You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 26, 2018

Laos Establishes Investment Promotion and Management Committee

Subscribe to Updates

Over the past several months, the Lao government has been introducing a number of measures aimed at promoting foreign investment, from implementing Notification No. 2633/Cabinet/MOIC to abolish minimum registered capital requirements for certain foreign investors, to enacting the new Law on Investment Promotion No. 14/NA (LIP) to facilitate investments among both domestic and international private investors, to promoting the Ministry of Planning and Investment’s One-Stop Service Unit and the Ministry of Industry and Commerce’s Lao Services Portal.

Recently, with the circulation of World Bank Group’s Doing Business Report 2018, which showed that Laos had fallen two places in the report’s ease of doing business rankings since 2017, the government seems to be putting renewed effort into addressing business challenges in the country. The government’s latest measure was the issuance of the Decree on the Establishment and Operation of the Investment Promotion and Management Committee No. 05/PMO, dated January 5, 2018 (the Decree), which provides further clarification on the establishment and operations of the Investment Promotion and Management Committee (the Committee), one of the main approval authorities envisioned under the new LIP.

Investment Approval Authority

The Committee is entrusted to act as one of the main approval authorities in Laos, and will also provide One-Stop Services, serving as the primary point of interaction between the Lao government and private investors of all nationalities.

To better understand the Committee’s role, one must consider that the registration of a legal entity and investment approval in Laos consists of two coexisting processes. Applications will either be handled by:

  • the Ministry of Industry and Commerce (MOIC), or its related department at the local level (i.e., municipal or provincial levels), for general business activities; or
  • the Ministry of Planning and Investment (MPI), or its related department at the local level, for general business activities that are considered to be controlled activities, and concession activities.

Controlled activities include those which may have an effect on the stability of the country, or its order and organization, and the social environment and nature. Requests to conduct such activities in Laos are thoroughly appraised by relevant authorities and government agencies. Controlled activities are currently enumerated under a list that may be subject to wide interpretation by authorities. However, a new list, which may provide better clarity, is expected to be issued during the course of the year.

Concession activities are investments for which the government grants a land concession for the development of a specific project. These may include the development of a special economic zone or industrial zone, the exploitation of natural resources such as a mine or power plant, airline companies, or activities that are operated in the telecommunications sector.

The Committee will be the pivotal authority for consideration and approval of investments, and will include representatives from the MOIC, MPI, and other relevant government agencies. Two different levels of the Committee may be involved in the approval process, the Central Committee or Provincial Committees, depending on the nature and amount of the investment. Consideration and approval for controlled activities and concession activities that may have an adverse impact, as well as approval for the development of a special economic zone, will remain under the ambit of the Central Committee only.

The Committee’s role does not end once investment approval has been granted, and subsequent approvals will be required during the course of the investment and throughout the existence of the legal entity conducting the business activity in Laos if modifications to the initial investment/project are contemplated, such as:  (1) transfer of shares; (2) changes to the objectives of the company; or (3) use of the concession/investment rights as a guarantee. The Committee also has the authority to suspend or cancel licenses granted to investors if requirements are not met.

Promotion of Investment Climate in Laos

The Committee also has the role of supporting the central and local governments in the following investment promotion duties, including:

  • assisting in the research and drafting of policies, strategic plans, or regulations to support and manage investment from the private sector;
  • proposing amendments to laws and regulations to the central or local government;
  • monitoring the adoption and implementation of policies, plans, and resolutions by the central and local governments;
  • researching and drafting policies, strategic plans, and regulations to promote further investment from the private sector, before submitting these to the central and/or local government for consideration; and
  • seeking arbitration from the central government on issues or projects on which the Committee cannot reach a consensus.

One-Stop Services

Both the Central and Provincial Committees will share the duty of managing and improving the efficiency of the One-Stop Service in Laos. Although the system aims to facilitate communication within different government agencies to enable them to provide uniform services to investors, it has attracted criticism from both local and foreign investors over the past few years for failing to have a single point of contact when, for instance, the consideration of an application involves different ministries.

The One-Stop Service units at the central and provincial levels can be considered as permanent offices of the Central Committee and Provincial Committees, respectively. At the Central Committee level, the One-Stop Service will be based out of the Department of Investment Promotion, Ministry of Planning and Investment, and will include a representative from the relevant government agency, who will be tasked with considering different investment requests. At the provincial level, the One-Stop Service will be based out of the Division of Promotion Investment, Department of Investment Promotion of each province, and will also include a representative from the relevant government agency.

The Decree stresses that the Committee has the duty of facilitating private sector investment and easing the difficulties investors may face during the different stages of their business operation in Laos. Thus, private investors may notify the Committees about problems that they are facing during their investment. However, mechanisms for the Committee to receive and provide responses to comments from investors, and the exact issues they will be tasked with responding to, remain in the process of being determined.

Additionally, the Central Committee will be able to organize meetings with domestic and international investors to inform them about new regulations or policies that may impact the local investment climate, and to discuss obstacles encountered by investors to seek solutions to accommodate investments in Laos.

Although not expressly mentioned, the Decree may also help to promote and facilitate harmonious interpretation and implementation of laws in Laos, where the application of laws can vary from one province to another. It is hoped that this issue can be addressed through regular communications and exchanges between the Central Committee and Provincial Committees, such as through the organization of at least one meeting per year.  

Committee Structures and Meetings

The Central Committee will be comprised of the following members:

  1. The Deputy Prime Minister, serving as the committee president;
  2. The Minister of Planning and Investment, serving as the committee vice president and permanent committee member;
  3. The Minister of Industry and Commerce, serving as the committee vice president;
  4. The Vice-Minister of Planning and Investment;
  5. The Vice-Minister of Finance;
  6. The Vice-Minister of Natural Resources and Environment;
  7. The Vice-Minister of Energy and Mines;
  8. The Vice-Minister of Agriculture and Forestry;
  9. The Vice-Minister of Labor and Social Welfare;
  10. The Vice-Minister of Public Works and Transport;
  11. The Vice-Minister of Information, Culture and Tourism; and
  12. The Vice-Minister of Public Security.

The Provincial Committees will be comprised of officials from their respective provinces and administration, as follows:

  1. The governor, serving as the president;
  2. The deputy governor, serving as the vice president;
  3. The head of the Department of Investment Promotion, serving as a permanent committee member;
  4. The head of the Department of Industry and Commerce, serving as the committee vice president;
  5. The head of the Department of Finance;
  6. The head of the Department of Natural Resources and Environment;
  7. The head of the Department of Energy and Mines;
  8. The head of the Department of Agriculture and Forestry;
  9. The head of the Department of Labor and Social Welfare;
  10. The head of the Department of Public Works and Transport;
  11. The head of the Department of Information, Culture and Tourism; and
  12. The head of the Department of Public Security.

The Committee must meet at least twice a month, and may be convened more frequently if necessary. The Decree provides that a quorum is met when at least 50 percent of the members of the Committee join the meeting, and when the members who represent the relevant government agency or have expertise in issues that will be considered during the meeting, are present. To avoid absence, the Decree provides members with the possibility of appointing a representative, or a proxy, to attend the meeting of the Committee on their behalf, whereby the representative should be from the same government agency as the member who is not able to attend.

Budget and Responsibility

The budget to run the Central Committee is directly linked to the Ministry of Planning and Investment’s budget, while the budget of each Provincial Committee is linked to each province’s Department of Investment Promotion, which is the counterpart of the Ministry of Planning and Investment at the provincial level.

The Decree empowers the two Committees to undertake and fulfill duties and obligations assigned to them by the government, and they have at their disposal their own seal to act and decide on both routine tasks and matters of greater importance. The Decree also expressly sets out that both levels of the Committee may enact Decisions (i.e., a legal instrument used by the head of an administration, such as a ministry, to frame their own duties and obligations, better organize the services of their administration, or elaborate and implement higher government legislation), relating to the establishment and operations of the One-Stop Service and its staff.  

The Decree and the Committees it establishes send a positive signal for the investment climate in Laos, and are expected to play a key role in harmonizing investment laws and practices across the country, while expediting investment approvals and other essential processes for investors.

Related Professionals

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

February 10, 2026
Data center and cloud investments are forming a major focus of private-sector investment in Thailand, with tech giants like Amazon, Google, Microsoft, and TikTok, as well as numerous telecom and data center companies, committing significant outlays to data center and cloud development. The country’s Board of Investment (BOI) approved projects worth THB 1.87 trillion in 2025, and THB 746 billion of this was from planned data center investments—by far the largest amount from any single industry. Thailand’s swift rise as a regional data center hub is fueled by surging demand for cloud, AI, and digital services, as well as large-scale investments from global tech firms. The country’s strategic location, competitive power costs, robust fiber infrastructure, expanding IT talent, and supportive government policies—including BOI incentives and streamlined approvals—have made it an attractive destination for scalable and sustainable digital infrastructure investments. The BOI’s proactive approach in updating promoted categories and providing both tax and non-tax incentives further ensures Thailand’s continued growth in this sector. 2025 BOI Changes for Data Centers In the middle of 2025, the BOI responded to the remarkable trend by updating investment‑promotion categories across various sectors (e.g., machinery and electrical equipment, public utilities, digital and innovative industries) to accommodate growing investment in data‑center projects. Before the change, which was detailed in a notification that has applied to investment promotion applications submitted from July 1, 2025, onward, data‑center projects under BOI promotion were granted a single A1 incentive (an eight‑year corporate income‑tax exemption) and subject to one uniform set of conditions. The July 2025 notification restructured promotion for data centers into two categories based on power‑usage efficiency: high‑efficiency data centers and other data centers. Under these rules, qualified high‑efficiency data centers are eligible for an eight‑year corporate income tax (CIT) exemption, while for other data centers this exemption is
Read More
January 26, 2026
Tilleke & Gibbins has contributed an updated Vietnam chapter to Foreign Investment Review 2026, a recently published global guide to the legal and regulatory environment for foreign investment in 25 jurisdictions worldwide. Published and distributed by Lexology Panoramic, the guide discusses law and policy on oversight of foreign investment, regulatory frameworks, procedural requirements, and other important stipulations for foreign investors. The Vietnam chapter was prepared by Kien Trung Trinh, a partner in the Tilleke & Gibbins’ Hanoi office, Dung Thi Phuong Le, an associate in the firm’s office in Ho Chi Minh City, Nguyen Thi Huong Nguyen, associate in Hanoi, and Ngan Thuc Nguyen, paralegal in Ho Chi Minh City. The Vietnam chapter covers the following topics: Law and Policy: Government policies and practices, main laws and their scope of application (including details on investment promotional measures), definitions, rules for state-owned enterprises and sovereign wealth funds, relevant authorities and oversight, and national interest provisions. Procedure: Jurisdictional thresholds, national interest clearance, securing approval, the review process for competition clearance and associated penalties, involvement of authorities, facilitation of clearance, and post-closing regulatory powers. Substantive assessment: Substantive tests for clearance, authorities’ consultation with other countries and other relevant parties, transactional prohibitions and objections, mitigating arrangements and challenges to a decision, and protection of confidential information. Recent cases, updates, and trends: Relevant recent case law, key recent and ongoing developments. A PDF of the Vietnam chapter can be accessed through the button below. Tilleke & Gibbins also contributed the Cambodia, Laos, and Myanmar chapters to Foreign Investment Review 2026. Readers can also gain 30 days of complementary access to the full Foreign Investment Review 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
January 26, 2026
Tilleke & Gibbins has contributed an updated Myanmar chapter to the recently published Foreign Investment Review 2026, a global guide to the legal and regulatory environment for foreign investment in 25 jurisdictions worldwide. Published and distributed by Lexology Panoramic, the guide discusses law and policy on oversight of foreign investment, regulatory frameworks, procedural requirements, and other important concerns for foreign investors. The Myanmar chapter was prepared by Nwe Oo and Aye Thuzar Hlaing, senior associates in Tilleke & Gibbins’ office in Yangon. The Myanmar chapter covers the following topics: Law and Policy: Government policies and practices, main laws and their scope of application (including details on investment promotional measures), definitions, rules for state-owned enterprises and sovereign wealth funds, relevant authorities and oversight, and national interest provisions. Procedure: Jurisdictional thresholds, national interest clearance, securing approval, the review process for competition clearance and associated penalties, involvement of authorities, facilitation of clearance, and post-closing regulatory powers. Substantive assessment: Substantive tests for clearance, authorities’ consultation with other countries and other relevant parties, transactional prohibitions and objections, mitigating arrangements and challenges to a decision, and protection of confidential information. Recent cases, updates, and trends: Relevant recent case law, key recent and ongoing developments. A PDF of the Myanmar chapter can be downloaded through the button below. Tilleke & Gibbins also contributed the Cambodia, Laos, and Vietnam chapters to Foreign Investment Review 2026. Readers can also gain 30 days of complementary access to the full Foreign Investment Review 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More
January 26, 2026
Prisna Sungwanna, head of Tilleke & Gibbins’ office in Vientiane, and Sayphin Singsouvong, associate, provided an updated Laos chapter for Foreign Investment Review 2026, a global guide to the legal and regulatory environment for foreign investment in 25 jurisdictions worldwide. Published and distributed by Lexology Panoramic, the guide discusses law and policy on oversight of foreign investment, regulatory frameworks, procedural requirements, and other important considerations for foreign investors. The Laos chapter aims to give investors an understanding of what to expect when establishing operations and operating in the Lao market, covering: Law and Policy: Government policies and practices, main laws and their scope of application (including details on investment promotional measures), definitions, rules for state-owned enterprises and sovereign wealth funds, relevant authorities and oversight, and national interest provisions. Procedure: Jurisdictional thresholds, national interest clearance, securing approval, the review process for competition clearance and associated penalties, involvement of authorities, facilitation of clearance, and post-closing regulatory powers. Substantive assessment: Substantive tests for clearance, authorities’ consultation with other countries and other relevant parties, transactional prohibitions and objections, mitigating arrangements and challenges to a decision, and protection of confidential information. Recent cases, updates, and trends: Relevant recent case law, key recent and ongoing developments. A PDF of the Laos chapter can be accessed through the button below. Tilleke & Gibbins also contributed the Cambodia, Myanmar, and Vietnam chapters to Foreign Investment Review 2026. Readers can also gain 30 days of complementary access to the full Foreign Investment Review 2026 guide and the rest of Lexology Panoramic’s varied offerings through this link.
Read More