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: a. 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
|
|
b. 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: a. 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 |
|
b. Big project |
More than 40 billion |
|||||
|
|
4329 |
Other construction installation, for this ISIC is specifically for assembling of building parts for: a. 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 |
|
b. 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: a. 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 |
|
b. 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: a. 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 |
|
b. 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: a. 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 |
|
b. International and cross border freight stations |
More than 10 billion |
|||||
|
|
5229 |
Other transport support activities, for this ISIC is specifically for: a. 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 |
|
b. 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: a. 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 |
|
b. A branch of a bank |
More than 100 billion |
|||||
|
c. 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: a. 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
|
|
b. Surveying and urban planning |
||||||
|
c. Interior and exterior design /decoration |
||||||
|
d. Construction consultancy |
||||||
|
e. 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: a. 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 |
|
|
b. 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.
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