Golden Triangle SEZ Tax Revenue Plunges 49% in 2025 as Hundreds of Businesses Shut Down

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Tax revenue in the Golden Triangle Special Economic Zone (SEZ) in Bokeo Province dropped nearly 49 percent in 2025, following the closure of 551 businesses.

According to the SEZ’s 2025 annual tax report, total revenue amounted to LAK 32.27 billion (approximately USD 1.5 million), down from LAK 127.73 billion (nearly USD 6 million) in 2024.

Authorities attributed the sharp decline in revenue to business closures and ongoing challenges in tax collection. They noted that the national agenda to address economic and financial difficulties has moved slower than anticipated, with business surveys and classifications delayed due to budget constraints and coordination issues.

According to Lao Economic Daily, more than 551 companies in the Bokeo Golden Triangle area ceased operations, while over 1,200 businesses renewed registrations and 165 new taxpayer IDs were issued.

Meanwhile, many businesses with annual revenues exceeding LAK 400 million (around USD 18,500) have not fully transitioned to proper accounting systems, complicating tax assessments. 

Unpaid tax debts, particularly those linked to budget-related spending, have also hindered revenue growth.

Push for Modernization and Stronger Enforcement

In response to these challenges, tax authorities have outlined measures to stabilize revenue and enhance oversight within the zone. These include closer collaboration with the SEZ management committee to improve road fee collection and encourage businesses to file and pay taxes independently through the TaxRIS digital system.

Authorities also plan to tighten monitoring of personal income tax from employee salaries and to ensure full transfer of ID card-related fees from the Kings Romans Group into the state budget.

The group is the primary investor in the Chinese-controlled special economic zone in Bokeo province. It has gained public attention over the past decade after being accused of operating as a hub for online scam operations, human trafficking, and organized crime.

Lastly, tax data collection will be expanded to include infrastructure projects and new business units, aiming to reduce revenue leakage and boost compliance in the upcoming year.

With these measures, officials aim to help the Golden Triangle SEZ meet future revenue targets.

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