Foreign investors in Laos face new requirements for accessing investment promotion incentives.

The Laotian government published the new guidelines, the Instructions on the Promotion of Investment Incentives Concerning the State Land Rental and Concession Fees, in late May 2021. The guidelines clarify what type of investments qualify for incentives and set out procedures on how investors can secure them.

The guidelines supplement the Law on Investment Promotion, one of Laos’ most important laws governing domestic and foreign investment in the country. While the guidelines add more detail about how investors can secure incentives, they put forward numerous industry-specific requirements to regulate the process.

Although qualifying for incentives in Laos can be complicated, the guidelines offer foreign investors greater certainty about what incentives they are eligible for and how they can go about securing them. Here, we offer an overview of what foreign investors must do to claim investment incentives in Laos.

The Laotian government manages incentives for major investment projects on a more case-by-case basis. Such projects do not require incentive certificates if they have signed a concession agreement with the government or qualify for larger incentives set forth by Laos’ National Assembly.

Given the industry-specific nature of the application process, investors are advised to conduct an internal audit to ensure they meet the standards for their sector, while also ensuring they are compliant with other Laotian laws and regulations.

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