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Amended Investment Law Offers Tax Incentives, Shortens Concession Period

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Amendments to the Investment Promotion Law offer more tax incentives and shorter investment concession periods in a bid to attract more investors while ensuring closer scrutiny of their operations.

A draft amendment to the law, which was passed by the National Assembly (NA) last week, shortens the investment concession period from 99 years to 50 years, a change that was widely welcomed by NA members during parliament’s ordinary session.

Deputy Minister of Planning and Investment Dr Khamlien Pholsena told Vientiane Times yesterday he believed that the proposed 50 year concession period would remain unchanged even though changes could be made to the original draft in line with recommendations by lawmakers.

However, the 50-year period was not set in concrete. “If deemed necessary, an investment project concession can be extended,” Dr Khamlien told parliament as he was presenting the draft.

The newly-added Article 40 defines the criteria that enable an investor who fulfils the criteria to transfer their investment projects or businesses. This is aimed at limiting the problems that can arise when an investor seeks to sell an investment project for which they have been granted a concession.

In an attempt to encourage investment in rural communities, the amended law specifies three incentive levels. Investors in education, health and agriculture in areas of extreme hardship will be granted the maximum profit tax exemption of up to 10 years or more. Different levels of hardship and fields of investment will attract different incentives.

The amendments require investors to fulfil their obligations to the state as well as their social and environmental obligations.

Amendments to the 2009 version of the law also promote public-private partnership (PPP) and Lao outbound investment. This is the first time that PPP and Lao outbound investment will be incorporated into law.

In an effort to improve ease of doing business, the amended law defines the structures of the central and provincial Investment Promotion and Management Committees to oversee investment affairs through a one-stop service channel. The central committee will be chaired by a deputy prime minister and provincial committees will be chaired by provincial governors.

The measures, regulations and principles defined in the amended law are aimed at promoting and regulating investment in order to ease and quicken the investment process in a transparent manner so that investors are protected by the state, Dr Khamlien told parliament.

“It aims to guarantee the rights and interests of investors, the state and the people,” he said, adding that the amendments will also facilitate efforts to integrate with regional and international economies to drive Laos’ social and economic development.

In 2015, Laos was ranked 134th for ease of doing business out of 189 countries. This was five points better than in 2014 when Laos ranked 139th.

The draft of the amended law comprises 13 parts, 17 chapters and 106 articles.

 

Source: Vientiane Times

Govt Vows Cutbacks in Lavish Spending

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Prime Minister Thongloun Sisoulith has announced that his administration will pursue its plan to curb extravagant spending by state departments, with leaders required to act as role models.

This could be done by restricting the use of state vehicles, ensuring that all state investment projects undergo bidding, and reviewing the unit price for construction projects funded by the state, among other things, the prime minister told the National Assembly (NA) recently.

“Spending in these areas has been too lavish,” Mr Thongloun told the ordinary session of the NA, which ended on Friday.

He made the comment in response to questions raised by NA members regarding the need for frugality.

The premier said the government was about to issue an order condemning extravagance. The government plans to issue several orders in relation to specific areas, he said, adding that the National Policy on Frugality against Extravagance adopted in 2015 was too general and it was necessary to issue specific orders to implement the policy effectively.

Mr Thongloun said he wanted a practical order that could be implemented once it was issued, adding that the government would also seek recommendations from the NA’s Standing Committee before issuing it.

The relevant sectors have been entrusted and prepared to work out details with regard to what unnecessary expenditure will be cut.

The Politburo, the Party’s top decision-making body, has agreed in principle with moves to cut wasteful spending, Mr Thongloun told parliament.

He stressed the need for state officials and leaders to act as role models when it comes to being frugal so that the order, which is set to be issued, is effectively implemented.

“The public keep a watchful eye on officials. Junior officials keep their eyes on their superiors. Leaders must be role models, thus the order will be effective,” Mr Thongloun said. “I believe the NA members will agree on this issue.”

It was important to clarify what should be allocated to leading officials in the way of vehicles and spending on overseas trips. This should include the class of air travel and allowances for different levels of officials, he added.

Spending restrictions during field trips to provinces in Laos also needed to be specified so that duplicate expenditure was avoided, as could happen when both central and local departments covered the spending for a trip.

“Details on these things are needed; although it’s a comparatively small issue, it reflects transparency in ensuring frugality,” the prime minister said.

During the debate, NA member for Attapeu province Mr Leth Xayaphone called on the government to curb lavish spending on the vehicles used by leading officials.

 

Source: Vientiane Times

PM to Attend Development Triangle Summit in Cambodia

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Prime Minister Thongloun Sisoulith will lead a Lao delegation to attend the 9th Cambodia-Laos-Vietnam (CLV) Development Triangle Area Summit, taking place from November 22-24 in Siem Reap, Cambodia.

The participation of Mr Thongloun and his delegation is in response to an invitation from Cambodian Prime Minister Hun Sen, according to the Ministry of Foreign Affairs.

During the summit, leaders will take the opportunity to discuss progress in implementing the master plan on socio-economic development for the triangle development area until 2020.

The three countries will hold talks about the MoU on special preferential policies for the CLV Development Triangle Area, signed during the 8th Cambodia-Laos-Vietnam Development Triangle Area Summit, held in Laos in 2014.

The leaders will also discuss results achieved, especially in infrastructure development; promoting trade, investment and tourism between the three countries; encourage young people’s participation in the Development Triangle Area; and security cooperation, to ensure a secure and stable environment in the region.

The CLV Development Triangle Area, established in 1999, aims to strengthen and promote comprehensive economic cooperation and good friendship between the CLV countries.

Since then, the Development Triangle Area has contributed to political and social security on the borders of the three countries. Border trade has grown and trade regulations and procedures have been simplified.

As of 2013, the average GDP in the Development Triangle Area had grown 10 percent annually and GDP per capita was US$1,340.

The Development Triangle Area covers four Cambodian provinces (Ratanakiri, Stung Treng, Mondulkiri and Kratie), four Lao provinces (Attapeu, Saravan, Xekong and Champassak), and five Vietnamese provinces (Kon Tum, Gia Lai, Dak Lak, Dak Nong and Binh Phuoc).

Laos and Vietnam realised the target of achieving a two-way trade volume of US$2 billion in 2015 compared to an estimated US$1.5 billion this year.

Laos and Cambodia agreed to promote investment and trade cooperation between their neighbouring provinces after the value of bilateral trade reached US$24.5 million last year.

 

Source: Vientiane Times

Irrigation Systems all Pumped Up for Dry Season Agriculture

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An Theun-Hinboun Power Company irrigation canal carries water from the Nam Hai River to the newly resettled Nongxong village farmland.

Irrigation systems will be able to supply water to about 180,000 hectares of crops this dry season, even though some systems are in need of repair.

About 120,000 hectares of the irrigated land will be given over to rice, while other crops will be cultivated on the remainder, according to the Irrigation Department.

Department officials are concerned that the prolonged dry spell could lead to a shortage of water in some irrigation reservoirs but are confident that many pumping stations will continue to function.

Last dry season, irrigation systems were able to deliver water to about 113,000 hectares of rice although farmers planted rice on only about 99,000 hectares or 88 percent of the area targeted, and 659 hectares of rice was damaged, the Ministry of Agriculture and Forestry said.

To ensure that farmers grow more rice this dry season and to ensure a good quality crop, Minister of Agriculture and Forestry Dr Lien Thikeo has instructed the relevant sectors in Vientiane and all provinces, especially those responsible for agriculture and forestry and rural development and poverty eradication, to actively encourage farmers to harvest their wet season rice and prepare to plant dry season crops.

Dr Lien stressed the importance of supplying rice seed to farmers and advising them on the best areas to sow the seeds to avoid damage by cold weather and drought.

He also told agricultural authorities to advise farmers on the correct use of chemical fertiliser, insecticides and pesticides to avoid impacts on the environment and human health.

Authorities were also told to instruct farmers on the right type of animal feed and the need to get livestock vaccinated.

Agricultural authorities were also urged to encourage farmers to mechanise harvesting wherever possible so as to reduce the amount of labour needed and to move away from outdated farming methods to farming on an industrial scale. This would produce higher yields so there would be more crops for sale.

Despite weather extremes and pest infestations, each year farmers are able to produce yields that match the government’s plan and quantities increase every year.

Rice production in Laos for 2012-13 reached about 3.52 million tonnes while 4.12 million tonnes was harvested in 2015-16. This was sufficient for domestic consumption and a surplus was produced for export.

The government spends a lot of money each year to mitigate damage due to weather extremes and pest outbreaks, as well as to increase the quality of the rice crop to ensure food security and enable Laos to be a supplier of rice.

 

Source: Vientiane Times

BCEL-KT: Trade Summary (Nov 18, 2016)

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Trade Summary

On the last trading day of the week, Lao Stock Exchange’s index saw unmoved at 982.76 points. Following 56,200 shares traded for the turnover of 271,625,000 kip, the trading volume should have been better for the favorable prices of the listed stocks. The two stocks traded today were EDL-Gen’s and BCEL’s, while other stocks have been quietly during this session. EDL-Gen stayed at 4,800 kip on 50,000 shares matched. In the mean time, BCEL also closed at unchanged price as 5,150 kip with just 6,200 shares changed hands. In addition, LWPC, PTL and SVN were not able to witness the exchange of their shares, closing flat at 6,100 kip, 2,500 kip and 3,000 kip respectively.

BCEL-KT: Trade Summary (Nov 17, 2016)

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Trade Summary

On Thursday, Lao Securities Exchange’s index reversed previous’ gain by having loss of 982.76 points amid mixed trading. Form the execution of EDL-Gen and BCEL, the total market turnover was 536,435,000 kip, translating into 110,800 shares which were slightly higher than the previous session. EDL-Gen closed in red for second day of this week, the energy stock moved between 4,800 kip to 4,850 kip, but finally considered to close at 4,800 kip on 108,500 shares traded. In the mean time, BCEL kept its persistence at 5,150 kip, having only 2,300 shares matched which generated 11,835,000 kip of trading value. Unfortunately, LWPC, PTL and SVN were quietly closing at 6,100 kip, 2,500 kip and 3,000 kip, respectively.

Valuation of Your Property in Laos

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Laotian Times
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Laos Valuation

By Work Live Laos
Are you looking to purchase a plot of land, or perhaps a new family home? Or have you inherited some property and are unsure of the value? Maybe you have a portfolio of investment properties and need appraisal? In order to know the true value of your property, you’ll need professional valuation.

Despite the recent entrance of large real estate firms such as Century 21, real property valuation in Laos has not yet been officially authorized as a business activity for the private sector. Currently, certified valuation or appraisal is undertaken by the Department of Registration and Valuation, under the National Land Management Authority. It is possible to request a certified appraisal from this department, and it will be appraised in accordance with the department’s internal land pricing index.

Laos Property Valuation

Ask for a Valuation Consultation

To get an idea of your property’s true market value, however, it is worthwhile contacting a professional real estate agency who can offer you some assistance in understanding it. While this won’t be a certified valuation that can be used as verification for a loan or mortgage, it will give you a more accurate picture of market value.

Valuers in other countries use a variety of different methods to appraise a property. These approaches are often less applicable to the conditions of property ownership in Laos,  and so real estate firms in Laos normally appraise property using what is known as the “comparative method.”

The comparative method, or sales comparison approach, is a simple process of comparing sales of recent properties in a given area. Assuming that a buyer will not be willing to pay more for a property than those directly comparable, research into recently traded properties will provide a valuable insight.

A real estate firm has access to a vast database of information regarding recent sales and market prices, and can therefore make a simple valuation for you based on some quick research. While there are a number of agencies offering this service, Work Live Laos real estate agency is qualified and backed up by a number of satisfied clients.

For more information on property valuation, visit our website at www.worklivelaos.com or send an email to contact@worklivelaos.com

 

This article supplied by Work Live Laos real estate agency.
Work Live Laos

3 Online Services in Laos You Didn’t Know You Needed!

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Laotian Times
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Online Services Laos

Laos is seeing a growing number of online services, from online stores to delivery services, but you may be missing out on  some of them if you don’t have a Facebook account, because they have no website at all!

Here are three examples of online services in Laos that will make your life so much easier…

1. Foxpress

Foxpress

Need to get a document across town quick? Foxpress is a speedy local startup that is rapidly gaining momentum! This online courier service will deliver documents, packages, and even food… or flowers (think Valentines Day) to just about anywhere in Vientiane Capital. The pricing is insanely reasonable, and the time you save makes it really worthwhile. So next time, don’t get yourself stuck in traffic for just one paper – have Foxpress deliver it.

 

2. Hin Sai Online

Hin Sai Online

If you are renovating, doing some landscaping, or in need of construction supplies, it can sometimes be hard to find a phone number for a truckload of soil.  Instead of driving around looking for that “Hin Sai”  ຫິນ-ຊາຍ sticker stuck on a post somewhere, just head over to the Hin Sai Online Facebook page and place an order! Hin Sai Online delivers sand, stones, earth, soil, cement blocks, bricks, and even roll-out grass.

3. Book Delivery

Book Delivery

The suitably named Book Delivery does just that! If you’re out of reading material and in a hurry to jump into the next bestseller, look no further than Book Delivery! These guys will deliver books AND magazines to your doorstep after just a few mouse-clicks.

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