Laos strives to attract more foreign direct investment

Flag of Laos (Source: theflagshop)

Vientiane (VNA) – The Lao Government has offered a number of non-tax incentives in a bid to promote the flow of foreign direct investment (FDI) in the country, reported the Vientiane Times on April 27.

The Lao Ministry of Planning and Investment has updated a list of non-tax incentives as part of efforts to draw foreign investors. One of the incentives allows foreign investors to bring foreign nationals to Laos to conduct investment feasibility studies in the country.

In addition, the government will allow foreign firms to bring foreign technicians, experts and managers if Lao people are not able to work for investment projects. It will also permit foreign investors to lease private and government land for up to 20 years and 50 years, respectively.

The Lao Government will also grant foreign investors permission to own all improvements and structures on the leased land, transfer leases to other entities, and to sell and remove improvements and structures.

To facilitate travel, the Lao Government will grant visas and work permits to foreign workers to make investors more confident and secure about their investment in the country.

Additionally, the Lao Government also offers guarantees against nationalisation, expropriation, or requisition without compensation.

From 1986 to 2014, Laos attracted 16 billion USD in FDI. China is currently the biggest foreign investor, followed by Thailand and Vietnam. Foreign investors in Laos mainly poured money in mining, hydropower and agriculture.

The Lao Government is improving the country’s investment climate to woo foreign investment in the non-resources sector to ensure the sustainable development of the Lao economy.-VNA