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Lao Investment Guide
DDFI
Welcome to Lao PDR! The Department of Domestic and Foreign Investment (DDFI) has prepared this Business Guide for the benefit of investors who are interested in establishing a business interest in Lao PDR. The main purpose of this Business Guide is to provide general information on conditions in the Lao PDR that affect the establishment and operation of businesses and to broadly outline the legal requirement that must be met in setting up a business. The contents of this edition reflect information that was currently available as of April 2003. The DDFI is more than willing to assist potential investors in Lao PDR. More detailed information can be obtained by contacting our office. Of course, when the time comes to apply for a licence or register a business we will be again at your service.
Preface 1
Lao PDR is busy positioning itself as a regional hub – building a commercial reality based on what is its natural geographical advantage at the very heart of South East Asia. This presents wonderful opportunities to the would-be investor…. Introduction The Lao PDR, strategically situated in the heart of the Greater Mekong Sub-Region, opened its economy to foreign investors in 1986 when it launched its New Economic Mechanism policy. It was quickly overtaken by the strong growth of its more powerful neighbours, however, as Thailand and Vietnam attracted foreign capital. With a government based on socialism, the country has not gone down the road to market reform easily. The small size of the Lao economy has also hampered its ability to fund development and improve its internal transport infrastructure. The Lao PDR has therefore been heavily dependent on aid agencies, the World Bank and Asian Development Bank for assistance in developing basic infrastructure such as roads, railways, and the financial sector. Great strides have been taken to lift the Lao PDR from its place as a forgotten corner of the world. It became a member of the ASEAN group of countries in 1997 and has also applied to join the World Trade Organization (WTO). Since 1997, however, the Lao PDR has suffered an economic crisis, triggered by the regional crisis. The local currency lost 90% of its value against the US dollar in 18 months; demand for Lao goods in neighbouring countries slowed down, harming the balance of trade; foreign direct investment by Asian countries decreased sharply; and the cost of imports rose. The future for the Lao PDR in the near term is likely to be more one of potential than of realised opportunity; strong sustained growth is unlikely until regional demand recovers. However, its strategic position in one of the fastest emerging areas in Asia is almost certain to benefit its long-term economic development. The potential for growth is particularly strong in certain areas such as power generation and mining. The establishment of the Savan-Seno Special Economic Zone in Savannakhet Province along the East-West Corridor promises to become an attraction for investors. Furthermore, by 2003 the Lao PDR was making strides towards establishing Normal Trade Relations (NTR) with the USA. In this Business Guide, we offer the reader an insight into the country’s history, its culture and its system of Government; all these factors have shaped the present day Lao PDR and need to be considered before economic issues. We also explore the sectors that are most likely to be of interest to investors, the benefits offered and the necessary legal requirements to establish and operate a business in the Lao PDR. The appendices provide contact details relevant to doing business in the Lao PDR, including Government offices, embassies, banks and consulting companies.
Country Overview Laos … a country of unparalleled natural beauty. Geography and Climate The Lao PDR is a landlocked country of about 236,800 square kilometres. Bordered by Vietnam, Thailand, Cambodia, China and Myanmar, it stretches 1,700 kilometres from north to south and between 100 to 400 kilometres from east to west. There is an abundance of rivers, including a 1,865-kilometre section of the Mekong River. The terrain is mostly rugged mountains with its highest point at 2,820 meters, which gives the country tremendous hydroelectric potential. Forest and woodland cover 47% of the land area. The Lao PDR is abundant in natural resources, including coal, hardwood timber, hydropower, gypsum, tin, gold and gemstones. These resources all play a significant part in the economy. The Lao PDR is divided into 16 provinces, one special zone and the Prefecture of Vientiane. Vientiane, the capital city, is in the west of the country on the Thai border; it is the centre for business and government and has a population of over 560,000. Other cities include Luang Prabang in the north and Champasak and Savannakhet in the south. The climate is tropical monsoon and has three distinct seasons. The cool season lasts from October to February when the average temperature drops to about 16+ degrees Celsius. The hot season is from the end of February to April when the temperature in the Mekong Delta can reach 40 degrees. The rest of the year is the rainy season. The mountain temperature is more than 10 degrees colder and can become cold during winter. From 1353 to 1828, the Lao PDR was unified as Lane Xang - 'The Kingdom of a Million Elephants' - with its capital in the northern town of Luang Prabang. In the 19th Century Thailand (then called Siam) took control of most of the Kingdom, until the French incorporated it into French Indochina, with Vietnam and Cambodia, in 1893. From 1893 until 1949 the Lao PDR continued as a French colony, apart from a brief period of Japanese occupation in the 1940s. The Lao PDR gained formal independence from France in 1953; this was ratified under the Geneva Convention in 1954, the year normally referred to as 'Independence Year'. Although the Lao Patriotic Front gained 13 seats in free elections in 1958 and joined a coalition government, conflict persisted between the various elements of the Government. The US supported the right wing faction as part of its efforts to contain Communism in South East Asia; this exaggerated the Lao PDR's geopolitical prominence and it suffered heavy bombing, particularly in the eastern part of the country. In December 1975 the Lao People's Democratic Republic was proclaimed and officially declared a Marxist-Leninist government. By 1986 the Lao PDR was a country without a constitution and with hardly any legislation. The economy was centrally planned and private ownership limited. These circumstances brought about a general decrease in production that resulted in food shortages. In 1986 the Lao Government launched the New Economic Mechanism, with the ultimate aim of turning the Lao PDR into an open-market economy. Initial progress was rapid, developing one of the most liberal foreign investment packages in the region. This integration into the region's political and economic structures has led the Lao PDR to be accepted as a member of the Association of South East Asian Nations (ASEAN) in July 1997. It is gradually lowering its tariff barriers in line with the goal of complying with the tariff reduction schedule of the ASEAN Free Trade Area (AFTA) by 2008. The Lao PDR also has observer status within the World Trade Organisation and applied for full membership in 1997. However, the Lao PDR was badly affected by the Asian Economic Crisis in the late 1990s, which resulted in growth almost halving, year-on-year inflation rising to more than 150% in the first quarter of 1999, foreign investment falling by almost 70% in 1997-98 and the Lao currency losing about 90% of its value in the 18 months to August 1999. Since then the rate of economic reform has slowed down. It is only now that country has got itself back on the road to recovery. Although reforms have not been implemented smoothly or consistently, they have not been reversed, the country remains politically stable and the economy remains relatively open to foreign investment. The Government announced in late 1998 that it intended to privatise more state-owned enterprises and to gain World Trade Organization (WTO) membership. The Government has also been negotiating with the USA to obtain Normal Trade Relations (NTR) status. Although the country’s physical and technical infrastructure would need to improve for WTO or NTR to have a major effect on the economy, they would further facilitate export trade and attract foreign investment, particularly in the labour-intensive industries of clothing and textiles and agricultural processing. Funding agencies (e.g. the World Bank and IMF) are helping the Lao Government to develop its economy; they are encouraging the Government to improve the transparency of the Lao tax and banking systems in order to attract foreign investors. In April 2001, the IMF released a US$40 million credit line to the Lao Government to help develop economic stability, reduce poverty, maintain growth and encourage the private sector. The mid-term target is to raise the Lao PDR from the list of 'least-developed' countries by 2020. Another key feature of the Government's response to the regional crisis has been to reduce the country's economic reliance on Thailand. Although Thailand is still the origin of more than half the imports into the Lao PDR, Vietnam has also become a major trading partner, with more than 40% of Lao exports going there. However, any reduction will take time; moreover, its effects will be limited by the relative size of the Thai economy and the ease of access from Thailand to the main Lao population centres. The only legal political party is the Lao People’s Revolutionary Party (LPRP). The LPRP is directed by the Party Congress and elects Party Leaders every four or five years. The National Assembly is the legislative branch with 99 members. The Assembly meets once a year to hear, discuss and approve the declarations of the Prime Minister. Other important party organs include the Political Bureau of the Central Committee and the Permanent Secretariat. The administration has a Council of Government consisting of
14 ministries. There is also an Office of the Prime Minister,
the Central Bank and the Department of Domestic and Foreign Investment
(DDFI). The DDFI, formerly known as the Foreign Investment Management
Cabinet (FIMC), is the body that approves foreign investment applications.
Population and Language The Lao PDR has a population of about 5.5 million, growing at approximately 2.8% per annum, with a density of 23 people per square kilometre. Life expectancy at birth is 52 years for men and 55 years for women. The fertility rate is 5.21 children per woman. Apart from Vientiane and a few other sizeable towns, most of the people live in the countryside; 80% are employed in agriculture. They tend to be concentrated in the main traditional trade routes - the Mekong valley and the roads to China and Vietnam. The population is divided into three groups: 68% are Lao Luom (lowland Lao), 22% Lao Theung (lower mountain dwellers), 10% Lao Sung (high altitude hill tribes, consisting of the Hmong and 60-100 other minority groups - the number varies according to the method of classification). Languages spoken are Lao, Thai (Lao and Thai are very similar), Lao dialects and various ethnic languages. English and French are also widely used, particularly in commerce and bodies working with NGOs. Many government officials can also speak Vietnamese. The main religion is Buddhism (85%), with animist and other spiritualist cults (15%). About 57% of people between the ages of 15-64 are literate; the
literacy rate is much higher in urban areas. Tourism The Lao PDR has been confidently marketing itself as one of the most unspoiled countries in Asia. Some tourist attractions include the following: • Luang Prabang, the former capital, which was registered
by UNESCO as a World Heritage Site in 1998; The number of tourists fluctuates around 500,000 per year. Public Holidays Many festivals are celebrated on dates determined by the lunar calendar. The following are public holidays: 1 January International New Year Other holidays include: 22 October Boat racing festival (Vientiane) Boat races occur on different dates in the outlying provinces. Visa Requirements There are two types of visas: tourist and business. Tourist visa: Valid for 15 days. It is now possible to travel freely throughout the country with this visa. It is possible to buy tourist visas on arrival at Vientiane airport, Luang Prabang airport and the Friendship Bridge; the cost is US$30, payable in dollars or kip. A tourist visa can also be purchased at a Lao embassy abroad for US$30 and is valid for 30 days. Note: Although the visa states it is valid for 60 days, these 60 days represent the time available to enter the country. At the border the visa is stamped and is then valid for 30 days from that day on. It is possible to extend tourist visas. The official cost is US$1 per day. Arranging the extension through a private travel company adds several more US dollars to the daily rate. Business visa: A business visa is issued to persons investing in or registering a company in the Lao PDR. As the time taken to approve such investments is officially 60 days, a 30-day multiple-entry visa is initially given. In practice approving investments takes much longer and extensions to the initial visa are given. These visas can be obtained in the Lao PDR only if there is a guarantee from a company set up in the country. The DDFI, the Ministry of Labour and Social Welfare, and the State Employment Enterprise are responsible for this. Business visas can be granted for three months, six months or one year, costing US$38, US$75 or US$141 respectively, though these rates have a history of changing from time to time. Currency The unit of currency is the kip. Kip are available in denominations of 20,000; 10,000; 5,000; 2,000; 1,000; and 500. Coins are not used. All transactions are supposed to be in kip; however, in practice Thai baht and US dollars are generally accepted everywhere in the country. Government offices will only accept kip. Traveller's cheques are well known and all banks change them, though some charge a commission. Credit cards (Visa, MasterCard and American Express) are accepted
at some of the more expensive hotels, restaurants and shops in
Vientiane. Credit card cash advances are also available at various
banks in the city. Outside of developed areas, hard currency is
the only means of transaction. Hotels and Entertainment First class hotels can only be found predominantly in Vientiane and Luang Prabang. The Lao Plaza Hotel, Novotel, Settha Palace, and Tai Pan can be found in Vientiane. The Phousi Hotel, Phouvao, Souvannaphoum, and Villa Santi are in Luang Prabang. The Champasack Palace is in Champasack. Outside these cities accommodation is provided in very basic hotels or guesthouses. Hotels rates vary from under US$20 to over US$100. Entertainment includes bars, discos and restaurants. In 1998
a Malaysian-Lao joint venture opened a casino about 70 km from
Vientiane. Outside the larger towns the variety of Western-style
entertainment available is very limited. Air Travel Vientiane International Airport is connected with a number of cities in Southeast Asia. Although some routes have been curtailed since the regional economic crisis, there are currently regular flights to Hanoi, Ho Chi Minh City, Phnom Penh, Bangkok, Chiang Mai, Kunming and elsewhere. The most frequent flights are to Hanoi and Bangkok. There is a departure tax of US$10. Flying within the Lao PDR is easy and relatively cheap. There are three flights a day between Vientiane and Luang Prabang, the trip taking about 40 minutes. At the time of writing, a number of embassies have issued travel
advisories, questioning the safety and maintenance procedures
of Lao Airlines. These warn personnel to limit domestic travel
on Lao Airlines to essential travel only. Health As throughout South East Asia, up-to-date vaccinations and other precautions against diseases such as malaria and typhoid are recommended. The level of health care can be basic, particularly outside the main towns; travellers who need specific brands of medicines should ensure that they bring an adequate supply. As of early 2003, the Lao PDR had not been penetrated by the
SARS epidemic. Security and Safety The Lao PDR is generally a safe country in which to travel. However, there are intermittent clashes between the army and Hmong guerrillas. Overall the Hmong pose no threat to the Government; occasionally, however, these skirmishes make certain areas unsafe for travel. Travellers should check with the local authorities before journeys into the mountainous areas. A few basic precautions are necessary when travelling. Avoid dark streets at night. Keep hotel rooms locked at night and watch luggage on crowded buses. Avoid keeping money in trouser pockets. The quality of some of the roads, especially away from the main
towns, can be poor. A relatively high number of accidents occur
in this and neighboring countries. Customs Tipping is not expected, even in tourist hotels, although the custom is becoming more prevalent. 'Rounding up the bill' is a common practice. Tipping is becoming more commonplace in certain service areas, such as massage services at spas and golf caddy services. Miscellaneous Fiscal Year: • Public sector 1 October - 30 September Electricity: 220 V, 50 Hz (Power cuts are not uncommon) Normal Business Hours Monday to Friday: Banking Hours Monday to Friday: Time Zone: Laos is 7 hours ahead of GMT. 12 noon in Vientiane is 5 am in London (winter time), 12 midnight in New York and 1 pm in Hong Kong. International telephone code: +856 Telephone codes around the country:
Opportunities for International Investors Blessed as it is with an abundance of positive features, Lao PDR offers a fresh new range of opportunities for would-be investors. Background The Lao PDR has followed a market-oriented economy since 1986, with the New Economic Mechanism giving foreign investment generous incentives, constructing the basis of a legal framework from scratch and allowing private ownership. A liberal foreign investment law, passed in June 1994, set a flat rate corporate tax of 20% and duty of 1% on imports of means of production, spare parts and other materials used in operations. (Other imports are subject to 5-10% duty.) It also allowed 100% foreign ownership of business ventures. Since then, the detailed application of this law has been modified a number of times. The Constitution, adopted in 1991, gives a legal basis for a market economy while retaining the monopoly power of the ruling Lao People's Revolutionary Party. Such a system is also found in China and Vietnam. The Lao economy was badly affected by the Asian economic crisis. This has slowed down the development of infrastructure and temporarily reduced demand for its products. The Lao PDR is therefore reliant on aid agencies for the development of infrastructure. Although foreign aid fell in the mid-1990s, the aid agencies continue to provide a valuable contribution to the long-term effectiveness of the Lao economy. The Lao PDR has a strong potential for growth in certain areas and a strong need for development in others. Potential growth areas include power generation, mining and minerals, agri-forestry and transportation. Areas that need to be developed include telecommunications, the financial sector, and tourism.
Power generation, largely from hydropower, has the greatest potential for private sector investment in the Lao PDR. Not only does the mighty Mekong and its tributaries run through the country, but Laos also has considerable supplies of gas and coal. Several hydropower stations are already operational, and the development plans for Laos call for continued strong expansion in this area. The stretch of the Mekong that flows through the country offers Laos the potential to generate 20,000 MW. Currently, only about 2% of that potential energy has been tapped. There are efforts under way to garner an additional 5,000 MW within the next 15 years. The Nam Theun 2 hydroelectric project (NT2) will be the largest of its kind in Laos so far. It will have the capability to produce 920 MW and generate US$235 million in gross revenues from yearly sales of electricity to Thailand. The Theun-Hinboun Power Company Ltd holds a unique position in this market, as it is the first independent power project (IPP) in the hydropower sector in Laos. The company is jointly owned by the Government and foreign investors. Turn the newly minted 20,000 kip note over, and you will see a picture of the THPC power station. The vast majority of the power generated from hydropower is sold to Thailand. Laos depends on continued demand from Thailand to maintain its sales market and its current pricing. However, having many neighboring countries as potential customers may serve the country well if the Thai market wanes. The Lao PDR has made a name for itself around the world as both a location for cost-effective manufacture of garments and high-end woven fabrics. The primary markets for the wholesale distribution of Lao garments are Thailand and Europe. Lao exports enter the EU duty-free due to its status in the Quota-Free Generalized Preferential System. When the Asian Art Museum in San Francisco re-opened in March
2003, among the most costly items in its gift shop were Lao textiles.
Demand for quality fabrics remains very high, and the overseas
market is largely untapped. Mining and Minerals Though mining was a major draw for foreign investors into the Lao PDR in the mid-1990s, the Asian economic crisis beginning in 1997 reduced Thailand's demand for fossil fuels, weakening this industry in Laos. Around the same time, the Government issued an amendment to the Investment Law, requiring that all applications for investments involving natural resources have to be approved by the Prime Minister. No foreign investment license has been given in the mining sector since 1999. The Lao PDR has a plentiful supply of the following natural resources: coal, natural gas, tin, iron ore, gold, and precious stones. As transportation routes improve and Thailand recovers from the economic downturn, the mining sector looks to be an enticing prospect for foreign investment. This is the engine of the economy, contributing over 50% of the GDP and employing over 80% of the workforce. The economic development of the Lao PDR will largely depend on this sector for the foreseeable future and there are significant opportunities for investors. More than 11 million ha of the Lao PDRÂ’s total land area (47%) are covered by forests. As a result, wood products are the country's major export. The lack of in-depth technical knowledge currently within the country would appear to give investors a favourable entry to this market. However, powerful domestic interests are heavily involved in forestry and they have exerted pressure to control the extent of foreign involvement. Coffee exports also contribute greatly to the agricultural sector.
Most of this coffee is produced in the south of the country. Telecommunications The percentage of the Lao population with a telephone service is low (less than 2%) but increasing. There is a great need for telecommunications infrastructure and recent investment has seen a rapid increase in the mobile phone network. Whilst there are now four telephone companies in the country, there remains a need for increased investment in the national infrastructure. The government is especially keen to see the network extended to the rural and remote areas. Lao PDR has attempted to improve its communication abilities by providing access to the Internet. More recently, Internet service providers such as Planet Computers and Laotel have been providing Internet access and IT network services. The development of e-commerce, however, has been limited as the implementation strategy for the country’s Domain Name code (.la) has yet to be finalized. Internet access is available in Vientiane at the Lao Hotel Plaza,
Parkview Apartments, and several other hotels. Internet cafes,
such as the one at Planet Computers or one outside the main post
office in Vientiane, provide access for under US$1 per hour. Internet
cafes can now be found in other cities and towns around the country.
In fact, an Internet cafe set up by Planet Computers in Luang
Namtha is believed to be the first solar-powered Internet cafe
in the world and is seeking inclusion in the Guinness Book of
World Records.
No other industry in the Lao PDR seems to attract as much attention these days as tourism. An interesting history, affordable costs, beautiful nature, a relaxed atmosphere, and the friendliness of the people in this exotic country make Laos a much-touted destination for both backpackers and higher-end tourists. Recently, eco-tours and other packages and services have sprouted up to cater to the various needs and desires of those who travel to this once-closed society. For information about tourist destinations and attractions, see Chapter 2 - "General Overview." In 2001, over 650,000 tourists visited the country. The annual number is expected to rise as the Lao PDR improves its promotional efforts abroad and as tourism infrastructure is further developed. One area of the tourism industry that has seen significant growth is accommodations. In 2000, there were approximately 2,350 guest rooms available in almost 100 establishments in Vientiane alone. Tourists by region 1998 1999 2000 2001
Cross-country land routes offer the potential to make the Lao PDR a key hub of Asian trade. The country is neighbor to China, Myanmar, Thailand, Cambodia, and Vietnam. Of particular interest is the newly sanctioned Savan-Seno Special Economic Zone (SSEZ) in the south of Laos, which sits on the East-West Corridor linking Myanmar and Thailand in the west with Vietnam in the east. The SSEZ also serves lies on the north-south route linking China in the north with Cambodia and Thailand in the south. For more information on the SSEZ, see Chapter 4 - "Savan-Seno Special Economic Zone." Steady air traffic through Wattay International Airport in the capital city of Vientiane points to another area of transit growth. The Greater Mekong sub-region (comprising the Lao PDR and its neighbours) generally lacks adequate transportation infrastructure. The Lao PDR does not currently have a railway system; this hinders trade and the exploitation of minerals. Moreover, of the 23,000 kilometres of road in the country, 13,000 kilometres are unmetalled. In 1994 the Friendship Bridge was opened as a link across the Mekong River between Laos and Thailand. The Government plans to develop the following roads: South • From each province of Savannakhet, Khammoun, Attapeu,
Sekong and Salavanh to the border with Vietnam; North • From Vientiane to Muang Nganh, via Salakham, Paklai,
Sayaburi and Hongsa; The Government also plans to develop railways on three routes: from Nongkhai (Thailand) to Vientiane; from Vientiane to Vietnam via Thakhek; from Vientiane to China via Luang Prabang and Boten. However, it is having difficulty in finding a foreign partner willing to invest in the project.
Economic indicators 1998 1999 2000 2001
Savannakhet Province in Lao PDR is a thriving hub of trade and services in the Greater Mekong Sub-region (GMS). The province is located along the East-West Corridor (EWC) linking Thailand, Lao PDR, and Vietnam (Road No.9). It is also along the North-South axis (Road No.13) that runs through Lao PDR, leading north into China and South into Cambodia. Road and bridge construction will further develop Savannakhet as a trade and services zone. Road No.9 is being improved thank to international assistance from Japan. Once the improvement work is completed by 2004, this road will shorten the transport time between Savannakhet and central Vietnam. Savannakhet itself will also develop multiple routes from Thailand to north/central Vietnam. This will bring about an expansion of markets. Direct access to Thailand across the new Mekong River Bridge, which is currently under construction, will create further business opportunities for all the economic sectors in Savannakhet. The total value of export in Savannakhet was US$238 million in 1998-1999, of which nearly 92% (US$218 million) was transit goods.
The Asian Development Bank (ADB) and six Mekong riparian countries mapped out the socio-economic development framework of the Greater Mekong Sub-region (GMS). Located in the centre of the GMS, Lao PDR will play a critical role in various development programs proposed for the GMS. One of the spearheaded programs is the East-West Corridor (EWC), which is expected to commence in 2003 upon the opening of the Mekong River Bridge in Savannakhet Province. The bridge will link major cities and towns located between Mawlamyine (Myanmar) and Danang (Vietnam) via Khon kaen, Mukdahan (Thailand) and Savannakhet (Lao PDR). The EWC crosses the Indo-China peninsula and forms a land bridge between the South China Sea and the Andaman Sea. It runs through the middle of Lao PDR, approximately 500 km south of the capital city of Vientiane. Free traffic system and operation of a Single Inspection Point of the Corridor are under negotiations among the countries concerned. Cooperation among GMS countries has been accelerated, particularly since year 1997 when the Lao PDR became a full member of the Association of Southeast Asian Nations (ASEAN). In order to gain maximum benefit from the implementation of the EWC, the Lao Government has decided to establish the first Special Economic Zone in Lao PDR.
Savan-Seno Special Economic Zone (SSEZ) is geographically composed of two separate sites both located in Savannakhet Province: • Site A (305 ha), located immediately upstream of Savannakhet
capital city (Khanthabouly) and next to the new Mekong River Bridge,
the construction of which will start in 2003; The East-West Corridor, linking Myanmar, Thailand and Vietnam, is located mid-way between the nearest Vietnamese sea port of Danang (about 500 km from the Zone) and the Thailand port of Bangkok (about 600 km from the Zone). Thanks to its strategic location, the development of the SSEZ is to become a centre for service and trade of the East-West Corridor. Furthermore, the SSEZ is located around the mid-way point along Road No.13 from China to Cambodia. That means it is at the junction between the East-West axis and the North-South axis linking the most populous countries in the Asian region, and thus is a prime centre for trade and services for the neighboring countries, which include China (Yunnan Province), Myanmar, Thailand, Cambodia and Vietnam, with a total population of more than 500 million people. The Lao Government is planning to upgrade the existing domestic airport in Khanthabouly city of Savannakhet province into an international airport in the near future, in order to meet transportation requirements of passengers and goods. The categories of business activities planned to be develop in the SSEZ include the following: • Export Processing Zone; One of the major policies of the Government is to attract labor-intensive agro-industries and activities. Toward this purpose, the Lao Government is approaching bilateral assistance agencies and foreign government grants to assist in building vocational schools and agricultural schools in Savannakhet Province. Regulations on the SSEZ, which are under preparation to be adopted by the Government and National Assembly by early 2003, will be designed to successful attract local and foreign investment to the Zone. For instance, Lao and foreign direct investments in this Zone will be granted special privileges including duty-free privileges for import and export items and products. Fiscal incentives will be more favorable than incentives under the existing Prime Minister's decrees. The SSEZ governance is the responsibility of the SSEZ Authority (SEZA). The primary function of the Authority will be to ensure prompt and transparent authorization of licensing of investment in the Zone and to provide investors and developers with all necessary facilities and assistance, including processing of their investment requests through a One-stop Station Service. The SSEZ has an autonomous budget and full responsibility in the management, design and construction of the Zone. The SSEZ is in its initial stage of development. SEZA is looking
for foreign aid and proposals from private investors and co-developers
to jointly invest in the construction and development of infrastructures
and facilities in the SSEZ. SEZA is also seeking contact with
potential investors concerning preliminary planning of near-future
investments in promoted sectors and projects that have competitive
advantages in the Zone.
Key Points • Profit tax rate of 20% for foreign invested companies;
Background The Foreign Investment Law, passed in 1994, outlines the procedure for foreign investment in the Lao PDR. This law is designed to attract capitalist-style enterprise and contains liberal provisions for repatriation of profits and the involvement of foreign equity in Lao businesses. It outlines the areas in which investment is encouraged and those areas where investment is not allowed. Prohibited areas include activities detrimental to the environment, public health or national culture. In March 2001, a presidential decree on the implementation of the Foreign Investment Law required special presidential approval for any investments that relate to natural resources, environment, public health and national culture. Although there are no other restrictions on activities permitted to foreign investors, prohibited sectors of business are not well defined, so investors should conduct enquiries before beginning business. The law states the forms of acceptable foreign investment and the rights, benefits and obligations that come with such investment. It also explains the responsibilities of the Department of Domestic and Foreign Investment (DDFI), the government body that deals with inward investment. The law excludes indirect investment, such as loans, aid and general buying and selling of commodities. Some details in the application of the law have been amended
by government decrees on a number of occasions. Moreover, specific
exemptions to tax rates and other requirements are often set out
in business licences. This licence therefore needs to be reviewed
by each investor. Forms of Foreign Investment The Foreign Investment Law permits two forms of foreign investment: wholly foreign-owned enterprises and joint ventures. Investments in certain industries (e.g. wood production) must be joint ventures. Foreign investors are given rights to use and transfer real estate in the Lao PDR and are also granted the right to repatriate earnings and capital, without restriction, through a Lao bank established in the Lao PDR. Foreign investors must open a kip bank account in the Lao PDR; if they want to use foreign currencies, they will need additional accounts. Investors may convert kip to other currencies within the Lao PDR; however the process is often complex. Lao law allows foreign investment contracts to be protected under foreign laws. However, no such protection will override any Lao laws that are in force when the contract is signed, unless this has been accepted by the Lao Government.
A wholly foreign-owned enterprise is a foreign investment registered under the law and regulations of the Lao PDR by one or more foreign investors, without the participation of domestic Lao investors. The enterprise established in the Lao PDR may be a new company; alternatively it may be a representative office of a foreign company. Banks have the option of establishing branch offices; they are restricted to Vientiane. Apart from representative offices, foreign investments must have a minimum registration capital of US$100,000. The licence for a wholly foreign owned enterprise will have a maximum life of fifteen years. This can be extended if approved by the DDFI.
Foreign investments involving exploitation of natural resources and energy generation must be joint ventures. This restriction may be extended by government decree. A joint venture is defined as a foreign investment, established and registered under the laws and regulations of the Lao PDR, which is jointly owned and operated by one or more foreign investors and by one or more domestic Lao investors. The organisation, management and activities of the joint venture are governed by the contract between its parties and by the joint venture's Articles of Association. Foreign investors must contribute at least 30% of the total equity
investment in the venture. The license will have a maximum life
of twenty years. This can be extended if approved by the DDFI. Benefits, Rights and Obligations of Foreign Investors Taxation issues Foreign investments subject to this law pay an annual profit tax at a uniform flat rate of 20%. (Other investments are taxed at 35%.) For foreign investments involving the exploitation of natural resources and/or energy generation, sector-specific taxes and royalties are prescribed in the project agreements entered into between the investors and the Lao Government. Import duty is imposed on imports of equipment, means of production, spare parts and other materials used in the operation of foreign investors' projects or in their productive enterprises, at a uniform flat rate of 1% of the imported value. Raw materials and intermediate components, imported for the purpose of processing and then exported, are exempt from such import duties. All exported finished products are also exempted from export duties. Raw materials and intermediate components that are imported in order to achieve import substitution are eligible for special duty reductions in accordance with Government incentive policies. Special tax reductions In highly exceptional cases, and by specific decision of the Lao Government, foreign investors may be granted special privileges and benefits. These can include a reduction in or exemption from the 20% profit-tax rate and/or the 1% import-duty rate. Such reductions and exemptions are normally given because of the large size of an investment and the significant positive impact that it is expected to have upon the socio-economic development of the Lao PDR. For more information on taxation issues, see Chapter 7 - "Taxation".
Foreign investors must give priority to Lao citizens when recruiting and hiring their employees. Investors have an obligation to upgrade the skills of their Lao employees, through training within the Lao PDR or abroad. However, such enterprises have the right to employ skilled and expert foreign personnel when necessary and with the approval of the DDFI. Foreign investors and their foreign personnel working within the Lao PDR are subject to personal income tax at a flat rate of 10% of their income. Foreign workers, who work and stay in the Lao PDR for more than 180 days in a fiscal year but receive salaries abroad, are liable to this income tax unless otherwise agreed with the Lao Government. Lao law requires foreign investors to ensure that their investments, factories and activities protect the natural environment and the health and the safety of the their workers and the public at large. To date, there has been little guidance on, or enforcement of, this law. For more information on employment issues see Chapter 7- "Taxation" and Chapter 8 - "Labour".
Foreign investors must use the Lao national system of financial accounting. Accounting records are subject to periodic audit by the Government's financial authorities in conformity with the applicable Lao regulations. For more information on accounting issues see Chapter 9 - "Accounting Requirements".
In conformity with the law and regulations governing the management of foreign exchange and precious metals, foreign investors may repatriate earnings and capital from their foreign investments to their own home countries or third countries. They may do this through a Lao bank or a foreign bank established in the Lao PDR, using the exchange rate prevailing on the date of repatriation, as quoted by the Bank of Lao PDR. Foreign personnel of foreign investments may also repatriate their earnings, after paying Lao personal income taxes and all other taxes due.
After paying the annual profit tax, foreign investors have to
devote 5% of their profit each year to various reserve funds designed
to ensure that enterprises continuously improve their efficiency,
in accordance with the enterprise’s policy and Articles
of Association. Investment Procedures All applications for foreign investment go through the DDFI, which offers a one-stop service for investors. The process should take a maximum of 60 days, although in practice it almost always takes longer.
In the application phase the investor will deal principally with the F1MC and any appointed advisers. As the application progresses, however, it will be referred to the relevant ministry. It is therefore desirable that officials at that ministry be informed of the application in advance. The investor is required to complete and submit a standard application, accompanied by certain documents depending on the legal form of the business venture. These documents are as follows: • A standard application form for a foreign investment; Application fees are US$600 for representative offices and companies with less than US$1 million invested capital, and US$1,200 for companies with US$1 million or more invested capital. However, fees and required documents are subject to change. After obtaining a business licence from the DDFI, the investor must submit the Business Register Application Form to the Registration Department in the Ministry of Commerce and Tourism (MoC). The MoC submits the application form to the relevant ministry for its opinion, comment and approval by the minister; the form is then sent back to the MoC. The MoC issues the business register within 20 days. Finally, the investor submits a Tax Licence Application Form at the Tax Department in the Ministry of Finance, which issues a tax licence within 10 days. This registration must be renewed annually. The scope of each licence is limited: for example, companies may need a separate import/export licence in addition to their business licence. Forms of private enterprise In theory, the Business Law of 1994 defines the forms of business (sole trader, partnership, limited company, etc) and sets minimum capital requirements. In practice, capital requirements are set for each investment by the DDFI and the forms of business are rarely , if ever, referred to. Minimum capital requirements are set at one, five and fifty million kip for sole traders, limited companies and public companies respectively. Partnerships are not subject to such requirements as the partners assume unlimited liability. Auditors are required for public companies and for limited companies with capital in excess of 100 million kip. Again, in practice, this is not yet enforced.
Banking and Foreign Exchange Overview of Financial Sector The current Lao financial sector consists of the following: Banking Sector This area requires great development if the Lao PDR is to achieve sustainable economic growth. The sector has been reorganised into two tiers since 1989 when the Bank of Lao (the Lao state bank) separated from the commercial sector. The previous 96 branches of the Bank of Lao were converted into seven autonomous State-owned commercial banks; these seven were further merged into three banks in 1999 (Banque pour le Commerce Exterieur Lao (BCEL), Lao May Bank and Lane Xang Bank). The Bank of Lao sets the lending and deposit rates as well as issuing currency, extending credit to commercial banks and acting as the Government's fiscal agent. The financial sector is still limited, with only the banking sector involved in attracting savings and granting conventional loans to the economy. Recent reforms have been undertaken to liberalise the sector: commercial banks are now free to set their own savings rates above the Government set minimum rate. As competition in the banking sector increases, it is likely that interest rates will be completely liberalised. Moreover, the exchange rate system is now floating, with free transfer of foreign exchange; residents can now hold foreign exchange accounts. The banking sector however remains weak. Foreign banks have the necessary capital, staff and technology but they are not allowed to operate outside Vientiane. State banks are too small to set up relationships with foreign banks and build up an inter-bank market. The capacity of the banking sector to mobilise savings is low. The structure of loans in the Lao PDR also restricts the growth of the economy. Most are short-term and are directed towards working capital. The future development of this sector relies on aid agencies to improve the training of personnel and to set up management and financial systems. These reforms have already started, with training in human resource management to boost credit, financial and operational management skills. These initiatives will continue to enhance the quality of the financial sector. The Government is focusing on the improvement of state commercial
banks, to make them more competitive with the private sector.
The aim is to enable them to operate efficiently and mobilise
more long-term savings for long-term investment. Overseas Accounts and Foreign Currency All foreign enterprises are considered to be Lao residents for the purpose of foreign exchange. They must deposit all foreign exchange earnings into accounts with banks in the Lao PDR and cannot open accounts abroad except where deemed necessary. When repatriating profits, foreign enterprises must make remittances through Lao commercial banks and transfer the money to accounts opened with foreign correspondent banks by their parent company.
Taxation General Tax Information In line with the Government's commitment to attracting inward investment, the 1994 Foreign Investment Law simplified the tax system for foreign investors. This law has since been updated by a number of presidential decrees. The Foreign Investment Law abolished an established system of tax incentives for foreign direct investment projects. However, a reduction is given when the investment is large or considered of national importance. In these cases, tax-free or investment promotion zones are created. Natural resources and energy generation projects have been subject to favourable treatment. The Government imposes taxes on all persons or legal entities consuming goods or services, conducting business, performing independent professions and generating income in the Lao PDR. There are seven broad categories of tax, which are described in the promulgation of the Tax Law. These are: • Indirect taxes In 1998, the Prime Minister’s Office issued decrees modifying
the turnover tax, excise tax, minimum tax, and income tax from
leasing. Highlights of Tax Law • Enterprises pay one of the following two taxes, whichever
produces the higher tax return: Turnover tax is collected on imports and the sale of general imported or locally produced goods. In addition, general services, constituting the supply of labour to others against a service fee as compensation, are also subject to turnover tax. Rates of turnover tax are 5% or 10%. The relevant legislation is currently: • Decree 1 of the Ministry of Finance, dated 4 January
1999; These items of legislation set out which goods and services are
subject to the 5% tax rate, which are subject to the 10% rate,
and which are exempt from turnover tax. Importers of goods for re-export to third countries, export oriented producers or providers of services which have been subjected to turnover taxes at the port of entry are entitled to deduct these payments from the taxes payable at the next import of goods, raw materials etc. Imports on equipment, means of production, spare parts and other
materials used in the operation of foreign investors' projects
or in their productive enterprises are taxed at a uniform flat
rate of 1% of the imported value. Raw materials and intermediate
components, imported for the purpose of processing and then exported,
are exempt from such import duties. Excise Tax Excise tax is an indirect tax collected from certain types of
goods. These goods include fuel (5-23%), alcohol (50-60%), tobacco
products (50%) and cosmetics (20%). The full list of goods subject
to Excise Tax and the tax rates are listed in Article 4 of the
Decree of the Prime Minister of the Lao PDR No. Personal Income Tax This is a direct tax collected from income generated in the Lao PDR. Taxable income includes: • Income from salaries such as wages, bonuses, position
bonuses, and other material benefits, including benefits-in-kind;
Salary tax on earnings of foreign personnel is levied at a flat rate of 10% on gross income, including most benefits-in-kind. It is paid on a monthly basis through withholding at payment. Foreign personnel receiving salaries abroad are liable to pay income tax in the Lao PDR when they reside there for over 180 days in a given tax year. Salary tax is levied at a progressive rate of up to 40% on gross income of Lao personnel. Salary and wage earners are entitled to deduct 200,000 kip from their monthly salary in the computation of tax payable. This deduction is an allowance for "expenses for living costs." A July 2001 amendment to the Tax Law created a new maximum bracket
of 45% for Lao personnel. It also established a similar progressive
scale of taxation for sole traders - previously they were treated
as businesses, subject to Profit Tax and Minimum Tax. It waits
to be seen when this amendment will come into force. Profit Tax Taxes on profits are set at 35% on net profits for all Lao business enterprises - under the Tax Law - and 20% on net profits for all foreign business enterprises - under the Foreign Investment Law. Taxable profit includes: • Profit from business generated from agri-forestry, industrial
and handicraft production, the exploitation of natural resources,
import/export, wholesale or retail trade and general services;
Certain expenses can be deducted when determining annual profit. These include: • General expenses in business activities, including utility
costs, travel and entertainment, advertising, salaries, lease
costs, and insurance; Individuals receiving income from business profits are entitled to an annual deduction of 1,200,000 kip. Tax is remitted on a quarterly basis, based on estimated profit or prior year's profit. Tax returns are made to the tax authorities prior to the fifteenth day of the month following the end of each quarter. The balance of the Profit or Minimum Tax due should be remitted before 15 April of the following year. If the quarterly profit tax is overpaid, the amount is not refunded in cash but can be deducted from future profit tax calculations. Tax can also be payable on a lump-sum basis.
The Social Security Decree came into force in June 2001 and is being introduced gradually. It will apply to: • Employees of state-owned enterprises, private enterprises
and joint enterprises; If an enterprise is subject to the Social Security Decree, but later reduces its number of employees to less than the minimum requirement, it must still maintain its application of the Social Security Decree. The Social Security Decree does not apply to: • Civil servants, military personnel and police personnel; The decree requires a deduction from gross salary as follows: • 5.0% to be paid by the employer; However, the Government has set a ceiling where the deductions will cease to apply. Salaries above 1 million kip per month will be ignored for Social Security. As a result, the maximum charge will be 50,000 kip per month from employers and 45,000 kip per month from employees. No indication has been given as to whether this ceiling is temporary or not. The employer is responsible for ensuring that the payments are made, by withholding the employee's contribution from wages. The benefits covered under the Social Security Decree include: • Funeral benefits; There are, however, no detailed guidelines as to how these benefits will be distributed or assessed.
Businesses and independent professionals have a minimum tax obligation.
The minimum income tax is 1% of the total annual revenues. Businesses calculate their liability on annual revenue excluding turnover tax.
Businesses and independent professionals who suffer a loss acknowledged by the tax authorities may carry forward these losses for the following three years. After three years, any losses still unutilised are no longer available. Businesses which make initial losses in their start-up phase may be able to capitalise these losses and carry them forward as pre-operating costs. Once the business does start operating, it will have to depreciate these expenses over two years. If a company has a tax exemption period, it is only able to carry
forward losses incurred in the last year of that period. These
losses may be carried forward for three years. The Government provides tax incentives to encourage investors to reinvest in the Lao PDR. An investor may reinvest profits in the Lao PDR without incurring any tax liability. If the enterprise suffers losses in the initial tax exemption
period of two to four years, it may be permitted to carry the
losses forward. The losses may then be deducted from taxes levied
on profits in the following year, or be spread over a period of
up to five years. Charges and Service Fees Under the Tax Law, the Government can collect fees for issuing fiscal licenses, business licenses, permits, visas, advertisement boards, broadcasting rights and other services. The charges and service fee rates are set periodically by presidential decree.
• Dividends tax at a rate of 10% of gross dividend declared;
Labour General The Foreign Investment Law and Labour Law require foreign investors to give priority to Lao citizens when hiring staff. However, these enterprises have the right to employ skilled or expert foreign personnel when necessary and with approval from the relevant authority. Investors have the obligation to upgrade the skills of their local employees through training, within the Lao PDR or abroad. The minimum salary is currently fixed at 36,000 kip per month (approximately US$4). In practice, salaries are significantly higher than this. The Lao PDR has a relatively young workforce, numbering between one and a half to two million. As of 2001, about 85% were involved in agriculture, 5% in industry and 10% in services. The national literacy rate is 58%, though the literacy rate in urban areas is much higher than that in rural locales. The availability of skilled personnel, such as lawyers, accountants, bankers and doctors, is low. However, Government incentives to improve the level of education are being implemented. Outside the main towns, there are few centres of population.
A number of employers have found it necessary to provide transport
for the employees to ensure that they are able to get to work
regularly. Expatriate Employment The Lao PDR offers an attractive package for foreign workers.
Personal income tax is set at a flat rate of 10% of income earned
and all income can be repatriated following tax deductions. The Labour Law A central piece of legislation covering labour and employment in the Lao PDR is the Labour Law of 1994. This covers the rights and obligations of employees and employers. The main provisions are as follows: • Prohibition of work in excess of eight hours per day,
six days per week or 48 hours per week; for workers in jobs in
hazardous or unpleasant - abnormally hot or cold, or underground
- environments, a maximum of six hours per day or 36 hours per
week applies. Shift workers are entitled to a 45-minute meal break.
Production workers are entitled to rest for at least 5-10 minutes
every two hours. • Maximum overtime of 30 hours per month, with a maximum
of three hours in each period. Overtime rates are 150% of the
standard rate if worked by day and 200% if worked by night. If
overtime is worked on Saturdays, Sundays or public holidays these
rates are 250% by day and 300% by night (unless workers' contracts
already require them to work on those days). • Night shift workers (10 pm to 5 am) are paid at least
115% of the standard rate applying to the same work performed
by day. • Fixed salaries or wages must be paid at least monthly; hourly wages must be paid at least every 16 days. • Workers are entitled to 15 days holiday per year, or
18 days per year if performing arduous or hazardous work; these
are in addition to official holidays or weekly rest days. • Workers are entitled to a maximum of 30 days sick leave
per year upon presentation of a medical certificate. • The minimum age of employment is 15 years. Between the
ages of 15 and 18 the maximum work week is six hours per day or
36 hours per week; workers under 18 may not perform hazardous
or arduous work. • A probationary period is allowed to determine workers’
ability to perform their duties. The period lasts a maximum of
30 days for work requiring no experience or specialised skills
and a maximum of 60 days in other cases. The probationary period
can be extended, by a maximum of 30 days. Probation can be terminated
at any time, but 3 days (or 6 days for skilled workers) notice
must be given. • Women may take 90 days paid maternity leave. The law
also prohibits work involving heavy lifting or long periods of
continuous standing during pregnancy and for the six months after
pregnancy. • Employers must operate a non-contributory social insurance
scheme. • The law provides for company pensions for long service
and retiring employees and bonuses for elderly employees. The
retirement age is 60 years for men and 55 years for women. Workers
who have reached retirement age, have completed 25 years of service,
and have paid social security contributions for 25 years are entitled
to a pension upon retirement. The ages and time periods are reduced
by 5 years each for those in hazardous or arduous occupations.
Labour Contract The Labour Law requires a written contract between employer and employee. In limited circumstances, a verbal contract is possible - e.g. for temporary or daily work or employment involving only a small amount of work. The contracts can be for a fixed term or indefinite period. A contract should contain: • The name and location of the office of the employer;
Termination of Contract If workers are employed on an indefinite contract, 45 days notice must be given to skilled workers and 15 days for other workers. Workers may be dismissed in the case of inadequate skills or if there is a need to reduce the total number of workers. In the case of dismissal to reduce staff numbers, dismissed workers are entitled to compensation dependent on their length of service. In the case of dismissal because of wrongdoing by the worker
(e.g. dishonesty, deliberate damage to employer's property, or
unexplained absences of four consecutive days), the employer has
the right to terminate the contract with 3 days notice. However,
the employer must also notify the trade union or worker's representative
in the labour unit and the local labour administration. Occupational Injuries For injuries sustained while performing occupational duties at
the work place, the employer or the social security fund shall
bear the costs of treatment and hospitalisation. Where a worker
dies through occupational injury, the employer shall pay at least
six months' salary to cover funeral expenses and pay a lump-sum
benefit to the beneficiaries of the deceased. Workers who sustain
an occupational injury are also entitled to full salary for up
to 6 months and 50% of their salary for a further 18 months. After
18 months, benefits are granted under the social security system.
Disputes The Labour Law creates a distinction between disputes over rights - disputes concerning the provisions of the Labour Law, labour regulations, employment contracts, labour unit regulations etc. - and disputes over interests - claims on the employer for new benefits or rights. In the case of dispute over rights, the parties are encouraged to resolve the claim between themselves. If this is not possible then the worker is entitled to submit the claim to the labour administration for conciliation. If the dispute still cannot be resolved, the claim can be submitted to the People's Court. The above also applies in respect of disputes over interests. If the labour administration fails to resolve the dispute, then the case goes to the Labour Dispute Arbitration Committee for a final decision. In practice, Lao courts appear to do all they can to resolve
disputes by arbitration. It is therefore rare for any case going
to a Lao court to be resolved quickly and according to the strict
letter of a contract. Accounting Requirements Current Situation The Lao PDR has its own rules for accounting, based on the Enterprise
Accounting Law (1990), which apply to all independent business
units without exception. These rules are not always consistent
with internationally recognised accounting standards or principles.
This situation does not seem likely to change officially in the
near future. In practice, many enterprises keep two sets of accounting
records - one that conforms to international standards and one
for the official Lao system. Gaps in the Law The Enterprise Accounting Law does not refer to areas such as
groups of companies or other business combinations. No detailed
rules are provided on issues such as valuation or recognition
of revenue and expenses. Lao Requirements The basis of Lao accounting is that accounts must be accurate and realistic. Accuracy is defined as conformity with effective accounting agreements, methods and regulations in the Lao PDR. Realism is defined as the honest implementation of these agreements, methods and regulations by individuals responsible for accounts, in conformity with the reality and the level of importance of activities, items, events and solutions. Standard financial reports are required, including the revenue statement, financial analysis schedule, inventory of assets and summary schedules of statistics and taxes. Revenue statements summarise revenues or income and expenditures or expenses, resulting in the annual profit or loss. This statement roughly equates to the Profit and Loss Account. Financial and general reserve analysis schedules show the flows and sources of funds in the year. Statistical and tax reports are additional documents and analyse the information provided by the above mentioned report documents. They are the basis for the establishment of the national accounting system and the computation of tax returns. The accounting year must be twelve months ending on 31st December, except in the first year of business. All accounting records are to be kept in Lao kip. Accounts must be prepared following the double entry system, except for small businesses. The law requires companies to maintain accounting controls to protect assets and to control against errors, falsifications and embezzlement. All items entered must be evidenced by supporting documentation and records and documents must be retained for 10 years. Balances are recorded based on the initial (historical) cost. Assets must be revalued if a business unit intends to decrease the scope of its business or the unit intends to dissolve. The basis of valuation must be applied on a consistent basis. At the end of each accounting year assets must be restated at their current value if that is lower than the book value (after accumulated depreciation) of the asset at that date.
Government Institutions in the Lao PDR Mr. Banhsa Detvongsone................... 21 4209 2. National Assembly Mr. Outhay Phatthana........................ 41 3543 3. Prime Minister’s Office Mr. Sengchantho ................................. 21 3656 4. National Sports Committee Mr. Phaiboon........................................ 21 6009 5. National Geographic Department Reception............................................... 21 4917 6. Office of the Party Central Committee Mr. Phouthone...................................... 41 3921 7. Party Central Committee Organization Board Mr. Kham Ouan.................................... 41 2076 8. Central Control Committee Call........................................ 41 2869, 41 4090 9. Propaganda & Training Committee of Central Committee Mr. Bounsaveng Hongsavanh........... 41 3037 10. Lao Front for National Construction Mr. Chanthi Sitthibandith................. 21 3756 11. Commission for External Relations of Central Committee of LPDR Mr. Thongtham..................................... 41 4046 12. Kaysone Phomvihane Museum Ms. Chanpheng.................................... 41 3167 13. State Planning Committee Mr. Khamphong Pholsena................. 21 6562 14. People’s Supreme Court Ms. Kaisy............................................... 41 2172 15. Public Prosecutor General’s Office Mr. Oukham Sysounon........................ 25 2670 16. The Lao Federation of Trade Unions Mr. Solasack Phetpalignavanh................................. 22 2473 17. Lao Women’s Union Ms. Houmphone Duangdavong....................................... 21 4310 18. Lao Youth Union Ms. Pheng.............................................. 41 6627 19. Lao Red Cross Society Mr. Khonsavanh Chanthakham....................................... 21 4504 20. Ministry of Agriculture & Forestry Mr. Sompong Souvannamethy........... 41 5361 21. Ministry of Commerce Mr. Thongsi .................................. 020 503 090 22. Ministry of Finance Mr. Kongmoun......................................... 41 2406 23. Ministry of Foreign Affairs Mr. Somvang............................................ 41 4047 24. Ministry of Communications Transport Post & Construction Mr. Math Sounmala................................ 41 2093 25. Ministry of Public Health Mr. Maiphone.......................................... 22 2630 26. Ministry of Education Mr. Phay.................................................... 21 6004 27. Ministry of Justice Mr. Somphone Boupphaphan................22 2779 28. Ministry of Information & Culture Mr. Vayolin Phasavath.......................... 21 2413 29. Ministry of National Defense Mr. Leumxay............................................. 41 4854 30. Ministry of Interior Communication Dept.............................. 21 2508 31. Ministry of Industry & Handicraft Mr. Chanthavisith................................... 41 5805 32. Ministry of Labor & Social Welfare Mr. Somphone Boupphaphan......................................... 22 2779 33. Bank of Lao PDR Telephone Centre.................................... 21 3109 34. Lao Telecommunications Office...................... 21 6465, 21 6466 35. Enterprise of Telecommunications Lao Office.................................................. 21 5153 36. Enterprise of Post Lao Mr. Someboune Nouhouang............................................... 21 4843 37. Electricite du Lao Mr. Somsanith.......................................... 21 2800 38. Lao Water Supply Enterprise Ms. Noy...................................................... 41 2882 39. Department of Civil Aviation Department Office................................... 51 2163 40. Lao Buddhist Fellowship Organization Ven. Bounthavy....................................... 45 1608 41. NOSPA Ms. Khampanh......................................... 75 2180 42. National University of Laos Mr. Khamtoun.......................................... 41 6071 43. National Tourism Authority Call......................................................... 21 2248 44. Lao Import-Export Society Call........................................................... 41 4383 45. Department of Domestic and Foreign Investment (DDFI), formerly FIMC Call............................................................
22 2691 Foreign Representation in the Lao PDR Countries The Australian embassy provides consular services for nationals from Canada, New Zealand and the United Kingdom. Brunei Darussalam Cambodia China Cuba France Germany India Indonesia Korea (North) Korea (South) Malaysia Mongolia Myanmar Philippines Russia Singapore Sweden Thailand United Kingdom USA Asian Development Bank (ADB) Mekong Project Development Facility UNDP World Bank Banks in the Lao PDR (All addresses are in Vientiane unless otherwise stated) Agricultural Promotion Bank Banque pour le Commerce Exterieur Lao (BCEL) Lao Development Bank Lao-Viet Bank Vientiane Commercial Bank Ltd Asian Development Bank Bangkok Bank Joint Development Bank Public Bank Siam Commercial Bank Public Corporation Thai Military Bank Public Co Ltd Consultants in the Lao PDR (All addresses are in Vientiane unless otherwise stated) Bureau d'Etudes Lao Franklin Advisory Services Guy Investments Ltd Gynko Consultant Co Ltd Ito. Chu Corporation Korea - Moran Trading Corporation KPMG Labucose Trade Consulting Co Ltd Lao C.B.S Co Ltd Lao Inter Mix Manley Enterprise Co Ltd Marubeni Marubeni Tokyo Mekoxab Property Management Midas Economic Nomura Trading Co Ltd Phatthana Trading Co Ltd PriceWaterhouseCoopers Prosperity Business Contracting Santi Phatthana Services Savanhdara Hongkong SK Consultants
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