INVESTMENT POLICY
& OPPORTUNITIES
IN
LAOS:
Land of
Ample
Opportunities
Successes
Souphaphone SAIGNALEUTH (PhD)
Deputy Head of International Investment
Cooperation Davison
Investment Promotion Department
Ministry of Planning and Investment
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
1 China
2 Thailand
3 Vietnam
4 Malaysia
5 Korea, South
6 France
7 Japan
8 Netherland
9 Norway
10 Britain
Source: Investment Promotion Department
Projects
838
752
417
104
291
224
102
16
6
54
Value
(USD million)
6,559
4,494
3,574
819
751
490
438
434
346
201
FDI By Sectors (1989-2015)
Hotel & restaurant
4%
Telecommunications
3%
Construction
Others
3%
6%
Electricity generation
29%
Industry & handicraft
8%
Service
10%
Agriculture
14%
Source: Investment Promotion Department
Mining
23%
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
Investment Incentives
MAJOR INCENTIVES PROVIDED
Exemption from import duties and
taxes on raw materials and capital
equipment using for production
Exemption from export duty on
export products
Incentives
Tax holidays offered up to 10 years
Additional tax holidays, reduced tax
rates for large projects with special
concession are available upon
negotiation
Granting additional incentives
•
Exempt land lease or land
concession
Zone 1 = 15 years
Education &
Healthcare sectors
Zone 2 = 10 years
Zone 3 = 3 years
• Provide additional 5 years for
cooperate profit tax exempt
10
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.
11
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
Investment Promotion Department
Ministry of Planning and Investment
Souphanouvong Avenue, Vientiane 01001,
Lao PDR
Tel: (856-21) 218377
Fax: (856-21) 215 491
Website:www.investlaos.gov.la
Thank You
For Your Attention!