Investment Policy LAOS:Land ofAmple OpportunityandSuccess
Country snapshot • Land Area : 236,800 sq. km • Population : 6.3 Millions (2011) • Religion: Buddhism as majority
Historical Event in 2012 LAOS:Land of Ample OpportunityandSuccess
ASEAN Economic Community 2016 No.158th WTO member in 2013 Unilateral Trade Agreements with 39 nationsBilateral Investment Treaties with 28 nations LAOS:Land ofAmple OpportunityandSuccess
Key successful investment factors 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.
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 LAOS:Land of Ample OpportunityandSuccess
FDI By Sectors (1989-2012) LAOS:Land of Ample OpportunityandSuccess
Improvement in Legislation • 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) LAOS:Land of Ample OpportunityandSuccess
Major Improve in Investment Promotion Law/Policies (2009) • 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.
More Investment Incentives • 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
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. CAMBODIA
Granting additional incentives 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 Education & Healthcare sectors
Special Economic Zones (existing) • Savan-Seno Special Economic Zone 2003 • Boten Beautiful Land Specific Economic Zone 2003 • Golden Triangle Special Economic Zone2007 • Vientiane Industrial and Trade Area 2011 • Saysetha Development Zone 2010 • Phoukhyo Specific Economic Zone 2010 • Thatluang Lake Specific Economic Zone 2011 • Longthanh- Vientiane Specific Economic Zone 2012 • Dongposy Specific Economic Zone 2012 • Thakhek Specific Economic Zone 2012 LAOS:Land of Ample OpportunityandSuccess
Investors Investment Promotion Committee (IPC) meeting IPD/DPI’s OSS S&E Division (IPD) Technical Comments from Concerning Authorities Negotiation Government/Provincial Authority Hydropower Project Prospecting & Exploration Exploration & Production PDA Mining Projects MOU MOU General Projects PDA CA Concession Projects not on the Investment Calling List (1) (2) 25 days (4) (3) (5) Reject * Joint the meeting (6) (7) Approved (8) (9) (10)
One Stop Services MOIC Ministry of Industry and Commerce Enterprise Registration License for General Business www.moic.gov.la LAOS:Land of Ample OpportunityandSuccess
THANKS Investment Promotion Department Ministry of Planning and Investment www.investlaos.gov.la www.facebook.com/investlaos.gov.la Email: email@example.com Nalan_tham@hotmail.com Tel: 856-21-217012 Fax: 856-21-215491 LAOS:Land of Ample OpportunityandSuccess