Looking Back: 2021
In 2021, Laos has gradually adapted to the new normal to make the country's economy grow. To this end, various legal and regulatory changes have been introduced in order to enhance the socio-economic status of the country. 2021 has also seen (i) the Instruction on the Promotion of Investment Incentives Concering the State Land Rental and Concession Fee; (ii) the Instruction on Converting Foreign Exchange Stores into Commercial Bank Representatives; (iii) the Decision on the Management of Accounting Software; and (iv) the Presidential Decree on Administrative Case Proceedings coming into operation.
In addition, Laos has sought to promote its socio-economic development by reducing its value added tax (VAT) to 7% pursuant to the Law on Amendment to Certain Provisions of the Law on Tax.
Gazing Into: 2022
The Southeast Asian crypto world has gained itself a somewhat contagious popularity, so much so that governments, including the Government of Lao PDR, are beginning to show interest and scrutiny in the major factors that drive and regulate this system. The cryptocurrency trend is expected to continue in 2022, and the the Government of Lao PDR intends to pilot digital asset transactions for three years following the issuance of the cryptocurrency and blockchain regulation at the end of 2021.
Laos also intends to strengthen and promote its administration system development in the country, with the recent release and publication of the Draft Law on Governance in the Government Gazette for public comments.
In addition, the following key trends and/or developments are to be noted:
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Laos intends to become the logistics hub of many countries by 2022;
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The COVID-19 Recovery Pre-Consultation Meeting was held on 27 October 2021 to identify the necessary elements for the formulation of a COVID-19 Recovery Plan for 2022;
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Laos has officially announced it will reopen for tourism beginning 1 January 2022. The will be implemented in three phases: (i) from 1 January 2022 to 30 March 2022; (ii) from 1 April 2022 to 30 June 2022; and (iii) from 1 July 2022 onward. Tourism will be restricted to group tours at first, with tours arranged by authorised tour operators under the Lao Travel Green Zone Plan; and
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Lao Visits Laos - While the tourism industry in Laos has been affected by the loss of international visitor arrivals, a domestic tourism campaign called "Lao Visits Laos" ("Lao Thiao Lao") is beginning to take shape. The Lao Thiao Lao Marketing Campaign kicked off recently to promote domestic tourism.
Full Report
Click on the link below for the full report which provides summaries of the key legal developments related to the above areas.
