LAO LAW & CONSULTANCY GROUP Special Economic Zones of Laos

The views expressed in this presentation are the views of the authors and do not necessarily reflect the views or policies of Lao Law & Consultancy Group, Investment Promotion Department (IPD), Ministry for Planning and Investment (MFI), or the respective government institutions they may represent.

1. ☞Why SEZs in Lao PDR?☜ ☜ LLC GROUP

PREVIOUS INVESTMENT LAW

General Activities

Concession Activities

Special/Specific Economic Zone

MPI

FIL

MOIC

ERC

MOF

TRC

MOPS

SEAL

1. ☞Why SEZs in Lao PDR?☜ ☜ LLC GROUP

NEW INVESTMENT LAW IN LAOS?

General Activities

Concession Activities

Special/Specific Economic Zone

MOIC

MPI

SEZ Sec

Fil, ERC, TRC, Seal

Getting Started in Laos LLC GROUP

1. ☞Why SEZs in Lao PDR?☜ ☜ 2. Investment Policy & Procedures 3. Q & A

Name of SEZ

Location

1. SAVAN SENO (GOL+ Malaysian)

Savanakhet

2. BOTEN (China)

Luangnamtha

3. Golden Triangle (China)

Bokeo

4. Green Park Mountain (Lao)

Khammouan

5. Non Thong Industrial Park (Taiwan)

Vientiane Capital

Potential for New

SEZ Areas

1. Friendship Bridge

Khammouan

2. Num Heuang

Xayaboury

3. Four Thousand Islands

Champasak

4. Plain of Jar

Xiengkhuang

5. Dongphosy Specific Eco Zone

Vientiane Capital

LLC GROUP

Existing SEZ LLC GROUP


Savannakhet-Seno SEZ (S-S SEZ) established in 2003 upon issue of the Prime Minister’s Decree on S-S SEZ No. 148/PM (29 September 2003)

- Site A: 305 ha - Site B: 20 ha

LLC GROUP

Layout of Site A

Layout of Site B LLC GROUP

LLC GROUP


Insert Golden Triangle SEZ Plan

LLC GROUP


Insert Boten SEZ Plan

LLC GROUP


Insert Khammuane SEZ Plan

1. ☞Why SEZs in Lao PDR?☜ ☜ LLC GROUP


Provide attractive land concessions of up to 99 years (with possible extension) (Article 49) + 10 years tax holiday;
Developer (Foreigner) may be the Chairman of the Economic Board of Directors for the SEZ (Article 34);
Have full authority in managing economic and financial management
Developer can design their own development within the area, lease fee, etc

1. ☞Why SEZs in Lao PDR?☜ ☜ LLC GROUP


Foreign investors in SEZs receive special privileges such as:
Tax holiday for a 10 year period;
Tax incentives on vehicles, raw materials, etc;
May apply for their business licenses directly in the SEZs (Economic Board) and obtain within 24 hours.

1. ☞Why SEZs in Lao PDR?☜ ☜ LLC GROUP

What are SEZs and how do they work?

1. ☞SEZ Structure & Management☜ ☜ LLC GROUP

1. Lao National Committee for SEZ – Consists of 19 members (minister and vice ministers of related ministries) – Chaired by Deputy Prime Minister – Appoints the Management/Economic board of the established SEZ

2. SEZ Secretariat 3. provincial authorities 4. Economic and Management Board of SEZ

1. ☞SEZ Structure & Management☜ ☜ LLC GROUP

1. ☞What is SEZs in Lao PDR?☜ ☜ LLC GROUP


Following the promulgation of the Investment Promotional Law the Prime Minister issued the: Decree on Special Economic Zone No. 47/PMO, Dated 26/10/10
Specific Economic Zone
Special Economic Zone > 1000 ha

Special Economic Zones LLC GROUP

Government strongly encourages investors to develop: -

Special Economic Zone Export Processing Zone Industrial Park Tourism Zone Duty Free Zone ICT Zone Other applicable zones

19

Agriculture-Forestry LLC GROUP


Plenty of productive land
Plenty of water resources
Suitable land for various tree plantations
High ratio of local farmers

Tourism LLC GROUP


Eco-tourism
Culture-tourism
Agro-tourism

Several natural tourist sites are welcoming FDI

Culture-tourism LLC GROUP


Laos is rich in well preserved culture and traditions; and
World heritage sites

Getting Started in Laos LLC GROUP LLC GROUP

1. Why SEZs in Lao PDR? 2. ☞Procedures☜ ☜ 3. Q & A

SEZ REGISTRATION PROCEDURES LLC GROUP

Master Plan for SEZ Development

1

Feasibility Study 2 (Economic, technical analysis, Environmental Impact Assessment

Financial Statement

3

Other related supporting documents

4

National SEZ Secretariat Office

5

Getting Started in Laos 1. Why SEZs in Lao PDR? 2. Procedures 3. ☞ Q & A ☜

LLC GROUP

Contact Address:

LAO LAW & CONSULTANCY GROUP LLC Building, Nongbone Road, Saysettha District P.O. Box 925 Vientiane, Laos Tel: (856-21) 264 866, 264 877 Fax: (856-21) 264 344 www.laolaws.com Email: [email protected]

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