4 December, 2019
Until recently, importation and exportation business in Lao PDR remains restrictive, particularly due to the existence of various trade barriers, including the requirement for foreign investor to incorporate locally with high registered capital. In order to resolve this issue, Lao PDR has introduced the process in which foreign trader may engage in importation and exportation activities without having to register as a legal personality under the Law of Lao PDR, via the adoption of the Decision on Rights of Foreign Trader No. 623/MOIC.DIMEX dated 5 June 2019 (“Decision No. 623”), which came into force on 27 June 2019. This article will discuss the rationale, notions, advantages and disadvantages of the implementation of the registration for foreign trading rights.
Foreign Investment in Lao Import-Export Market: Current Situation
In recent years, the Lao market and economy are experiencing rapid growth. The World Bank Group (“WBG”) reports that Lao GDP has increased at an average rate of 7.7% over the last decade. In 2019, it is speculated that Lao economy will advance to 6.5% from 6.3% in the previous year. WBG expects that one of the main contributors to such growth will be the wholesale and retail businesses.
The full article can be found from Zicolaw's site here.
For more information, please contact:
Tuchakorn Kitcharoen, ZICO Law
tuchakorn.kitcharoen@zicolaw.com
