A wholly domestic or foreign-owned investment is an investment entirely owned by either domestic or foreign investor(s), and can be either a single investor or a group of investors in the enterprise or project in the Lao PDR.

A joint venture between domestic and foreign investors is a joint investment between domestic and foreign investors who conduct business operations, share ownership and establish a new legal entity under the laws of Lao PDR.

The organization and activities, management, rights and obligations of investors of the joint venture are defined in their joint venture agreement and in the article of association of the newly established legal entity.

Foreign investor(s) in the joint venture shall contribute at least ten percent (10%) of the total capital.

Business Cooperation by Contract is a joint business arrangement between domestic and foreign legal entities including public and private parties through a business cooperation contract according Lao PDR laws and regulations for a certain period of time without a requirement to establish a new legal entity or a branch office in the Lao PDR. Such contract shall clearly determine rights, benefits and obligations of each parties to one another and to the Government.

Domestic entity entering into a business cooperation contract shall inform the investment one-stop service office for approval and supervision according to relevant regulations and subject to notarization by the relevant notary public of Lao PDR where the contract is performed.

Joint venture between a state-owned enterprise and a private enterprise is a partnership between a state-owned enterprise and a private enterprise in order to operate a business, have co-ownership and establish a new entity under Lao PDR laws.

The establishment, operation, management, rights and obligations of investors in such partnership shall be specified in the relevant joint venture agreement and articles of association of such new entity. 

Public-private partnership investment is a joint-venture investment between public authority and a private party under a joint-venture contract to implement a project of new construction, improvement of infrastructure or to provide a service to the public.

Sectors, conditions and procedures for public-private partnership are set out in a separate regulation

The investments in Laos are consists of 3 types:

1. Concession investments;
2. General investments;
3. Development activities in Special Economic Zone (SEZ).

Concession investment is an investment for which an investor is authorized by the Government in accordance with relevant laws and regulations to develop and operate a business notably concession of land, development of special economic zones, zones for industrial processing for export, mining, electric energy development, aviation and telecommunication.

Domestic and foreign individuals wishing to invest in concession investment shall submit an application to one-stop service office at the central or local level. The one-stop service office at central level is located at the Department of Investment Promotion, Ministry of Planning and Investment and the local level is located at the Provincial Planning and Investment Department.

The consideration for investment in concession activities must be through a one-stop service mechanism through the consideration from the Committee for Investment Promotion and Management at the central or local level in accordance with the Law on Investment Promotion Revised 2016 and the Decree on the Organization and Operation of the Investment Promotion and Management Committee No. 05 / PM dated 05/01/2018.

The concession investment activities are as follows:

• Land concession for investment in agricutural, factory industry, tourist attraction and other service which related to land ;
• Mining, electric energy development;
• Development of special economic zones, zones for industrial processing for export;
• Aviation and telecommunication;
• Public Private Partnership (PPP).

• A domestic or foreign legal entity (ies);
• Having experience and success in business as certified by relevant authorities ;
• Being financially sound or having funding sources as certified by domestic or foreign financial institutions;
• And other conditions as set out in relevant laws.

Procedure for consideration in concession investment activities must be through a one-stop service mechanism, through the consideration from the Committee for Investment Promotion and Management at the central or local level.

Timeframes for consideration of investment applications for concession activities the investors shall receive their investment lincense within 65 working days starting from the date a complete set of their investment application is submitted to the investment one-stop-service.

• General activities are investment activities in general investment sectors including activities under the controlled list and outside the controlled list, but not considered as cession activities
• Industry and Commerce Sectors consider the issuance of enterprise registration certificate in accordance with the procedure stipulated in Enterprise Law.
• Outside the controlled list activities can be issued with enterprise registration certificate in 10 official working days.
• Controlled list investment activities can be issued with enterprise registration certificate in 13 official working days.
• Enterprise registration certificate includes the investment approval, promotion policy and tax identity number.

‘SEZ’ has written in English language as Special Economic Zone. SEZ is the area that has specific administration and management mechanism to create favorable conditions to attract investments using high technology, innovation in the production of agricultural products, and clean production using less natural resources and energy for sustainable and environmentally friendly development.

A Special Economic Zone may consist of industrial estates, agricultural development zones, industrial processing for exporting, technology and information developments, services, trades, and tourisms.

Zone developer refers to legal entity that receives authorization from the Government of the Lao PDR to invest in infrastructure development in the Special Economic Zone.

Investor refers to an individual or legal entity that receives authorization in accordance with the law to invest in production, trade and service businesses in the Special Economic Zone.

Any person wishing to invest in a development of Special Economic Zone shall submits an application form together with supporting documents to the one-stop investment service office in the central level.

If there are more than two persons wishing to develop the same Special Economic Zone, a selection process shall be done in accordance with the Law on Investment Promotion. The person who wishes to invest in Special Economic Zone shall be considered through two stages which include as follow:

1. Consideration on Memorandum of Understanding Signing (MOU)
2. Consideration on Development Agreement Signing.

The investment one-stop service office, abbreviated as “OSO” is the permanent office of the Committee for Investment Promotion and Management where investment one-stop service is provided to investors. The office exercises its rights and performs its duties as set out in Article 84 of this Law (Amended in 2016).

The principles for one-stop-service are as follows:

1. To serve as the center of services for investors investing in general investments, concession investment and in special economic zone development projects in a simplified, quick, transparent and timely manner.
2. To actively coordinate with relevant sector authorities in compliance with regulations of the relevant sector authorities;
3. To centralize database, monitor and evaluate investment environment and private investment projects.

The Investment one-stop service office consists of two levels as follow:

1. Central Investment One Stop Service Office, abbreviated as “COSO”, and
2. Provincial Investment One Stop Service Office, abbreviated as “POSO”,

• Provide service for Investment License, establishing a representative office of foreign company, Business registration Certificate, Tax Certificate, Operating License and Incentives;
• Provide service on business visa, multiple-entry visa and work permit and stay permit card;
• Provide service on the application for the change in enterprise legislations in control and concession activities, SEZ development, Public-Private Partnership, Overseas investment and the representative office;
• Provide relevant investment information services;
• Service and Coordinate with concern public agencies for enterprise registration certificate or tax certificate and/or operating license;
• Provide service on corresponding letters for investors, hand over the investment license, hand over the representative office certificate and other documents;
• Other services related to investment promotion.

• Provide service for Investment License and Incentive;
• Provide service on business visa, multiple-entry visa and work permit and stay permit card;
• Provide service on the application for the change in enterprise legislations in control and concession activities;
• Provide relevant investment information services;
• Provide service on corresponding letters for investors, hand over the investment license and other documents;
• Other services related to investment promotion.

The Government promotes investment in all economic sectors, both domestic and foreign, by formulating policies to create a favorable investment climate, including construction of infrastructure, providing necessary information, customs and tax policies, labor, and the rights to land use; access to finance, equal treatment, promoting awareness and protecting ownership regarding use rights, usufruct rights, inheritance rights, transfer rights and other rights as provided by law.

The Government promotes the investment in all sectors, business operations and in areas throughout the country except for areas and business operations which are considered detrimental to national security, the natural environment, at present and in long-term, public health and national culture.