On 16 July 2015, the National Assembly of Laos passed the Business Competition Law in a move to ensure that competition between businesses in Laos is carried out in a fair and just manner to boost economic growth. The Law defines principles, measures and regulations that prevent unfair and unjust business competition, while promoting business competition in a fair and just manner along with protecting the legitimate rights and interests of the state, business operators and customers.
The Law is intended to facilitate the growing integration of ASEAN as an ASEAN Economic Community in December this year.
Foreign individuals and legal entities may now operate wholesale and retail businesses in Lao PDR pursuant to Decision No. 1005/MOIC on Wholesale and Retail Businesses issued on 25 May 2015 and its additional instructions (No. 0515/MOIC.DTD, 17 June 2015). The regulations set out the conditions that must be complied with in order to engage in wholesale and retail businesses, as well the minimum capital threshold for foreign investors.
This marks a major reform and significant liberalization of the wholesale and retail sector which has hitherto been strictly reserved for Lao citizens.
