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Legal Document
Title: Notification on List of Business Activities for Foreign Investors (revised / D 02-2015) No. 1327/MOIC.ERM, dated 13 July 2015
Type: Notification
Responsible Agency: Ministry of Industry and Commerce
Issuing Date: 2015-07-13
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LAO PEOPLE’S DEMOCRATIC REPLUBIC

PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY

 

Ministry of Industry and Commerce                                               No. 1327/MOIC.ERM

Vientiane Capital, date 13 July 2015

 

Notification

 

                  To:       -    Provincial and Capital Departments of Industry and Commerce

                               -    Industry and Commerce Offices in Districts, Suburbs

                               -    Domestic and Foreign Businesses

                  Subject:     List of Business Activities for Foreign Investors (revised / D 02-2015)

            - Pursuant to Article 13 of the Decision on Wholesales and Retails Business, No. 1005/MOIC.DTD, dated 22 May 2015;

            In order to facilitate foreign investors by providing information on business activities and specific criteria for them prior their consideration investing in our country, Ministry of Industry and Commerce (based on the research and request from relevant ministries) notifies that some business activities (List D 01-2013) is revised to become (List D 02-2015) to relevant stakeholders for information and implementation as follows:

1. The List of Business Activities for Foreign Investors are types of businesses that are not prohibited for foreign investors, but are with some conditions imposed such as minimum, maximum registered capital or foreign equity cap for foreign investors or other limitations. Foreign Investors are natural persons described in the Law of Nationality and entities that have been registered as a business overseas;

2. The List of Business Activities for Foreign Investors (revised / D 02-2015) attached herewith;

3. An approval or a business registration for a person or an entity that is not lawful in accordance with this notification is regarded as not valid. A person who breaches this will be responsible in front of the law;

4. Parties or line ministries must have detailed and clear legislation for all items of business activities for foreign investors for the facilitated implementation.

5. During a period of implementing this notification, if parties or line ministries see the incompliance and would like to add or subtract any business activities from this List can notify the Ministry of Industry and Commerce for amendment and additional notification;

6. This Notification replaced the Notification No. 1591/MOIC.DTD, dated 26 August 2013 on The List of Business Activities for Foreign Investors.

This notification is for information and strict implementation.

Deputy Minister of Industry and Commerce,

 

[signature and seal]

Siaosavath Savengsuksa

 

 

List D 02 - 2015

List of Business Activities for Foreign Investors (Revised)

 

Sectors

ISIC

Business activities

Conditions for Foreign Investors

Related legislations

Responsible Ministries

Registered Capital

(Lao Kip)

Foreign Equity Participation (%)

 

Manufacturing

 

 

 

1079

Manufacturing of other food products not classified elsewhere

More than 1 billion

20%

- Notification on the Termination of Foreign Enterprise Registration for the Establishment Of Coffee Factory in Lao PDR, No.1036/MOIC.ERM

MOIC

 

2100

Manufacturing of pharmaceuticals, medicinal chemical and botanical products

More than 1 billion

49%

- Law on Drugs and Medical Products No.07/NA, dated 27 December  2011;

- Notification on the Management of Medical Equipment in Lao PDR, No.310/MONRE, dated 20/13/2013

MOH

Construction

 

4210

Road and Railway Construction, for this ISIC is specifically for construction of roads and bridges for:

  1. Joint venture between domestic and foreign investors

1-240 billion

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

 

  1. Wholly owned foreign investment

More than 240 billion

100%

 

4312

Site preparation for construction, for this ISIC is specifically for clearing construction sites (excavation and landfill) for:

  1. Small project

8-40 billion

 

 

 

 

49%

 

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

  1. Big project

More than

40 billion

 

4329

Other construction installation, for this ISIC is specifically for assembling of building parts for:

  1. Small project

8-40 billion

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

 

 

 

 

MPWT

  1. Big project

More than

40 billion

 

4330

Completing and finishing buildings, for this ISIC is specifically for interior and exterior design/decorating (final phase) for:

  1. Small project

8-40 billion

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

 

 

 

MPWT

  1. Big project

More than

40 billion

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles

 

4520

Maintenance and repair of motor vehicles (for this ISIC is specifically for establishment of garage for vehicle and mechanical repairs)

More than

1.5 billion

100%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

 

4690

Non-specialized wholesale trade (i.e. wholesale business)

 

 

 

 

 

 

 

From 4 to less than 10 billion

50%

- Decision on Wholesale and Retail Business, No.1005/MOIC.DTD, dated 22 May 2015

 

 

 

 

 

 

 

MOIC

From 10 to less than 20 billion

70%

More than

20 billion

100%

 

4719

Other retail in non-specialized stores (retail business)

From 4 to less than 10 billion

50%

- Decision on Wholesale and Retail Business No.1005/MOIC.DTD, dated 22 May 2015

MOIC

From 10 to less than 20 billion

70%

More than

20 billion

100%

Transportation and Warehouse

 

4922

Other passenger land transport (for this ISIC is specifically for taxi meter services)

More than

5 billion

100%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

 

4923

Freight transport through highway, for this ISIC is specifically for:

  1. Domestic freight transportation

More than

3 billion

100%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

  1. International or cross boarder freight transportation

More than

5 billion

49%

 

5210

Warehousing and storage (for this ISIC is specifically for warehousing and storage services)

More than

1 billion

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

 

5221

Service activities incidental to land transportation, for this ISIC is specifically for:

  1. Domestic freight stations

More than

5 billion

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

  1. International and cross border freight stations

More than

10 billion

 

5229

Other transport support activities, for this ISIC is specifically for:

  1. Domestic freight transportation

More than

3 billion

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

MPWT

  1. International freight transportation

Accommodation and Food Service Activities

 

5510

Short term accommodation activities (3-5 star hotels)

More than

1 billion

60%

- Law on Tourism No.10/NA, dated 09 November 2005;

- Decision of the President of Ministerial Council on Tourism, No.91/PMC, dated 04 November 1989;

- Notification No.57/MICT, dated 31 January 2013

MICT

Financial and Insurance Activities

 

6419

Other monetary intermediation, for this ISIC is specifically for:

  1. Establishment of a bank (commercial bank)

More than 300 billion (domestic-foreign)

as agreed among shareholders

- Law on the Bank of Lao PDR, No.05/NA, dated 14 October 1999;

- Law on Commercial Bank, No.03/NA, dated 29 December 2006;

- Ordinance on the Management of Foreign Exchange and Precious Metals, No.705/PO, dated 17 March 2008;

- Guideline on Licensing Procedure for Establishment of a Commercial Bank, No.705/CBD, dated 31 December 2007;

- Notification on Conditions and Required Documents for Establishment of a Financial Institution, No.154/MFD, dated 17 February 2012.

BOL

  1. A branch of a bank

More than

100 billion

  1. A Micro-finance institution

More than

3 billion (domestic-foreign)

Professional, Scientific and Technical Activities

 

 

 

7110

Architectural and engineering activities and related technical consultancy, for this ISIC conditions are specifically for:

  1. Research and feasibility study of a project

4-8 billion

(a small project)

 

More than

8 billion

(a big project)

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

 

 

 

 

MPWT

 

 

 

 

 

 

 

 

  1. Surveying and urban planning
  1. Interior and exterior design
  2.  
  1. Construction consultancy
  1. Surveying, design and civil engineering

 

7120

Technical testing and analysis (for this ISIC is specifically for the establishment of a vehicle technical inspection center)

More than

1 billion

100%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

 

Education

 

8549

Other education not classified elsewhere, for this ISIC is specifically for:

  1. An automobile driving school

More than

8 billion

49%

- Notification on the Establishment of Controlled Business for Public Work and Transportation Sector, No.13779/MPWT, dated 21 August 2012

 

  1. A motorcycle riding school

More than

15 billion

100%

Human Health and Social Work Activities

 

8690

Other human health activities (for this ISIC is specifically for medical and traditional medical business)

More than

1 billion

49%

- Law on Healthcare, No.53/NA, dated 09 November 2005

- Decree on Private Hospital No.16/PM, dated 09 April 1998

 

 

 

 

Remarks:

List D 02-2015 (revised) replaced and terminated List D 01-2013. Every business activities in List D 02-2015 (revised) are evaluated as having environmental and social impacts, which to be implemented according to regulations of line ministries;

For ISIC 2100 and 8690, a joint venture between foreign and domestic investors is allowed, with local investor holds professions and the enterprise registration certificate, and play a part in business operation of every business activity in List D 02-2015 revised that are analyzed and summarized from requests by relevant ministries..

                                     



Download English:Notification on List of Business Activities for Foreign Investors (revised / D 02-2015) No. 1327/MOIC.ERM, dated 13 July 2015

Download Lao:Notification on List of Business Activities for Foreign Investors (revised / D 02-2015) No. 1327/MOIC.ERM, dated 13 July 2015