Zone 20033. Golden Triangle Special Economic
Zone20074. Vientiane Industrial and Trade Area 20115. Saysetha Development Zone 20106. Phoukhyo Specific Economic Zone 20107. Thatluang Lake Specific Economic Zone
20118. Longthanh- Vientiane Specific Economic
Zone 20129. Dongposy Specific Economic Zone 201210. Thakhek Specific Economic Zone 2012
15
Investors
IPD/DPI’s OSS
Investment Promotion Committee (IPC) meeting
Government/Provincial Authority
Technical Comments from Concerning
AuthoritiesS&E Division (IPD)
25 days
Joint the meeting
Negotiation
General Projects
Mining Projects Hydropower Project
MOUPDA
Prospecting & ExplorationMOU
CA
Exploration & Production
PDA
Concession Projects not on the Investment Calling List
Approved
Reje
ct *
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One Stop Services
LAOS: Land of Ample Opportunity and Success
Government’s Office Lao National
Committee for Special Economic Zone
Investment in Specific Economic Zone
Enterprise Registration License
www.sncsez.gov.la
Ministry of Industry and Commerce
Enterprise Registration License for General
Business
www.moic.gov.la
Ministry of Planning and Investment
Concession License&
Representative Office License
www.investlaos.gov.la
MOIC
LAOS: Land of Ample Opportunity and Success
THANKSInvestment Promotion
DepartmentMinistry of Planning and
Investmentwww.investlaos.gov.lawww.facebook.com/
investlaos.gov.laEmail: [email protected]
[email protected]: 856-21-217012Fax: 856-21-215491