This Law, consisting of 109 articles divided into eight Parts, defines principles, regulations and measures regarding the domestic and foreign investment promotion and administration in order to enable convenient, expeditious, transparent and proper investments, as protected by the Government, aiming to ensure the rights and benefits of investors, the state, collective and people, enabling the regional and international integration, contributing to the continuous growth of national socio-economic development in line with green direction and sustainability. Investment promotion is the formulation of promotion policies and creation for a favorable investment climate for investment to enable investors to conduct their business operations in a convenient, expeditious, transparent, fair and lawful manner. This Law applies to investment of domestic and foreign natural persons and legal entities, investing and doing business in the Lao PDR and domestic investors for their overseas investments.
The investment promotion shall follow the following principles: 1. Be in line with the direction, policy, strategy, national socio-economic development plan, development plan for relevant sector, regional socio-economic growth, to improve living conditions of people in compliance with laws and regulations; 2. Be closely supported by the enhancement of the State s supervision in a centralized and uniformed manner; 3. Ensure equality of investors before the laws of Lao PDR; 4. Protect the legitimate rights and interests of the state, collective, people and investors; 5. Ensure that the one-stop investment services will be delivered conveniently, fast, transparently, efficiently and lawfully; 6. Ensure fair business competition; 7. Ensure national security, peace and public order, develop national fine culture, protect natural resources effectively in green direction and in a sustainable way. The Government promotes investment in all economic sectors, both domestic and foreign, by formulating policies to create a favorable investment environment, including construction of infrastructure, providing necessary information, customs and tax policies, labour, and land use rights; access to finance, equal treatment, promoting awareness and protecting ownership regarding rights, usufruct, inheritance, transfer and other rights as provided by law.
Business sectors that are entitled to incentives include: clean agriculture, toxic-free agriculture, seed production, animal breeding, industrial crops and plants plantation, forestry development, environment and biodiversity protection, activities promoting rural development and poverty reduction, environmentally friendly agro-processing industry, and development of environmentally friendly and sustainable ecotourism.