Foreword
For the last two decades, since the “open door policy” of the Lao Government has been implemented, both domestic and foreign investment has significantly evidenced its contribution to the Lao National Social Economic Development. Overall private investment has shown it noticeable yet gradual increase, as a component of GDP. Approximately, GDP has made of 13 per cent of private investment, where FDI is of a significant part.
Government, with the aim of achieving its national goal of poverty eradication by the year 2010 and graduating the country from LDC status by the year 2020, considers FDI as a key player in realizing its objective as FDI has brought about enormous benefits, directly and indirectly, like capital inflows, technology and know-how transfer, job creation and so on, as well as promoting cross-cultural understanding.
Acknowledging the importance of FDI, many policy measures have been introduced to create enabling business and investment environment thus attracting more FDI into the country. Recently, the government has reviewed its 1994 Law on the Promotion and Management of Foreign Investment in Lao PDR aiming to offer more competitive advantages and incentives to foreign investors. The domestic investment law of 1995 has also been revised to create a level playing field for both domestic and foreign investments. Both newly amended laws were adopted by the National Assembly in October 2004.
Recognizing the role of the Public Private Sector Dialogue as the most effective way of promoting better understanding between the government and the businesses, in March 2005 the government has also taken a further step and signed the Memorandum of Understanding with the International Finance Cooperation (the World Bank Group) to launch the Lao Business Forum which is to be organized twice a year.
The continued inflow of foreign investment has provided further impetus to Laos ' economic growth. Many infrastructures such as roads, bridges, hydropower dams and transmission network, and telecommunication have been and being built which assist in transforming Laos from a land-locked to a “land-linked” country.
The publication of this newsletter is designed to provide updated insightful news and policy regarding investment in Lao PDR. I strongly hope that investors and readers will find this newsletter useful.
H.E Dr. Thongloun SISOULITH
Deputy Prime Minister
President of the Committee for Planning and Investment
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