LAOS:Land of Ample Opportunities Successes
Souphaphone SAIGNALEUTH (PhD)Deputy Head of International Investment Cooperation Davison Investment Promotion DepartmentMinistry of Planning and Investment
INVESTMENT POLICY
& OPPORTUNITIESIN
Contents
Why Laos?
Investment Opportunities
Investment Promotion Policies
Challenges of Human Resource
development
Expectation from Japanese companies to address the challenges
Comparative & Competitive Advantages
- Political stability
- High safety
- Low risk from natural disasters
- Low labor cost
(Minimum wage: $110/month)
Country of rich natural resources:
Fertile land, Minerals, Water, and
forest, giving development potential in
agriculture, mining, and hydropower.
Top 10 FDI Countries (1988-2016 (March)
LAOS: Land of Ample Opportunity and Success
No. Country ProjectsValue
(USD million)
1 China 838 6,559
2 Thailand 752 4,494
3 Vietnam 417 3,574
4 Malaysia 104 819
5 Korea, South 291 751
6 France 224 490
7 Japan 102 438
8 Netherland 16 434
9 Norway 6 346
10 Britain 54 201
Source: Investment Promotion Department
FDI By Sectors (1989-2015)
Electricity generation29%
Mining23%Agriculture
14%
Service10%
Industry & handicraft8%
Hotel & restaurant4%
Construction3%
Telecommunications3%
Others6%
Source: Investment Promotion Department
Investment Opportunities
Agriculture
Manufacturing
Tourism
Energy
Education
Healthcare
Services
Initiative on the Public and Private
Partnership (PPP)
Drafting the PPP Decree (expected to
approve by 2017)
2 pilots areas: Health and Education
Tax holidays offered up to 10 years
Incentives
MAJOR INCENTIVES PROVIDED
Investment Incentives
Exemption from import duties and taxes on raw materials and capital equipment using for production
Exemption from export duty on
export products
Additional tax holidays, reduced tax rates for large projects with special concession are available upon negotiation
Granting additional incentives
Education &
Healthcare sectors
• Exempt land lease or land
concession
Zone 1 = 15 years
Zone 2 = 10 years
Zone 3 = 3 years
• Provide additional 5 years for
cooperate profit tax exempt
challenges of Human
Resource development
The budget allocations made to education are very
limited and not constant.
Insufficient teachers and substandard teachers.
The education sector suffers from a severe lack of
equipment and tools, particularly textbooks, learning
materials, and school facilities.
The training of personnel, workers, and skilled artisans
does not meet the requirements of the labor market
and the society.
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expectation from Japanese companies to
address the challenges
Increase an investment in human resource
development and education system; i.e private school
in different level of education from primary school up to
university level.
Expand vocational, technical, and higher education to
meet the needs of the new labor market;
Knowledge transfer to Lao workers in different sectors
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Thank You For Your Attention!
Investment Promotion DepartmentMinistry of Planning and Investment
Souphanouvong Avenue, Vientiane 01001, Lao PDR
Tel: (856-21) 218377 Fax: (856-21) 215 491
Website:www.investlaos.gov.la