Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697635232588.pdf (Australia)
SCHEDULE OF RESERVATIONS AND NON-CONFORMING MEASURES FOR INVESTMENT ANNEX Ill LAO PDR LIST A EXPLANATORY NOTES 1.

This List sets out, pursuant to Article 10.8 (Reservations and Non-Conforming Measures) , Lao PDR's existing measures that are not subject to some or all of the obligations imposed by: (a) Article 10.3 (National Treatment); (b) Article 10.6 (Prohibition of Performance Requirements); or (c) Article 10.7 (Senior Management and Board of Directors).

2.
Each entry in this List sets out the following elements: (a) Sector refers to the sector or sectors for which the entry is made; (b) Subsector refers to the specific subsector for which the entry is made; (c) Industry Classification refers to the activities covered by the entry according to: (i) (ii) International Standard Industrial Classification (ISIC) Revision 3 for manufacturing, agriculture, fishery, forestry, mining and quarrying; If the entry does not exactly conform to the ISIC, Lao PDR specified the coverage of the entry, as necessary and appropriate; (d) Level of Government indicates the level of government maintaining the listed measures; (e) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to Article 10.8 (Reservations and Non-Conforming Measures), do not apply to the listed measures; (f) Description sets out the non-conforming measure for which the entry is made; and (g) Source of Measure means the laws, regulations, or other measures that are the source of the non-conforming measure for which the entry is made.
A measure cited in the Source of Measure element: (i) (ii) means the measure as amended, continued or renewed as of the date of entry into force of this Agreement, and includes any subordinate measure adopted or maintained under the authority of and consistent with the measure.

3.
3.

This List and List 8 pursuant to Article 10.8 (Reservations and Non-Conforming Measures) follow the negative list with two list approach as follows: (a) (b) this List sets out commitments in relation to existing non-conforming measures which are subject to standstill obligations but not subject to ratchet mechanism; and List 8 sets out policy flexibility in relation to measures in sectors, subsectors and activities.

4.
4.

Lao PDR may maintain any non-conforming measures other than those set out in this List provided that the non-conforming measures are in effect on the date of entry into force of this Agreement, and that Lao PDR notifies other Parties of the non-conforming measures within a period of 24 months of the date of entry into force of this Agreement.

ANNEX Ill- LAO PDR- 2 5.

6.

In the interpretation of an entry, all elements of an entry shall be considered .
The Description element shall prevail over all the other elements.

These Explanatory Notes shall form part of the Lao PDR's Schedule of Reservations and Non Conforming Measures for Investment.

ANNEX Ill- LAO PDR- 3 [ .. ~~~~~~ ....... ···-··-· - -·- !

Subsector l ............................. -- .... ................... ............ ... ........... \ Industry Classification - - - r~-~e __ -__ v_·_-_e_·_·_·_l_· _·_-o_--__ ;_·_·_G_ .. ___ - ~ __ ·-_v __ ·_·_·~-·-_r_·_~_ .•••.
m_-___ ._e __ · ----~ .. -.-~ .. -.. -... · -~--- _ ~ ~~:~~~:~~on~co·~- - - ....... - --~ : ·: ~~~;~-e~~-~~~~~~;-~~;~;i~;;; ~~~-~-r~;;~~--~-~~micals ~~~~; ·-- .

I .

.

.. · ·· ..... T ·-···-.. ·-r ........ --··· .......... · -..... --·----· · -·-··--·-··· -·-··-·--··- --·-··-·-·· _ .. ___ · ···----·-···-· · ···· ·--· !

: , Hazardous Chemicals Type I ·T-~ ·;-~·-··---- .. .... ------·· ---- -- -r ; --.

~~~~~~; ..... -.
~~~~~~; ..... -.

-----··-----·--------.. .... -··-·- .. - -··- -j-• -: if~~~~~~~;~f~~:;:r~i;~;~:ii,~:~~~~ =~~::::~ ....... """~""""' ....... - .............. ··- ...................................................................................... .

1 , 1 1 I ·--·.. ..... ................ .

... -........... ................. ......... ..... .
.. '"1"""' I Source of Measure ' 1 I relating to research , technology development, protection and 1 prevention of danger which may arise against health, life, i property, or environment and the use of national defence and ; public security activities.

provided that such activities are i approved by the Government of Lao PDR.

1.. ................. .

........... -...... ------ • Law on the Chemicals Management (No.

07/NA, dated 10 ; November 2016} , Article 10 .


--- ............................................................ .. i ANNEX Ill -LAO PDR- 4 2 ... _,,,,,,,,_,,_,,,,.,,,,,,,, ......................... --···-······--·-·-···---···-··-.. Industry Classification Level of Government Obligations Concerned Central Bank Currency lssu ance Paper money, money printi and coin smelting equipme ng inks, money printing machinery, nt National Treatment (Article 10.3) -~· · ~ ... ···~ ·-·.
ank of Lao PDR, Article 24 states as the sole right to issue notes and ney, money printing inks, money oin smelting equipment, etc.)

with ment of Lao PDR.

According to the Law on B that the Bank of Lao PDR h coins (including paper mo printing machinery, and c the approval of the Govern Source of Measure Law on Bank of Lao PO R (No.

05/NA, dated 14 October 1999), Article 24 .... ___ , .. ,_ ............... - ........ -1.

.............

!...-..


- ·-··-·-··-· ..... , .... _, ~· ····-· ··-······ ...... ····--··· ANNEX Ill- LAO PDR- 5 3 ··~··· ~ ·-· ... ..,.~- ·-··.

·-........... ,._, ....... -.

-.. ·--··-.. -.. -----·----- -· ·- ·---·-·-·-··· ... -·- ... ·----·---·-· ............ ·- .
·- -···- i : Manufacturing Sectors TT::;:;~;~~~------- ---- -------- - ······1 ..... ··r ................... -·--.......... ·----................................... .............................. -............ .. .................................... . '
ISIC 1312, 1321 .............. ..J ........... r ................... -.................. -... -...................................... - : I Obligations Concerned ............. ·-·----·-······ -····---· ......... -.. ··-- ····-... -····- ---- ·-r-.... --·-·-····--·-····--··-··-..... ·--···-----··-·-·---······ -·· -· .

·- : i National Treatment (Article 1 0.3) ................. j ......... j .......................... ....................................................................... - ..... .
Central Description I · I Investments in weaving of textile with unique ethnic designs !

textiles and clothes \ by hand, not ' manufacturing, are reserved for citizens of Lao PDR.

!

industrial including Investments in needlework with unique ethnic design by hand, not including industrial textiles and clothes manufacturing, are 1 reserved for citizens of Lao PDR.

: Notification on the List of Types of Businesses Reserved for · ~~t~z5~ns.
:~-~~~--:~:.-~-~~- -~~2-~/~:~_~ .. ~~~~- -~a~ed 13 July ·····---·l ·········· '·-··-·--·--· ... ····--- I I .... ·-·----··-···--·-··-·· __ .... .. ....1 .

.... ANNEX Ill - LAO PDR- 6 4 00 ON 'ONMO-NON'OOO_N_oOONNOONN00-0 .. , ... _,,, Sectors Manufacturing of other products of wood Manufacture o f articles of cork, straws , and plaiting materials Industry Classification ISIC 1629 - Central --------·-·---------·---·-·--·--· -·+-- -··1---·----------------·-·-· .. ---·-····- .
----· ··-···········- ·- Obligations Concerned National Treatm ent (Article 1 0.3) i Description Source of Measure Investments businesses of unique ethnics in small wood processing factories and manufacturing carved wood and wicker with culpture are reserved for citizens of Lao PDR .

Notification on the List of Types of Businesses Reserved for Citizens of La o PDR (No.

1328/MOIC.DERM, dated 13 July 2015) ANNEX Ill -LAO PDR- 7 5 ~---~~~~-~~::·~::~: :~~-.

:~-:-.~~~-·::::: .. ··· ........ t.


::::~:0.~~~!~~~:~~~:-.~~~~~~-~s:~::::~:.

:_ ~ :·.

::~=:.-~::·: ::~· f ::~~~:~~~~,;;;;,;~~ _ .. -1 ~; ~;~u:;nn~~~~a,~and:e<amic pmduc~ ·-· -· ___ _ [ .. - -·· ....... ................... ____ .. ,......................... 1 ~-;,;~;~?n~~~.~- .

............. ....... .............. .. ,_ ........ ...... - ............... - ....................... .
I ; -+- ' Cent<al ___ _ ____ _ ~-- ~-- -·- ··-----···· ··---- l I oe,cciption - ---- --- ----·- - ·-·---.~-- - ~~~~:~;~~~,g~r~~~~!\~~~~,~~.

~~h~~~ ,i~i:;~:: !

r~~~~~~ M~~~~~-- - ---r ~ ~~i:i':-i~~~~~~~~;ri~;~~~i~:i~~d:~::~~~~; 1 .

···· ···············-·········-·········--········ .. .J ... ····2-~-:~)-· ·······-····-····-···- ... ·······- ---··· ......................... .

ANNEX Ill- LAO PDR- 8 6 Sector Subsector ~-~~-·.


---·----· '··~ rs Manufacturing of jew ellery and related articles Manufacture of imita tion jewellery and related articles Industry Classification ISIC 3211 , 3212 ----·-· ----· ···--·-··-.

----· ---··---...... National Treatment ( Article 10.3) ·-·---··----.......... ............ .

nesses of production of local and related articles with unique Investments in busi jewellery products designs are reserved for citizens of Lao PDR.
ethnic Source of Measure Notification on the L ist of Types of Businesses Reserved for Citizens of Lao PDR (No.

1328/MOIC.DERM, dated 13 July 2015) ANNEX Ill- LAO PDR- 9 7 r s;~;~~ ---·-- · ·-----·--- ·---------· -··--·---r-;-·· ---~~~~~~;~ -~;~t~~-~--------·--···--· ... r- .

.

...... _............... .. !

Subsector .. ...... ----·--·--.... ··-· ... -··r ... .. ·-.... -·-··-·---- -·-----·--.. -····---·-·---· -· ............ -... .

........... -·--·· .. -· ~- .

................................. .. .


.. .. ........ -··--·-· Exploitation of timber and non-timber forest products of national forest (NTFPs) Forestry, logging and related activities 00 - · · -OoHHM_O_N_N_ONOONNO- 0 -0 HHO 00 0 OOoOOH O 000 - - · --· - 000 •00 OOHOOO 0 OOH-•0io0oo - - -t 0•0 H - - · - - - · · 0 H H , , __ .

.

,_ , H - ' l--•• oO• !


Industry Classification i i I i : i ISIC 0200, 0220 I [--·--··---·--.. --······· -......... _ ..... ----··-··· ....... -· ··-· ................ i ......... -!·-.. ----·- .................. -- ........ --·--··--.. -· .... ................ .

.

.

..... ·····---·--··-·· ........... .. ~~::;~;~~~:;~:~.d-- f -~~~:::, T ,.;;~~-;;;.

;~~-1 ~-~ -- - ' .

-- - 0 H OHOO .

.

H -0 - 'HH 00- -0 OoO OHH-OHoO 0 0 00 0'0 H O 'ON HH 000 -0 'HH .

.

.
.

.

HO.. 0 00000 OH NH 0 o oOHo.. ' ' ' " '0 ' " 0 " ' " ' ' " - · · - -00' '0 -0 ........ ---·--·------ ........ 1 ....... ·:-···· ............... -.................... _________ .................... ··-·-···-···-····-···-.. ··· ............................................ _ ... .

I ' Prohibition on Performance Requirements (Article 1 0.6) I 1--- I Description : 1 1 I' !I products of national investors.
, Investments in exploitation of timber and non-timber forest for domestic forests are reserved i i Forestry, logging and related activities are subject to specific ; !

approval by the Government of Lao PDR.

Forestry Law (No.

06/NA, dated 24 December 2007), Article : 49; Prime Minister's Order Regarding the Increase of Strictness in Forest Management and Logging Business in 2007-2008 (No.
30/PM, dated 17 August 2007) I L ... - .................. .............. _ .................................................... .......... ···-······-·-....................... ............... - .. --···· ·· .... - ................ ......... _ ............. ..

I ;;;;~~-.;~-~~~~.

;;~ --- - ANNEX Ill- LAO PDR -10 8 Sector Subsector Industry Classification ·--··-·····--------····----- ---------- - --··· ·-·-·-····-·-··· ' Description .

~-- ...... ·--·----· ... ···---·--.


-- ·-· ---· -~--~ .. ·-···---· -----···--··-·-- -· '·- um and Thorium Ores (Radioactive Mineral) .. ---~·-·· · ... -~--- __ , _______ ,' ___ ,,_ ---· ent (Article 1 0.3) ----- ----···----·· ····---·-· -· .

-· ·- ...... nt of Lao PDR defines reserved areas and mineral resource areas in accordance with the economic development plan for exploration, pment and mining operations, in support of the t and the sustainability of natural resources.
The Governme protects some national social planning develo national interes ................................... ···- ·-- ·-·····--···········-·· ... -·!··--······ !·--·- ··-··· -······· --·-· ·-·· Source of Measure ---------· ----·-·-- -· ...... ··-·- .

--- - ·-·- (No.02/NA, dated als 20 December 2011 ), Law on Miner, Article 10 --···---------·--·-··--···-·····- ........ ANNEX Ill -LAO PDR- 11 9 r-----......... - ····-···~---·-- ............. ·•·· .

.

.

··----·--·--··--·-·-·- ---··· .


··--··-r···· ·-· ·- -- .... ·---- ···--"- - - ·--- ··- ......... ·---·-----------· -- -·- .... --· .. i Sector i t ..... , .

Fishery Sectors i i .

..... t· .... :·· ........................................................... _ ...................... .. .

i Commercial ornamental fisheries ... .... .

.. .. ...... ..... .

.. .

.. ......................... ... ......... .... ... .

..................... .. 1 Subsector f· \ Industry Classification i .
·-····· -- ..................... !

Level of Government .

..... ··--· ···-- ···-·--·-•··.

······- I .. ···i j .... ""'1 i r ........................................................... ···-·----............................. -.. r ........ ,... ... ............ .

.............................. -..................... .... .. .............. ... -· ................. ..
I : i National Treatment (Article 10.3) 1 Obligations Concerned t ____ ...... --------- ·- _____ .. ___ ....... - ................................... ..1 ........... L ... ·---.............. .. ........ ............ .

.

.. .............. ............... .... ................ ... i I \' 1,_ Description I : ' Central I ...... .. ...................... ............ .. ... .

.... .. -· ........................ . '


Any fo reign individual or organisation with the aim of engaging in commercial ornamental fisheries such as aquaculture, breeding, propagation, and import shall seek approval of the , relevant authorities in accordance with the Law on Investment I 1 .

!

11 Promotion.
!

11 Promotion.

................................... --·-· --....... --- r i Source of Measure l - - ........... r- .. ·-·- ·· .. .... _________ _ -····--·- .. ....... ·---------------··········-···---· .. -······---·-·------····-······- ·- ............... ········-·----................. .

i Law on Fishery (No.

03/NA, dated 9 July 2009) , Article 31 Law on November 2016) Investment Promotion (No .
14/NA, dated 17 i ................ L. ANNEX Ill- LAO PDR -12 10 Industry Classification Level of Government Obligations Concerned : Description Source of Measure ··-·······-···-··-·---··-···· ........... _ tors ·---·--·--·-----····-·------·· .............

Guano (Bat Du ng) .

-··-·-·-·-.

-·- --·- ··-- ... - ··- · ·-· .... ent (Article 1 0.3) erformance Requirements (Article 10.6) ·--·---.

----·------·-- --· ·-·· Guano (Bat Dung) businesses are reserved for Investments in domestic invest ors.
Order of the 2050/MAF99, d of Guano excav Minister of Agriculture and Forestry (No.

ated 20 December 1999), regarding prohibition ation for export Order of the 613/MAF99, d management o Minister of Agriculture and a ted 8 July 2005), regarding f Guano in Lao PDR Forestry (No.

utilisation and ANNEX Ill- LAO PDR -13 LIST B EXPLANATORY NOTES 1.
This List sets out, pursuant to Article 10.8 (Reservations and Non-Conforming Measures), the specific sectors, subsectors or activities for which Lao PDR may maintain existing , or adopt new or more restrictive, measures that do not conform with obligations imposed by: (a) Article 10.3 (National Treatment) : (b) Article 10.6 (Prohibition of Performance Requirements): or (c) Article 10.7 (Senior Management and Board of Directors).

2.
Each entry in this List sets out the following elements: (a) Sector refers to the sector or sectors for which the entry is made; (b) Subsector refers to the specific sector for which the entry is made; (c) Industry Classification refers to the activities covered by the entry according to: (i) (ii) International Standard Industrial Classification (ISIC) Revision 3 for manufacturing, agriculture , fishery, forestry, mining and quarrying: If the entry does not exactly conform to the ISIC, Lao PDR specified the coverage of the entry , as necessary and appropriate: (d) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to 10.8 (Reservations and Non-Conforming Measures), do not apply to the sectors, subsectors or activities listed in the entry; (e) Description sets out the sector , subsector or activities covered by the entry; and (f) Existing Measures identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors , subsectors or activities covered by the entry.
3.

List A and this List pursuant to Article 1 0.8 (Reservations and Non-Conforming Measures) follow the negative list with two list approach as follows: (a) (b) List A sets out commitments in relation to existing non-conforming measures which are subject to standstill obligations but not subject to ratchet mechanism: and this List sets out policy flexibility in relation to measures in sectors , subsectors and activities.

4.

5.

6.
4.

5.

6.

In accordance with Article 10.8 (Reservations and Non-Conforming Measures) , the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors and activities identified in the Description element of that entry.

In the interpretation of an entry, all elements of an entry shall be considered .

The Description element shalf prevail over all other elements.
These Explanatory Notes shall form part of the Lao PDR 's Schedule of Reservations and Non Conforming Measures for Investment.

ANNEX Ill- LAO PDR- 14 Sector Subsector Industry Classification All Sectors Level of Government , ...... ··-----·----------.-.............................. ·---··--- --- -----·---- ---· Obligations Concerned Central Article 1 0.3) Description Existing Measures ventures between domestic and foreign investor is required to contribute at least al capital.
1 t Promotion ticles 26 through 31 (No.
14/NA, dated 17 ' For the purposes of this entry: (a) (b) (c) (d) a wholly domestic or foreign-owned in vestment is an investment entirely owned by either domestic or foreign investors, and can be either a single investor or group of 1nvestors in the enterprise or project 1n Lao PDR; business cooperation by contract is a joint business arrangement between domestic and foreign juridical persons including public and private parties through a business cooperation contract according to the laws and regulations of Lao PDR for a certain period of time without need to establish a new legal entity or branch in Lao PDR; a joint venture between a state-owned enterprise and a private enterprise is a partnership between a state-owned enterprise and a private enterprise in order to operate business, have co-ownership, and establish a new entity under the laws and regulations of Lao PDR; a public private partnership business is a joint-venture investment between a public authority and a private party under a joint-venture contract to implement a project of new construction, improvement of infrastructure, or provide a service to the public.
ANNEX Ill- LAO PDR- 15 2 1 Industry Classification ~~-~;~r - ----- -------·--···---···-······r~ ·:---~~-~-~~~~-i~~- -~-~~~-~;~~~; - ··------- -- ··----·- -- r;~b~~~~==~~--~-~~· =r ~ =· -- -~==:=··- ~~~~~;:~~~~~=- ···.

l::~~; ___ =::·~ =::· .

:~=···· I :~::~:~~:~~~~em:~-~ l ~.

~~;o~~;~~~~n1~2,'~~~~;:~;;~;~~~~ne5'es shall not be 1 : ' - li 1 I 1- ........... .................. - ___ ....... ............ --- I Existing Measures I ll, 1 i I I IFess than 30 pber cent of thehtotal capt ital.d .
h 1 or genera us~nesses , t e reg 1s ere with the Law on Enterprise.

1 cap1ta s a comp y 1 11 ................ --·-- ......... ..... ........... ................. ................. .. ..... ... .......................... .. ...................... .. ' Law on 1 November 2016), Articles 51 and 52 Investment Promotion (No.

14/NA, dated 17 L __ .. -- .. ········ -·- --· ---... -····· --- ____ L --L ~~-~ --~~ -~~r.~:~'.~~-=--~~~-: ~-~!.~A_' ~~~~~--~~ -~~~~-~~er ~?~ 32.

... .
... .

ANNEX Ill- LAO PDR -16 3 All Sectors Level of Government Obligations Concerned Description ·-·· ) Foreign employees shall not ex experts undertaking physical technical experts undertaking m of Lao workers in the enterpris obtained from the Ministry of La ceed 15 per cent for technical work and 25 per cent for ental work of the total number e. Working permission shall be bour and Social Welfare.

.. ' Existing Measures ; Labour Law (No.


43/NA, dated 24 December 2013), Article 68 ANNEX Ill- LAO PDR- 17 4 i 1 Sector r· --··-.. -········ 1 Subsector [ l;;:~try Classific~ti~~--·--- f---·-·········-·····-····-······-·-·· ·-··- ··············-····-·-·- [_~~~~-~ -~~-~~~-=~~-~~~~--- " I Obligations Concerned f- ....... ···-·-····· ·-·-· - .. --·---····- ... ··-·---· ... -· - I Description _, .

.......... ··-·····- I f- i Existing Measures I ' .

.

----- .. ·-.. ·- ------~ -· •··· .......... ..j..


I I ::t1 --+ .

I _~e~t,al __ -=== -~ __ National Treatment (Article 1 0.3) , Foreign investors and their families have the right to reside : within the territory of Lao PDR according to their terms of , investment.

Foreign technicians and experts have the right to reside in the territory of Lao PDR according to their employment contracts.

I -l ···· ............ L ······- '·-··-·--··-· ..... --·····-······- ;- ~~:~~~er ~i1~:;~:~~~~~~;i~~;;~~- ·(~-~.
-- 1-4/NA, .

.... ··-····-····-········-······-·-·--··-·-··-·--····-····-·······-· ..... ·····-·· ··-··-····--·-··· .. -~-~~~···· 17 ANNEX Ill- LAO PDR -18 5 I 1 Sector ~---·· .. --.. --·--··""'"''''"'"'''"-···-·-·--·-· .. --... ·- ·-·· ----- ----· -~ - .
__ i __ ___ -·------ ---- --- ; · j All Sectors l i ~ ~-~~s_::~~:.... ------·--·-·-----------·-----t·--~ J= ----·-----·-·-·--.. -.. Industry Classification 1 : I Level of Government ........................ ~ I-~~ ~~~~~~~~~ :~~=-~-: Description i J Term of investment licences \ : I National Treatment (Article 1 0.3) !

...

··-.,--·--··- r--· .. ···- ··- ··-----· ··--·--· -·- - ..

I I General business: l The investment in general I investment except for a bus !
determined in accordance w I relevant authorities.

I I Concession investment: I The term of investment in c I the investment i concession activities based I it shall not exceed 55 years I 1 approval of the Governm type, size, i .
: business has unlimited term of iness where the term has been ith the laws and regulations of oncession business depends on value , and conditions of the on relevant laws and regulations; , but may be extended with the ent of Lao PDR or provincial Existing Measures _[_ -~~:o~~~~:~;;~ent Prom otion J November 2016), Articles 40 and 42 ... .. __ J.

____ .. ·- l ...... ··- --- ·-··--· --·---.. -·- - .. (No.

14/NA, dated 17 ANNEX Ill- LAO PDR- 19 6 ~-~;~;~-~ --... .

.

................. -·· ... .

.

.... .


.. .

...... ·······-·· ......... 1, t -----.................................................. --- ........ .... .. "'"i ....... ·-...................... .................. --................................... .......... -.... - ............. - .......... .. .

'1 ;--· :· ~~-~~-f~ ~t~ ~~~-~-- .... --·-·-· .. .

·--· ..J .

!_~~~-~-f~~~~~ -~~-~~-~-~~--:.~~~ pro~~~~~~-~~~~:......

I .. .......... ....


I SIC 1079 I l-~~~~~~~~-r __________ ..... ........ .. .. ......... _ J 1i .

... ···- --~ !

Industry Classification !

[-L~~~;~;~-;~~~n-~~~~ ----····· .. --· ·r ... --- ~~-~t~~; ···----.. -- --------·-·--·---- l0~":~on~~~~~~:~:~-·~-~· ~ •.

]_J~~~a~~~:~:~~:~~;r:)of~~ctor~ {Article-·10 7~ _I II !
I the joint venture's licence: (a) that a domestic investor must be the owner and hold I A foreign investor is allowed to establish a joint venture on the I I : following conditions: i Description I I I I (b) the registered capital of the joint venture must be at i I I i I i (c) the foreign investor shall hold not more than 20 per I I I !
____ .......................................... - ................ ---·--· .................. +-· ... -~-.... -........... .... --............ --·--......................................... ___ ..................................................... -·-·· ....... 11 i : : Notification on the List of Types of Businesses Subject to , 1 Existing Measures I Investors (No.

1327/MOIC.DERM, ' I l .. ............................... ..
I Conditions for Foreign dated 13 July 2015) .. ...... .. .1 ··-· .................... .

.............................................. - .............. ... .

.... -- ............... -- ..... cent of total shares of the joint venture.

least one billion Kip; and ---......................... ·-.

...................... - I I I .. ... .... .


.... , 1 · I, ANNEX Ill- LAO PDR- 20 7 Subsector Manufacturing Manufacture o botanical produ cts f pharmaceutical , medicinal chemical and Industry Classification ISIC 2100 Level of Government ··-··-··-""""""' ..... ···-· ·······-· ...... -·-·-·-···-- "'"""' Obligations Concerned Central National Treatm ent (Article 10.3) Description Existing Measures Senior Manage ment and Board of Directors (Article 10.

7) A foreign invest following condit .


~ ·-- -···~ .. ··~-·-· ... ··-··-- ··- ·-· -·.

or is allowed to establish a joint venture on the ions: (a) that a d the joint omestic investor must be the owner and hold venture's licence ; (b) the regi stered capital of the joint venture must be at least one billion Kip; and (c) the fore cent oft ign investor shall hold not more than 49 per otal shares of the joint venture.

the List of Types of Businesses Subject to Investors (No.
1327/MOIC.DERM , Foreign 015) ....... ,_,,, .. ,_ .. "''"'" ---·····-··-·.

-- ·- ·- .

·-·· .. --·- ANNEX Ill- LAO PDR- 21 8 r- --.. - -·-··-.. -----...... _.

-.
-.

··-............ ···-··· -·- .. --- 1 Sector r-~:~~~~~~~- t .. -· ---___ , ___ ,, .......... ,,,._,.,,, __ ......... --· .. f ~-~~=~~~-~~~=s~r.~~~~i~-~- .. 1 Level of Government r~~~i~~~~~~·~·~~-~~~~·~-~~-· t·------·--·-·---···-···-··-··--··-·-···-···-·-·····--.. -· ......... T-· .... - ..... ·-·---------· .. - ····-- --·- ........ ·--·--·-----·-- ··- ·--· ··- ·-· -· -·- .. ---- -· ........ .

i : · Agriculture .............. '"""\"" .

: .


........... - ... ·- .. -· ---r;·-:- ---- ......... -...... ----·--·-"""'"-- ----·- --· -· -·- -- -·- .

'"T -- - -- .

--.

---- -·---·------ ----- --- - I .

; Central and Provincial -·--"'•"'1"'"" ·-;···· .. ·--····· ........................ , .. ,_,_,_, ___ , ____ , ____ , -·--·-·- ... ,_. : 1 National Treatment (Article 1 0.3) 1!
I ··--r- -'-~~·-;~~~~~;~·-~;~-~·i·~~--~~- i-~~~~t -i-n agriculture a~~i~;ti~;-:;th a · government land concession , shall obtain an approval for primary data collection of land and project from the relevant competent authorities, following procedures as stipulated in relevant laws and regulations.
Following the completion of primary data collection , the investor shall obtain an investment approval from relevant competent authorities, and sign a : Memorandum of Understanding with the Government of Lao , PDR.

i !
i !

I Provincial competent authorities shall consider a request for: (a) a project with degraded forestland up to 150 hectares and with a lease or concession period not more than 30 years, which may be extended on a case by case basis; and (b) a project with barren forestland up to 500 hectares and with a lease or concession period not more than 30 years, which may be extended on a case by case basis.
: Central competent authorities shall consider a request for: (a) a project with degraded forestland between 151 and lease or concession 15,000 hectares and with a period more than 30 years, but not exceeding 40 years , which may be extended on a case by case basis; and (b) a project with barren forestland between 501 and 30,000 hectares and with a lease or concession period more than 40 years, but not exceeding 60 years, which may be extended on a case by case basis.
I I ~---·-.. -........... -...... ... ... .... .

.............. .

.. ,._ ..... ....... .... .

.

.... ..... .

......... ..,.... ... ·-l- .............. ---.... -·-.. ·-·-···---· .... _............. .. --....... -·-·-·""-""""" ·-........ ,_,_-........... , ____ ·-----.. .

I : j Decree on the Lease or Concession of Government Lands / Existing Measures l---·--·-·- -----·------·--------·- ... _, __ J ..

_L.

(~~-: -~.~~~~-:.~~~~~-~-~ ..

~~~-~~?.~?


:.~~i:l~=--~·~-~-~d .. ~~-·- -- -· _ ANNEX Ill- LAO PDR- 22 9 i Sector Sub sector Pesticide Industry Classification Level of Government Central Obligations Concerned Description Investments in pesticide businesses are reserved for citizens of Lao PDR .

............ ............................. .... --+-·· .. -i·""" i Existing Measures !

Regulation on Management and Usage of Pesticide (No.
0886/MAF, dated 1 0 March 2000) ANNEX Ill- LAO PDR- 23 10 r- --··-·-- ................................................... _ ..... ·- ........... _________ ........................................... _ ...... -................................ - ...... ___ ............ .

----- ----·-.. .... L~-~~~~~------· !,' Subsector ' r ~~d~~;~~--z~~~~~fi~~ti·~-~ - ............. ·············r: ···j···~---·- ....... .

-l-:_ :.

~~~-~~~ -·- --- --·-····---·--·-------·- -· ------· -- 1 · I .

I ~~1- .
I ~~1- .

-i-- -·-- - - -·- ·- -- ------------ ···-·-· -· -·-···---··-- · !

--[-.· .. !

.. -~e-~t~-a~ ·--- .

f -------- [~~~~j:~T~:~~~:~~~~i~<~~:~--- I Obligations Concerned I !

· National Treatment (Article 1 0.3) ~--..... -...... ··-·-··---·· --............. ·--·----·----__ .. _ .. -....... -... ...... ... .... ..T .. --.... ----.

--.. ·-----.. -.... ·····-·-·-··-· .... ··----···· ... ······ ... ···--··---.... .

.

.. ...... ... .... .

......... ......... .. ...... ............... .

.....
.....

I i I : 1 The G?vernment of Lao P~R reserves the right to adopt or : 1 Description 1 1 · ma1ntam any measure w1th to an mvestor or i !

1 investment in any activity related to fishery including operation ll .

of capture fisheries in Mekong River and its tributary and I : reservoirs, except for the commercial aquaculture of fish and !

1 other aquatic fauna for trade and distribution which shall be 11 respect l j I _J i '1 ··- .. \ I i 1- l Existing Measures !
r .................................... -.................

I !

in accordance with the Law on licensed and registered Investment Promotion .

I -···1- ................................................................... , __________ ........... ---·······--...................... ·- ............................ : Law on Fishery (No.
03/NA, dated 09 July 2009), Article 30 .. J ........... ~~~~;~~~ ~~1~~=~~: ... ~~o=~t~~~----~:-~--- .1 .. 4:.~.~: ···d-at~-~-- 17 i , ANNEX Ill- LAO PDR- 24 11 Industry Classification .. --·---·-' -----· ___ .... _, __ .................. _, __________ ,., ................................ _,_,, __________ ,_., Level of Government Central " .............................. - ............ ' _ ........ ' .. - ................... , __ , ___ , __________ ,,_, _______ .__ ........ _,,_ i Obligations Concerned Description ....... - .. --·-··----............. ' -- -· ..... .................. ·-· ... - .......... - ................. _ ................. ____ ,_, ____ ,.
·-i The following licences issued by the Government of Lao PDR shall be obtained: (a) licence for prospecting and exploration ; and (b) licence for exploitation and processing.

, Existing Measures ' Law on Minerals (No.02/NA, dated 20 December 2011 ), Article 32 ... _, __ , __ " ·--·----·--- - ·- ·- ..... -............. --------·-·- ......... ,_,, ....................... _ .................. _,_, ANNEX Ill- LAO PDR- 25 12 ...... ----- I Sector ·-i r--.

- -·--··- ----·- .

.


.......... 11 I 1 Subsector ·-1 r lnd~·~;r~~-~~~~i~~~t;~~ -- -· ·- .

.

.. ··r·· ~ ----·· -- __________ , ______ ..... -----·- ··---··---- -- ·-···--- ---- !

Level of Government ~ -·····-··-·-·-··········--·-········---····-··-··-···--··- -- ······-·· --········-t-···· - .

J L Obligations c~~~~r~~-~--- - -- I Description !

I ·;- ~~-;~~ -- .. ····--···- -·- .


-.l i 1 maintain any measure with The Government of Lao PDR reserves the right to adopt or investor or investment related to requirements to supply exclusively from Lao PDR of products that such investment produces to a specific regional market or to the world market.

respect to an Existing Measures ' Law on Minerals (No.02/NA, dated 20 December 2011 ) ····· ·· ·-- ..1 .
- ··· ·-·····---·····--·· ·····--- ... ··--·-·-·-···----· .. ···· ·- ...... -··-···--·-····-······· ''"''1'' ··-· -~---------·-"' ' - -----------··--- ······-···-· - ·· .. ----·- , _____ ____ .. - ----- -------·-·········· .... ---· ·-· I !

i ANNEX Il l - LAO PDR- 26 13 Sector Subsector Industry Classification A licence issued by the Government of Lao PDR on oil and natural gas shall be obtained and production sharing contract with an investor must be used.
Existing Measures (No.02/NA, dated 20 December 2011) , ANNEX Ill- LAO PDR- 27 14 r·~--· I ·--------r ! '

All sectors !

Sector l r- - -----·····-···-·-······-··· J Subsector L------------------------------------- --------------------.

--- I - I - !

Industry Classification l .

!

[:~~~-~:i~~~~~i:~~~-~~i~~-----:_::: :_::_:I:~: ___ [~~~:~-~~-:_:~::~_::·::_~:~_::~:~----.
:-~:-:·: __ ________________ __ ___ _ ___ _ ___ : I Prohibition on Performance Requirements (Article 1 0.6) __ II I Obligations Concerned I ' - --------- ..... -------------------------------- ·---- -·- ------------ -----------·.

--- ---· .

-- .... ""1'"' -- i Description i ~--- --------- --J • ;;;~::;;:"' m:c~,v~:s 'elated to myatty andtec~nology - ·-- .. ·------· ---------··-- -- ---- ------ -- .. -- -------- --------------· ---- ----- ---- .. ---·.
-----------------· ---- -----· .... 1 The Government of Lao PDR reserves the right to adopt or ; maintain any measure with investor or respect to an ---- .

---- - .

-- ......... .

I !

I l =~isting ~-=~~~~=~- ________ _ .. _ j__ _ ___ ____ ___ ....... ··- _ ANNEX Il l - LAO PDR- 28 15 Sector Subsector Industry Classification 1 Level of Government t··-··············-· .. ····· .......................... _ ......... -..... -·· ........................ ..
I Obligations Concerned Description All sectors National Treatment (Article 10 .3) Prohibition of Performance Re quirements (Article 10.6) Senior Management and Boar d of Directors (Article 10.

7) ····-·· The Government of Lao PDR maintain any measure wit investment related to lnvestm under the Investment Promoti reserves the right to adopt or investor or h respect to an ent Incentive by Business Sector on Law.

t·-.. -·······-···-·-·- .................... _ .


...... - ·- ·-·---··· .. ···· -· .. .... 4·--·· ·+·····- -··-·-··-··-·-···-- ,,_,.wow.o Existing Measures Investment Promotion Law ( 2016), Article 9 No.
14/NA, dated 17 November OH 0 -00 ANNEX Ill- LAO PDR- 29 16 r- I Sector ---·-·-·--·-····-·-········- ········--······-··-··-··-·-·-·····--·· ·-·- ......... ,.. ..... ·- ··--·· ... -·-- -···--··-·-··· ·····-·-----·--·---··-···-··-······ .. ··-····--··-····-·-· r-~~~~~~~~; ·---·--·--·---··-·--···- --r:- ·- I .

All sectors ----------- --·--···-·--·--·-········· --------- [_ - ··--· ···---··-·--·-· ·-· .... -·---.- -··--· -···----.

-- -··· ...... -~-- --·· ·- I : !


Industry Classification -~~ -~;:~-~;~-~~;-------- -··-·---r-;·- -.- ~~ -~~~~~---- · - ··-·--------·-· - -· r-L~~~-~ r -- .. --·-··-·---··-···-·---·---··· ·----·· -·-· ····- -···-... ----·-·-····- I Obligations Concerned I · I National Treatment (Article 10.3) --···--··---.. -·-··-·-·-·-··-·---·-···-·-· .. ··· --· --------··· -·-·····--·- ·· ··· ···- - - - --- _J_ !
:~:~~~~::n~~:::::::,:::::;~:~,:-~~:,:01~7) i · The Government of Lao PDR reserves the right to adopt or i - maintain any measure with respect to any sectors not I identified in this Schedule and new sectors or industries.

Any sector classified in the ISIC Code version 3 as at the date of , entry into force of this Agreement shall not be considered a !

new sector or industry for the purposes of this entry .

.

.. 1.... .. ............ .

.. .. .

.


···--·-·· ····-----· ·-·----·· .... ·- -·-... --···-·-·-······· ······ ..... --· ...... ···-···-· ··-·-·-· 1 .1 1'.1.

'1 ~--- ...... ······-··-· ····-···- .. ···········--··-.

---·· -·-··-........ _, .

··- ... .

l ~~~~~i~-~ -~-~~~~~=~----· · .. _ ·-···· ___ .J: .. _L-.

---- .. .

r-· !

~~- -~-- I Description 1 1 1 1,1 ANNEX Ill- LAO PDR- 30