Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
 Issue 2 - Apr/May/Jun 2017
 

Amendments to Investment Promotion Law

The amended Investment Promotion Law (No. 14/ NA, 17 November 2016) came into operation on 19 April 2017.  The changes to the law seek to remove the barriers to investments into the Lao PDR. Key changes:
  • creation of the Investment Promotion and Management Committee which has the ultimate responsibility of approving and overseeing investments in controlled business sectors, concessionary business and Special Economic Zones ("SEZ"). The registration process in the revitalised one-stop shop within the Ministry of Planning and Investment has also been streamlined for increased ease of doing business in the country.
  • addition of Value-Added Tax ("VAT") exemptions and state land lease / concession rental fee holidays to the investment incentives already provided for by the law
  • specification of promoted business activities with a minimum capital investment of one billion and two hundred million LAK, and 30 local blue-collar workers, and 50 local white-collar workers with an employment contract for at least 1 year
  • reduction in the land concession term for an SEZ from 99 years to 50 years, with possible extension of term subject to the approval of the National Assembly.



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

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