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Schedule of commitment

 

LAO PDR – SCHEDULE OF SPECIFIC COMMITMENTS

For the 9th Package of Commitments under ASEAN Framework Agreement on Services

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector
Limitation on
Market Access
Limitation on
National Treatment
Additional
Commitments
1.BUSINESS SERVICES

A. Professional Services

Legal services, excluding:

  • Participation in legal proceedings in the capacity of defenders or representatives of their clients before the courts of Lao PDR;
  • Legal documentation and

certification services of the laws of Lao PDR

(part of CPC 861)

  1. None

 

  1. None

 

  1. Foreign equity participation limited to 49%.
  1. None

 

  1. None

 

      3. None Unbound

 

(b) Accounting, auditing and bookkeeping services

(CPC 862)

  1. None

 

  1. None

 

  1. Foreign professional accountants aiming to practise in Lao PDR should submit an application to Ministry of Finance and meet the following conditions:
    1. Be a member of any professional organization that is a member of IFAC or of a professional organization of which Lao PDR is a partner; and
    2. Certify equivalence of qualifications. Such certificates shall be issued with the approval of the Equivalence Qualification Commission.

1. None

 

2. None

 

3. The majority of directors must be certified accountants who are Lao nationals.

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

3. Complete a training program and aptitude test on related regulation of Lao PDR, code of ethics and national financial reporting standards co-organised by the Ministry of Finance and the Lao Institute of Certified Public Accountants (LICPA).

 

After 2 February 2020: None except a joint venture with a Lao PDR national accountant who is a full member of the Lao Institute of Certified Public Accountants (LICPA) is required.

 

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

(c) Taxation consulting services

(CPC 863)

(1) None

(2) None

(3) None

(1) None

(2) None

(3) None

 

(d) Architectural services

(CPC 8671)

(1) None

(2) None

(3) None

(1) None

(2) None

(3) None

 

(e) Engineering services

(CPC 8672)

(1) None

(2) None

(3) None

(1) None

(2) None

(3) None

 

(f)  Integrated engineering services

-(CPC 8673)

(1) None

(2) None

(3) Joint venture with Lao services

suppliers is required and foreign

equity participation limited to 2/3.

After 2 February 2018: None.

(1) None

(2) None

(3) None

 

(g) Urban planning and landscape

- (CPC 8674)

(1) None

(2) None

(3) None

(1) None

(2) None

(3) None

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

B. Computer and Related services

Consultancy services related to the

installation of computer hardware

(CPC 841)

Software implementation service

(CPC 842)

Data base services

(CPC 844)

Data processing services, excluded

sensitive data and for non-

commercial purpose

(CPC 843)

Other:

Maintenance and repair services of

computer

(Part of CPC 84500)

(1) None

 

(2) None

 

(3) None

(1) None

 

(2) None

 

(3) None

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

C.Research and Development Services
  • R&D Services on Natural sciences and Engineering

(CPC 851)

  • Research and experimental development services

(CPC 852)

  • Interdisciplinary R&D Services

(CPC 853)

(1) None

 

(2) None

 

(3) None

(1) None

 

(2) None

 

(3) None

 

E.Rental/Leasing Services without

Operators

  • Rental/ Leasing services relating to ships

(CPC 83103)

  • Leasing or rental services concerning construction machinery and equipment without operator

(CPC 83107)

  • Rental/ Leasing services relating to other machinery and equipment

(CPC 83106-83109)

(1) None

 

(2) None

 

(3) None

(1) None

 

(2) None

 

(3) None

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

F. Other Business Services

a. Advertising Services

(CPC 871)

(1) None

 

(2) None

 

(3) None1

(1) None

 

(2) None

 

(3) None

 

  1. Marketing research services (CPC 86401)
  2. Management consulting services
  • General management consulting services

(CPC 86501)

  • Marketing management consulting services

(CPC 86503)

(1) None

 

(2) None

 

(3) None2

 

(1) None

 

(2) None

 

(3) None

 

e.   Technical testing and analysis

(CPC 8676)

(1) None

 

(2) None

 

(3) Joint Venture only, with foreign

equity limited to 51%. After 2

February 2018, foreign equity

participation limited to 70%

(1) None

 

(2) None

 

(3) None

 

 

 

1Approval shall be also in accordance with sectoral laws and regulations and Contents shall be approved by the Ministry of Information and Culture of Lao PDR.

2Approval shall be also in accordance with sectoral laws and regulations.

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

  1. Related scientific and technical consulting
  • Geological, geophysical and other scientific prospecting services

(CPC 86751)

  • Sub-surface surveying services

(CPC 86752)

(1) None

 

(2) None

 

(3) As indicated in the horizontal section3

(1) None

 

(2) None

 

(3) Unbound

 

n.   Maintenance and repair of

equipment (not including maritime

vessels, aircraft or other transport

equipment)

(CPC 633+8861-8866)

(1) Unbound, due to lack of technical

feasibility

2) None

 

(3) None, shall be joined with local

partner

(1) Unbound, due to lack of technical

feasibility

(2) None

 

(3) None

 

o.   Building-cleaning services

(CPC 874)

(1) None

 

(2) None

 

(3 None 

(1) None

 

(2) None

 

(3) Unbound

 

 

3 Approval shall be also in accordance with sectoral laws and regulations

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

p.   Photographic services

(CPC 875)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3) None 

 

q.   Packaging services

(CPC 876)

(1) None

 

(2) None

 

(3) Joint venture with Lao services

suppliers is required.

(1) None

 

(2) None

 

(3) Unbound

 

r.    Printing and Publishing

(CPC 88442)

(1) None

 

(2) None

 

(3 )Joint venture, with minimum 49%

foreign equity share

(1) None

 

(2) None

 

(3) Unbound, except as indicated in the

horizontal commitment

 

o.    Specialty design services

(CPC 87907)

(1) None

 

(2) None

 

(3)Until 2 February 2018, foreign equity

participation is limited to 49%.

Thereafter: foreign equity

participation limited to 51%.

(1) None

 

(2) None

 

(3 )None 

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

2. COMMUNICATIONS SERVICES

A. Postal services

(CPC 7511)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

B. Courier Services

Multi-modal courier services

(CPC 75121)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

C. Telecommunication Services

The following services can be

supplied only on a facilities basis, for

public use, with regard to local and

national long-distance services.

(a) Voice telephone service

(CPC 7521)

(b) Packet-switched data

transmission  services (CPC7523**)

(Electronic message and

information services

(CPC 75232))

(c) Circuit-switched data

transmission services (CPC7523**)

(Data and message transmission

services(CPC 7523)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

(d) Telexservices

(CPC 7523**)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

(e) Telegraph services

(CPC 7522)

(f)  Facsimile services

(CPC 7529)

(g) Private leased circuit services

(CPC 7522**+7523**)

Other:

Paging services(CPC 75291)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

  1. Electronic-mail (CPC 7523**)

 

  1. Voice mail (CPC 7523**)

 

  1. Online information and data base retrieval

(CPC 7523**)

 

  1. Electronic data interchange (EDI) (CPC 7523**)

 

  • Enhanced / value-added facsimile services, incl. store and forward, store and retrieve

(CPC 7523**)

 

  1. code and protocol conversion

 

  • On-line information and / or data processing (incl transaction processing)

(CPC 843**)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

Telecommunication consulting

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

Audiovisual Services

  1. Motion Picture and Video tape production and distribution services (CPC 9611)
    • Motion Picture Production (CPC 96112 excl. video tape)
    • MotionPicture Distribution (CPC 96113 excl. video tape)
  2. Motion Picture Projection service (CPC 9612)

(1) None

 

(2)None

 

(3)Joint venture, with minimum 49% foreign equity share

(1) None

 

(2)None

 

(3)Unbound, except as indicate in the horizontal commitment

 

Radio and Television Services

(CPC 9613)

  • Radio Services only for production of radio programmes (CPC 96131)
  • Television Services only for production of TV programmes (CPC 96132)

 

(1) None

 

(2) None

 

(3 )None 

 

(1) None

 

(2) None

 

(3 )Unbound, except as indicate in  the horizontal commitment

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

Construction Work for Buildings

(CPC 512)

Construction Work for Civil

Engineering

(CPC 513)

Assembly and Erection of

Prefabricated Constructions

(CPC 514)

Installation Work

(CPC 516)

Building Completion and Finishing

Work

(CPC 517)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

Pre-erection Work at Construction

site

(CPC 511)

Special Trade Construction

(CPC515)

Rental services related to equipment

for construction or demolition of

buildings works with operator

(CPC 518)

None

None

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

4. DISTRIBUTION SERVICES

A. Commission agents’ services

 

D. Franchising

included only for textiles, clothing and footwear (Part of CPC 8929)

  1. None

 

  1. None

 

  1. None, except subject to economic needs test. Foreigners need to use a local agent for distribution.

1.None

 

2.None

 

3.Foreigners need to use a local agent for distribution.

 

B. Wholesale trade services

-     Wholesale trade services on a fee or contract basis of textiles, clothing and footwear (Part of CPC 622)

  1. None

 

  1. None

 

  1. Joint venture with Lao services providers is required. Foreign equity participation is limited to 49 %. Subject to meeting economic needs

test4.

1.None

 

2.None

 

3.Unbound

 

 

4The main criteria include the number of existing service suppliers in a particular geographical area, the stability of market and geographical scale.

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

5. EDUCATION SERVICES

  • The contents of the education curriculum must be approved by the Ministry of Education of Lao PDR and concerned Ministry.
  • With respect to C and D below, all subjects are allowed, except for teacher training, religious and political
  1. Primary Education Services (CPC 921)
  2. Secondary education services
    • Higher Secondary Education Services (CPC 9222)
  3. Higher education services
    • Post Secondary Technical and Vocational Education Services (CPC 92310)
  1. None

 

  1. None

 

  1. As per specified in the horizontal section
  1. None

 

  1. None

 

  1. None. May be subject to economic need test.

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

  1. Secondary education services
    • General Secondary Education services (CPC 9221)
    • Technical and vocational training(Part ofCPC 922)

 

  1. Higher education services (CPC 923)
  2. Adult education services (CPC 924)

 

  1. Other education services Short term foreign language

training (Part of CPC 929)

(1)None

 

(2)None

 

(3)None. Subject to economic need tests5.

(1)None

 

(2)None

 

(3)None. May be subject to economic need test.

 

 

5The main criteria include the number of existing service suppliers in a particular geographical area, the stability of market and geographical scale.

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

6. ENVIRONMENT SERVICES

The scope of commitments extended to services in Vientiane Capital only. Publicly funded services are excluded.

Sewage Services

(CPC 9401)

Refuse Disposal Services

(CPC 9402)

Sanitation and Similar Services

(CPC 9403)

Cleaning of exhaust gases

(Part of CPC 9404)

Noise abatement services

(Part of CPC 9405)

Nature and Landscape Protection

Services

(CPC 9406)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

8. HEALTH RELATED AND SOCIAL SERVICES

Medical and Dental services

(CPC 9312)

  • General and Medical services (CPC 93121)
  • Specialized Medical services (CPC 93122)

(1)None

(2)None

(3)None, except clinics6, with foreign equity participation limited to 49% foreign equity share

(1) None

 

(2) None

 

(3 )None 

 

Private hospital services

(Hospital with more than 100 beds

and modern facilities only)

(Part of CPC 93110)

(1) None

 

(2) None

 

(3 )None 

(1) None

 

(2) None

 

(3 )None 

 

 

 

6Medical service consisting in the prevention, diagnosis and treatment by doctors of medicine of physical and/or mental diseases of a general nature, such as consultations, injections (limited and/or periodical), physical check-ups, etc, and small private hospital with less than 100 patient bed.

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

9. TOURISM AND TRAVEL RELATED SERVICES

Hotel lodging services,

with 3 stars or more (Part of CPC 641)

 

Meal serving services with full restaurant service

(CPC 64210)

 

Beverage serving services without entertainment

(CPC 64310)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

B. Travel agencies and tour operators services

(CPC 7471)

Travel agencies services, in-bound services only

(Part of CPC 74710)

  1. None

 

  1. None

 

  1. Foreign equity participation limited to70%;
  1. None

 

  1. None

 

  1. None

 

Other:

Tourism consulting services

  1. None

 

  1. None

 

  1. None. Subject to economic need tests.
  1. None

 

  1. None

 

  1. None

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

11. TRANSPORT SERVICES

A. Maritime Transport Services

Passenger transportation

(CPC 7211)

Freight transportation

(CPC 7212)

Rental of vessels with crew

(CPC 7213)

Pushing and towing services

(CPC 7214)

Maintenance and repair of vessels

(CPC 8868)

Vessels salvage and re-floating

services (not applicable in harbor)

(CPC 7454)

B. Internal Waterway Transport

Services

Passenger transportation

(CPC 7221)

Freight transportation

(CPC 7222)

Rental of vessels with crew

Maintenance and repair of vessels

(CPC 8868** )

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

E. Rail Transport Services

Passenger transportation

(CPC 7111)

Freight transportation

(CPC 7112)

Pushing and towing services

(CPC 7113)

Maintenance and repair of rail

transport equipment

(CPC 8868**)

Supporting services for rail transport

services

(CPC 743)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

F. Road Transport Services

Freight transportation (CPC 7123)

  1. None

 

  1. None

 

  1. Foreign equity participation is 100% for domestic transportation For Cross border transportation: joint venture with local service provider(s) is required, with foreign equity limited to 49%
  1. None

 

  1. None

 

  1. None

 

Rental of commercial vehicles with

operator

( CPC 7124 )

 

Supporting services for road transport services

( CPC 744)

  1. None

 

  1. None

 

  1. Joint venture with Lao services providers is required. Foreign equity participation is limited to 70%.
  1. None

 

  1. None

 

  1. None

 

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

Maintenance and repair of road

transport equipment

(CPC 6112+8867)

  1. None

 

  1. None

 

  1. None

(4) Unbound, except as indicated in the

Horizontal Section

  1. None

 

  1. None

 

  1. None

 

H. Services auxiliary to all modes

of transport7

Storage and warehousing services

(CPC 742)

  1. None

 

  1. None

 

  1. None

 

  1. None

 

  1. None

 

  1. None

 

 

 

 

7The AFAS Logistics Priorities include:

  1. Maritime cargo handling: CPC 741
  2. Storage and warehousing: CPC 742
  3. Freight transport agency services: CPC 748 [Freight brokerage services, freight forwarding services (primarily transport organisation or arrangement services on behalf of the shipper or consignee), ship and aircraft space brokerage services, and freight consolidation and break-bulk]
  4. Other auxiliary services: CPC 749 [Freight brokerage services; bill auditing and freight rate information services; transportation document preparation services; packing and crating and unpacking and de-crating services; freight inspection, weighing and sampling services; and freight receiving and acceptance including local pick-up and

delivery.]

  1. Packaging: CPC 876
  2. Courier services: CPC 7512** [**includes ‘express delivery’ services not related to the Post. In Laos’s GATS schedule (CPC 7512), ‘express delivery’ is defined as the ‘collection, transport and delivery of documents, printed matter, parcels and/or other goods on an expedited basis, while tracking and

maintaining control of these items throughout the supply of this service’. This is distinct from Postal services.]

  1. Freight transport under each sector (A, B, E, F in this schedule): CPC 7212 excluding cabotage; CPC 7112, 7123, 7222
  2. Customs clearance services (no CPC code)
  3. Air freight services (implement ASEAN Multilateral Agreement of the Full Liberalisation of Air Freight Services): separate negotiation and agreement

 

 

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

Freight agency services (CPC 748)

 

 

 

Maritime cargo handling (CPC 741)

Other auxiliary services (CPC 749

  1. None

 

  1. None

 

  1. Unbound
  1. None

 

  1. None

 

  1. Unbound

 

 

 

 

 

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

 

OTHER SERVICES NOT INCLUDED ELSEWHERE

Skill training services(CPC 97090)

  1. None

 

  1. None

 

  1. As per specified in the horizontal section and subject to economic need tests
  1. None

 

  1. None

 

  1. Unbound

 

 

 

 

ASEAN FRAMEWORK AGREEMENT ON SERVICES

For the 9th Package of Commitments under ASEAN Framework Agreement on Services

Modes of Supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence

 

Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

I. HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED IN THIS

SCHEDULE

 

 

3)

Commercial presence of foreign

 

service suppliers can be in the

 

 

following form:

 

 

-   joint venture with one or more

 

domestic Lao investors,

 

 

-     wholly foreign-owned enterprise1

 

-   branch or representative office

 

A company is considered a joint

 

venture when it has at least 10%

 

foreign equity.

 

 

The commercial presence of foreign

 

service suppliers is subject to

 

 

approval by the concerned competent

 

authorities. Enterprises with foreign

 

capital require an investment license,

 

which sets out the terms of operation,

 

and a business cooperation contract.

 

3)

Foreign service suppliers in the Lao

 

PDR may lease land within the Lao

 

PDR and transfer their leasehold

 

interest. They may own improvements

 

on land and other moveable property

 

and transfer those ownership

 

interests.

 

Foreign investors shall provide

 

adequate training opportunities to Lao

 

PDR nationals.

 

Tax measures, generally pertaining to

 

small and medium enterprises may

 

result in a difference of treatment in

 

favour of Lao PDR services and

 

service suppliers.

 

 

 

 

 

 

 

LAO PDR - LIST OF MFN EXEMPTIONS

For the 9th Package of Commitments under ASEAN Framework Agreement on Services

 

Sector or sub sector

Description of measure indicating its

inconsistency with Article II

Countries to which the

measure applies

Intended duration

Conditions creating the

need for the exemption

 
Computer Reservation Systems

Market Access and national treatment

are on reciprocal basis, and on the

provisions of the bilateral Air Services

Agreement

All countries with whom Laos

 

has signed agreements on

 

bilateral air services, currently

 

they are:

 

-

Indonesia

 
 

 

 

 

-

Malaysia

 

-

Cambodia

 
 

-

Singapore

 

-

Myanmar

 

-

Vietnam

 

-

China

 

-

Thailand

 

Expiry date or

 

termination of the

 

bilateral

 

agreements on air

 

services. This will

 

be reviewed for

 
 

purpose of further

 

development

 

Reciprocal basis and/or

bilateral agreement

Auditing Services

Bilateral agreement based on reciprocity

treatment

Countries in which related
services can be supplied by
Lao nationals.
Indefinite Reciprocal basis
Publishing Newspaper

Permission granting has to be based on

bilateral agreement

Countries which have

agreements with Laos

Indefinite Reciprocal basis

 

 

LAO PDR - LIST OF MFN EXEMPTIONS

For the 9th Package of Commitments under ASEAN Framework Agreement on Services

Sector or sub sector

Description of measure indicating its

inconsistency with Article II

Countries to which the

measure applies

Intended duration

Conditions creating the

need for the exemption

Legal services   All countries Indefinite

Can be approved on case

by case approval

Banking and other financial

services

Measures affecting the supply of banking

and other financial services to be granted

on a bilaterally favorable basis with

countries Laos has agreements

All countries Indefinite

For reciprocity purpose, and

the financial stability

 

 

 

Agreement Establishing the ASEAN–Australia–New Zealand Free Trade Area

LAO PDR’S SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:    1) Cross-border supply     2) Consumption abroad     3) Commercial presence

HORIZONTAL SECTION

ALL SECTORS INCLUDED IN THIS SCHEDULE

 

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

Land ownership

 

3) Non-Lao natural and juridical persons are not allowed to own land

but may own premises and lease land

up to 75 years.

 

Subsidies and investment incentives

 

1), 2), 3) Unbound with respect to subsidies, investment incentives and other state support measures,

eligibility for which may be limited to

particular regions, categories of persons, or enterprises.

 

Commercial presence

3)         Unless otherwise specified in each specific sector or sub-sector

of this Schedule, foreign enterprises are allow to establish commercial

presence in the Lao PDR in the form

of business co-operation by contract, joint venture enterprises, 100% foreign-invested enterprises.

 

A foreign juristic entity incorporated under the law of other countries may establish Representative Offices in the Lao PDR to collect information,

3) Foreign investors shall have an obligation to provide training, upgrade

professional skills and transfer of technology, as well as to promote Lao

nationals to higher skilled and

specialized positions, including managerial.

 

3) Tax measures, generally pertaining to small and medium enterprises may result in a difference of treatment in favour of Lao services and service suppliers.

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:    1) Cross-border supply     2) Consumption abroad     3) Commercial presence

HORIZONTAL SECTION

ALL SECTORS INCLUDED IN THIS SCHEDULE

 

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

 

study the feasibility of investment and coordinate for the purpose of

applying for investment

 

3) Unbound for measures related to publicly funded services including with respect to national treatment.

 

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

SECTOR-SPECIFIC COMMITMENTS

BUSINESS SERVICES

 

Professional Services

 

 

 

 

Accounting, Auditing and Bookkeeping Services (CPC 862)

 

  1. Unbound

 

  1. None

 

  1. Foreigners may acquire a license to practice as Certified Public Accountants or Accounting Consultants in the Lao PDR provided an agreement or contract is signed with their countries on such issue.

Nevertheless, on a temporary basis, the Professional Accountants Body can authorize foreigners to practice as Certified Public Accountants or Accounting Consultants if they belong to countries, which are members of the International Accounting Standards Committee.

 

  1. Unbound

 

  1. None

 

  1. Unbound

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

 

 

To apply for a license in the Lao PDR, foreign professional accountants shall acquire certification based on the following conditions:

  1. Equivalence of diploma as provided for Lao professional accountants. Such certificates shall be issued with the approval of the Equivalence Qualification Commission;

 

  1. Employment of assistants of Lao nationality in percentage not less than the one provided by the professional sector;

 

  1. Commitment to provide necessary and continuous training to employees of Lao nationality;

 

  1. Morality conditions required by the Professional Accountant's Body Board;

 

  1. Certification of financial statements

 

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

 

by staff of Lao nationality.

 

In addition foreigners shall implement rights and obligations similarly to members of the Professional Accountant's Body, but they may not become members of such body.

 

  • For auditing services: foreign suppliers may audit only private enterprises
  • All accounting and bookkeeping must be done in the Lao language.

 

 

 

Landscape architectural services (CPC 86742)

 

  1. Unbound

 

  1. None

 

  1. None

 

  1. Unbound

 

  1. None

 

  1. None

 

 

Integrated engineering and project management services (CPC 86732)

 

  1. None

 

  1. None

 

  1. Unbound

 

  1. None

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

Integrated engineering services for the construction of

manufacturing turnkey projects

(CPC 86733)

3. Must joint with Lao domestic investors. The Lao investor must have

at least 30% of the total investment

shares.

3. None

 

Computer and Related Services

 

 

 

Consultancy services related to the installation of computer

hardware (CPC 841)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

Software implementation services (CPC 842)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

Data base services (CPC 844)

 

Other maintenance and repaired services of computer (CPC 845)

 

Other (CPC 846+847)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

COMMUNICATION SERVICES

 

Telecommunication Services

 

 

 

 

(a) Voice telephone service (CPC 7521)

 

  1. Telegraph services (CPC 7522)

 

  1. Facsimile services (CPC 7529)

 

 

  1. Unbound

 

  1. None

 

  1. None

 

 

  1. Unbound

 

  1. None

 

  1. None

 

(d) Telex services (CPC 7523**)

  1. Electronic-mail

(CPC 7523**)

 

  1. Voice mail (CPC 7523**)

 

  1. Online information and data base retrieval (CPC 7523**)
  1. Unbound

 

  1. None

 

  1. Joint venture with Lao services providers is required and only through acquisition of existing operators.
  1. Unbound

 

  1. Unbound

 

  1. None

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

Public pay phone services (CPC 75211)

 

Electronic message and information services (CPC 75232)

  1. Unbound

 

  1. None

 

  1. None
  1. Unbound

 

  1. None

 

  1. Unbound, except as indicated in the horizontal section

 

Paging services (CPC 75291)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

Data and message transmission services

(CPC 7523)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

CONSTRUCTION SERVICES

 

 

 

Construction work for buildings (CPC 512)

 

Construction work for civil engineering (CPC 513)

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

 

Assembly and erection of prefabricated construction (CPC 514)

Installation work(CPC 516) Building completion and

finishing work (CPC 517)

 

Rental services related to equipment for construction or demolition of buildings works with operator (CPC 518)

 

 

 

OTHER

Pre-erection work at construction site (CPC 511)

Special trade construction (CPC 515)

 

 

 

  1. None

 

  1. None

 

  1. None

 

 

 

  1. None

 

  1. None

 

  1. Unbound, except as indicated in the horizontal section

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

EDUCATIONAL SERVICES

PRIVATE EDUCATIONAL SERVICES

 

 

 

 

 

(a) secondary education Services**

- Technical and Vocational training              (Part of CPC 922)

 

 

  1. None

 

  1. None

 

  1. None

 

 

  1. None

 

  1. None

 

  1. Unbound, except as indicated in the horizontal section

 

  1. Higher Education Services (CPC 923)

 

  1. Adult education (CPC 924)

 

 

  1. Other education services (including foreign language training) (CPC 929)

 

 

  1. Unbound

 

  1. Unbound

 

  1. None

 

 

  1. Unbound

 

  1. Unbound

 

  1. Unbound, except as indicated in the horizontal section

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

ENVIRONMENT SERVICES

 

 

 

 

Sewage Services (CPC 9401)

 

Refuse Disposal Services (CPC 9402)

 

Sanitation and Similar Services (CPC 9403)

 

Nature and Landscape Protection Services (CPC 9406)

 

 

  1. None

 

  1. None

 

  1. None

 

 

  1. None

 

  1. None

 

  1. Unbound, except as indicated in the horizontal section

 

(Urban area only)

 

Cleaning of exhaust gases (CPC 9404)

 

Noise abatement services (CPC 9405)

 

 

  1. Unbound

 

  1. Unbound

 

  1. None

 

 

  1. Unbound

 

  1. Unbound

 

  1. Unbound, except as indicated in the horizontal section

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

FINANCIAL SERVICES

 

 

 

a. Acceptance of deposits and other repayable funds from the

public (CPC 81115 -81119).

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

b. Lending of all types, incl. consumer credit, mortgage credit, factoring and financing of

commercial   transaction   (CPC

8113).

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

e.          Guarantees          and commitments (CPC 81199**).

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

c.    Financial    leasing       (CPC 8112).

  1. None

 

  1. None

 

  1. None
  1. None

 

  1. None

 

  1. None

 

d.   All   payment   and   money transmission                      services,                      incl.

1. None

1. None

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

credit, charge and debit cards, travellers cheques, and bankers

drafts (CPC 81339**).

  1. None

 

  1. None
  1. None

 

  1. None

 

TOURISM

 

 

 

Hotel and other Lodging

Services (CPC 64110)

 

 

Beverage Serving Services Without Entertainment (CPC 64310)

  1. None

 

  1. None

 

  1. None, except that:

 

 

  1. if a joint venture is established the foreign partner or partners must contribute at least 30% of the total equity investment; and
  2. standard required for a hotel to be developed is 2 or more stars standard.
  1. None

 

  1. None

 

  1. Unbound

 

 

LAO PDR – SCHEDULE OF SPECIFIC SERVICES COMMITMENTS

Modes of supply:  1) Cross-border supply  2) Consumption abroad  3) Commercial presence

 

Sector or Sub sector

 

Limitations on market access

 

Limitations on national treatment

 

Additional commitments

Travel agencies and tour operators services

(Part of CPC 7471)

  1. None

 

  1. None

 

  1. Wholly foreign owned enterprises are not permitted. Business co- operation by contract is permitted. Joint ventures with domestic Lao investors are permitted but foreign JV partner or partners must contribute at least 30 % and no more than 70% of the total equity investment. Foreign investment must be in the form of a travel agency.
  1. None

 

  1. None

 

  1. Unbound

 

Meal Serving Services with Full restaurant Services (CPC

64210)

  1. None

 

  1. None

 

 

  1. None, except that if a joint venture is established the foreign partner or partners must contribute at least 30% of the total equity investment.
  1. None

 

  1. None

 

 

  1. Unbound, except as indicated in the horizontal section

 

 

 

 

ASEAN-CHINA AGREEMENT ON TRADE IN SERVICES                                                                                                                                                   ANNEX 2/SC3


LAO PDR

Schedule of Specific Commitments

 

Modes of Supply: (1) Cross-border supply

 

(2) Consumption aboard

 

(3) Commercial presence

 

4) Presence of natural persons

 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

I. HORIZONTAL COMMITMENTS

ALL SECTORS INCLUDED IN THIS SCHEDULE

  1. Borrowing from abroad by banks and enterprises shall be approved

by the Bank of the Lao PDR.

 

  1. A resident of Lao PDR who intends to invest directly or indirectly in a foreign country shall be approved by the concerned authorized organizations. The transfer of fund to be invested abroad shall be approved by the Bank of the Lao PDR.

 

Bringing out of the Lao PDR the foreign currency more than 2,000 US$ shall be approved by the Bank of the Lao PDR.

 

  1. Commercial presence of foreign service suppliers can be in the following form:
    • A joint venture with one or more domestic Lao investors,
    • A wholly foreign-owned enterprise1
    • A branch or representative office

 

The commercial presence of foreign service supplier shall be subject to approval of the concerned competent authority and of

licensing by the Foreign Investment

  1. As indicated in the market access column.

 

 

  1. As indicated in the market access column.

 

 

  1. Foreign service suppliers in the Lao PDR may lease land within the Lao PDR and transfer their leasehold interest; and they may own improvements on land and other moveable property and transfer those ownership interest.

 

 

Foreign enterprises subject to the Law on Promotion and Management of Foreign Investment in the Lao PDR shall pay an annual profit tax, calculated in accordance with the

 

 

1100% foreign invested Companies

 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

 

Management committee of the Lao PDR.

 

The joint venture is established and registered under the laws and regulations of the Lao PDR. It is jointly owned and operated by one or more legal foreign investors/service suppliers and by one or more legal domestic Lao investors.

 

The activities and relationship of its parties shall be governed by the contract between its parties and the Joint Venture’s Articles of Association, in accordance with the laws and regulations of the Lao PDR.

 

Foreign investors/service suppliers in a joint venture must contribute a minimum portion 30% of the total equity investment in that venture. The wholly foreign-owned enterprise is a foreign investment/service supplier registered under the laws and regulations of the Lao PDR. By one or more legal foreign investors without the participation of legal domestic Lao investors. The enterprise established in the Lao PDR may be either a new company or a branch or representative office

provisions of the applicable laws and regulations of the Lao PDR.

 

Other Lao taxes, duties and fees shall also be payable in accordance with the applicable laws and regulations of the Lao PDR

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

 

of a foreign company. The incorporation and registration of a foreign investment shall be in conformity with the Enterprise/Business Law of the Lao PDR. The terms of operations of an enterprise with foreign owned capital and of a business cooperation contract shall be specified in the investment license of each project in accordance with the laws and regulations of the Lao PDR.

 

The branch or representative office of a foreign company shall have articles of Association which shall be consistent with the laws and regulations and the Business Law of the Lao PDR and subject to the approval of the Foreign Investment Management Committee of the Lao PDR.

(4)    Foreigners who work in Lao PDR shall be subject to the law on

Promotion and Management of

Foreign Investment in the Lao PDR and the regulations on immigration.

 

However, foreign enterprises have the right to employ skilled and expert foreign personnel when necessary and with the approval of the competent authority of the Government of the Lao PDR.

(4)     Foreign service suppliers and their foreign personnel working within the Lao PDR shall pay to the Lao Government personal income tax, which subject to a uniformed progressive income tax rates as indicated in the amended Tax Law No. 05/NA year 2012.

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

 

 

Facilitation for the entry into, travel within, stay within, and exit from the Lao territory of foreign investors/service suppliers, their foreign personnel, and the immediate family members of those investors, service suppliers and those personnel will be granted by the Government of the Lao PDR. All such persons are subject to and must obey the above mentioned laws and related regulations while they are on the Lao territory. Foreign investors/service supplies have an obligation to upgrade the skills of their Lao employees, through such techniques as training in the Lao PDR or abroad

 

 

II. SECTOR-SPECIFIC COMMITMENTS

1. BUSINESS SERVICES

A.  Professional Services

 

(b) Architectural Services (CPC 8671)

  1. None

 

  1. None

 

  1. As specified in the horizontal section

 

  1. As specified in the horizontal section
  1. None

 

  1. None

 

  1. As specified in the horizontal section

 

  1. As specified in the horizontal section

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

  1. Engineering services (CPC 8672)

 

  1. Integrated engineering services

 

  • Integrated engineering services for transportation infrastructure turnkey projects (CPC 86731)

 

  • Integrated engineering and project management services (CPC 86732)

 

 

 

 

 

  • Integrated engineering services for construction of manufacturing turnkey projects (CPC 86733)
  1. None

 

  1. None

 

  1. a)   As specified in the horizontal section

b)   Not applied for public funded

and foreign granted project

  1. Unbound, except as indicated in the horizontal section

 

 

 

  1. None

 

  1. None

 

  1. Joint venture with Lao services Suppliers is required and foreign equity Participation limited 2/3.

 

  1. As indicated in the horizontal section
  1. None

 

  1. None

 

  1. Unbound

 

  1. Unbound, except as indicated in the horizontal section

 

 

 

 

 

 

 

 

 

 

 

 

  1. None

 

  1. None

 

  1. As indicated in the horizontal section

 

 

  1. As indicated in the horizontal section

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

(e) Urban Planning and landscape Architectural services

 

  • Urban planning services (CPC 86741)

 

  • Landscape architectural Services (CPC 86742)
  1. None

 

 

  1. None

 

  1. a)   As specified in the horizontal section

b)   Not applied for public funded

and foreign granted project

 

  1. Unbound, except as indicated in the horizontal section
  1. None

 

 

  1. None

 

  1. Unbound, except as indicated in the horizontal section

 

 

 

  1. Unbound, except as indicated in the horizontal section

 

(f)  Computer and related services

 

  • Consultancy services related to the installation of computer hardware (CPC 841)

 

  • Software implementation services (CPC 842)

 

  • Database services (CPC 844)
  1. None

 

  1. None

 

  1. As specified in the horizontal section

 

  1. This has to be in consistence with the Labour Law and Law on the Promotion And Management of the Foreign Investment
  1. None

 

  1. None

 

  1. Same as mention in market access

 

  1. Same as mention in market access and in Law on taxation

 

  • Data processing services,

Excluded sensitive data and for non-commercial purpose (CPC 843)

 

  • Other:

Maintenance and repair services of Computer (Part of

CPC 84500)

  1. None

 

  1. None

 

  1. As specified in the horizontal commitments

 

  1. Unbound, except as indicated in the horizontal section
  1. None

 

  1. None

 

  1. Same as mention in market access

 

 

  1. Unbound, except as indicated in the horizontal section

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

(h) Research and development services

 

  • Research and experimental development services on natural sciences and engineering (CPC 851)

 

  • Research and experimental development services on social sciences and humanities (CPC 852)

 

  • Interdisciplinary research and experimental development services (CPC 853)
  1. None

 

 

  1. None

 

 

  1. Joint venture with Lao services supplier is required

 

  1. Unbound, except as indicated in the horizontal section
  1. None

 

 

  1. None

 

 

  1. Unbound

 

 

  1. Unbound, except as indicated in the horizontal section

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

 

3. CONSTRUCTION AND RELATED ENGINEERING SERVICES

  1. Pre-erection work at construction site (CPC 511)

 

  1. General construction work for buildings

(CPC 512)

 

 

  1. General construction work for civil engineering

(CPC 513)

 

  1. Assembly and erection of prefabricated constructions (CPC 514)

 

 

  1. Special trade construction (CPC 515)

 

  1. Installation work (CPC 516)

 

  1. Building completion and finishing work (CPC 517)

 

 

  1. Rental services related to equipment for construction or demolition of building or civil engineering works, with operator (CPC 518)
  1. Unbound

 

 

  1. None

 

 

  1. Foreign equity participation limited to 70%

 

 

  1. Unbound, except as indicated in the horizontal section
  1. Unbound

 

 

  1. None

 

 

  1. Unbound, except as indicated in the horizontal commitment

 

 

  1. Unbound, except as indicated in the horizontal section

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

5. PRIVATE EDUCATIONAL SERVICES

The education curriculum and contents must be approved by the Ministry of Education of Lao PDR

  1. Secondary education services (part of CPC 922)
  2. Higher education services2 (part of CPC 923)
  3. Adult education2 (part of CPC 924)
  4. Other education services:

-     Short term foreign language training only

(part of CPC 929)

  1. Unbound

 

  1. None

 

  1. Foreign equity participation limited to 51%.

 

  1. Unbound, except as indicated in the horizontal section
  1. Unbound

 

  1. None

 

  1. Directors must be qualified teachers who are Lao PDR nationals

 

  1. Unbound, except as indicated in the horizontal section

 

6. ENVIRONMENTAL SERVICES3

Services considered as public utilities at a national or local level may be subject to public monopolies or to exclusive rights granted to private operators

  1. Sewage Services (CPC 9401)
  2. Refuse Disposal Services (CPC 9402)
  3. Sanitation and Similar Services (CPC 9403)
  1. Unbound, except related consulting services

 

  1. None

 

  1. Foreign equity participation limited to 70%

 

  1. Unbound, except as indicated in the horizontal section
  1. Unbound, except related consulting services

 

  1. None

 

  1. None

 

 

  1. Unbound, except as indicated in the horizontal section

 

 

2The commitments cover only technical, natural sciences and technology, business administration and business studies, economics, accounting, international law and language training fields

3Environmental services exclude the provision of water for human use, including water collection, purification and distribution through mains

 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

 

7.    FINANCIAL SERVICES

A. Insurance (life and non-life

insurance services) including reinsurance and retrocession, (Excluding pension fund, broking and agency service)

  1. Unbound

 

  1. None, however, insurance contracts on individuals living

and residing, on risks or

goods/assets located and registered in Lao PDR shall be established only with authorized

insurance companies in Lao PDR in accordance with

Insurance Law of Lao PDR

No.11/90.NA, dated 29 November 1990

 

  1. None,

The authorized insurance companies in Lao PDR must have a legal entity

operating in insurance business

under a company forms: state enterprise, joint-venture company or

private company (public company or

limited company) and branches of foreign insurance companies in

accordance with Insurance Law of

Lao PDR No. 11/90.NA, dated 29 November 1990 and Decree of the

Prime Minister No. 01/PM, dated 23

January 1992 regarding implementation of Insurance Law of Lao PDR.

State enterprise, joint-venture company or private company (public company or limited company) and

  1. Unbound

 

  1. None, except specified in the Limitation on

Market Access

 

  1. None, except specified in the Limitation on

Market Access

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

 

branches of foreign insurance companies are required to acquire business and investment licenses from relevant authorities of Lao PDR(Ministry of Finance, Committee of Planning and Investment, Bank of Lao PDR) in accordance with relevant applicable law and regulations of Lao PDR.

 

During the operation, the authorized insurance companies must comply with the relevant laws and regulations of Lao PDR.

 

The authorized insurance companies must have a minimum registered capital and a guarantee in accordance with Decree of the Prime Minister No. 01/PM, dated 23 January 1992 regarding implementation of Insurance Law of Lao PDR.

The guarantee must be deposited with the banks resided in Lao PDR in

accordance with Decree of the Prime

Minister No. 01/PM, dated 23 January 1992 regarding

implementation of Insurance Law of Lao PDR.

 

Other than provided above, other requirements shall be applied in accordance with relevant laws and regulation of the Lao PDR.

 

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

 

  1. Unbound, except the following:
    1. Only senior managers, experts are allowed. The entry and movement of the mentioned natural persons in Lao PDR shall be approved by relevant authorities of Lao PDR.

(4)     Unbound, except Specified in the Limitation on

Market Access.

Foreign service suppliers and their foreign personnel working within the Lao PDR shall pay to the Lao Government the personal income tax, calculated in accordance with the provisions of the applicable Laws and regulations of the Lao PDR.

 

B. Banking and other financial

services

 

c. Financial leasing (CPC 8112)

  1. None

 

  1. None

 

  1. None

 

  1. Unbound, except as indicated in the horizontal commitments
  1. None

 

  1. None

 

  1. None

 

  1. Unbound, except as indicated in the horizontal commitments

 

d. All payment and money transmission services (CPC

81339**)

  1. None

 

  1. None

 

  1. None

 

  1. Unbound, except as indicated in the horizontal commitments

 

  1. None

 

 

  1. None
  1. None

 

  1. None

 

  1. None

 

  1. Unbound, except as indicated in the horizontal commitments

 

  1. None

 

 

  1. None

 

f.  trading for own account or for

account of customers, whether on an exchange, in an over-the- counter market or otherwise, the

 

 
 

 

Sector or Subsector

Limitation on Market Access

Limitation on National Treatment

Additional Commitments

following:

  • money market instruments (cheques, bills, certificate of deposits, etc.) (CPC 81339**)
  • foreign exchange (CPC 81333)
  • derivative products incl., but not limited to, futures and options

(CPC 81339**)

  • exchange rate and interest rate instruments, including products

such as swaps, forward rate

agreements, etc. (CPC 81339**)

  • transferable securities (CPC 81321*)
  • other negotiable instruments and

financial assets. Incl. bullion (CPC 81339**)

  1. None, except for sub sectors such as derivative products incl., but not limited to, futures and options (CPC 81339**), transferable securities (CPC 81321*), until related Laws and regulations have been developed.

 

 

  1. Unbound, except as indicated in the horizontal commitments
  1. None, except for sub sectors such as derivative products incl., but not limited to, futures and options (CPC 81339**), transferable securities (CPC 81321*), until related Laws and regulations have been developed.

 

  1. Unbound, except as indicated in the horizontal commitments

 

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC COMMITMENTS

For the 1st Package of Commitments under ASEAN – India Agreement on Trade in Services

 

Modes of Supply: 1) Cross-border supply 2) Consumption aboard 3) Commercial presence 4) Presence of natural persons
Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

  1. HORIZONTAL COMMITMENTS 
 

ALL SECTORS  INCLUDED IN THIS

SCHEDULE

(3).Commercial presence of foreign

service suppliers can be in the

following form:

-   A joint venture with one or more

domestic Lao investors,

-   A wholly foreign-owned

enterprise1

-   A branch or representative office

The commercial presence of foreign

service supplier shall be subject to

approval of the concerned competent

authority and of licensing by the

Foreign Investment Management

committee of the Lao PDR.

The joint venture is established and

registered under the laws and

regulations of the Lao PDR. It is

jointly owned and operated by one or

more legal foreign investors/service

suppliers and by one or more legal

domestic Lao investors.

The activities and relationship of its

parties shall be governed by the

contract between its parties and the

Joint Venture’s Articles of

Association, in accordance with the

laws and regulations of the Lao PDR.

Foreign investors/service suppliers in

a joint venture must contribute a

minimum portion 30% of the total equity

investment in that venture.

The wholly foreign-owned enterprise is a

foreign investment/service supplier registered

under the laws and regulations of the Lao PDR.

By one or more legal foreign investors

without the participation of legal domestic Lao

investors. The enterprise established in the

Lao PDR may be either a new company or

a branch or representative office of a foreign company.

The incorporation and registration of a foreign

investment shall be in conformity with the

Enterprise/Business Law of the Lao PDR.

The terms of operations of an enterprise with

foreign owned capital and of a business

cooperation contract shall be specified in the

investment license of each project in accordance

with the laws and regulations of the Lao PDR.

The branch or representative office of a foreign

company shall have articles of Association

which shall be consistent with the laws and

regulations and the Business Law of the

Lao PDR and subject to the approval

of the Foreign Investment Management

Committee of the Lao PDR.

(4). Foreigners who work in Lao PDR shall

be subject to the law on Promotion and

Management of Foreign Investment in the

Lao PDR and the regulations on immigration.

However, foreign enterprises have the

right to employ skilled and expert foreign

personnel when necessary and with the

approval of the competent authority of the

Government of the Lao PDR.

Facilitation for the entry into, travel within,

stay within, and exit from the Lao territory

of foreign investors/service suppliers,

their foreign personnel, and the immediate

family members of those investors,

service suppliers and those personnel

will be granted by the Government of

the Lao PDR. All such persons are

subject to and must obey the above

mentioned laws and related regulations

while they are on the Lao territory.

Foreign investors/service supplies have

an obligation to upgrade the skills of their

Lao employees, through such techniques

as training in the Lao PDR or abroad. 

1. Foreign service suppliers in the Lao PDR

may lease land within the Lao PDR

and transfer their leasehold interest;

and they may own improvements

on land and other moveable

property and transfer those ownership interest.

Foreign enterprises subject to the Law

on Promotionand Management of Foreign

Investment in

the Lao PDRshall pay an annual profit tax,

calculated in accordance with the provisions

of the applicable laws and regulations of

the Lao PDR.

Other Lao taxes, duties and fees shall also

be payable in accordance with the applicable

laws and regulations of the Lao PDR.

4. Foreign service suppliers and their

foreign personnel working within

the Lao PDR shall pay to the Lao

Government personal income tax,

at a flat rate of ten percent (10%)

of their income earned in the Lao PDR.

 

 

 

 

 

 

 

 

 

 

 

 

 

LAO PDR – SCHEDULE OF SPECIFIC COMMITMENTS

For the 1st Package of Commitments under ASEAN – India Agreement on Trade in Services

Modes of Supply: 1) Cross-border supply 2) Consumption aboard 3) Commercial presence 4) Presence of natural persons
Sector or Subsector

Limitation on

Market Access

Limitation on

National Treatment

Additional

Commitments

II. SPECIFIC COMMITMENTS 

1.  BUSINESS SERVICES

A. Professional services

Accounting, auditing and

bookkeeping services

(CPC 862)

(1) Unbound

(2) None

(3) Foreign service suppliers may

acquire a license to practice as

Certified Public Accountants or

Accounting Consultants in Lao PDR

provided that an agreement or

contract is signed with their countries

on such issue

Nevertheless, on a temporary basis,

the Professional Accountants Body

can authorise foreigners to practice

as Certified Public Accountants or

Accounting Consultants if they

belong to countries, which are

members of the International

Accounting Standards Committee.

To apply for licence in Lao PDR

foreign professional accountants

shall acquire certification based on

the following conditions:

a)  Equivalence of diploma as

provided for Lao professional

accountants. Such certificates

shall be issued with the approval

of the equivalence Qualification

Commission.

(b) Employment of assistants of Lao

nationality in percentage not less

than the one provided by the

professional sector.

(c) Commitment to provide

necessary and continuous

training to employees of Lao

nationality.

(d) Morality conditions required by

the professional accountant’s

body board.

(e) Certification of financial

statements by staff of Lao

nationality.

In addition foreign service suppliers

shall implement rights and

obligations similarly to members of

the professional accountant’s body,

but they may not become members

of such body.

  • For auditing services: foreign

suppliers may audit only

private enterprises

All accounting and bookkeeping must

be done by Lao national certified

accountant.

(4) Unbound

(4) Unbound  

(b) Engineering Services

(CPC 8672)

(c) Integrated engineering services

-Integrated engineeringservices forTransportation

infrastructure turnkey Projects CPC 86731)

-Integration engineering and

project management services

(CPC 86732)

(1) None 

(2) None

(3) a)  As specified in the horizontal

section

b)  not applied for public funded and

foreign granted projects.

(4) Unbound except as indicated in

the horizontal section

(1) None 

(2) None

(3) Unbound

 

 

 

(4) Unbound except as indicated in

the horizontal section

 

- Integrated engineering

services for the construction

services of manufacturing

turnkey projects(CPC 86733)

(1) None 

(2) None

(3) Joint venture with Lao services

suppliers is required and foreign

equity participation is limited to 2/3

(4) Unbound except as indicated in

the horizontal section

(1) None 

(2) None

(3) As indicated in the horizontal section

(4) As indicated in the horizontal section

 

B. Computer and Related Services

Consultancy services related to the

installation of computer hardware

(CPC 841)

Software implementation services

(CPC 842)

Data base services

(CPC 844)

(1) None 

(2) None

(3)As per specified in the horizontal

commitments

(4) This has to be inconsistence with the

Labour Law and Law on the

Promotion and Management or

Foreign Investment

(1) None 

(2) None

(3)Same as mentioned in Market

Access

(4) Same as mentioned in Market

Access and in Law on Taxation

 

Data processing services, included

sensitive data and for non-

commercial purpose(CPC 843)

Maintenance and repair services

ofcomputer(Part of CPC 84500)

(1) None 

(2) None

(3) Joint venture with Lao services

suppliers is required and foreign

equity participation is limited to 2/3

(4) Unbound except as indicated in

the horizontal section

(1) None 

(2) None

(3) Joint venture with Lao services

suppliers is required and foreign

equity participation is limited to 2/3

(4) Unbound except as indicated in

the horizontal section

 
2.  COMMUNICATION SERVICES

C. Telecommunication Services

The following services can be

supplied only on a facilities basis, for

public use, with regard to local and

national long-distance services

(a) Voice telecom services(CPC 7521)

(e) Telegraph services(CPC 7522)

(f)  Facsimile services (CPC 7529)

(1) None 

(2) None

(3)As per specified in the horizontal

commitments

(4) This has to be inconsistence with the

Labour Law and Law on the 

Promotion and Management or

Foreign Investment

(1) None 

(2) None

(3)Same as mentioned in Market

Access

(4) Same as mentioned in Market

Access and in Law on Taxation

 

(d) Telex services(CPC 75233**)

(h) Electronic-mail(CPC 75233**)

(i)  Voice mail(CPC 7523**)

(J) Online information and data base

retrieval(CPC 7523**)

(1) None 

(2) None

(3) Joint venture with Lao services

suppliers is required and foreign

equity participation is limited to 2/3

(4) Unbound except as indicated in

the horizontal section

(1) None 

(2) None

(3) Unbound, except as indicated in the

horizontal section

(4) Unbound except as indicated in

the horizontal section

 

Public pay phone services(CPC 75211)

Electronic message and information services

(CPC 75232)

(1) None 

(2) None

(3) Joint venture with Lao services

suppliers is required and foreign

equity participation is limited to 2/3

(4) Unbound except as indicated in

the horizontal section

(1) None 

(2) None

(3) Unbound

 

 

(4) Unbound except as indicated in

the horizontal section

 
3.  CONSTRUCTION AND RELATED ENGINEERING SERVICES

Construction Work for Buildings(CPC 512)

Construction Work for Civil

Engineering (CPC 513)

Assembly and Erection of

Prefabricated Constructions(CPC 514)

Installation Work (CPC 516)

Building Completion and Finishing Work (CPC 517)

(1) None 

(2) None

(3) As per specified in the horizontal

commitments

(4).This has to be in consistence with the

Labour Law and Law on the

Promotion and management of the

Foreign Investment.

(1) None 

(2) None

(3) Same as mentioned in Market

Access

(4) Same as mentioned in Market

Access and in Law on Taxation

 

Pre-erection Work at ConstructionSite(CPC 511)

Special Trade Construction(CPC 515)

Renting Services Related Equipment

for Construction or Demolition of

Building or Civil Engineering Works

with Operator(CPC 518)

(1) None 

(2) None

(3) As per specified in the horizontal

commitments

(4).Unbound, except intra cooperate

transfer and as per conditions in the

horizontal sector

(1) None 

(2) None

(3) Same as mentioned in Market

Access

(4) Same as mentioned in Market

Access and in Law on Taxation

 
4. EDUCATION SERVICES

The education curriculum and contents must be approved by Ministry of Education of Lao PDR

With respect to B and C below, the commitment cover only in technical, natural sciences and information communication technology and computing,

business administration and business studies, economics, accounting, international Law, and language training fields.

The scope of private education services only fully-privately funded services.

Private Education Services

A.  Secondary education services

-   Technical and Vocational

training (Part of  CPC 922)

B.  Higher education services (CPC923)

C.  Adult education services(CPC 924)

D.  Other education services Short

term foreign language training(Part of CPC 929)

(1) None 

(2) None

(3) As per specified in the horizontal

section and subject to economic need tests

(4).Unbound,except as indicated in the

horizontal section

(1) None 

(2) None

(3) Unbound

 

 

(4).Unbound,except as indicated in the

horizontal section

 
5.  ENVIRONMENT SERVICES

-   The scope of commitments extended to services in Vientiane Capital only.

-   Publicly funded services are excluded

Sewage services(CPC 9401)

Refuse disposal service(CPC 9402)

Sanitation and similar services(CPC 9403)

Cleaning of exhaust gases(Part of CPC 9404)

Noise abatement services(Part of CPC 9405)

Nature and Landscape Protection

Services (CPC 9406)

(1) None 

(2) None

(3) As per specified  horizontal section

(4).Unbound,except as indicated in the

horizontal section

(1) None 

(2) None

(3) Unbound,except as indicated in the

horizontal section

(4).Unbound,except as indicated in the

horizontal section

 
6.  TOURISM AND TRAVEL RELATED SERVICES

(a)  Hotel lodging services, with 3

starts or more(part of CPC 641)

(1) None 

(2) None

(3) As per specified  horizontal section

(4).Unbound,except for intra-cooperate

transferees of managers and subject to

approval of the competentauthority of Lao PDR

(1) None 

(2) None

(3) Unbound

(4).Unbound,except as indicated in the

horizontal section

 

(b) Meal serving services with full

restaurant service(CPC 64210)

(c) Beverage services without

entertainment(CPC 64310)

(1) None 

(2) None

(3) As specified in the horizontal section

(4).Unbound,except for intra-cooperate

transferees of managers and subject to 

approval of the competentauthority of Lao PDR

(1) None 

(2) None

(3)  Unbound, except as indicated in

horizontal section

(4).Unbound,except as indicated in 

horizontal section

 

(d) Travel agencies services, in-

bound services only(Part of CPC 74710)

(1) None 

(2) None

(3) The following requirements are applied:

-   foreign investment shall be as a

travel agency

-   a joint venture with one or more

Lao services suppliers

-   foreign equity participation limited

to 70%.

-   in compliance with the Laws and

regulations of Lao PDR

(4) Unbound, except for managers and

subject to approval by the competent

authority of Lao PDR

(1) None 

(2) None

(3) Unbound

 

(4).Unbound,except as indicated in 

horizontal section

 
7.  FINANCIAL SERVICES, EXCLUDING INSURANCE

Horizontal Commitments Applicable to the Financial Services Sector

Financial institutions in Lao PDR must adopt a specific legal form.

B.  Banking and Other FinancialServices

1.  Acceptance of deposits and

other repayable funds from the

public(CPC 81115 – 81119)

(1) None 

(2) None

(3) Unbound except for commercial

banks: Refer to Commercial Banks Law

(4).Unbound,except as indicated in the

horizontal commitments

(1) None 

(2) None

(3) Unbound except for Commercial Banks 

(4).Unbound,except as indicated in the

horizontal commitments

 

2.  Lending of all types, including

consumer credit, mortgage

credit, factoring and financing

of commercial transaction (8113)

(1) None 

(2) None

(3) Unbound except for Commercial Banks 

(4) Unbound, except for the case of

cooperation in line with the necessity

of economy, allow for management

level and expertise level to come in

(1) None 

(2) None

(3) Unbound except for Commercial Banks 

(4) Unbound, except for the case of

cooperation in line with the necessity

of economy, allow for management

level and expertise level to come in

 

3.  All payment and money transmission services

(CPC81339**)

(1) None 

(2) None

(3) None

(4) Unbound, except  as indicated in the

horizontal commitments

(1) None 

(2) None

(3) None

(4) Unbound, except  as indicated in the

horizontal commitments

 

4.  Guarantees and commitments (CPC 81199**);

(1) None 

(2)  Unbound unless it is approved by

Bank of the Lao PDR

(3)  Unbound unless it is approved by

Bank of the Lao PDR

(4) Unbound, except the case of

cooperation in line with the necessity

of economy, allow for management

level and expertise level to come in

(1) None 

(2)  Unbound unless it is approved by

Bank of the Lao PDR

(3)  Unbound unless it is approved by

Bank of the Lao PDR

(4) Unbound, except the case of

cooperation in line with the necessity

of economy, allow for management

level and expertise level to come in

 

 

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