On 11 September 2020 during his official visit to Laos, the Hungarian Minister of Foreign Affairs and Trade, Mr. Péter Szijjártó, met with the Lao Minister of Foreign Affairs, Mr. Saleumxay Kommasith, to discuss economic cooperation between the two countries. Political ties between the two countries have been strengthened, enabling Hungarian companies to carry out investment projects in Laos with a value of almost US$200 million.
During the visit, the two Foreign Affairs Ministers agreed to launch aid schemes to help Hungarian companies invest some US$100 million in Laos under a "tied aid scheme" to enable these companies to gain access to market opportunities in Laos.
Investments also involve building hospitals, developing Laos' national statistics system, and digitising postal services.
During the visit, agreements on statistics and education cooperation were also signed. Pursuant to these agreements, 100 Lao students will be allowed to study in Hungary each year.
Mr Szijjártó told the media that from the perspective of economic planning, it is very important to modernise Laos' statistics system to better serve the country's development needs. The digitalisation of Lao statistical agencies will take place under the framework of the tied aid program.
The two Ministers also appreciated the fruitful cooperation envisioned under the tied aid program, and discussed ways to extend cooperation in the areas of education, and finance and health. They touched on regional and international issues of mutual interest.
On 12 August 2020, the revised Law on Land No. 70/NA dated 21 June 2019 ("Updated Law") was published in Laos' official electronic gazette. The Updated Law came into effect 15 days after its publication in the gazette. The Updated Law applies to individuals, legal entities, and organisations including aliens, stateless person, foreigners, foreign nationals of Lao ancestry and their organisations that reside and operate in the territory of Lao PDR.
Article 132 of the Updated Law, which covers the land use rights of condominiums, allows foreigners to purchase suites or units in condominiums with the same term as the lifespan of the building or condominium. The land use rights on the land on which the condominium is built still belongs to the legal entity that owns the land.
Foreigners can also have land use rights under land leases and concession agreements with Lao citizens and the Government. However, the land ownership rights are limited to 30 years if the land leases and concession agreements are executed with Lao citizens, and 50 years if executed with the Government. Such land leases and concession agreements may be renewed with the consent of the Government, the National Assembly or the provincial People's Council, in accordance with articles 117 and 120 of the Updated Law.
Under Article 132 of the Updated Law, a Lao citizen may own part of the land where the condominium is located, or may own the entirety of the land based on a feasibility study report which should be undertaken prior to the construction of the condominium. All units and suites in the condominium must be officially registered with the relevant department of the Ministry of Natural Resources and Environment.
