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Forms of Investment and Terms of Investment

1. There are three (03) types of investment in Lao PDR as follow:

  • General business (Ministry of Industry and Commerce will issue the business license);
  • Concession business (Ministry of Planning and Investment will issue the concession license);
  • Activities for development of special economic zones and specific economic zones (Secretariat to National Committee for Special Economic Zones at Government Office will issue the license);

2. There are three (03) Investment Forms in Lao PDR

According to the article 8 of the investment promotion law, the form of the investment is classified as the following forms:

  1. The 100% ownership (Foreigners and Local people or business identities can apply for this form of business in Laos);
  2. The Joint Venture form (foreigners or local people can make the joint venture or company-company or company-persons);
  3. Business by contract (foreign companies can make the contract or agreement with the local partners in order to order the products or goods from Laos or vise versus);

3.  Investment Terms in Lao PDR

  • The investment in general business has unlimited term of investment except business of which the term has been determined in separate regulations and laws of relevant sectors (Article 20 of the investment promotion law).
  • The term of investment in concession depends on the nature, size, investment value; conditions of the concession activities based on concerned regulations and laws but shall not exceed 99 years and may be extended with the approval of the government (Article 28 of the investment promotion law).
  • The term of investment in the special economic zones and specific economic zones depends on the type, size and conditions of each special economic zone and specific economic zone; it shall not exceed ninety nine (99) years and may be extended on a case by case basis with the approval of the Government, especially in the case where the project has generated maximum benefits to the country, the investor has effectively implemented the signed agreement and has recorded good performance in contributing to local development (Article 42 of the investment promotion law).

 

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Last update: 10 November 2016.