This Law makes provision for the promotion and management of foreign investment in the Lao People s Democratic Republic.
Foreign investors may invest in and operate enterprises in all fields of lawful economic activity such as agriculture and forestry, manufacturing, energy, mineral extraction, trade, services and others. Foreign investors may not invest in, or operate enterprises which are detrimental to the national security, the natural environment, public health or the national culture, or which violate the laws and regulations of the Lao PDR (art.2). Foreign investors may invest in the Lao PDR in either of two types: (a) A Joint Venture with one or more domestic Lao investors; or (b) A Wholly Foreign-Owned Enterprise (art.4).
The Foreign Investment Management Committee (FIMC) has been established to promote and to manage foreign investment. The FIMC is responsible for implementation of the present law and for the protection and promotion of foreign investment in the Lao PDR (art. 22). A foreign investment shall be considered to be legally established in the Lao PDR only upon the investment s receipt of a written foreign investment license granted by the FIMC (art. 24).
The Law, among others, further provides for the interests, rights and obligations of the foreign investors. Raw materials and intermediate components imported for the purpose of achieving import substitution shall be eligible for special duty reductions in accordance with the Government s incentive policies (art.17). Foreign investors shall take all measures necessary and appropriate to ensure that their investments facilities, factories and activities protect the natural environment and the health and safety of the workers and the public at large, and that their investments contribute to the social insurance and welfare programs for their workers in accordance with the policy, the laws and regulations of the Lao PDR (art. 20). According to Artical 11, foreign investors shall give priority to Lao citizens in recruiting and hiring their employees. However, such enterprises have the right to employ skilled and expert foreign personnel when necessary and with the approval of the competent authority of the Government.
Foreign investors may invest in and operate enterprises in all fields of lawful economic activity such as agriculture and forestry, manufacturing, energy, mineral extraction, trade, services and others. Foreign investors may not invest in, or operate enterprises which are detrimental to the national security, the natural environment, public health or the national culture, or which violate the laws and regulations of the Lao PDR (art.2). Foreign investors may invest in the Lao PDR in either of two types: (a) A Joint Venture with one or more domestic Lao investors; or (b) A Wholly Foreign-Owned Enterprise (art.4).
The Foreign Investment Management Committee (FIMC) has been established to promote and to manage foreign investment. The FIMC is responsible for implementation of the present law and for the protection and promotion of foreign investment in the Lao PDR (art. 22). A foreign investment shall be considered to be legally established in the Lao PDR only upon the investment s receipt of a written foreign investment license granted by the FIMC (art. 24).
The Law, among others, further provides for the interests, rights and obligations of the foreign investors. Raw materials and intermediate components imported for the purpose of achieving import substitution shall be eligible for special duty reductions in accordance with the Government s incentive policies (art.17). Foreign investors shall take all measures necessary and appropriate to ensure that their investments facilities, factories and activities protect the natural environment and the health and safety of the workers and the public at large, and that their investments contribute to the social insurance and welfare programs for their workers in accordance with the policy, the laws and regulations of the Lao PDR (art. 20). According to Artical 11, foreign investors shall give priority to Lao citizens in recruiting and hiring their employees. However, such enterprises have the right to employ skilled and expert foreign personnel when necessary and with the approval of the competent authority of the Government.
Title:
Law No. 01/1994 NA on the Promotion and Management of Foreign Investment in the Lao People s Democratic Republic.
Country:
Lao People’s Democratic Republic
Type of document:
Legislation
Date of text:
1994
Files:
Repealed:
No