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General Investment

List of conditional business types for foreign investors (List D 02 - 2015)

Investment Sector

 

 

Business type

Conditions for foreign investors

Relevant legislation

Responsible party

Registered capital(Kip)

Percent (%)

Processing industry

 

Processing of other foodstuff not classified elsewhere

1 billion and above

20%

- Announcement of the Cease of Enterprise Registration for Foreign Investors in Establishing Coffee Processing Factory all over the country No.1036/IC.GIPD

MoIC

 

Manufacture of pharmaceuticals, medicinal chemicals and botanical

1 billion and above

49%

- Amended Law on Drugs and Medical Products No. 07/NA, dated 27 December 2011;

- Announcement of Medical Products Management inLao PDR, No. 310/MoNRE, dated 20/12/2013.

MoPH

Construction

 

Construction of roads and railways.  ThisISIC has bridge and road construction terms:

A.For domestic and foreign associates

1 billion to 240 billion

49%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

B. For foreign investment

240 billion and above

100%

 

Preparation of construction site.  This ISIC has specific terms in construction area exploration (soil digging and covering):

A.Small-scale projects

8 billion to 40 billion

49%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

B.Large-scale projects

40 billion and above

 

Other constructions and installations.  This ISIC has specific terms in assembling construction materials:

A. Small-scale projects

8 billionto 40 billion

49%

 

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

B. Large-scale projects

40 billion and above

 

Completion of buildings.  ThisISIC has specific terms for internal and external decorations (at the end):

A.Small-scale project

8 billion to 40 billion

49%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

B.Large-scale project

40 billion and above

Wholesales and retails; auto and motorbike repairs

 

Automobile maintenance and repair (this ISIC has specific term in establishing vehicle and machinery repair shops)

1,5 billion and above

100%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

 

- The wholesale non- specific (the wholesale business )

- Other retail stores (the retail business)

 

Lower 10 billion but not less than 4 billion

 

Lower 20 billion but not less than 10 billion

 

20 billion and above

50%

 

 

70%

 

 

100%

- Agreement on Wholesales and Retails Business No. 1005/IC.DTD, dated 22 May 2015;

 

MoIC

Transportation and goods warehouse

 

Other transportations of passengers by road (This ISIC has specific terms for taxi-meter service)

5 billion and above

100%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

 

Transport of cargo freight by highway (thisISIC) has specific terms:

A.Business operation in domestic transport of cargo freight

3 billion and above

100%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

B.Business in inter-country or overseas transport of cargo freight

5 billion and above

49%

 

Storage and warehouses (this ISIC has specific terms in commodity storing service)

1 billion and above

49%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

 

Daily service activities in transport by road.  This ISIC has specific terms:

A.Business in domestic transport of cargo freight

5 billion and above

49%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

B.Business in domestic and inter-country transport terminals

10 billion and above

 

Other transport supporting activities.  This ISIC has specific terms:

A.Business in domestic transport of cargo freight

3 billion and above

49%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

 

B.Business in inter-country transport of cargo freight

Accommodation and food service activities

 

Short-term accommodation service activities (3 to 5 starts hotels)

1 billion and above

60%

- Tourism LawNo. 10/NA, dated 09/11/2005;

- Resolution of President of the Council of Ministers No. 91/PCM, dated 4/10/1989 on Tourism;

- Announcement No. 57/ICT, dated 31/01/2013.

MoICT

Financial activities

 

Other financial medium.  This ISIC has following terms:

A.Bank establishment (business bank)

300 billion and above (domestic - foreign)

Funds can be joined in the agreed ratio between stockholders

- Law on the Bank of the Lao PDR, No. 05/NA, dated 14/10/1999;

- Law on Business Bank, No. 03/NA, dated 26/12/2006;

- Statute on Management of Foreign Currencies and Valuable Items, No. 01/President, dated 17/03/2008;

- Instruction on Procedures in Applying for the Establishment of Business Banks, No. 705/BBFID, dated 31/12/2007;

- Announcement on terms and documentation of Micro-Financial Depositing Institute Establishment, No. 154/FIMD, dated 17/02/2012

BoL

B. Bank branches

100 billion and above

C.Establishment of deposit micro-financial institutes

3 billion and above (domestic - foreign)

Vocational, scientific and technical activities

 

Architectural and engineering activities and relevant technical advisory services.  This ISIC has following specific terms:

A.Project possibility research and study

4 billion to 8 billion (small-scale project)

8 billion and above (large-scale project)

49%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

B.Survey and design on housing and urban planning

C.Internal and external decorations

D.Construction consultancy

E.Survey-design andconstruction engineering

 

Technical inspection and analysis (this ISIC has specific terms for the establishment of vehicle technical inspection centres)

1 billion and above

100%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

Education

 

Other education not elsewhere classified.  ThisISIC has specific terms:

A.General driving school

8 billion and above

49%%

- Announcement of Regulations on Business Establishment Approval under Public Works and Transport Sector, No. 13779/PWT, dated 21 August 2012

MoPWT

B.Heavy machinery driving school

15 billion and above

100%

Human health and social work activities

 

Other human health activities (thisISIC has specific terms for business operation in medicines and traditional medicines)

1 billion and above

49%

- Pursuant to Law on Health CareNo. 53/NA, dated 09 November 2005;

- Decree on Private HospitalsNo. 16/PM, dated 09/04/1998

MoPH

 Remarks:

-        List D 02-2015 (Updated) substitution and elimination the list D 01-2013, Every activity in List D 02-2015 (Updated) is assessed with environmental and social impacts. It therefore needs to be implemented in line with the regulations of concerned sectors;

-        Business types in List D 02-2015 (Updated) have been studied and compiled from the proposals of concerned ministries;

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Last update: 11 April 2017.