On 20 March, members of the National Assembly (NA) approved a special incentive package for investors in the Amata Special Economic Zone, granting them tax exemptions for up to 30 years.
The Amata Industrial Investment Zone, spanning 3,150 hectares in Namor district, Oudomxay Province, and 410 hectares in Nateuy district, Luang Namtha Province, is expected to boost exports, create jobs, and encourage Lao migrant workers to return home.
The zone, located near the Laos-China railway station in the north, will be developed as a model of modern industrial parks with smart and eco-friendly features, attracting global investors.
The special investment incentives were approved during the 2nd Extraordinary Session of the National Assembly’s 9th Legislature, led by National Assembly President Xaysomphone Phomvihane.
Deputy Prime Minister Saleumxay Kommasith explained the policy, which targets four key sectors: agricultural processing using local raw materials, renewable energy equipment manufacturing (including solar panels), automobile and spare parts production, and electrical and electronic equipment manufacturing.
Investors in these sectors will benefit from a full profit tax exemption for 30 years, starting from the date their factory operation certificate is issued.
The policy underwent a thorough review process, which included consultations, public seminars, and discussions within the Standing Committee of the National Assembly and the Central Party Committee’s Politburo. Saleumxay emphasized that the policy was developed transparently and in alignment with the country’s development goals, with all stakeholders thoroughly debating its details before approval.
To qualify for the incentive, investors must establish businesses in designated zones within the Amata Industrial Park and focus on one of the four priority industries. Developers must also meet 14 key obligations, and 10 additional conditions outlined in the Decree on Amata Industrial Park.
Factory investors will enjoy a 30-year profit tax exemption, while developers will be required to raise between USD 4.5 billion and USD 5 billion in capital within five to seven years, benefiting from incentives under the Law on Investment Promotion.