WT/TPR/M/394/Add.1  
 
13 February 2020  
(20-1165) Page: 1/122 
Trade Policy Review Body  
18 and 20 November 2019  Original: English/ anglais/inglés  
 
 
 
TRADE POLICY REVIEW  
LAO PEOPLE'S DEMOCRATIC REPUBLIC  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Manuel A.J. Teehankee (Philippines)  
This document contains the advance written questions  and additional questions by WTO Members , 
and replies provided by  Lao People's Democratic Republic .1 
 
 
Organe d'examen des politiques commerciales  
18 et 20 novembre 20 19 
EXAMEN DES POLITIQUE S COMMERCIALES  
RÉPUBLIQUE DÉMOCRATIQUE POPULAIRE LAO 
COMPTE RENDU DE LA RÉUNION  
Addendum  
Président: S.E.  M. Manuel A.J. Teehankee (Philippines)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  la République 
Démocratique Populaire Lao .1 
 
 
Órgano de Examen de las Políticas Comerciales  
18 y 20 de noviembre de 2019  
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
REPÚBLICA DEMOCRÁTICA POPULAR LAO 
ACTA DE LA REUNIÓN  
Addendum  
Presidente : Excmo. Sr. Manuel A.J. Teehankee (Filipinas)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  la 
República Democrática Popular Lao .1 
  
 
1 In English only/En anglais seulement/En inglés solamente . WT/TPR/M/394/Add.1  
 
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  Contents  
CANADA  ................................ ................................ ................................ ...........................  3 
CANADA – FOLLOW -UP Q UESTIONS  ................................ ................................ ...............  14 
PHILIPPINES  ................................ ................................ ................................ .................  17 
AUSTRALIA  ................................ ................................ ................................ ....................  37 
SEPARATE CUSTOMS TER RITORY OF TAIWAN, PE NGHU, KINMEN AND MAT SU ..............  45 
UNITED STATES OF AME RICA  ................................ ................................ .........................  48 
UNITED STATES OF AME RICA - FOLLOW -UP QUE STIONS  ................................ ...............  70 
HONG KONG, CHINA  ................................ ................................ ................................ ....... 75 
MALAYSIA  ................................ ................................ ................................ ......................  82 
CHINA  ................................ ................................ ................................ ............................  86 
CHINA – FOLLOW -UP QU ESTIONS  ................................ ................................ ..................  90 
EUROPEAN UNION  ................................ ................................ ................................ .........  95 
THAILAND  ................................ ................................ ................................ ....................  103  
DOMINICAN REPUBLIC  ................................ ................................ ................................  105  
ICELAND  ................................ ................................ ................................ ......................  108  
TURKEY  ................................ ................................ ................................ ........................  110  
 
 
 
 
  WT/TPR/M /394/Add.1  
 
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  CANADA  
Section I  : Questions Regarding the Secretariat Report  
Summary - Page 8, paragraph 21  
Text:  
State involvement in the economy persists. With World Bank assistance, Lao PDR embarked on a 
state-owned enterprise (SOE) restructuring programme for certain enterprises. Despite efficiency 
improvemen ts in some enterprises, there appears to be no specific plan or implementation guideline.  
Q1 
What was the purpose for embarking on a SOE restructuring program?  
Response:  
The purpose of the programme is turning state-owned enterprises into profitable ventures, aiming 
to making them more efficient and sustainable sources of income in the future. This includes making 
them commercially competitive, efficient and transparent. Also, inspections revealed that some of 
the SOE were dormant or were r unning business in a different area than the one for which they were 
set. This is expected to be eliminated.  
Q2 
What are the detailed objectives for the program, aside from increasing efficiency?  
Response:  
While in the past the issue was overseen by the committee of national state -owned business 
improvement under the Prime Minister 's Office. In 2016, this area of r esponsibility was transferred 
to the Ministry of Finance (State -Owned Enterprise Development and Insurance Department).  
Focusing on the three main elements – business, finance and personnel, the reform programme will 
consider three groups of enterprises: i neffective businesses, whose licenses the state may decide to 
revoke; businesses considered for transformation into a JV; and businesses that are valuable to the 
state, and in which the state will continue to be the majority shareholder. Success stories of  the 
reforms in the above areas carried out last year include ETL and Lao Airlines: ETL made the switch 
to a joint venture with a Chinese company while Lao Airlines appointed a new managing director.    
Alongside this, the Ministry of Finance will prepare a  strategic plan for the development of state -
owned enterprise, including regulations that determine the rights and duties of their boards of 
directors.  
It is believed that this strategic plan and new regulations will give a clear direction for the strong 
development, management and growth of state -owned businesses in the future.  
Q3 
What are the next steps that Lao PDR plans to take for the SOE restructuring programme?  
Response:  
Implementation of the above reforms is expected to take time. Steps take on different levels 
ranging from the National Assembly to the conferences conducted locally.  WT/TPR/M/394/Add.1  
 
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  2 Trade and Investment Regime - 2.4 Investment Regime  – 2.4.1 Regulatory framework , 
Page 41, paragraph 2.45  
Text:  
During the review period, the legislative framework governing investment was updated. The 2016 
amended Law on Investment Promotion became effective on 19 April 2017, replacing the 2012 
version which was notified to the WTO.  
Q1 
Does the 2016 amended Law on Investment Promotion apply equally to all enterprises, including 
State -Owned Enterprises (SOEs)?  
Response:  
Art. 26(4) of the 2016 Law on Investment Promotion designates "A joint venture between a state -
owned enterprise and a priva te enterprise " as one of the forms of investment. Furthermore, Art. 30 
of the same Law states that "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 Lao PDR law. The 
organization, operation, management, rights and obligations of investors in such partnership shall 
be specified in the relevant joint venture agreement and articles of  association of such new entity ".  
Q2 
Following the amendment to this law, has Lao PDR seen any improvements to foreign direct 
investment? What progress to investment has been made since implementing the revised legislative 
framework on investment?  
Response:  
Foreign Direct Investment has trip led in the last three years to USD 377,000,000.00 in 2018.  
2 Trade and Investment Regime - 2.4 Investment Regime  – 2.4.2 Restricted Activities  -
Page 42, paragraph 2.48  
Text:  
The 2016 amended Law on Investment Promotion provides for a controlled business  list, 
containing businesses that are sensitive to national security, public order, "national fine 
tradition" and socio -environmental impact.  [To ensure a socio -economic development balance, 
screening of each relevant sector is required before the granting  of an investment licence by the 
investment one -stop-service office and/or committee for investment promotion; decentralized 
supervision is also required. The Decree on the Approval of the Controlled Business List and 
Concession Businesses of Lao PDR No. 0 3/PM, 10 January 2019 sets the current framework of these 
businesses.87 It consolidates specific rules for businesses that affect national security, social 
customs and traditions, the environment, society, and nature. It takes into consideration the 
achiev ement of SDGs, and regulates the procedure for the authorization of foreign investments in 
areas of public interest, such as: land concessions; development of SEZs and export processing 
zones; mining; power generation; air transport; and telecoms. Accordin gly, the Decree addresses 
two types of business activities in Annex A (Controlled Business List) and Annex B (List of 
Concessions). Annex A (Table A2.4) covers 44 activities under 14 major sectoral categories: 
agriculture and forestry (5 activities); minin g and mineral processing (2); manufacturing (4); water 
and sewage (3); transportation and storage (4); food and lodging (1); information and 
communications (2); finance and insurance (4); scientific and professional services (4); 
management and ancillary s ervices (1); audit (1); education (6); health care and social work (2); 
and recreation (5). Annex B (Table A2.5) covers 21 activities under six major categories: agriculture 
and forestry (4 activities); mining and mineral processing (3); public -private par tnerships (1); 
investment in SEZs (1); public land concession or leasing (5); and other services to related to the 
public interest (7).]  WT/TPR/M /394/Add.1  
 
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  Q1 
Does the controlled business list include foreign -owned businesses? Further, is it only private -sector 
entities on this list, or does it also include public enterprises?  
Response:  
According to the Decree, both domestic and foreign individual enterprise or legal entities could apply 
for controlled business. For some types of businesses, particular conditions apply: i) Establishment 
of mass media such as: radio station, television sta tion, news and magazine could not be carried 
out by a foreign entity; ii) Employment agencies have to be established as a joint venture with a 
local partner; iii) In Pre -primary and primary education; General secondary education; Vocational 
education and p rofessional training; Sports and recreation education( this ISIC covers: - Physical 
Sport; Sport education; Recreational education; Theme Parks; Tourism development activities – 
foreign investments have to be approved on central level (while domestic – on the provincial level).  
2 Trade and Investment Regime - 2.4 Investment Regime  – 2.4.4 Investment promotion  
-Page 43, paragraph 2.52  
Text:  
[All businesses (domestic (as from 2016) and foreign) are required to register and obtain an 
enterprise registration c ertificate, a business operating licence and/or an investment licence, 
depending on the regulatory requirements of the relevant activity sector.91 The MoIC issues 
enterprise registration certificates, and the MPI issues licences related to controlled and c oncession 
investment (Section 2.4.2). Arts. 80 -84 of the Law on Investment Promotion require a one -stop 
service for investments. The Central Investment One -Stop Office is located at the MPI and has a 
working team composed of representatives of multiple min istries concerned, with each ministry 
having its own internal coordination unit. In addition, one -stop service offices are located at the 
relevant provincial and capital Departments of Planning and Investment, and have working teams 
composed of the represe ntatives of the other line departments. The relevant authorities can suspend 
or terminate the investments at the central, provincial, and capital levels, respectively. The 
Investment Promotion and Supervision Committee (Section 2.4) seems to be the highest  body in 
charge of investment project approval; it considers and approves or reject projects under the 
controlled and concessional businesses lists; for the activities that are not on said lists, the MoIC is 
in charge. The time -frame for the admission for consideration of an application related to controlled 
activities is 25 working days; for activities not on the controlled activities list, it is 10 working days; 
and for investments in the concessions business, it is 65 working days. The time -frame for gra nting 
licences remains identical for domestic and foreign investments. No data on the average time for 
the granting of licences and certificates or for the number of applications/approvals/rejections by 
type of investment was available from the authorities .] To improve the investment climate and 
the international ranking in term of ease of doing business (see above), Prime Minister 
Order No. 02/PM, 1 February 2019, for improving the effectiveness of the business 
registration and approval process was issued,  but it was not available in English as at 
June 2019.   
Q1 
Is there a timeline for the release of an English -language version of the order?  
Response:  
The Order is already translated and is available for upload on Lao Trade Portal  
https://www.laotradeportal.gov.la/kcfinder/upload/files/Legal_1533714339.pdf  WT/TPR/M/394/Add.1  
 
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  2 Trade and Investment Regime  - 2.4 Investment Regime  – 2.4.4 Investment promotion  
- Page 43, paragraph 2.54  
Text:  
Tax incentives for investment are generous and SEZ development has an important role 
in the Government's investment promotion objectives.  [An investment in any business sector 
entitled to incentives must have a minimum investmen t capital of LAK 1.2 billion or employ at least 
30 Lao technical staff or use 50 or more Lao workers with an employment contract of at least one 
year. Support for the development of SEZs and unique economic zones (UEZs) has been provided 
(Section 3.3.1.2).  So far, the IPD has focussed its investment promotion efforts on a limited number 
of countries, and has established offices in key partner countries, namely China, France, Japan, the 
Russian Federation, Thailand, and Viet Nam].  
Q1 
Do SOEs receive the same tax incentives?  
Response:  
Yes. SOEs do not receive tax incentives  according  to the Tax Law. SOEs receives the same tax 
reduction as other investors under Law on Investment Promotion.  
2 Trade and Investment Regime - 2.4 Investment Regime  – 2.4.5 Dispu te settlement  -
Page 44, paragraph 2.55  
Text:  
The existence of a robust mediation and arbitration system in the economy would be seen 
as a distinct advantage by foreign investors. [The Law on the Resolution of Economic Disputes, 
amended and in effect as from 6 December 2018, governs mechanisms of mediation and arbitration, 
mainly within the borders of Lao PDR. These mechanisms are implemented at the non -autonomous 
Economic Dispute R esolution Centre (EDRC) within the Ministry of Justice, which is the mediation or 
arbitration centre for commercial disputes in Lao PDR. The amendments to the Law strengthened 
the dispute resolution mechanisms, including more comprehensive procedures relat ed to mediation 
and arbitration and the process of dispute resolution proceedings. The time periods applicable to the 
EDRC for the resolution of economic disputes in certain circumstances were shortened. The amended 
Law allows the domestic courts to enforc e and recognize foreign arbitral awards in accordance with 
the law on civil procedure. Parties in Lao PDR may now establish ad hoc arbitration, which is subject 
to government approval. Furthermore, the proceedings would no longer rendered null and void, ev en 
if the respondent fails to receive a summons or to participate in the hearing. Under the amended 
Law, either party can request recusal of an arbitrator if the arbitrator is, or may be, subject to a 
conflict of interests. The amended Law also expanded th e scope of matters that are not capable of 
being arbitrated]. Foreign arbitrators and mediators may now register with the Ministry of 
Justice; however, this is only permitted under certain circumstances.   
Q1 
Does the dispute settlement system in Lao PDR ap ply to foreign SOE investors as well?  
Response:  
Law on Economic Disputes applies all enterprises regardless SOE or non -SOE engaging business in 
Lao PDR.  
Q2 
What are the anticipated timelines and next steps for the mediation and arbitration system?  WT/TPR/M /394/Add.1  
 
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  Respon se: 
At the moment Lao PDR is still working on ensuring due implementation of the recent Law on the 
Resolution of Economic Disputes . Meanwhile, Lao PDR signed the UNCITRAL Singapore Convention 
on Mediation on 7 August 2019, and is aiming to bring its relevant system in compliance therewith. 
We expect to ratify it in 2020.  
Q3 
Could you please outline the circumstances by which foreign  arbitrators and mediators can register 
with the Ministry of Justice?  
Response:  
The Law on Economic Dispute Resolution allows foreign arbitrators and mediators to practices in Lao 
PDR by registering with Ministry of Justice. The Economic Dispute Center is currently drafting the 
procedure.  
2 Trade and Investment Regime - 2.4 Investment Regime  – 2.4.5 Dispute settlement  - 
Page 45, paragraph 2.58  
Text:  
[Lao PDR is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign 
Arbitral Awards, an internationally recognized instrument of international arbitration, requiring 
courts of contracting States to give effect to arbitration a greements and to recognize and enforce 
awards made in other States, subject to specific limited exceptions. It seems that the enforcement 
of foreign arbitral awards remains subject to uncertainties. Since] Lao PDR is one of the last 
ASEAN countries, with M yanmar and Viet Nam, not to have adhered to the 1965 
Convention on the Settlement of Investment Disputes between States and Nationals of 
other States (ICSID Convention), ICSID tribunals are not available for foreign investors; 
however, the ICSID Additional  Facility was used at least on the three occasions (see 
above).  
Q1 
Has Lao PDR contemplated signing on to the ICSID convention in the foreseeable future?  
Response:  
So far there is no plan to join the ICSID convention.  
3 Trade P olicy and Practices by Measur e – 3.3 Measures Affecting Production and Trade - 
3.3.5 State Trading Ente rprises, SOES and Privatization - Page 74, paragraph 3.113  
Text:  
The Government sees the private sector as central to the country's future prosperity. As such, the 
role of the State had been scaled down, with the number of SOEs dropping from 800 in 1990 to 37 
in 2002 (Tables 3.13 and 3.14). It was estimated that the 37 SOEs employed less than 15,000 
people and accounted for approximately 4% of GDP in 2002. Private and public enterpris es compete 
under the same terms and conditions. Public enterprises are not entitled to special trading rights or 
privileges. According to the authorities, the State plays a minor role in the economy, except for the 
provision of public services. Furthermore , the authorities stated that there were 187 enterprises in 
Lao PDR, of which 135 had the Government as the majority shareholder, and 122 were entirely 
owned by the State.  WT/TPR/M/394/Add.1  
 
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  Q1 
What are the differences between the 37 SOEs and the 122 enterprises that are ent irely owned by 
the State?  
Response:  
The numbers are: 187 SOEs of which 135 enterprises are majority government owned including 122 
SOEs that are entirely owned by the state.  
Q2 
Could Lao PDR please explain how the State scaled down the number of SOEs fro m 1990 to 2002 
(e.g., were these SOEs privatized or were they merged into other SOEs)?  
Response:  
The reform of the SOEs started in the mid -1990s. At the time there was a large number of very 
poorly performing SOEs mostly due to non-performing loans of the state -owned banking sector. The 
reforms undertaken in the 1990s involved a combination of privati sation, joint venture partnerships 
with the private sector (for example the Lao Brewery Company), mergers to form larger enterprises 
(including state -owned commercial banks) and SOE closures. As a result of the 1990s reform 
programme the State had divested  over 80% of its 800 SOEs by year 2000.  
Q3 
Could Lao PDR please clarify the following figures as the Government WTO TPR only states 187 SOEs 
but the Secretariat WTO TPR states 37 SOEs and 187 enterprises, of which 135 has the Government 
as the majority sha reholder and 122 are entirely owned by the State – what are the remaining 52 
enterprises?  
Response:  
The Government is a majority shareholder in 135 enterprises: this include s 122 enterprises entirely 
owned by the state and in 52 enterprises government owns from  1% to 49% of shar es. 
3 Trade P olicy and Practices by Measure – 3.3 Measures Affecting Production and Trade - 
3.3.6 Government Procurement - Page 76, paragraph 3.116  
Text:  
[Procurement by public sector entities is a vital aspect of Lao PDR's financial management, as 
expenditure by such entities is responsible for a considerable amount of budgetary allocations] 
However, public procurement data was not available.  
Q1 
The Secre tariat 's Report notes that "public procurement data was not available. " Could Lao PDR 
comment on how public procurement data is recorded and consolidated, and if such data is made 
accessible to the public to ensure transparency?  
Response:  
Public procuremen t management authorities in Lao PDR include: The Ministry of Finance, Provincial 
/ capital Departments of Finance; District/ town/ city Finance Offices. According to the 2017 Law on 
Public Procurement (Art. 74 -77), the Ministry of Finance is entrusted with  monitoring of public 
procurement activities, setting up information management technologies relevant to public 
procurement and regularly report public procurement activities to the government; Provincial / 
Capital Finance Departments monitor public procur ement activities within the geographic area of 
their competence, use information technology system in public procurement and regularly report WT/TPR/M /394/Add.1  
 
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  public procurement activities to the Ministry of Finance, province governors / mayor of capital city; 
District / T own / City Finance Offices monitor public procurement activities within the geographic 
area of their competence, use information technology system in public procurement and regularly 
report public procurement activities to provincial / capital Finance Depa rtments and governors, chief 
of district, chief of municipality; [Other] Ministries, agencies, local administrative authorities and 
other parties concerned monitor the implementation of public procurement; develop and use 
information technology system in p ublic procurement; report public procurement activities on a 
quarterly, semi -annual and annual basis to the Ministry of Finance for consolidation and report to 
the Government.  
3 Trade Policy and Practices by Measure - 3.3 Measures Affecting Production and  Trade - 
3.3.6 Government Procurement - Page 76, paragraph 3.118  
Text:  
The Secretariat 's Report notes that the objectives of Law No. 30/NA on Public Procurement, 2017, 
are "to define 'the principles, regulations and measures regarding the management, monitoring and 
performance of public procurement to ensure such activity is carried out properly and in a unified 
manner countrywide, in order to secure the effective, efficient, economic, transparent accountability 
and fair use of government f unds in contribution to national socio -economic development .'"  
Q1 
Does the Law have any anti -corruption and transparency provisions? If so, what are they?  
Response:  
The Law contains anti -corruption provisions. Art. 64.1 Prohibits individuals, legal entiti es, 
organizations to maintain any form of contracts, participate to and assist participants to tenders, act 
as middlemen, bribe relevant civil servants and officers. Art. 65.4 Prohibits bidders and participants 
to tenders to bribe civil servants and office rs concerned for their personal benefit; Art. 66.3 prohibits 
tender committees, civil servants and officers concerned to solicit, demand or receive bribes.  
Transparency provisions are scarce. Arts. 74.10 and 75.10 mandate the Ministry of Finance and 
Provin cial / Capital Finance Departments Respectively to "maintain external, regional and 
international / bilateral, regional and international relations and cooperation on public procurement, 
which presupposes exchange of information  (which, according to Art. 7  of the Law, inter alia , includes 
experiences, data and information and technologies).  
Q2 
Could Lao PDR comment on what measures have been implemented in its public procurement system 
to "ensure such activity is carried out properly and in a unified manner  countrywide, in order to 
secure the effective, efficient, economic, transparent accountability and fair use of government funds 
in contribution to national socio -economic development "? 
Response:  
Article 78 of the Law on Public Procurement establishes both  internal and external inspection 
authorities.  
Q3 
Are there any measures in the Law that improve accessibility to procurement contracts for foreign 
suppliers?  
Response:  
Art. 5 lists "ensuring the rights and interests of the […] foreign individuals, legal entities and 
organizations " among the Fundamental Principles in Public Procurement in Lao PDR. Art. 6 of the 
Law provides that the Law applies, inter alia , to foreign individuals and legal entities. Art. 15 of the WT/TPR/M/394/Add.1  
 
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  Law states that in open  international tenders both Lao and foreign language may be used as 
necessary. According to Art. 16, currency of bid in tenders and selection of consultants must be the 
Lao Kip or foreign currencies. Where necessary, multiple but no more than three currenc ies may be 
used.  
3 Trade P olicy and Practices by Measure - 3.3 Measures Affecting Production and Trade - 
3.3.6 Government Procurement - Pages 76 -77, paragraph 3.119  
Text:  
The Secretariat 's Report notes that "it is not clear if the Law also applies to pro curement transactions 
under projects financed by development partners. However, it does not apply to procurements 
pertaining to national stability and security ." 
Q1 
Can Lao PDR confirm if the Law applies to procurement transactions under projects financed by 
development partners?  
Response:  
Art. 3.1 Defines government funds as "state budget, which includes state funds, state enterprises' 
funds, state grants and loans obtained by the government from foreign countries and financial 
institutions " (emph asis added)  
Q2 
Other than procurements pertaining to national stability and security, are there any other exceptions 
to the Law and whom it applies to?  
Response:  
According to Art. 6, scope of application, the Law applies to ministries, agencies, local admi nistrative 
authorities, state enterprises, local and foreign individuals, legal entities and organizations relating 
to public procurements in Lao PDR. There are no other exceptions but the one related to procurement 
pertaining to national stability and sec urity.  
3 Trade Policy and Practices by  Measure  - 3.3 Measures Affecting Production and Trade - 
3.3.6 Government Procurement - Page 77, paragraph 3.121  
Text:  
[The Law allows for various procurement methods, depending on the type and magnitude of the 
procurement. Details of procurement thresholds, procedures and implementation guidelines for each 
procurement method were not available. For works, goods and servic es, the following methods may 
be used: open bidding; limited bidding; requests for quotations (price comparison); and direct 
contracting. Open bidding are tenders formally announced through mass media or electronic 
systems, without limitation of participan ts. In national open bidding, only local individuals and legal 
entities are allowed to participate in the tenders; international open bidding is open to both local 
and foreign individuals and legal entities. Limited bidding is applied when tenders require high 
expertise or specific techniques that only a limited number of contractors, suppliers and/or service 
providers can provide. As such, tenders are announced by project owners or procuring entities 
directly to contractors, suppliers and/or service provid ers for price competition. Requests for 
quotations are applied for the procurement of small works, routine maintenance, supplies of office 
equipment, and other services within set budgets. They are solicited by way of direct invitations or 
through appropri ate electronic systems to no less than three participants. Direct contracting refers 
to an agreement between project owners and contractors, procuring entities, suppliers and/or 
service providers without a competitive procurement process. As per the provis ions of the Law, direct 
contracting is only permissible for: single sources of products linked to IPRs; specific equipment and 
goods from contractors, suppliers and/or service providers for maintenance or replacement; 
extensions for additional works, goods  and/or services and consulting services of a similar nature WT/TPR/M /394/Add.1  
 
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  whose value does not exceed 20% of the original contract; government projects and activities in 
isolated areas with poor infrastructure or very limited interest from bidders; within budgets set u nder 
regulations; and in cases of force majeure or urgency]. Article 45 of the Law also provides for 
domestic preferences in government procurement. Details of conditions under which 
preferences are given and the preference margins were not available.   
Q1 
Can Lao PDR provide the conditions under which domestic preferences are given and the preference 
margins?  
Response:  
The domestic preference margins are 7.5% for construction and repair contract and 15% for goods.  
3 Trade Policy and Practices by Measure - 3.3 Measures Affecting Production and Trade - 
3.3.6  Government Procurement  - Page 78, paragraph 3.125  
Text:  
The Sec retariat 's Report notes that "if bidders are unsatisfied with the procurement process, they 
may file a written complain to the project owners or procuring entities for resolution within 15 days. 
If the resolution is not to the bidders ' satisfaction, matters may be submitted to relevant government 
agencies, including the civil courts ." 
Q1 
Do foreign suppliers have the same access to dispute settlement and appeal mechanisms as 
domestic suppliers, including access to the civil courts?  
Resp onse:  
Yes, the law does not distinguish between local and foreign suppliers. Part VIII, resolution of 
disputes, establishes the following dispute resolution methods: compromising; through 
administrative measures; determination by economic arbitration tribu nals; filing complaints to the 
people 's court; international dispute resolution.  
3 Trade Policy and Practices by Measure – 3.3 Measures Affecting Production and Trade - 
3.3.7 IPRs. - Page 81, paragraph 3.134 and 3.135  
Texts:  
[Procedurally, an invention or utility invention is published in the official industrial property gazette 
in the nineteenth month after the filing date of the application. A third party may lodge an opposition 
or a refusal claim, to an application, within 90 days of the dat e of publication. The term of protection 
for patents is 20 years, and that for utility models is 10 years, from the date of filing, with annual 
fees and service charges imposed. A patent or utility model owner has the right to, inter alia, initiate 
a suit for acts of infringement happening after the publication or during the pendency of the 
application only after the grant of the patent, or if the infringer had notice of the patent application. 
Patent and utility model applicants can also claim a priority d ate; for both, the priority period is 12 
months]. According to the Lao Intellectual Property Database, 646 patent applications had been filed 
by end -March 2019.55  
[Both goods and services are eligible for trademark registration. The amended Law expands the  
coverage of protection for trademarks to three -dimensional picture and motion images.56 The Law 
explicitly stipulates that the nature of the goods or services is not grounds for denying registration 
of a trademark. However, marks that are identical or sim ilar to a well -known mark, consist of a 
geographical indication (GI) identifying a place other than the place of origin, or contain national 
emblems or an emblem of an international organization, are not eligible for trademark registration. 
Trademark appli cants may claim a priority date based on one or more applications previously filed 
either with the MOST or in another country or office in accordance with international treaties to WT/TPR/M/394/Add.1  
 
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  which Lao PDR is a party. The priority period for trademarks is six months from the priority date. 
The term of protection of trademarks is ten years from the date of filing instead of the date of 
registration, and are renewable indefinitely. While the Law does not clearly provide for actual use of 
a mark as a condition for the fi ling of an application for registration, it sets forth some provisions for 
the non -use of a trademark under which a third party may request the MOST to cancel or revoke 
the registration of such trademark. Non -use of a trademark means that a trademark has e ither not 
been used for five consecutive years, or it has been merely token used or not used in good faith.58 
While a trademark application is still being processed, the application is published. A third party may 
file an opposition within 60 days of the d ate of such publication]. As at early -April 2019, 46,452 
filings for trademarks had been submitted.  
Q1 
Of the noted figures for patent and trademark applications, does Lao PDR have information on the 
amount of applications filed by foreign applicants?  
Resp onse:  
Up to now (13.11.2019), there are 696 patent applications received by the Department of 
Intellectual Property out of which 668 are foreign applications. For trademark there are 48646 
applications, out of which 46646 are foreign applications.   
4 Trade Poli cy by Sector – 4.4 Services  – 4.4.6 Distribution and e -commerce - 4.4.6.2 E -
commerce - Pages 129 -130, paragraph 4.143  
Texts:  
[During the review period, meaningful initial steps regarding the regulation of e -commerce were 
taken, ensuring that Lao PDR meets some of its commitments under the e -ASEAN framework. In 
2012, the Law on Electronic Transactions, setting the rules for the u se of electronic documents and 
digital signatures, was passed, thus paving the way for future growth in e -commerce. Lao PDR also 
enacted the Law on Prevention and Combating of Cyber Crime in 2015; however, this does not 
contain any provisions to protect co nsumers online. The authorities were concerned over potential 
revenue losses created by the absence of dedicated regulations for e -commerce activities]. As at 
2018, a law on e -commerce was being developed.  [The e -commerce regulatory framework also 
includes : the Law on Data Protection No. 12/NA, 12 May 2017; the Law on ICT No.199/NA, 28 
November 2016; and the Law on Customer Protection No. 02/NA, 30 June 2010]. As at June 2019, 
a Decree on e -Commerce was being drafted to fill gaps in the existing legislation , in 
particular by including provisions on online consumer protection.   
Q1 
Could Lao PDR provide further information on its Decree on e -commerce, including its possible scope 
and the timeframe for its adoption? Canada would also appreciate to know if Lao P DR intends to 
launch public consultation during the drafting process.  
Response:  
Lao PDR has established inter -ministerial committees to draft Decree on E -commerce and to draft 
an e-commerce strategy. This covers all relevant dispositions to make e -commerc e useful for Lao 
PDR and efficient and is not limited to consumer protection; it also covers comprehensive areas of 
e-commerce such as e -contracts, personal data protection and cybersecurity, e -commerce business 
registration, dispute settlement, roles and functions of the e -commerce management agency. Some 
of these elements are elaborated on the basis of the existing laws under cyber legal framework such 
as Law on Consumer Protection No.02/NA, dated 30 June 2010, Law on Electronic Transaction No. 
20/NA, dat ed 07 December 2012, Law on Cyber Crime No. 61/NA, dated 15 July 2015, and Law on 
Electronic Data Protection No. 25/NA, dated 12 May 2017. Currently, the drafting committee is 
conducting public consultation throughout the country, which are expected to fin ish at the end of 
November 2019. The final draft will expectedly be submitted to the Government for approval in 
February 2020.  WT/TPR/M /394/Add.1  
 
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  In addition, one of the reasons for Lao PDR to have joined the Joint Statement Initiative on e -
commerce at WTO is its desire to l earn about it and to make sure that its regulatory framework 
corresponds to best international practices. It is planned that the committees will submit their 
proposals during 2020.  
Q2 
Could Lao PDR explain the relationship between the law on e -commerce bei ng developed and the 
Decree on e -Commerce?  
Response:  
Please see the response to the Question 1. Lao PDR is drafting the E -commerce Decree, not the Law 
on E-commerce.  
Q3 
Could Lao PDR provide further information on its law on e -commerce, including its possible scope  
Response:  
See Q1 above  
Section II: Questio ns regarding the Government Report  
Nil. 
  WT/TPR/M/394/Add.1  
 
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  CANADA  – FOLLOW -UP QUESTIO NS 
Section II : Questions based on the Report by the Government  
3  longer term measures to ensure Lao PDR 's sustained development - Page 25, part 3  
Summary by Canada:  
The report notes Lao PDR 's efforts to implement measures to narrow its current account deficit 
through, among other efforts, improving indicators for ease of doing business to promote SME 
participation and inward FDI, in relation to raising productivity and increasin g the country's capacity 
for exports. In respect of the SME segment of Laos ' business community:  
Follow -up Q1  
How are SMEs (MSMEs) defined for the purposes of statistical and policy analysis?  
Follow -up response:  
The MSME classification is based on annual number of employees or annual total assets, or annual 
total turnover in the sectors of manufacturing, trade and services.  
Table 1: Definition of "Micro enterprises "  
Micro enterprises  
Manufacturing  Annual average number 
of employees  Total assets (kip)  Annual turnover (Kip)  
Production  1-5  Not exceed 
100,000,000  Not exceed 
400,000,000  
Trade  1-5  Not exceed 
150,000,000  Not exceed 
400,000,000  
Service  1-5  Not exceed 
200,000,000  Not exceed 
400,000,000  
Table 2: Definition of "Small enterprises"  
Small enterprises  
Manufacturing  Annual average number 
of employees  Total assets (kip)  Annual turnover (Kip)  
Production  6-50  Not exceed 
1,000,000,000  Not exceed 
2,000,000,000  
Trade  6-50  Not exceed 
1,000,000,000  Not exceed 
3,000,000,000  
Service  6-50  Not exceed 
1,500,000,000  Not exceed 
1,500,000,000  
Table 3: Definition of "Medium enterprises " 
Medium enterprises  
Sector  Annual average number 
of employees  Total assets (kip)  Annual turnover (Kip)  
Manufacturing  51-99  Not exceed 
4,000,000,000  Not exceed 
4,000,000,000  
Trade  51-99  Not exceed 
4,000,000,000  Not exceed 
6,000,000,000  
Service  51-99  Not exceed 
6,000,000,000  Not exceed 
4,000,000,000  
Follow -up Q2  
Please provide any readily available statistics on the role of SMEs in Lao PDRs ' economy and 
participation in international trade: (i) total number of SMEs in Laos; (ii) percentage of businesses 
that are SMEs; (iii) employment profile of SMEs, e.g. percentage of total employment generated by 
WT/TPR/M /394/Add.1  
 
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  SMEs; (iv) export and imports by SMEs, e.g.  percentage of all exports and imports for SMEs, total 
number of SMEs that are exporting and importing.  
Follow -up response:  
i-ii) Total number of SME in Laos and (ii) the percentage of total businesses that are SMEs  
Number of SMEs in Laos   
Number  Share (in percentage)  
Micro enterprises  107,270  86%  
Small enterprises  17,297  
 13.8%  
Medium enterprises  
Total MSMEs  124,567  99.8%  
Large enterprises  306  0.2%  
TOTAL  124,873  100%  
 
(iii) Percentage of employment generated by MSMEs  
 
Number of employment generated by MSMEs   
Jobs Share (in percentage)  
Micro enterprises  276,511  48.2%  
Small enterprises  196,018  
 34.1%  
Medium enterprises  
Total MSMEs  472,529  82.3%  
Large enterprises  100,946  17.7%  
TOTAL  573,475  100%  
(iv) The information of SMEs contribute to import and export is not yet available.  
Follow -up Q3  
Does Lao PDR collect statistics on SME ownership by diverse groups (e.g., women, youth, etc.)?  If 
so, please provide this information  
Follow -up response:  
The statistics on SME ownership by diverse groups are not collected.  
Follow -up Q4  
Does Lao PDR include provisions in in its Regional Trade Agreements in support of SMEs in 
cross-border trade, e.g. cooperation, investment?  If so, please provide an overvie w of these 
provisions.  
Follow -up response:  
There are provisions in supporting SME in cross -border trade according to the Law on SME promotion 
No. 011/NA, da ted 21 December 2011 including:  
Article 19. The cooperation between SMEs and large -sized enterprises  and foreign investment 
enterprises.  
The government promotes cooperation between the SMEs and the large -sized enterprises and 
foreign investment enterprises, by establishing an enabling policy and favourable mechanism and 
also enacting necessary legislati on and measures.  
The large size enterprises and foreign investment enterprises shall give the opportunity to the SMEs, 
on supplying raw materials, semi -products, commodities and services as their subcontractor 
WT/TPR/M/394/Add.1  
 
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  network, and also to enhance the strengthen f or SMEs by transferring advanced technology and 
skills on management.  
The SMEs shall improve ability on management and technology development to ensure the effective 
provision of quantity and quality of commodities and services suitable to the requirement s of the 
large-sized enterprises and foreign investment enterprises.  
Article 21. Accessing and expanding markets.  
The Government encourages and promotes all sectors to support SMEs to access and expand the 
markets, by organizing products and services exh ibitions, product advertising, market survey, 
product introduction and participate in domestic and international exhibitions, business matching 
and co -investment to expand markets.  
The government creates favorable conditions and opportunities to SMEs on becoming suppliers of 
products and services for public procurement projects using the national budget.  
 
  WT/TPR/M /394/Add.1  
 
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  PHILIPPINES  
Part I  : Questions Regarding the Secretariat Report  
1 Economic E nvironment – 1.1 Main Features of the Economy - Page 12, paragraph 1.2  
Text:  
The services sector is the largest contributor to GDP, accounting for nearly 47% in 2018, followed 
by agriculture, fisheries and forestry (17.9%), and electricity gas and water ( 12.3%). Recently, the 
construction sector also became an important contributor to GDP. In contrast, the shares of mining 
and quarrying and manufacturing in GDP declined. Since 2013, price levels declined; however, the 
fiscal deficit rose, and so did extern al debt, both of which are deemed to be a problem. Furthermore, 
one of the key constraints to doing business has been identified as the informal nature of the 
economy, implying that GDP and GDP per capita may be significantly underestimated, thereby 
possib ly undermining the effectiveness of government policy.  
Q1 
What services mainly contribute to GDP?  
Response:  
In services (beside from construction), Wholesale & Retail Trade, Real Estate, Public Administration, 
Information & Communications, Financial & Insurance Activities are the main distributors to GDP 
growth in previous years.  
In particular, the growth rate of financial & insurance, wholesale & retail, and information & 
communication were high as 12.5%, 10.0% and 9.7% during 2013 -2018.  
They contributed 2.03% out of GDP growth (6.3%) in 2018  
Also, their share was high as of 31% of GDP  
Q2 
Are there initiat ives to combat the increase of fiscal deficit and external debt? If so, what are these 
initiatives?  
Response:  
These initiatives are:  
1. limiting the new public investment projects especially the investment with less return  
2. tightening the current spending suc h as limiting the number of new recruitments  
3. Overall, the budget plan for expenditure in coming years has to be subjected to the feasibility 
of revenue collection.  
4. Improving the tax collection system by introducing the e -tax payment system for consumer t ax, 
land tax and business tax  
5. Increasing the tax base by searching the potential other sources of income  
6. The levels of fiscal benefit are targeted be gradually reduced in the coming years such as around 
4% of GDP in 2019 lower than 2018 (4.8% of GDP).  
7. Use the domestic source of fund to finance the external debt by issuing the government 's 
long-term bonds at the domestic stock exchange and foreign bond market.  WT/TPR/M/394/Add.1  
 
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  8. If borrowing, the loans should be the conditional loans with low interest rate payment.  
9. Preventin g to use the commercial loans because of high interest rate payment.  
These initiatives reflect the 8 measures of Lao government to stimulate the economy  
1 Economic Environment – 1.2 Recent Economic Developments - 1.2.5 Structural reforms 
– 1.2.5.2 Privati zation  - Page 18, paragraph 1.18  
Text:  
State involvement in the economy appears to be considerable (Section 3.3.5), and SOEs remain a 
drain on government revenue. In this regard, the authorities drafted the Strategic Plan on 
Restructuring SOEs. According to the authorities, the Government is cu rrently classifying the SOEs 
into two categories: SOEs which should make a profit, and SOEs which provide social services. 
Furthermore, a decree defining management principles for SOEs is expected to be adopted in 2020. 
Key reform areas under the Plan incl ude equitization, employing professional management, and 
improving accounting standards, which aim at enhancing profitability, transparency and minimizing 
the burden on the Government's balance sheet. The Plan will also identify targeted SOEs (including 
Electricité du Lao PDR  (EDL) and Lao Airlines) with a clear strategy for the restructuring process, 
while aiming to lower the number of SOEs and the Government's shares therein to a more 
appropriate level in the medium term.  
Q3 
Please expound on the challeng es faced by SOEs which lead to it being a drain on government 
revenue.  
Response:  
Among identifiable reasons: Financial weakness of the SOEs, corporate governance and financial 
management flows; and issues with respect to access to finance.  
2 Trade and Inve stment Regime - 2.2 Trade Policy Formulation and Objectives – 
2.2.2  Trade and related policy objectives – Page 29, paragraph 2.14  
Text:  
The Ten -Year Socio -economic Development Strategy (2016 –25) encompasses strategies to graduate 
from LDC status and the strategy for the transition period of LDC graduation (Section 2.3.1.3). It 
consists of seven strategies as follows: on quality, inclusive, stable, sustainable and green economic 
growth; on LDC graduation, and progress on the SDGs; on human development; on sustainable and 
green environment with effective and efficient use of natural resources; on the enhancement of the 
Government's role in social management under the effective rule of law; on regional and 
international integration; and on industrialization a nd modernization.  
Q4 
How are the said strategies being implemented?  
Response:  
Please see the Government Policy Statement on the Trade Policy Review.  
Q5 
What are the developments that transpired from the start of implementation of the Ten -Year Socio -
economic Development Strategy in 2016 to the present?  WT/TPR/M /394/Add.1  
 
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  Response:  
Please refer to the World Bank's Economic Monitors (www.worldbank.org)  
2 Trade and Investment Regime - 2.2 Trade Policy Formulation and Objectives – 
2.2.2  Trade and related policy objec tives – Page 29, paragraph 2.15  
Text:  
Directly trade -focussed policies are in place in two areas, i.e. exports and trade facilitation. The 2006 
National Export Strategy aims to foster export performance through the creation of a competitive, 
innovative a nd consensual national business environment, and encourage entrepreneurship in the 
integration of Lao PDR within the global marketplace. It  outlines a plan of action dealing with specific 
productive sectors and addressing issues involving poverty reduction , gender equality, trade 
facilitation, access to finance, quality management, trade information, competency development, 
and trade support. It also sets out nine main priority areas: electricity; tourism; organic agricultural 
products; mineral products; ga rments; local silk and cotton handicrafts; wood products; medicinal 
plants and spices; and products from local talent. It sets seven  cross-sectoral strategies: export 
quality management; trade finance; trade information services; competitiveness developmen t; 
marketing; import for re -export; and a concept note for drafting a strategy on the export of Laotian 
labour.  
Q6 
Please elaborate on the abovementioned plan of action that deals with specific productive  sectors 
and addresses issues arising in the country related to trade and economy.  
Response:  
The Export  Strategy has Annexes on measures in specific sectors that are very detailed.  
2 Trade and Investment Regime - 2.2 Trade Policy Formulation and Objective s – 
2.2.2  Trade and related policy objectives – Page 29, paragraph 2.16  
Text:  
A comprehensive Trade Facilitation Strategic Plan (TFSP) (2011 -15) recognized trade facilitation as 
an engine of growth (Section 3.1.1). Its primary objectives were to simplify border procedures and 
to reduce the cost of trading, to enhance trade competitiveness. To achieve these objectives, the 
following six strategic measures were set: mainstreaming trade facilitation across line ministries; 
simplifying and modernizing trade an d customs procedures; implementing WTO, ASEAN and Greater 
Mekong Subregion (GMS) commitments (Section 2.3.2); building private -sector capacity to trade 
efficiently in compliance with rules and regulations; providing the right equipment and facilities to 
ensure the smooth and efficient administration of trade and customs procedures; and creating a 
national trade facilitation body (the National Trade Facilitation Secretariat under the MoIC).  
Q7 
Was the TFSP successful in its objectives? Were the measures met?  
Response:  
A review of the TFSP 2011 -15 showed overall positive results as majority of the strategic measures 
set out in the Plan were substantially met, which included simplification of customs procedures, 
provision of equipment & facilities and the creat ion of a national trade facilitation body. The 
remaining measures also made appreciable impact and put together contributed to appreciable 
reduction in clearance time for exports and imports.  
Customs procedures improved significantly with the automation o f customs offices all over the 
country and introduction of risk management in inspection to enable focusing of resources on 
high-risk cargo designated to the red channel. These measures along with other initiatives, like WT/TPR/M/394/Add.1  
 
- 20 - 
 
  coordinated border management, post  clearance audit, advance rulings and provision of appeal etc. 
have resulted in quicker customs clearance with average clearance time in customs coming down 
from eleven and half hours in 2012 to six and a half hours in 2016. However, improvement of 
procedu res by non -customs agencies in operating NTMs remained a challenge.  
The Trade Facilitation Secretariat (TFS) set up in 2010 as a nodal organization for trade facilitation 
work in the country continued to play a steering role to follow trade facilitation m andate since then. 
However, it was able to meet only once in a year, leaving the day -to-day monitoring work of TFSP 
to the Department of Import & Export (DIMEX), which was meant to provide only secretarial support 
to TFS and had been assigned no authority for any steering or monitoring role on behalf of TFS.  
An assessment of the TFSP 's performance targets also reflected positive results. For example, the 
merchandise exports in the country grew by an impressive 125% between 2011 and 2016. Secondly, 
there wa s clear reduction in number of documents, time and cost to export and import.  
The implementation has also shown that additional efforts need to be paid in capacity -building of 
private sector and engagement of private sector partners in development and imp lementation of 
trade facilitation measures.  
2 Trade and Investment Regime - 2.2 Trade Policy Formulation and Objectives – 
2.2.4  Transparency – Page 31, paragraph 2.21  
Text:  
Lao PDR attaches importance to making laws more transparent and readily accessible. However, 
most laws are still published in Lao language only (some are translated into English) in the Official 
Gazette (Section 2.2.3), which is updated daily and is available to all individuals and institutions, 
both in hard copy and online. S ince 2012, the Department of Import and Export of the MoIC hosts 
the Lao PDR Trade Portal (https://laotradeportal.gov.la/index.php?r=site/index) on behalf of all 
government agencies involved in the import/export process; it contains trade and trade -related  
legislation and information. The websites of relevant ministries and agencies contain information 
mostly in the Lao language. Lao PDR has been developing key projects for e -government services. 
Its e-Government Action Plan (2013 -20) is as follows: establi shing an e -Government Service Centre, 
consisting of a National e -Government Centre at the Ministry of Posts and Telecommunications 
(MPT), and setting up an e -Government office in each ministry and provincial office; building the 
National e -Government Infra structure ; developing e -Government applications (E -Commerce 
Project, E -Revenue Project, E -Banking Project, Government Cross -sectoral Information -sharing 
Project, E -Health Project, and Information and Communications Technology (ICT) for the Blind 
Project);  deploying an e -governance system throughout the country for human resource 
development; developing procedures, laws and regulations related to e -Government; and 
developing and defining the national standard, especially for data exchange and security conce rns. 
Q8 
Are there efforts from the government to develop the websites of ministries with an English version 
to provide potential exporters/investors from other countries readily available documents and 
accessible information.  
Response : 
All websites of ministries have English version; however, due to the limited capacity in terms of 
translation , some documents in English version are not available. Notwithstanding, Lao trade portal 
and Lao service portal websites are to be comprehensive we bsites of Ministry of Industry and 
Commerce to provide both Lao and English version of trade -related in goods and services documents  WT/TPR/M /394/Add.1  
 
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  2 Trade and Investment Regime - 2.2 Trade Policy Formulation and Objectives – 
2.2.4  Transparency – Page 31, paragraph 2.22  
Text:  
As in all countries, a lack of transparency, and thus a lack of public accountability, creates scope for 
administrative discretion and therefore corruption. On 10 December 2003, Lao PDR signed (ratified 
25 September 2009) the UN Convention against C orruption, whose 182 parties (as at end -2016) are 
required to establish criminal and other offences to cover a wide range of acts of corruption; Lao 
PDR participated in the review of the implementation of this Convention in period 1  (2011 -15) and 
period 2 (2016 -20). Lao PDR is also a member of the South East Asia Parties Against Corruption 
(SEA-PAC). It also co -operates with Viet Nam, China, Cambodia, Myanmar and Thailand in this area. 
Despite its anti -corruption initiatives (see below), Lao PDR continues t o rank poorly, at both regional 
and international levels.   
Q9 
What are some initiatives and efforts of the government to combat corruption which are aligned with 
the UN Convention Against Corruption and the SEA -PAC? 
Response:  
There is annual report to the Parliament. In addition, please see the website Of the State Audit 
Authority for the ongoing activities and assessment:  http://www.sao.gov.la   
2 Trade and Investment Regime - 2.3 Trade Agreements and Arrangements – 2.3.1  
2.3.1.3 Graduation – Page 34, paragraph 2.28  
Text:  
The main trade -related challenges regarding LDC graduation could emanate from a loss of 
preferences, reduced flexibility in th e implementation of WTO agreements, and also a possible 
reduction of access to grants and concessionary loans. Upon graduation, Lao PDR would have to 
bring its laws into conformity with WTO agreements. At present, WTO rules contain no explicit 
provisions r egarding the graduation of LDCs. However, several instruments are available in the WTO 
to help graduating LDCs prepare for a smooth transition. The LDC Trade Ministers ' Declaration 
adopted at MC11 underlined the need for positive actions for graduated LDCs , and called upon 
development and trading partners to extend to the graduated country trade preferences previously 
made available because of their LDC status, or to reduce them in a phased manner to avoid their 
abrupt cutback. It also invited all WTO Membe rs to extend to a graduated country the existing special 
and differential treatment related to the implementation of WTO agreements available to LDCs, for 
a period appropriate to the development situation of that country. Under the EIF, assistance is 
available to a graduated LDC for a period of five years after its actual graduation.  
Q10 
As an LDC expecting to graduate from LDC status in 2024 (assuming that all requirements necessary 
for said graduation are fulfilled), what are Lao PDR 's considerations prio r to participating in the 
implementation of certain WTO agreements and initiatives, e.g. development of the framework for 
investment facilitation?  
Response:  
Please the Government TPRM Report  WT/TPR/M/394/Add.1  
 
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  2 Trade and Investment Regime - 2.3 Trade Agreements and Arrangem ents – 
2.3.2  Regional and preferential agreements – 2.3.2.1 ASEAN - Page 37, paragraph 2.32  
Text:  
Two agreements were signed on the side -lines of the 25th ASEAN Economic Ministers' (AEM) Retreat 
on 23 April 2019. The first, the ASEAN Trade in Services Ag reement, encompasses all the 
achievements that the ASEAN member States have made to date under the AFAS. It also provides 
the mandate for countries to transition towards a negative -list approach for even deeper integration 
in the future. The second agreeme nt, the Fourth Protocol to Amend the 2009 ASEAN Comprehensive 
Investment Agreement (ACIA), incorporates obligations on the prohibition of performance 
requirements that will ensure ASEAN investors continue to get the best treatment through this 
Agreement.  
Q11 
Please further explain how the ACIA, which incorporates the obligation on "prohibition of 
performance requirements " will ensure best treatment for ASEAN investors.  
Response:  
While assessments of effectiveness of performance requirements as a policy tool vary, their 
prohibition ensures that the ASEAN investors are free to take their business decisions on the basis 
of commercial and efficiency considerations only.  
2 Trade and I nvestment Regime - 2.3 Trade Agreements and Arrangements – 2.3.3 Other 
agreements and arrangements - Page 39, paragraph 2.40  
Text:  
Lao PDR is a beneficiary under the GSP schemes of Armenia, Australia, Canada, Belarus, the 
European Union, Iceland, Japan, K azakhstan, New Zealand, Norway, the Russian Federation, 
Switzerland, Turkey, and the United States. As an LDC, Lao PDR is entitled to additional preferences 
such as duty -free (and/or quota -free) (DFQF) treatment or tariff reductions from Chile, China, 
Chinese Taipei, India, the Republic of Korea, Kyrgyz Republic, Montenegro, Tajikistan and Thailand. 
Like other LDCs, as of 2012, Lao PDR had a low rate of GSP utilization. No data on the utilization of 
GSP and DFQF treatment under these schemes were available with the authorities.  
Q12 
In view of the anticipated graduation of Lao PDR from LDC status in 2024 (assuming that all 
requirements necessary for said graduation are fulfilled), what measures are being considered or 
undertaken to prepare for the revocation of preferences previously made available to Lao PDR as an 
LDC, considering that its top export markets include China and Thailand, both of which provide some 
form of said preferential treatment?  
Response:  
The trade of Lao PDR with Thailand is largely cover ed by the framework of the ASEAN. As far as 
China is concerned, it is expected that the RCEP negotiations will conclude soon, providing an 
alternative legal basis for such trade.  
Q13 
What factors hinder the maximum utilization of preferences under the GSP  and DFQF schemes made 
available to Lao PDR as an LDC?  WT/TPR/M /394/Add.1  
 
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  Response:  
High transportation costs and low comparative demand for Lao PDR products in the markets granting 
preferences and competition (including from other LDCs) are among the difficulties faced by t he 
country's exports under the GSP/DFQF.  
2 Trade and Investment Regime – 2.4 Investment regime – 2.4.1 Regulatory framework  
-Page 41, paragraph 2.45  
Text:  
During the review period, the legislative framework governing investment was updated. The 2016 
amended Law on Investment Promotion became effective on 19 April 2017, replacing the 2012 
version which was notified to the WTO; the MPI is to submit the text of the amended Law to the 
WTO Secretariat as soon as its translation is completed. The Law provid es for two types of 
investments: general businesses activities; and concession investment. The former is divided into 
two sub categories: business activities under the controlled business list (Section 2.4.2) and business 
activities outside the controlled business list; the latter are regulated by the Enterprise Law (last 
amended in 2013), and fall under the responsibility of the MoIC. Each type of investment has a 
different process for obtaining the appropriate licenses to start a business that are detaile d in the 
Law. 
Q14 
What are the criteria that distinguish/define a concession investment?  
Response:  
According to Art. 41 of the Investment Law, concession business is an investment for which the 
investor is authorized by the Government according to regulati on to develop and operate a business 
notably concession of land, development of special economic zones, zones for industrial processing 
for export, mining, electric energy development, aviation and telecommunication. The list of 
concession businesses in de fined in the Decree on the Approval of the Controlled Business List and 
Concession Businesses of Lao PDR No. 03/PM of 10 January 2019.  
2 Trade and Investment Regime – 2.4 Investment regime – 2.4.4 Investment promotion 
- Page 43, paragraph 2.54  
Text:  
Tax incentives for investment are generous and SEZ development has an important role in the 
Government's investment promotion objectives. An  investment in any business sector entitled to 
incentives must have a minimum investment capital of LAK 1.2 billion or employ at least 30 Lao 
technical staff or use 50 or more Lao workers with an employment contract of at least one year. 
Support for the de velopment of SEZs and unique economic zones (UEZs) has been provided (Section 
3.3.1.2). So far, the IPD has focussed its investment promotion efforts on a limited number of 
countries, and has established offices in key partner countries, namely China, Fran ce, Japan, the 
Russian Federation, Thailand, and Viet Nam.  
Q15 
What is the profile of the Lao labor force, i.e. age and skill capacity?  
Response:  
Please see the information available to the Government based on the relevant ILO survey here: 
https://www.ilo.org/surveydata/index.php/catalog/2032   WT/TPR/M/394/Add.1  
 
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  Q16 
What were Lao PDR 's considerations in selecting its key partner countries for investment promotion, 
i.e. China, France, Japan, Russia, Thailand, and Viet Nam?  
Response:  
Lao PDR investment promotion activities concentrate on investments in the manufacturing and 
services sector that provide employment and value added to its economy. Priority is given to the 
transfer of technology and the tr ansformation of its primary products such as agriculture and mining 
resources. Lao PDR also tries to use its comparative advantage in clean energy to promote industrial 
development. While we do not target specific countries for specific investments, we obv iously take 
into account the strength of various partners and their willingness to invest.  
Q17 
Are there plans on expansion of the countries covered by the investment promotion efforts of the 
government?  
Response:  
No specific countries are targeted for sp ecific investments.  
Q18 
If so, what country/ies is/are the government eyeing to include in the expansion?  
Response:  
No specific countries are targeted for specific investments.  
3 Trade Polici es and Practices by Measure – 3.1 Measures Directly Affecting Imp orts – 
3.1.1 Customs procedures, valuation and requirements - Page 46, paragraph 3.1  
Text:  
Since its accession, Lao PDR has made significant progress in improving its customs procedures and 
harmonizing them with international standards. This includes the automation of customs offices all 
over the country, and the introduction of risk management regarding inspection to allow available 
resources to focus on high -risk cargo designated to the red channel. These measures, along with 
other initiativ es, like coordinated border management, post -clearance audit, advance rulings, and 
provision of appeal, have resulted in quicker customs clearance, with average clearance time coming 
down from 11.5 hours in 2012 to 6.5 hours in 2016. Furthermore, ASYCUDA i s now operational at 
24 border posts, to facilitate customs procedures.  
Q19 
Is the automation effectively implemented across all customs offices?  
Response:  
Yes, ASYCUDA is now implemented at all international customs checkpoints.  
Q20 
Are there government initiatives to create a National Single Window and further integrate it to in the 
ASEAN Single Window?  WT/TPR/M /394/Add.1  
 
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  Response:  
Lao PDR is expected to join the ASEAN Single Window Live Operation in December 2019. At present, 
the operation of the ASW is limited  to grating of preferential tariff treatment based on the Electronic 
Certificate of Origin (ASEAN Trade in Goods Agreement (ATIGA) e -Form D) exchanged through the 
ASW.  More documents (ASEAN Customs Declaration Document (ACDD), electronic Phytosanitary 
Certificate (e -Phyto), electronic Animal Health Certificate (e -AH) and electronic Food Safety 
Certificate (e -FS) Certificate) are expected to be included in future.  
3 Trade Policies and Practices by Measure – 3.1 Measures Directly Affecting Imports – 
3.1.1 Tar iffs – Tariffs bindings - Pages 51 -52, paragraph 3.24  
Text:  
As at June 2019 the applied MFN rate exceeded the bound rate for 26 lines (Table A3.2). The 
products affected include, inter alia: live animals for breeding, fruits and vegetables, diesel  fuels, 
toothpaste tubes, cellular telephones, vacuum cleaners, bamboo panels, and cellular wood panels. 
The authorities stated that the breaches occurred due to the change in nomenclature of the tariff, 
the Government plans to rectify these before Novembe r 2019.  
Q21 
We request  the Lao government for updates on the rectification of the said tariff lines.  
Response : 
This is technical error and it has been corrected and notified to WTO and it is ready to post 
in the ASYCUDA website.  
3 Trade Policies and Pract ices by Measure – 3.1 Measures Directly Affecting Imports -
3.1.6 Anti -dumping, countervailing and safeguard measures - Page 58, paragraph 3.37  
Text:  
The Law on Safeguards was promulgated on 7 December 2017. The Law on Anti -dumping and 
Countervailing Measures was approved by the NA in June 2019 and is expected to be promulgated 
by the end of the year.  
Q22 
What are the salient features of the domestic legislations on safeguards, anti -dumping and 
countervailing duties? Please elaborate on the process of investigation: from the initiation stage to 
the final imposition of each measure.  
Response:  
Lao PDR's Law on Safeguard, Law on Anti -Dumping and Countervailing were developed on the basis 
of the WTO agreements on Safeguard, Anti -Dumping and C ountervailing Duties.  
The process of Safeguard and Anti -Dumping and Countervailing investigations Causes of 
investigation on injury from Safeguard, dumping or subsidy are similar as follows: 1. A discovery of 
information or evidence  of injury to a domestic  industry by the investigating authorities; 2. An 
application from domestic industry or its representative.  
The consideration of Application on Safeguards, after receiving the application, the investigating 
authorities shall complete their consideration of  the information and evidence within 15 days from 
the date of receiving the application. If the consideration is not completed within the determined 
time period, they shall propose that the Minister of Industry and Commerce consider an extension, 
but not b y more than 10 days.  WT/TPR/M/394/Add.1  
 
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  When the investigating authorities discover information or evidence indicating that the increased 
imports have caused serious injury or a threat thereof, they shall report to the Minister of Industry 
and Commerce for consideration of issuing a Decision on Investigation.  
After the Minister of Industry and Commerce has issued the Decision on Invest igation, t he 
invest igating authorities shall carryout the investigation according to the following procedures:  
1. Notify the exporting country, the applicant, the World Trade Organization (WTO) and 
interested parties before carrying out the actual investigation;  
2. Disseminate the Decision on Investigation on any media to inform the public;  
3. Consult with the interested parties in order for them to show evidence, documents, and their 
views on the application of safeguard measures to ensure the public interests;  
4. Collect data at relevant locations to certify the accuracy and truth of injury from an increase 
of imports.  
The investigation shall be completed within one hundred and eighty days from the date of issuance 
of the decision. If the investigation is not completed within the determined time, the invest igating 
authorities can propose to the Minister of Industry and Com merce for considering an extension of 
not more than sixty days.  
After completing an investigation, the investigating committee shall summarize and report the 
results of the investigation, including evidence gathered, to the Minister of Industry and Commer ce, 
who shall propose to the Government to consider whether or not to apply safeguard measures.  
• For Anti -dumping and Countervailing, the consideration of Application after receiving 
the application, the investigating authorities shall complete their consi deration of the 
information and evidence within 45 days from the date of receiving the application. If 
the consideration is not completed within the determined time period, they shall propose 
that the Minister of Industry and Commerce consider an extension , but not by more 
than 30 days.  
After receiving the summary report from the investigating authorities, the Minister of Industry and 
Commerce shall consider issuing the Decision on Investigation, including appointment of an 
investigating committee on dumpin g or subsidy injury.  
Then the investigating authorities shall carry out the investigation according to the following 
procedures:  
1. Notify the exporting country, the applicant, the World Trade Organization (WTO), and 
interested parties;  
2. Disseminate the Decision on Investigation through any media to the public;  
3. Send questionnaires to the domestic industry and producer or exporter of the 
investigated producer for providing information;  
4. Analyze information received from the questionnaires or  request for additional 
information where necessary;  
5. Notify interested parties of the preliminary determination in order for them to present 
their views;  
6. Collect and analyze additional information in exporting country to certify the accuracy 
and truth of injury from dumping or subsidy;  
7. Notify interested parties of essential factual evidence under consideration which form 
the basis for final determination in order for them to present their views;  WT/TPR/M /394/Add.1  
 
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  In case where there are exporters, producers, importers or t ypes of investigated products, the 
investigating committee shall use a random sampling method to determine the exporters, producers 
or types of products according to appropriate statistic information.  
After completing an investigation, the investigating co mmittee shall summarize and report the 
results of the investigation, including evidence gathered, to the Minister of Industry and Commerce, 
who shall propose to the government to consider whether or not to apply anti -dumping or 
countervailing measures  
The investigation shall be completed within 12 months from the date of issuance of the decision. If the 
investigation is not completed  within the determined time, the investigating committee can propose that 
the Minister of Industry and Commerce consider an ex tension, but not by more than 6 months.  
3 Trade Pol icies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
– 3.3.1 Incentives – 3.3.1.2 Incentives - Page 64, paragraph 3.60  
Text:  
Business sectors identified for incentives include:  
• those using, and involved in, modern technology, scientific research, R&D, innovation, 
environmentally -friendly methods, and efficient use of natural resources and energy;  
• clean agriculture, non -toxic agriculture, seed production, animal breeding, industrial crops 
and plant plantation, forestry development, environment and biodiversity protection, and 
activities promoting rural development and poverty reduction;  
• environmentally -friendly agro -processing industry, and handicraft industry spe cializing in 
national traditional and unique handicrafts;  
• development of environmentally -friendly and sustainable ecotourism, and the cultural and 
historical tourism industry;  
• education, physical sports, human resource and skills labour development, vocati onal 
training institutions or centres, and production of educational and sports equipment;  
• development of modern hospitals, and pharmaceutical and medical equipment factories, and 
traditional medicine production and treatment;  
• investment in, service provis ion for, and development of public infrastructure solving urban 
traffic congestion and over -populated residential area issues, and development of 
infrastructure supporting agriculture and industry, cargo transportation, transit and 
international linkage se rvices;  
• policy banks and micro -finance institutions focusing on poverty reduction and communities 
with limited access to finance; and  
• modern commercial centres promoting domestic products and world -renowned brands, 
exhibition centers and fairs for domestic  industrial, handicrafts and agricultural products.  
Q23 
What is the coverage of the business sector involved in "modern technology "? 
Response:  
No specific criteria are defined.  WT/TPR/M/394/Add.1  
 
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  4 Trade Policies by Sector – 4.1 Agriculture, Forestry and Fisheries – 4.1.1 F eatures – 
Page  85, paragraph 4.2  
Text:  
Agriculture continues to play an important, albeit declining, role in the economy, maintaining food 
security, and developing the rural economy, therefore also addressing poverty. Its GDP  contribution 
(including forestry and fishing) dropped progressively f rom 20.4% (2012) to 17.9% (2018) due, 
inter alia, to weather conditions (e.g. heavy flooding in 2018) and fast growth in electricity and 
construction activities (Table 1.2). Agriculture's share in total employment is estimated to have 
dropped from 71.3% in  2010 to 61.3% in 2017 (Table 1.2). Despite its low labour costs, the sector 
suffers from a low labour productivity level, estimated at four to ten times lower than non -
agricultural sectors in 2010, by international and regional standards. Reportedly, agri culture faces 
challenges in meeting domestic and external demand, due to issues of farm productivity, lack of 
domestic value -added, produce quality, and fragmentation of value chains; efforts are being 
undertaken to address this (Section 4.1.4). At the sam e time, poverty among agricultural 
smallholders and the vulnerable rural population remains one of the highest concerns.  
Q24 
How does the government address the issue on the low productivity level of the agricultural sector?  
Response:  
The 8th NSEDP priori tises green growth in its long -term agriculture and forestry development 
strategy and focuses on agricultural quality, safe food and products by having small and medium 
enterprises as the main engine for materialising the strategy.  In particular, the Gover nment aims at 
expand ing access to high quality seeds, machinery and irrigation schemes in order to reduce 
transaction costs and enable higher returns for farmers , promoting best practices in farming, 
improving the quality of produce and reducing costs, linking farmers to agri -businesses to improve 
marketing, and shifting to more modern and environmentally -friendly processing facilities and 
technologies to improve the product value and reduce losses.  
The Laotian government focus es on  transforming f arming practices into clean agriculture following 
such principles as GAP and OA production , developing standards for different types of clean 
agriculture and promoting harmonization with international standard s, so that  farmers c ould trade 
up to high er price.  
Q25 
Are there laws that protect the agricultural smallholders?  
Response:  
Lao PDR is well aware of the risk faced by agricultural smallholders, which are numerous and include 
floods, draughts / late coming rains, storms, crop / stock pests, human illne sses and epidemics, 
agricultural products price volatility, possible loss of markets and environmental degradation. The 
Strategy for Agricultural Development 2011 to 2020 identifies two development goals: (i) 
modernization of lowland market -oriented agricu lture production adapted to climate change and 
focused on smallholder farmers; and (ii) conservation of upland ecosystems, ensuring food security 
and improving the livelihoods of rural communities. It has four specific goals including: (i) food 
security, ( ii) promoting "pro-poor and green " value chains, (iii) sustainable production patterns, and 
(iv) sustainable forestry . 
Specific laws containing provisions aimed at protecting the smallholders are:  
1. Law on  Agricultur e, No. 01/98, dated 10/10/1998;  
2. Law on  Intellectual Property , No. 38/NA dated 15 /11/2017; 
3. Law on Plant Protection and Quarantine , No. 13/NA, dated 25/11/2016 ; WT/TPR/M /394/Add.1  
 
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  4.  Ministerial Decision No. 2987 / MAF "On Controlled Plants List", dated 28/6/2019;  
5.  Ministerial Decision No. 2985 / MAF "On SPS measures  for Import and Export of Plants 
and Plant Products and Materials" ; 
6.  Law on Veterinary  and Livestock,  No. 08 / NA, dated 11/11/2016 . 
4 Trade Policies by Sector , Page 109, paragraph 4.76  
Text:  
The MoIC, in cooperation with other related line ministries (e.g. the MPI, the MoF, the MAF, and the 
MEM), is, inter alia, the focal point for manufacturing policy formulation and implementation, and is 
responsible for promoting manufacturing, trade, import and export activities.  
Q26 
What role do other agencies specifically play in shaping the manufacturing policy objectives under 
the 8th NSEDP? What are the initiatives to operationalize the goal of achieving transforming the 
manufacturing sector?  
Response:  
Other agenci es play a role in shaping manufacturing policy objectives through provision of 
information and participation in consultative process leading to formulation of the parts of 8th NSEDP 
related to the manufacturing sector development as well as in the formulat ion of Industry and 
Commerce Development Plan. For example, the MPI provided inputs related to promoted sectors 
and areas as provided for in the Investment Promotion Law (2017), while the MAF provided inputs 
on arable land and agricultural produces to supp ort agro -processing.  
The incentives to operationalize the goal of achieving transformation of the manufacturing sector 
include customs duties and tax exemptions as provided for in the Investment Promotion Law (2017) 
and zero -rated VAT on exported goods, i ncluding manufactured ones.  
4 Trade Policies by Sector  – 4.2 Mining and Energy – Policy and Institutional framework - 
Page 101, paragraph 4.52  
Text:  
Since 2016, policy formulation and implementation in this area was entrusted to the new Ministry of 
Energy and Mines (MEM), which merged with the Ministry of Natural Resources and Environment 
(MONRE). It issues mining licences, and oversees the implementation of the Law on Minerals (see 
below), which includes inspecting and monitoring mineral development  activities in the country. It 
also assists in the negotiation of mining contracts and mineral exploration and mining licensing 
activities, promotes investment in the mining sector, maintains geologic databases, and provides 
mineral exploration support and  data analyses. It manages and promotes the mining, processing, 
and trade of mineral products. Its Department of Mines (DOM) oversees mining company compliance 
with mining regulations and contracts; oversees and implements the mineral law provisions on min e 
safety and mine closure regulations; creates the necessary regulations and guidelines for the 
promotion of the mining and metallurgical sector; and issues, rejects, extends, and withdraws mining 
licences.  
Q27 
Does the government prohibit specific mining methods such as open -pit mining? If there is no such 
prohibition, will it consider implementing one in the future, and why?  WT/TPR/M/394/Add.1  
 
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  Response:  
The 2017 Mining law requires operators of mines to, among others, protect the environment and 
natural resources in the cou rse of their activities. It contains no details pertaining to the scope or 
extent of such protection.  
4 Trade Policies by Sector  – 4.2 Mining and Energy – Regulatory framework - Page 101, 
paragraph 4.53  
Text:  
During the review period, the main legal framework was revised, and new regulations were issued. 
The Law on Minerals was last revised in November 2017, replacing the 2011 version.1 The 2017 Law 
sets the framework for mineral development plans at national and provincial levels, and regulates: 
minerals; mineral activities; mineral business; safety and environment; rights, duties and 
obligations of the minerals business operators; the Government's share in the mining companies; 
prohibitions regarding staff, mining inspectors, and investors; dispute s ettlement; and management, 
monitoring and inspection of mineral and mining activities. It, inter alia, classifies mining areas into: 
areas licensed for mineral activities; prohibited areas; reserved areas; and toxic areas. All minerals 
that occur at the su rface or under land or water are the property of the national community, and 
are subject to the centralized and unified management of the State. Once the investor completes 
exploration and presents a report on the detailed feasibility study, the Government  retains the right 
to a share in such mineral business. The Government may participate in a mineral business in the 
form of equity of not more than 25%.  
Q28 
Does the revised Law on Minerals or the 8th National Socio -Economic Development Plan explicitly 
ban the export of unprocessed minerals to promote domestic processing and value addition? Further, 
are there fixed quotas for mineral ore exports?  
Response:  
No ban of export of unprocessed minerals is contained in any of the instruments mentioned: the 8th 
NSEDP aims to "Increase the promotion of mineral processing and reduce the export of unprocessed 
minerals to increase the value of mineral products and ensure that the benefits from this sector 
contribute to improving people 's livelihoods ". In its turn, a ccording to the Law on Minerals Article 
77, Minerals Processing, "Mining must be significantly associated with mineral processing primarily 
within the country in order to add value to the minerals through the application of highly advanced 
and modern techn iques and technologies to produce semi -finished products and finished products 
of the different kinds of minerals for supply to the domestic market and for exporting ". Art. 78 (para 
1) of the same Law, Trading‚ Import and Export of Minerals Products,  states that "The mining license 
holders shall have incentives to operate mineral processing within the country to add value to the 
minerals, and shall have the rights to trade, import and export the mineral products ".  
4 Trade Policies by Sector  – 4.2 Mining and Energy – Border and domestic support 
measures - Page 102, paragraph 4.55  
Text:  
The applied MFN tariff rate on mineral products (HS 25, HS 26 and HS 27) remains at 5%, whereas 
the bound tariff ranges from 5% to 40%. Measures are in place to raise domestic value -added in 
mineral products. Since 2008, the "promoted" mining products for export have been metal and non -
metal minerals, and liquids and gases that are transformed as semi -processed or finished mining 
products prior to being exporte d. Since 2012, individuals, legal entities or organizations have been, 
inter alia, prohibited to sell -buy minerals (ores) and mining products without permission from the 
MEM. Since June 2012, the export of raw minerals is prohibited; they must be processed  into semi -
finished or fully finished products before exportation, and approved by the Department of Mines of 
the MEM. The list of items subject to export duties was last updated by Prime Minister Decree No. 
48, 19 February 2019 (not available in English).  Since then, according to the authorities, no export 
duties on minerals were levied; until then, export duties at 5% and 10% were levied on certain non -WT/TPR/M /394/Add.1  
 
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  metallic minerals (e.g. granite, pebbles, gravel, broken or crushed stone, and tarred macadam) and 
ferrous waste and scrap, to monitor their export, according to the authorities.  
Q29 
Are there minimum requirements for the processing of raw minerals before exportation?  
Response:  
Since 2008, the "promoted" mining products for export have been metal and non -metal minerals, 
and liquids and gases that are transformed as semi -processed or finished mining products prior to 
being exported ". 
Q30 
Based on Lao PDR 's experience, what are the effects of export banning? Further, did the 
implementation of export banning result in increased share to GDP for mining?  
Response:  
Please see the response to the Question 28.  
4 Trade Policies by Sector  – 4.3 Manufacturing – 4.3.2 Policy and institutions - Page 109, 
paragraph 4.75  
Text:  
Under the 8th NSEDP, the main manufacturing policy objectives are to: develop the sector to become 
a quantitatively and qualitatively high -growth activity; diversify commercial and modern goods 
production to meet domestic and export needs; raise competitiveness; and tr ansform it into a main 
sector to support quality, job creation and sustainable economic growth by setting a growth target 
of about 15% per annum (as for services). Furthermore, the Plan, inter alia, envisages the setting 
of policies, legislation and mechan isms for managing and creating favourable environments for 
processing industries (using raw materials from agricultural and forest products and mineral 
products) and handicrafts with (socio -economic) potential, inheritance value and those that are in 
deman d (e.g. garments, silk cloth and skirt weaving, bamboo weaving, and woodcarving products); 
supporting investment in assembling activities (e.g. vehicles and machinery spare parts); and 
expanding production by applying a concept of "1 –3-3–4" (1 central econ omic area, 3 economic 
corridors, 3 industrial production areas, and 4 areas of economic border cooperation) to enable more 
concrete results. The authorities indicated that an Industrial and Commerce Development Plan 2015 -
20 and a Work Plan 2019 -20 involvin g, inter alia, support to agricultural product processing and 
garment production, were being prepared.  
Q31 
Given the low contribution of the manufacturing sector to Lao PDR 's economy, employment, and 
total merchandise exports, what policies are in place to  ensure the development and sustainability 
of the manufacturing sector and the fulfillment of other objectives such as product diversification 
and sustainable economic growth?  
Response:  
The policies are put forward through Industry and Commerce Development  Plan (2016 -2020) and 
Industry and Handicraft Work Plan 2019 -2020 which has been adopted by the Government recently. 
The work plan particularly promotes 5 priority sectors: agro -processing, garments, construction 
materials, handicraft and supporting indust ries. These reflect the competitive advantage of Lao PDR  
given the availability of local materials, labour, and geographical proximity and the local impacts. 
Supporting measures include capacity building, investment in infrastructure especially in industri al 
parks, and business enabling environment to name some.  WT/TPR/M/394/Add.1  
 
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  4 Trade Policies by Sector – 4.4 Services – 4.4.1 Features - Page 110, paragraph 4.80  
Text:  
Lao PDR considers that the development of the services sector is firmly linked to production, enabling 
high growth and job creation as well as the supply of diversified goods and services to meet domestic 
and external demand. Services continue to be the largest GDP contributor; their share peaked in 
2015 (49.4%, or 55.7% including construction), an d progressively declined to their 2013 level in 
2017 and 2018 (47.0%, or 54.7% including construction) (Table 1.2). Annual growth in the sector 
declined from 9.7% in 2013 to 4.5% in 2017 but rose to 7.9% in 2018, while construction growth 
rates ranged from  8.1% (2014) to 20.9% (2018). The share of services in total employment rose 
steadily from 25.2% (2013) to 29.0% (2017); this development may be indicative of a minor 
reduction in labour productivity in Lao PDR's services activities. As at 2017, wholesale and retail 
trade, and public administration and defence remained the leading activities in GDP terms, followed 
by real estate activities, and financial and insurance activities.  
Q32 
What other factors contribute to the decline of the services sector despit e role as largest GDP 
contributor?  
Response:  
There are some other external factors that could explain the decrease on services sector such as a 
decrease in services exports that may be due to a decline in external demand (2016 and 2017) as 
well as a reduct ion in services imported by Lao PDR  from 2015 -2018, which may indicate reduced 
domestic services activities. In addition, some of the main contributors of services sector such as 
tourism and mining are on a decline.  
4 Trade Policies by Sector – 4.4 Service s – 4.4.4 Communications - Page 119, paragraph 
4.107  
Text:  
The information and communication services contribution to GDP peaked at 1.9% in 2015 and 
dropped to 1.7% in 2018 (Table 1.2). Telecoms penetration remains relatively low. As at 2017, 
fixed-teleph one subscriptions covered 16.4% of the population, mobile -cellular subscriptions 54.1%, 
fixed (wired) -broadband subscriptions 0.2%, mobile -broadband subscriptions 40% (42% in 2018), 
households with a computer 13.2% (26% in 2018), households with Internet a ccess at home 24.5% 
(70% in 2018), and individuals using the Internet 25.5%. The number of mobile phone lines is rising 
and the rates are falling, driven by improved technology, enhanced competition, and increased 
access to low -cost Internet providers; how ever, rural and more remote communities are still 
unserved or underserved. The Government supports deployment of 4G, 3G and 2G coverage across 
different parts of the country; as at 2017, 13% of the population with mobile phones had access to 
the 4G network , 65% to 3G, and 91% to 2G, which were provided at affordable yet controlled prices 
(see below). In 2017, Lao PDR ranked 139th out of 176 countries in the Information and 
Communications Technology (ICT) Development Index, five positions higher than in 2016 ; the ICT 
price basket represents an average of fixed telephone, mobile cellular and fixed broadband 
sub-baskets.  
Q33 
What are the factors contributing to low penetration of the telecommunications sector? What is the 
maximum allowable foreign equity/ownership for telecommunications enterprises?  
Response:  
Lao PDR is a mobile -only country when it comes to broadband interne t. However, later, as a matter 
of a steady trend also recognized by the UNCTAD in its 2018 E -trade readiness report, the number 
of phone lines is growing and the rates are falling, driven by improved technology, enhanced 
competition, and increased access t o low - cost Internet providers. Meanwhile, fixed broadband WT/TPR/M /394/Add.1  
 
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  internet growth remains low. Further liberalization of the ICT sector, which might incite higher levels 
of penetration, including with respect to bandwidth limitations, price control, volume contro l, 
packaging control, etc. is under consideration by Laotian Government.  
Loo PDR are drafting a feasibility s tudy of "USO" plan and prep aring a report to the gover nment.  To 
ensure  compliance with Natio nal Strategic Plan th e government encourages  telecom  operators to 
expand the network coverage nationwide without  discrimination (but with no obligation  either ) and  
encourages  Lao citizens  to use ICT  in their daily lives. However, telecom operators are not willing to 
invest in the areas where they could no t get the return o n their investments  in a short term 
(especially in the rural areas due to low consumption). Another factor is a lack of the skill of using 
ICT. Although the broadba nd is accessible, many people  in rural areas st ill do not know how to use 
the ICT in their daily lives. The people who normally use the internet are teenagers and businessmen 
in the city and urban  areas .  
Limitations exist for the mode 3 with respect to basic telecommunications only. The foreign equity 
limit is 60%. No such limita tions apply to value added telecommunications. However, the Law on 
Telecommunications, as amended in 2011, sets no restrictions of foreign equity / ownership of 
telecommunication enterprises.  
4 Trade Policies by Sector – 4.4 Services – 4.4.4 Communication s – Interconnection - Page 
121, paragraph 4.114  
Text:  
No regulation on number portability exists at present.  
Q34 
How does Lao PDR ensure balance in commitments in E -Commerce given the lack of regulation on 
obligations such as number portability? Kindly expound on the relevant laws which allow cover for 
said lack of regulation.  
Response:  
The coordination committee on the E -commerce Decree is working on regulatory framework and 
takes into account the discussion on WTO on the subject.  
4 Trade Policies by Sector – 4.4 Services – 4.4.5 Transport - Page 123, paragraph 4.120  
Text:  
The logistics industry remains poorly developed and highly fragmented due to its small market size. 
It is limited to basic services, road transport, warehousing and cargo clearance, and is mostly 
operated by small, family -run companies (Section 4.4.5.1). A s at 2018, there were 24 freight 
forwarding firms, including international companies, most providing both clearing and forwarding 
services. According to the World Bank's Logistics Performance Index 2018, Lao PDR ranked 120th 
overall out of 167 countries (1 31st out of 160 countries in 2014), and 128th in the quality of trade - 
and transport -related infrastructure, 116th in the ease of arranging competitively priced shipments, 
114th in competence and quality of logistics services, and 130th in the timeliness w ith which 
shipments reach the consignee within the expected delivery time; these are all behind peers in South 
Asia, e.g. Viet Nam and Thailand, but above Myanmar.  
Q35 
What are some government initiatives/efforts to improve infrastructure in order to boos t the logistics 
industry?  WT/TPR/M/394/Add.1  
 
- 34 - 
 
  Response:  
The Lao PDR is developing the Dry Port to serve as a hub for receiving, exporting, transporting and 
adding value to the Lao China Railway project, which will attract domestic and foreign investment 
as well as promote bus iness expansion in the private sector. The combination would be attractive . 
4 Trade Policies by Sector – 4.4 Services – 4.4.5 Transport - 4.5.1 Road transport - Page 
124, paragraph 4.121  
Text:  
Lao PDR has good connectivity to both of its principal trading partners, Thailand and China, and to 
overseas markets and suppliers via the international gateways in Thailand. Road construction has 
made significant achievements, as evidenced by an increase in road networks and paved roads. 
National roads were u pgraded to ASEAN Roads that link domestic roads with neighbouring countries 
along the regional economic corridors. In April 2018, China's Yunnan Construction and Investment 
Holding Group signed a concession agreement to invest USD 1.3 billion in a 109 -km highway from 
Vientiane to Vang  Vieng, which will eventually be extended to the Chinese border; a planned USD 
4.5 billion highway from Vientiane to Hanoi will also support economic activity. According to a 2018 
World Bank report, the road transport sector in  Lao PDR can be described as thin, consisting of a 
dozen large players (defined as having a fleet size of more than 50 trucks each) and many small 
firms (companies with less than 5 trucks or owner -operators each). Many of the micro firms work in 
the inform al sector. Productivity levels in the road transport sector seem to be generally very low.  
Q36 
What is the current state of Lao PDR 's road network? How many kilometers and percentage of its 
road network are already paved?  
Response:  
The national road networ k comprised approximately 6,900 km of roads, most of which had either a 
sealed (56%) or gravel (30%) surface. The national network was mostly in an acceptable condition 
(80% of paved roads were classified as good or fair).the provincial roads (totaling 5,5 00 km) and 
district and rural roads (almost 18,000 km) were mostly gravel or earth roads and vulnerable to 
heavy rains and floods.  
Q37 
What is Lao PDR 's medium - and long -term plan for the development of its road network?  
Response:  
Lao PDR has two priorities: 1) the connectivity with its neighbours and 2) providing access to the 
main road for the population living in rural areas.  
Part II  : Questions Regarding the Government Report  
Part I:  State of Play in the Reform Process - 6 Trad e Policy by Sector – 6.1 
Goods – 6.1.2 Forestry - Page 13, paragraph 6.9  
Text:  
Lao PDR has also introduced a ban on exports of unprocessed wood from natural forests with the 
aim to better control illegal logging and to promote the transformation of wood in Lao PDR  
Q38 
Please provide details on the measures being undertaken to achiev e / operationalize the said banning 
of exports of unprocessed wood.  WT/TPR/M /394/Add.1  
 
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  Response:  
After introducing the Prime Minister Order No.15/PM on 13th May 2016, the government immediately 
set up the central taskforce No.40/PM on 2 June 2016. The purpose of the central taskforce is to 
implement, instruct and enforce Prime Minister 's Order No.15/PM country -wide.  
The line ministry concerned also issued a decision on the ministerial level taskforce in order to 
enforce Order No.15/PM.  
Lao-EU negotiation on FLEGT VP A (Forest Law Enforcement Government and Trade, Voluntary 
Partnership Agreement) is also believed to be a potential, effective tool to implement the Order, 
because FLEGT VPA focuses on the current legislation system that promotes the trade of legal 
timbers  and wood products as well as promoting good forest governance. For confiscated or seizure 
timber, the forest authority opens a case for investigation -interrogation, then the authority 
concludes the case and submits the results to the prosecution and court  for a final decision. The 
confiscated timbers are then available for public use or openly auctioned. This is subject to the 
condition that the confiscated timbers will used domestically and not for export, as agreed in the 
third FLEGT VPA negotiation betw een Lao PDR  and European Commission in Brussels in June 2019.  
Q39 
How has this affected the industry?  
Response:  
The export ban for logs from the natural forests has not affected the industry positively because the 
enforcement of strict natural forest expl oitation has decreased the supply of woods to wood 
processing industry.  
Part I:  State of Play i n the Reform Process - 6 Trade Policy by Sector – 6.1 Goods – 6.1.3 
Mining - Page 13, paragraph 6.10  
Text:  
The mining sector in Lao PDR used to generate signif icant revenue and has contributed to the steady 
growth of the economy for many years. Nevertheless, lately, the major mining operations in Lao 
PDR have seen a fall in production, predominantly due to drop world prices on minerals, and the 
suspension of new  mining concession allocations since 2012. Under the 8th NSEDP Lao PDR's 
objectives for the sector include increasing the promotion of mineral processing by reducing the 
export of unprocessed minerals to increase the value of mineral products and ensure th at the 
benefits from this sector contribute to improving people's livelihoods. The Law on Minerals was last 
revised in November 2017 in line with the above objectives.  
Q40 
What are the conditions for the suspension of new mining concession allocations?  
Response:  
The moratorium on new mining concessions is unconditional, e.g. consideration of ANY new 
concession related to exploration and surveys of any mine, or to mining bus iness is suspended. The 
measure is in effect since Notification of Ministry of Planning and Investment no. 1263/Phor. Tor. 
was issued on 15 May 2012.  
Q41 
Does the reduction of exports of unprocessed minerals apply to all shipments, regardless of the 
destin ation? Further, how did the said reduction of exports affect existing relations with trade 
partners?  WT/TPR/M/394/Add.1  
 
- 36 - 
 
  Response:  
Yes. There is no discrimination.  
Part I:  State of Play in the Reform Process - 6 Trade Policy by Sector  – 6.2 Services – 6.2.4 
Transport - Page 15, paragraph 6.25  
Texts:  
Being a landlocked country, Lao PDR depends heavily on road transport for trade links both 
externally  and internally. The transport sector in Lao PDR can be described as thin, consisting of a 
dozen large players (defined as having a fleet size of more than 50 trucks) and many small firms 
(companies with less than 5 trucks or owner -operators). Productivity  levels in the Lao PDR transport 
sector are generally very low. The low annual mileage, together with the high cost of capital and low 
profit margins, prevent companies from investing in more expensive, yet more cost -efficient 
vehicles, which in turn incre ases variable operating costs.  
The biggest recent development in the Lao PDR economy is the construction of Lao -China railway. 
This is an area of common ground between the private sector and the Government of Lao PDR. The 
construction  is expected to conclu de in 2021. The railway is 414 km long and runs from Vientiane 
capital to Boten border, where it connects to Chinese railway.  
Q42 
Aside from the above, are there other railway infrastructure projects in the pipeline?  
Response:  
Not yet.  
Q43 
Is Lao PDR open  to entering into PPP agreements for the development of its road and transport 
infrastructure, such as road and bridge construction, tollway construction and operation, and railway 
construction?  
Response:  
Yes. 
 
  WT/TPR/M /394/Add.1  
 
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  AUSTRALIA  
Report by WTO Secretariat WT/TPR/ S/394 and Report by Lao PDR (WT/TPR/G/394)  
Report by WTO Secretariat  - 1 Economic Environment - 1.2 Recent Economic 
Developments  - 1.2.5 Structural Reforms  - 1.2.5.3 Business Environment and labour 
productivity  - Page 18, para 1.19; 2.4.3  
Text:  
The authorities are aware of the country's narrow domestic production and export base, and noted 
that a vibrant private sector is necessary to move towards more broad -based growth. However, 
crucial tasks remain to be undertaken, for the creation of a sound bus iness environment and the 
promotion of the role of the SME sector to enhance its capacity to manufacture and export. Promoting 
private -sector development would require addressing informality and other key constraints to doing 
business, including removing i mpediments regarding to starting a business, paying taxes and dealing 
with licences. A Prime Ministerial Order on the improvement of the regulations and the coordination 
mechanism regarding doing business in Lao PDR was issued in February 2018, instructing  line 
ministries to work on reforms related to doing business indicators. Prioritizing a functional and 
efficient "one -stop shop" for business registration (Section 2.4.3), improving consistency, 
establishing a level playing field for regulation implementa tion, and strengthening the tax system 
for consistency and transparency are some of the critical pre -conditions for private -sector growth. 
The Law on Investment Promotion was also amended to create more favourable incentives for 
projects invested in strate gic zones (Section 3.3.1.2). The Law on Competition also came into force 
in 2016, to create a more level playing field for firms (Section 3.3.4).  
Report by Lao PDR  – 4 Trade and Investment Regime - 4.7 Improvement of overall 
investment climate  - Page 8, pa ragraph 4.8  
Text:  
In the course of the review period, Lao PDR has taken steps towards improvement of its investment 
climate. The relevant legal framework was streamlined through amendment of the Law on 
Investment Promotion, which has reflected numbers of the Organization for Economic Cooperation 
and Development (OECD) recommendations and is aligned with the ASEAN Comprehensive 
Investment Agreement (ACIA). An Investment Promotion and Supervision Committee was 
established in 2018 to ensure the inter -minister ial coordination in the area. In 2019, a Decree on 
Approval the List of Controlled and Concession Businesses of Lao PDR refined controlled and 
concessional businesses lists and the process of investment project approvals therein. For all types 
of investmen ts, such process proceeds through one -stop service, albeit, with different timeframes, 
ranging from 10 to 65 working days. The registration tasks are shared between the Ministry of 
Planning and Investment (for the controlled and concessional activities) an d the Ministry of Industry 
and Commerce (for the other activities). Further, a Prime Minister's Order No. 02/PM on Improving 
Regulations and Coordination Mechanism on Doing Business in Lao PDR was issued in February 2018 
to streamline the registration proc edures. The process of enterprise registration has also recently 
been simplified. In result of the above measures, the reported cumulated investment demonstrates 
a significant increase.  
Summary by Australia  
The reports refer to 'Prime Minister 's Order No. 2 on the improvement of regulations and coordination 
mechanisms regarding doing business (February, 2018), ' which tasks various line ministries to take 
action to improve Lao PDR'  ranking on the World Bank 's Ease -of-Doing Business Index. Australia 
recog nises the important reform efforts Lao PDR has undertaken over the past year to implement 
this Order, including the establishment of a responsible Committee chaired by the Deputy Prime 
Minister, which receives monthly updates on progress. However, while in  2020 Lao PDR  achieved an 
improvement in its score (from 49.8 – 50.8) its overall ranking on the Ease -of-Doing Business Index 
has stayed the same (at 154 out of 190 economies).  WT/TPR/M/394/Add.1  
 
- 38 - 
 
  Q1 
What steps is the government taking to ensure that ease -of-doing business r eforms undertaken at 
the central level are implemented by agencies, particularly at the provincial level and result in real 
benefits for the private sector?  
Response:  
The Government acknowledges that ease -of-doing -business reforms should be carried out on both 
– central and pr ovincial levels. The Government is  undertaking a review and evaluation of the 
measures taken on different levels in terms of their consistency, in order to identify areas where 
convergence is lacking and address them. Trainings and cap acity building for provincial officials are 
also planned.  
Report by WTO Secretariat WT/TPR/S/394  
2 Trade and Investment Regime  - 2.2 Trade Policy Formulation and Objectives  - 2.2.4 
Transparency  - Page 31, paragraph 2.21  
Text:  
Lao PDR attaches importance to making laws more transparent and readily accessible. However, 
most laws are still published in Lao language only (some are translated into English) in the Official 
Gazette (Section 2.2.3), which is updated daily and is available to all indivi duals and institutions, 
both in hard copy and online. Since 2012, the Department of Import and Export of the MoIC hosts 
the Lao PDR Trade Portal (https://laotradeportal.gov.la/index.php?r=site/index) on behalf of all 
government agencies involved in the imp ort/export process; it contains trade and trade -related 
legislation and information. The websites of relevant ministries and agencies contain information 
mostly in the Lao language. Lao PDR has been developing key projects for e -government services. 
Its e-Government Action Plan (2013 -20) is as follows: establishing an e -Government Service Centre, 
consisting of a National e -Government Centre at the Ministry of Posts and Telecommunications 
(MPT), and setting up an e -Government office in each ministry and prov incial office; building the 
National e -Government Infrastructure ; developing e -Government applications (E -Commerce 
Project, E -Revenue Project, E -Banking Project, Government Cross -sectoral Information -sharing 
Project, E -Health Project, and Information and Communications Technology (ICT) for the Blind 
Project); deploying an e -governance system throughout the country for human resource 
development; developing procedures, laws and regulations related to e -Government; and 
developing and defining the national st andard, especially for data exchange and security concerns.  
Summary by Australia  
The report states that Lao PDR has established a Trade Information Portal containing trade and 
trade -related legislation and information for both goods and services. Australia  congratulates Lao 
PDR on this achievement and understands that the Lao Trade Portal in particular has been held up 
as a good model for use by other countries. Given the success and profile of these Portals and the 
important role they play for the private sector in Lao PDR, it will be important to ensure their long 
term sustainability.  
Q2 
What steps are Lao PDR taking to transition management and maintenance of the Lao Trade Portal 
from a donor -funded project -based model to one that is government - funded a nd managed?  
Response:  
The Portals (Lao Trade Portal and its more recent addition, Lao Services Portal) are indeed of great 
importance for businesses in Lao PDR. For now, the GOL is undertaking steps to improve them 
further (publications of the drafts, tran slation), still relying on donor finding and technical ass istance. 
The conversion strategy to full governmental funding and  management is under discussion.  WT/TPR/M /394/Add.1  
 
- 39 - 
 
  Report by WTO Secretariat WT/TPR/S/394 and Report by Lao PDR (WT/TPR/G/394)  
Report by WTO Secretariat  - 2 Trade and Investment Regime  - 2.4 Investment Regime  -
2.4.3 Registration and Approval  - Page 43, para 2.52   
Text:  
All businesses (domestic (as from 2016) and foreign) are required to register and obtain an 
enterprise registration certificate , a business operating licence and/or an investment licence, 
depending on the regulatory requirements of the relevant activity sector.91 The MoIC issues 
enterprise registration certificates, and the MPI issues licences related to controlled and concession 
investment (Section 2.4.2). Arts. 80 -84 of the Law on Investment Promotion require a one -stop 
service for investments. The Central Investment One -Stop Office is located at the MPI and has a 
working team composed of representatives of multiple ministries co ncerned, with each ministry 
having its own internal coordination unit. In addition, one -stop service offices are located at the 
relevant provincial and capital Departments of Planning and Investment, and have working teams 
composed of the representatives o f the other line departments. The relevant authorities can suspend 
or terminate the investments at the central, provincial, and capital levels, respectively. The 
Investment Promotion and Supervision Committee (Section 2.4) seems to be the highest body in 
charge of investment project approval; it considers and approves or reject projects under the 
controlled and concessional businesses lists; for the activities that are not on said lists, the MoIC is 
in charge.92. The time -frame for the admission for conside ration of an application related to 
controlled activities is 25 working days; for activities not on the controlled activities list, it is 10 
working days; and for investments in the concessions business, it is 65 working days. The time -
frame for granting l icences remains identical for domestic and foreign investments. No data on the 
average time for the granting of licences and certificates or for the number of 
applications/approvals/rejections by type of investment was available from the authorities. To 
improve the investment climate and the international ranking in term of ease of doing business (see 
above), Prime Minister Order No. 02/PM, 1 February 2019, for improving the effectiveness of the 
business registration and approval process was issued, but it was not available in English as at June 
2019.  
Report by Lao PDR  - 4 Trade and Investment Regime  - 4.7 Improvement of overall 
investment climate  - Page 8, para 4.8  
Text:  
Since accession, Lao PDR has made significant efforts to notify the WTO Members about 
developments in its trade policies as envisaged by the WTO Agreements. Namely, notifications 
required by the following WTO Agreements: General Agreement on Tariffs and Trade (GATT); 
General Agreement on Trade in Services (GATS); Agreement on Agriculture; A greement on the 
Implementation of Article VI of the GATT 1994 (Anti -dumping); Agreement on Import Licensing; 
Agreement on Rules of Origin; Agreement on Subsidies and Countervailing Measures; Agreement on 
Sanitary and Phytosanitary Measures; Agreement on Te chnical Barriers to Trade; Agreement on 
Trade Facilitation; Agreement on Trade -Related Investment Measures; Agreement on Preshipment 
Inspection; Agreement on Safeguards; GATS and TRIPS were submitted to the WTO Secretariat. Lao 
PDR faces serious difficulti es when preparing notifications, mainly due to lack of human resources 
and technical capacity. This resulted in occasional delays. To address the issue, the Government has 
prepared a list of the WTO notifications to be completed. In addition, inter -ministe rial coordination 
mechanisms aimed at ensuring timely compliance with the notification requirements are being 
developed. Nevertheless, technical assistance and capacity building are indispensable to ensure 
steady progress in the area.  
Summary by Australia  
The reports state that all businesses (foreign and domestic) in Lao PDR are required to register and 
obtain an enterprise registration certificate, a business operating license and/or an investment 
license, depending on the relevant activity or s ector. Australia acknowledges that Lao PDR has 
undertaken a number of investment reforms including issuing a new Concessional and Controlled 
Investment List and reforming its procedures for enterprise registration in early 2019. However, 
feedback from the private sector (domestic and foreign), is that it continues to be difficult and time WT/TPR/M/394/Add.1  
 
- 40 - 
 
  consuming to identify which licenses are required and the process to obtain them. Firms are regularly 
required to go back and forward between Ministry of Industry and Comm erce, Ministry of Planning 
and Investment and the relevant line ministry, in a process that can take many months or years.  
Q3 
What is Lao PDR doing to ensure that the Investment One -Stop Office is effectively operating in 
practice at central and provincial  levels and to ensure that clear information is provided to investors 
about requirements?  
Response:  
The government issues the Decree on The Endorsement of the Business Activities under the 
Controlled Business List and the Concession List of Lao PDR, No.03/PM, dated 10/1/2019 and the 
Order on Improvement of Regulations and Coordination Mechanism on Doing Business in Lao PDR, 
No.02/PM, dated 1/2/2018 in order to provide clear information, facilitate, enable convenient, 
expeditious, transparent and proper investments for the investors when they submit the application 
to the One -Stop Service Office at central  and provincial level in accordance with the division of 
administrative levels.  
Q4 
How does Lao PDR intend to streamline its business operating license regime to reduce the burden 
on investors?  
Response:  
Ministry of Industry and Commerce has coordinated w ith related sectors to improve indicator 1 
"Starting a business " based on Order 02/PM. Today, there are four instead of ten (1. Enterprise 
registration; 2. Making company seal; 3. Social Insurance registration and 4. Value added tax 
registration). Starting  a business takes no more than 40 days instead of 174 days  
1.1 Issuance of enterprise registration certificate at the same time with Taxpayer Identification 
Number at the Department of Industry and Commerce through the Tax Revenue Information System 
(TaxRi s). TaxRis is the integration of enterprise registration system and tax collection system. The 
system has been implemented since mid October 2018. The new enterprise registration certificate 
including TIN can be issued in 18 Vientiane Capital and Provincia l Department of Industry and 
Commerce offices and 108 Industry and Commerce District Offices nationwide.  
(Pursuant to the Notification from Enterprise Registration Department, No. 1756, Dated 
12 December  2018 and from Ministry of Finance No. 0489, dated 5  March 2019 regarding the 
application of the new "Enterprise Registration certificate " and TIN respectively)  
1.2 Separation of approval for business operation from enterprise registration procedure from 1st 
February 2019. An entrepreneur can operate the bu siness with approval for business operation or 
investment from related organizations. Regulation and property registrations will be handled after 
the procedure of business operation approval.  
(Pursuant to the agreement of Ministry of Industry and Commerce , No. 0023, Dated 09 January 
2019 and the notification of Ministry of Finance No. 1618, dated 30 May 2019 regarding to enterprise 
registration and the improvement of mechanism and proc edure improvement respectively).  
Q5 
Is Lao PDR intending to further sim plify its investment promotion law, including to clarify and 
standardize incentives and processes?  
Response:  
Lao PDR is currently improving and streamlining the business operating license regime under the 
supports of the World Bank, Australia and internati onal donors, getting started with an assessment WT/TPR/M /394/Add.1  
 
- 41 - 
 
  of all relevant legislation, business licensing procedures, requirements, time spent on consideration, 
and administrative levels such as central, provincial and district of line ministries along with the 
international good practices. In parallel, there will be identification of general international principles 
applied to the improvement of licensing, for instance risk -based approach, so the line ministries can 
have the common understanding on which business ac tivities that require the licenses upon receipt 
of the E nterprise Registration Certificate (ERC)  while some activities do not require further licenses. 
A mandatory guideline will need to be developed and adopted through Prime Minister 's Order or 
relevant regulations for all line ministries to strictly comply when issuing the licenses. Following the 
streamlining for business operating license regime, Lao PDR will develop an e -licensing portal as an 
efficient tool for business to find inf ormation on the licenses they need to obtain in order to start 
their business. D epartment of Enterprise Registration and Management (DE RM), Ministry of Industry 
and Commerce acts as the focal point of coordination for this.  
Report by WTO Secretariat WT/TPR /S/394  
3 Trade Policies and Practices by Measure  - 3.1 Measures Directly Affecting Imports  - 3.1.1 
Customs procedures, valuation and requirements  - Page 46, paragraph 3.11  
Text:  
With regards to trade facilitation, Lao PDR ratified the TFA on 29 September 2015, and submitted 
its Category A, B and C notifications.3 Furthermore, the MoIC published a Trade Facilitation Road 
Map (TFRM) of Lao PDR for 2017 -22, which builds on the Trade Facilitation Strategic Plan for 2011 -
15. The Road Map recommends seven strate gic measures, which include developing an institutional 
mechanism to improve coordination with line departments, and strengthening the governance 
structure at the sub -national level. It also proposes active collaboration with the private sector in 
implemen ting trade facilitation measures, and emphasizes cross -border cooperation and regional 
integration. It takes up the challenge of implementing all the measures listed under WTO's TFA in 
an accelerated time -bound manner to cut down the cost of trading. It al so recommends a time -
bound assessment of the existing non -tariff measures (NTMs) to remove those that are not required 
and streamline the remaining ones. The Road Map also prescribes some priority measures, such as 
the extension of working hours at major b order crossings, the elimination of unwanted roadside 
checks, single -point payment, the publication of Service Charters by all line departments for the 
time-bound delivery of services, and the establishment of a national single window, which will have 
an immediate bearing on bringing down the time and cost of trading. According to the authorities, 
about 90% of the measures stipulated in the Road Map have already been implemented. These 
include: the single window, single stop inspection, post clearance audit , risk management, advance 
ruling, transparency (making information available to the public), and the introduction of procedures 
for appeal.  
Summary by Australia  
The report discusses Lao PDR 's commitment to the establishment of a National Single Window to 
manage the documentation required for cross -border trading and notes that since September 2019, 
this has been operating for import of vehicles at one border crossing.  
Q6 
Does Lao PDR have pl an to expand use of the national single window to other products and other 
border crossings and to link to the ASEAN Single Window?  
Response:  
Lao PDR is expected to join the ASEAN Single Window Live Operation in December 2019. At present, 
the operation of the ASW is limited to grating of preferential tariff treatment based on the Electronic 
Certificate of Origin (ASEAN Trade in Goods Agreement (ATIGA) e -Form D) exchanged through the 
ASW.  More documents (ASEAN Customs Declaration Document (ACDD), electronic Phytosanitary 
Certificate (e -Phyto), electronic Animal Health Certificate (e -AH) and electronic Food Safety 
Certificate (e -FS) Certificate) are expected to be included in future.  WT/TPR/M/394/Add.1  
 
- 42 - 
 
  3 Trade Policies and Practices by Measure  – 3.3 Measures Affecting Production  and Trade 
– 3.3.7 IPRs - Enforcement  - Page 83, Paragraph 3.145/6  
Texts:  
The Law provides for administrative measures and remedies, border measures, and criminal 
procedures for IPR infringement. It empowers not only the IP administration authorities but also 
several other external authorities to inspect the implementation of IPRs. It also provides for several 
forms of inspection. Lao PDR is not listed in the United States Trade Representative's (USTR) Special 
301 Report or in the 2017 Out -of-Cycle Review of Notorious Markets. However, IP enforcement still 
faces challenges. Concerns expressed hinge on civil judicial enforcement, and customs 
administration.  
Pursuant to Lao PDR's commitment made during its accession to the WTO, the Law on IP provides 
for customs officers to inspect and seize counterfeit goods and pirated works ex officio. The 
aggrieved parties may also request Customs to seize the suspected goods, and file an application 
for dispute resolution at the border; specific regulations are to be put in place for this. However, 
counterfeit goods remain available in the Lao marketplace, due to the lack of a formal trademark 
registration system in place at Customs, and perhaps also due to a lack of public awareness of the 
harmful impact of counterfei t trademark goods. In the past, corruption in the customs clearance 
process reportedly also functioned as a barrier to investment in general and, consequently, to IPR 
protection. However, the Government has taken steps to address this issue, by implementin g a 
digital payment system for importers, expanding the ASYCUDA system to 24 offices throughout the 
country, and introducing a risk management -based approach to the inspection process. Under the 
Trade Facilitation Road Map and Action Plan for 2017 -22, the Government committed to requiring 
officers at the border checkpoints and Customs to inspect imported goods that infringe IPRs.  
Summary by Australia  
The report states that Lao PDR  still faces issues with IP enforcement, in particular the lack of capacity 
of judges, arbitrators and specialized courts is considered an area in need of improvement.  
Q7 
What efforts has Lao PDR  made to improve the enforcement of Intellectual Property Rig hts? 
Response:  
On administrative level, the IP Law as recently modified sets forth the framework necessary to 
protect the IP right owners. After the revision in 2017, the law separated the enforcement at the 
border crossing (customs office) and the court j urisdiction. The Ministry of Finance is drafting the 
Ministerial decree to implement this ex -officio procedures and dispute resolutions at the border. The 
Department of Intellectual Property is drafting a decree on Administrative Dispute Resolution. The 
Peoples' Supreme Court is drafting the guidelines for handling specific IP cases. Specific trainings 
are also organized for judges involved in resolution of intellectual property disputes.  At the regional 
level, Lao PDR is part of the ASEAN Network of Intell ectual Property Enforcement Experts. Capacity 
building for the enforcements agencies is mostly carried out by the international organization and 
development partners such as: WIPO, EUIPO, EPO, USPTO, JPO, UKIPO, CNIPA, ANZFTA, etc.   
4 Trade Policies by Se ctor - 4.4 Services  – 4.4.5 Transport - Pages 123 -124, paragraphs 
4.120, 4.122, 4.136  
Text:  
[4.120] The logistics industry remains poorly developed and highly fragmented due to its small 
market size. It is limited to basic services, road transport, warehousing and cargo clearance, and is 
mostly operated by small, family -run companies (Section 4.4 .5.1). As at 2018, there were 24 freight 
forwarding firms, including international companies, most providing both clearing and forwarding 
services. According to the World Bank's Logistics Performance Index 2018, Lao PDR ranked 120th 
overall out of 167 coun tries (131st out of 160 countries in 2014), and 128th in the quality of trade - 
and transport -related infrastructure, 116th in the ease of arranging competitively -priced shipments, WT/TPR/M /394/Add.1  
 
- 43 - 
 
  114th in competence and quality of logistics services, and 130th in the time liness with which 
shipments reach the consignee within the expected delivery time; these are all behind peers in South 
Asia, e.g. Viet Nam and Thailand, but above Myanmar.  
[4.122] Since cross -border movements of trucks are not restricted, Lao PDR operators  are 
increasingly exposed to foreign competition for international cargo. Thai trucking firms provide most 
of the transport services and, inter alia, Chinese vehicles are also allowed to source and deliver cargo 
to final destinations, based on a bilateral agreement. Thai firms are larger and better organized than 
the Laotian firms, whose trucks cannot always enter Thai ports as, according to the authorities, they 
do not meet certain port entry requirements/criteria. Thai firms enjoy economies of scale from 
operating in Thailand and, as over 95% of the length of the routes connecting the 
origins/destinations in Lao PDR to the seaports is within Thailand, their trucks can carry Laotian 
cargo on the return trip. Reportedly, the costs for transporting cargo decl ined due to greater 
competition among Thai transporters, but remain high in comparison with similar developing.  
[4.136] Railway transport continues to be limited.  There is just one active railroad, a short spur line 
from Nong Khai, that began its operation s in 2009 and opened its fright facilities in 2016. The volume 
of domestic and international passengers was approximately 35,141 persons in 2018, an increase 
of almost 9% compared with 2010.275 In 2014, the volume of cargo transportation was 108 million 
tons, an increase of 1.8% compared with 2010; no recent cargo data were available from the 
authorities. The railway network remains entirely state -owned and -operated. Under the 8th NSEDP, 
the authorities focused on the development of vertical and horizontal  railway line.   
Summary by Australia  
The report states that the logistics industry in Lao PDR remains poorly developed and highly 
fragmented and that the road transport sector in particular consists of a dozen or so large players 
and many small firms.  
Q8 
What measures are Lao PDR introducing to improve the competitiveness of its transport and logistics 
sector?  
Response:  
In both public and private sector, there is still limitation of experienced human resources in the 
logistic s area and the development of laws, regulations, standard s and the expertise are still slow. 
The Department of Transport prioritize s this area to ensur e steady development.  
Report by Lao PDR (WT/TPR/G/394)  
5 Selected Trade policies and practices by measure  - 5.9 Reinforcing Protection of 
Intellectual Property Rights  - Page 11, Paragraph 5.11  
Text:  
Lao PDR has also joined the Protocol Relating to the Ma drid Agreement Concerning the International 
Registration of Marks (7 March 2016); Convention on the Means of Prohibiting and Preventing the 
Illicit Import, Export and Transfer of Ownership of Cultural Property (22 March 2016); and Nagoya 
Protocol on Access  to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from 
their Utilization to the Convention  on Biological Diversity. An internal process aimed at joining the 
Hague Agreement Concerning the International Registration of Industrial Designs is expected to be 
finalized in 2020.  
Summary by Australia  
The report states that Lao PDR is in the process of joining the Hague Agreement concerning the 
international registration of Industrial Design and this is expected to be finalised in 2020.  WT/TPR/M/394/Add.1  
 
- 44 - 
 
  Q9 
What are the steps Lao PDR is taking to join the Hague Agreement by 2020?  
Justice Department  
Response:  
The accession to the Hague Agreement is under the internal preparation process, the report to the 
government is been drafted by DIP, the TA has been sought from WIPO, under the ASEAN IPR Action 
Plan 2016 -2025 all ASEAN Member States, including Lao PDR is expected to join the treaty in 2020.  
6 Trade Policy by Sector  - 6.2 Services  - 6.2.4 Transport  - Page 15, paragraphs 6.23, 6.25  
Texts:  
[6.23] Be ing a landlocked country, Lao PDR depends heavily on road transport for trade links both 
externally and internally. The transport sector in Lao PDR can be described as thin, consisting of a 
dozen large players (defined as having a fleet size of more than 5 0 trucks) and many small firms 
(companies with less than 5 trucks or owner -operators). Productivity levels in the Lao PDR transport 
sector are generally very low. The low annual mileage, together with the high cost of capital and low 
profit margins, preven t companies from investing in more expensive, yet more cost -efficient 
vehicles, which in turn increases variable operating costs.  
[6.25] The biggest recent development in the Lao PDR economy is the construction of Lao -China 
railway. This is an area of common ground between the private sector and the Government of Lao 
PDR. The construction  is expected to conclude in 2021. The railway is 414 km long and runs from 
Vientiane capital to Boten border, where it connects to Chinese railway.  
Summary by Australia  
The report notes that the biggest recent development in the Lao PDR economy is the construction 
of the Lao PDR  China railway. In orde r for Lao PDR , and other investors, to maximise the benefit of 
the Lao PDR  China railway it will be important to increase the competitiveness of the transport and 
logistics sector and implement complementary economic reforms.  
Q10 
How is Lao PDR planning to  maximise the benefits of infrastructure developments such as the Lao 
PDR China railway, to support private sector development and trade and investment?  
Response:  
Lao PDR 's Government is fully aware of the need to realize the development potential of this big 
investment. The issues are important and the Government is about to study the possibility to 
enhance the benefits and will consult the private sector on how to organiz e the services mentioned.  
Due to the lack of skilled personnel in the public and private sector, the development of laws, 
regulations, standards and expertise in the sector has been delayed. Accordingly, the Department 
of Transport is focused on prioritizi ng personnel in the logistics sector, in order to develop rules, 
regulations and standards that are key factors in the development of the logistics system.  
  WT/TPR/M /394/Add.1  
 
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  SEPARATE CUSTOMS TER RITORY OF TAIWAN, PE NGHU, KINMEN AND MAT SU 
WT/TPR/S/394 – WTO Secretariat's Re port 
2 Trade and Investment Regimes – 2.3 Trade Agreements and Arrangements - 2.3.3 Other 
Agreements and Arrangements - Page 39, paragraph 2.40 
Text:  
Lao PDR is a beneficiary under the GSP schemes of Armenia, Australia, Canada, Belarus, the 
European Union,  Iceland, Japan, Kazakhstan, New Zealand, Norway, the Russian Federation, 
Switzerland, Turkey, and the United States. As an LDC, Lao PDR is entitled to additional preferences 
such as duty -free (and/or quota -free) (DFQF) treatment or tariff reductions from Chile, China, 
Chinese Taipei, India, the Republic of Korea, Kyrgyz Republic, Montenegro, Tajikistan and Thailand. 
Like other LDCs, as at 2012, Lao PDR had a low rate of GSP utilization. No data on the utilization of 
GSP and DFQF treatment under these schem es were available with the authorities.  
Q1 
Could you explain the significant influence on Lao PDR 's economic and trade development as a 
beneficiary of GSP schemes from the United States?  
Response  
Lao PDR has only access to the preferences of the general GSP of the United Sates. It unfortunately 
does not benefit of the GPS for LDCs that the USA grants, under certain conditions, to LDCs. 
Therefore, trade and exports from Lao PDR to the USA is very li mited and figures among "others " 
which account for 1.8% of our exports as can be seen on page 23, chart 1.2  
Q2 
Businesses in China are seeking third countries for investments to ease the adverse impacts of the 
China -U.S. trade tension. Is Lao PDR appealing  to overseas businesses as a beneficiary of GSP 
schemes from the U.S.? Please share your experience.  
Response  
Given the fact that other member countries in a similar situation as Lao PDR have better conditions 
of access to the USA, there is little incentive in promoting investments from China to Lao PDR to 
take advantage of access to the US market  
2 Trade and Investment Regimes – 2.4 Investment Regime  - 2.4.3 Registration and 
Approval - Page 43, paragraph 2.52  
Text 
All businesses (domestic (as from 2016) and foreign) are required to register and obtain an 
enterprise registration certificate, a business operating licence and/or an investment licence, 
depending on the regulatory requirements of the relevant activity se ctor.  
Q3 
Our businesses in Lao PDR  are concerned about the many obstacles they encounter when renewing 
their investment licences every year. Can clearer instructions with respect to renewal procedures for 
investment licences be provided?  WT/TPR/M/394/Add.1  
 
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  Response  
Lao PDR is reviewing its licensing procedures in view of facilitating business decisions. Concrete 
measures will be announced shortly. Investment licenses are granted once for the full concession 
period. It is only the business operating license which has to be re newed annually   
3 Trade Policy and Practices by Measure – 3.3 Measures Affecting Production and trade - 
3.3.3 Sanitary and phytosanitary requirements - Page 71, paragraph 3.96  
Text:  
Lao PDR does not have a specific policy on Bovine Spongiform Encephalopathy (BSE). Disease control 
policies are generally developed on a case -by-case basis. In case of an outbreak of BSE, Lao PDR 
follows the OIE recommendations and guidelines when taking BSE quarantine measures and/or 
imposing trade restrictions. Re garding the policy on pathogen -reduction treatments (PRTs), Lao PDR 
allows the use of PRT on poultry to reduce contamination by salmonella. At present, there are no 
specific restrictions on the use of PRTs. Lao PDR generally follows OIE recommended practic es on 
salmonella control. It temporarily suspended the import of pork and pork products from China due 
to an outbreak of African Swine Fever (ASF) in Liaoning province, in line with OIE recommendations, 
and notified this to the WTO.  
Q4 
What contingency mea sures has the Lao PDR adopted and what is the status of the epidemic since 
the outbreak of ASF in its territory? Has the Lao PDR formulated or amended any veterinary control 
regulations to combat ASF?  
Response  
As October 2019 Lao PDR have reported the occurrence of the ASF 's outbreak in 18 provinces 57 
out of 148 districts that covers 167 out of 8447 villages. There 16,020 pigs died and 4,216 pigs have 
been culled. Lao PDR apply strict disease surveillance and reporting, pig movement control, pig 
culling, disinfection as an emergency measure to control the outbreaks. Lao PDR has not yet 
formulate d a specific regulation to use for control the ASF disease since the existing law and 
regulation still cover the provisions for combating ASF disease . However,  Lao PDR released the 
Ministerial Instruction on I mport, Export and Transit A nimal including pigs and animal products 
including pork ref no 0795/MAF dated on 18 April 2019 and the announcement on ASF 's outbreak 
control/management.  
WT/TPR/G/394 – Government R eport  
6 Trade Policy by Sector – 6.1 Goods - 6.1.1 Agriculture - Page 1 2, paragraph 6.6.  
Text:  
Lao PDR may ensure minimum prices for certain agricultural products in case this is necessary for 
food security purposes. However, only a minimum farmgate price for rice remains in place and no 
other form of relevant market intervention has taken place.  
Q5 
What criteria does the Lao PDR use when deciding the minimum prices for certain agricultural 
products if it is necessary for food security purposes?    
Response  
Provincial authorities, which are responsible for peace and security in their region monitor t he supply 
of basic foodstuff. If the demand and supply in the market indicates potential shortcomings 
threatening food security or widespread poverty among the farmers, they will request the imposition 
of minimum prices. This is an emergency measure which is rarely applied. As indicated in the report 
Lao PDR has used this instrument solely for rice in the last years.  WT/TPR/M /394/Add.1  
 
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  6 Trade Policy by Sector – 6.1 Goods - 6.1.4 Electricity - Page 1 3, paragraph 6.12.  
Text:  
It has established the development of renewable energy other than hydropower as one of its main 
priorities, aiming to increase the share of non -hydro renewable energies to 30% of total consumption 
by 2025. Studies show that Lao PDR has potential to develop solar power. Nevertheless, additional  
investments are necessary to make this happen. While the use of solar power was first recorded in 
2014, its overall production remains insignificant in comparison to other sources.  
Q6 
Besides solar power, does the Lao PDR have any plans to develop other s ources for renewable 
energy?  
Response  
Our major source of renewable energy is hydro power. Given the potential of solar energy, the 
Government has embarked into a plan to develop solar power. Solar power is particularly adapted 
to isolated areas which are  difficult and expensive to serve by an electrical grid. Give the superiority 
of solar power to other sources of renewable energies and the abundance of hydropower in the 
Laotian context, the Government has no plans for other sources at this point in time.  Lao PDR is also 
ready to consider wind power plants and biomass power plants, subject to market price mechanism 
and power supply reliability.  
Other questions  
VAT Regulation  
Q7 
Lao PDR  has been implementing a value -added tax (VAT) system since 2013. The VAT rate of 10% 
applies to most domestic and imported goods and services. Our businesses in Lao PDR  are concerned 
that implementation of the VAT has been slow and cumbersome, and that th ere are problems related 
to VAT payments and refunds.  
Response  
Lao PDR has conceived its VAT system to take into account the large number of informal and small 
enterprises which do not have adequate accounting system. While we are aware that there are some  
teething problems in the local market, we are not aware of difficulties in applying the VAT at th e 
border. Could Chinese Taipei provide  us specific examples of issues so that we can address these to 
the relevant agencies.  
  WT/TPR/M/394/Add.1  
 
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  UNITED STATES OF AME RICA  
Questions based on the Secretariat's report (WT/TPR/S/394)  
Summary - Page 9, paragraph 22  
Text:  
The main legislation governing IPR was amended in 2018, to align it further with international 
standards. The Law on IP constitutes the principal legal framewo rk for IPRs in Lao PDR, and covers 
the major areas of IPRs: industrial property, new plant varieties, and copyright and related rights. 
The Law allows for parallel imports under all conditions. Lao PDR is a member of the World 
Intellectual Property Organiz ation (WIPO) since 1995. In addition, it is a contracting party to several 
treaties administered by WIPO, including the Paris Convention (1998), the Patent Cooperation Treaty 
(2006), and the Berne Convention (2012). After accession to the WTO, Lao PDR sign ed the Madrid 
Protocol, which entered into force in March 2016. During the period under review, there was a 
marked improvement in IPR border enforcement, through the implementation of a digital payment 
system for importers, the expansion of the ASYCUDA sys tem to 24 offices throughout the country, 
and the introduction of a risk management -based approach to the inspection process. Additionally, 
under the Trade Facilitation Roadmap and Action Plan for 2017 - 22, the Government committed to 
requiring officers at  the border checkpoints and customs to inspect imported goods that infringe 
IPRs. However, IP enforcement still faces big challenges, with counterfeit goods being readily 
available in the Lao PDR marketplace.  
Summary by the US  
The Secretariat 's report notes that Lao PDR is a contracting party to several intellectual property 
treaties, including the Berne Convention.  
Q1 
Does Lao PDR have any plans to ratify or accede to any other international copyright treaties, such 
as the WIPO Copyright Treaty (WCT); WIPO Performances and Phonograms Treaty (WPPT); the 
Marrakesh Treaty to Facilitate Access to Public Works for Persons Wh o are Blind, Visually Impaired 
or Otherwise Print Disabled (Marrakesh Treaty); or the Beijing Treaty on Audiovisual Performances 
(Beijing Treaty)?  
Response:  
Lao PDR has plan to accede other international copyright treaties, such as:  
a WIPO Copyright Trea ty (WCT) and WIPO Performance and Phonograms Treaty (WPPT): the internal 
process of accession has started, the translation of those treaties has begun, the supports from 
WIPO has been sought.  
b. The Beijing Treaty on Audiovisual Performance (Beijing Treat y): the translation of the treaty has 
been done, the national high level workshop has been organized, the report to the government has 
been initiated by DIP, MOST, the assistance has been sought from WIPO.  
C. The Marrakesh Treaty: the translation has been  initiated and TA is being sought from WIPO.  
Q2 
If so, what is the current timeline to ratify or accede to these treaties?  
Response:  
Lao PDR is putting all its efforts and capacities reinforced by the strong support from WIPO in trying 
its very best to a ccede to those treaties as early as possible.  WT/TPR/M /394/Add.1  
 
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  Q3 
What is the status of Lao PDR 's efforts to join the Hague Agreement Concerning the International 
Registration of on Industrial Designs (Hague Agreement)?  
Response:  
Accession to the Hague Agreement is also a priority for Lao PDR . The accession to the Hague 
Agreement is under the internal preparation process, the report to the government is been drafted 
by DIP, the TA has been sought from WIPO. Under the ASEAN IPR Action Plan 2016 -2025 all ASEAN 
Member States, including Lao PDR is expected to join the treaty in 2020.  
Summary - Page 9, paragraph 22  
Summary by the US  
The Secretariat 's report notes an increased focus on IPR border enforcement since the last Trade 
Policy Review, but notes that there remain significant challenges to IP enforcement in the Lao PDR 
marketplace. Please provide additional information regarding IPR enforcement activities, including:  
Q4 
Whether copyright and related rights are covered IPRs for the purposes of border and in -market 
enforcement?  
Response:  
As stipulated in the IP Law 2017, Copyright and related rights are protected both at the border and 
in-market of Lao PDR. At the border a) the rightholder can request customs to seize the pirated 
copyright goods and b) order to interce pt pirated copyright goods customs have a right to inspect 
exported and imported goods, seize and confiscate goods which violate copyright and related right 
ex-officio.  
Given that Lao PDR wants to become a cross point for regional exchanges, priority is gi ven to the 
border implementation as Lao PDR aims to avoid becoming a hotspot for IPR infringements.  
Q5 
Whether IPR owners must register their rights with Customs to benefit from seizures of IPR infringing 
goods? If so, how is such registration accomplished ? 
Response:  
IP rightholders do not need to  register their rights to benefit from seizures of IPR infringing goods, 
however, IP rightholders must file an application for seizures with customs following the procedure 
stipulated in the Ministry of Finance Dec ision number 1970/MOF dated 11 September 2011. In 
particular: Holders of intellectual property rights or authorized person shall submit an application to 
the Customs Department along with the supporting documents such as: A written form of inspection 
and supervision of goods that are subjects of intellectual property  rights; A certificate of protection 
of industrial property rights or other documents of industrial property rights which are protected in 
Lao PDR  or Certificate of transfer contract registration of right to enjoyment of industrial property 
objects; Certif icate of registration of copyright and rights related to copyright, industrial design rights 
or other documents of copyrights and rights related to copyrights, industrial design rights: 01 copy 
signed, stamped and certified by the holders of intellectual p roperty rights or authorized person; A 
detailed description of goods infringing intellectual property rights, photos, characteristics to 
distinguish genuine goods with goods infringing intellectual property rights; A list of legal exporters 
and importers g oods required supervision; a list of people who may export and import of goods 
infringing intellectual property rights.  WT/TPR/M/394/Add.1  
 
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  Q6 
Whether Customs has utilized its power to effect seizures of IPR infringing goods? If so, how many 
goods have been seized, and how has the Customs disposed of such goods?  
Response:  
The regulations are new and difficult for customs authorities to implement. Training is under way 
and further training is needed. While the seizure of IP infringing products in a marketplace is carried 
out upon request of investigation from the IPR owners, at the border crossing, customs authorities 
can act directly when the IP infringement products are found.  In fact, not many right holders have 
submitted application of suspension to Customs.  
Q7 
Whether any  expansion of IPR border enforcement capabilities are planned in the near future. If so, 
please briefly describe such planned expansions.  
Response:  
Strengthening of border enforcement capabilities is a permanent concern for Lao PDR. Further  
training is nee ded for new enforcement agents in all fields of customs and trade facilitation.  Also 
customs promote possibility to request seizures to the right holders and is planning to revise the 
customs regulation to simplify and streamline the application of suspens ion procedure s. 
2. Trade and Investment Regimes – 2.1 General Framework - Page 26, paragraph 2.6  
Text:  
Under the 2015 Constitution, the Judiciary consists of the People's Supreme Court, the people's 
provincial courts and city courts, and military courts as specified by law; if deemed necessary, the 
NA Standing Committee, a generic committee, may decide to establish a special court. The People's 
Supreme Court, the highest judicial organ of the State, examines and reviews the decisions of the 
people' s courts and military courts. The NA elects or removes the President of the People's Supreme 
Court and the Supreme Public Prosecutor based on the recommendation of the President of the 
State. The NA Standing Committee, based on the recommendation of the Pr esident of the People's 
Supreme Court, appoints for five -year terms, transfers and removes: judges of the People's Supreme 
Court; and the President, Vice -President and judges of the people's courts. The Vice -President of the 
People's Supreme Court is appoi nted or removed by the President of the State. Administrative rulings 
on trade issues can be redressed in the court system through administrative procedure; since 2012, 
there have been 1 such ruling at the Supreme Court level, 3 at the people's district co urt level, and 
18 at provincial and Vientiane Capital people's court levels. Between 2012 and 2017, a total of 2,212 
cases were considered by commercial chambers formed within each court, i.e. the Supreme Court, 
the regional people's courts, and the Vienti ane Capital people's courts. During the review period, 
judges and officials of the people's courts benefitted from training in various laws, including Case 
Procedure for Copyright and International Trade, in order to ensure compliance with WTO 
requirements  and in preparation for integration into the ASEAN Economic Community (AEC) (Section 
2.3.2.1).7 Under the 8th Five -Year NSEDP (2016 –20) (Section 2.2.2), the authorities plan to improve 
structures and institutions related to the justice system, at both cent ral and local levels, as it 
appeared that the rule of law had not yet been strongly enforced.8 Currently, the Supreme Court is 
focussing on development and capacity building for judges, judges assistants and all technical staff 
to specialize in specific ar eas. There is also a plan to establish a special committee regarding judging 
cases relevant to intellectual property (IP) and bankruptcy. The Office of the Public Prosecutor is 
responsible for monitoring the full and uniform adherence of the laws and regul ations by all 
ministries, ministry -equivalent bodies, government organizations, local administrations, enterprises, 
and citizens.  WT/TPR/M /394/Add.1  
 
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  Summary by the US  
The Secretariat 's report notes that Lao PDR has "a plan to establish a special committee regarding 
judging c ases relevant to intellectual property (IP) . . . . " Please provide additional information 
regarding such a special committee, including:  
Q8 
Information regarding the expected powers and jurisdiction of the special committee, including which 
forms of intel lectual property, such as patents, trademarks, and copyright and related rights, will 
fall under the purview of the special committee.  
Response:  
The special committee could be formed as a temporary committee for specific case or as a permanent 
committee fo r judging all IP cases. The choice between the two is still being debated for further plan.  
Q9 
The anticipated timing to create and fully staff such a special committee.  
Response:  
It is not possible yet to provide  a concrete timeline. 
Q10 
Information as to whether the special committee will hear IP infringement cases, or whether it is 
intended as an informational resource.  
Response:  
This issue is still discussed at the moment . 
2 Trade and Investment Regimes, 2.2 Trade Policy Formulation and  Objectives, 2 .2.3 
Trade Laws and Regulations - Page 31, paragraph 2.20  
Text:  
The adoption of a Law on Making Legislation in 2012 allowed for important reforms in transparency, 
participation and consultation, impact assessment, and systemization. The e -version of the Lao PDR 
Official Gazette, with legislation in Lao language, was launched online in 11 October 2013; existing 
legislation not posted on the Gazette website by January 2015 was seemingly no longer valid.31 
The Law on Makin g Legislation sets out principles, regulations and procedures for the making and 
amending of legislation; it requires an assessment of the regulatory and budgetary impacts of the 
draft legislation, which is to be reported in an Impact Assessment Note (IA N ote).32 Drafts of all 
new laws and regulations must be published in the Official Gazette for at least 60 days. However, it 
seems that not all government agencies post their laws and regulations, and often when they do, 
few opportunities remain for shaping the draft law.33 The 2016 Ministry of Justice Decision on the 
Impact Assessment of Draft Legislation ensures consistent quality in the development of draft 
legislation through detailed, systematic and transparent analysis, and that draft legislation achiev es 
objectives and avoids unintended consequences. In June 2016, Regulatory Impact Assessment 
(RIA) Guidelines were issued to support the objectives of the NSEDP and of the Legal Sector Master 
Plan. They provide guidance to authorities making and amending l egislation to: meet the 
requirements for impact assessment under the Law on Making Legislation and the Ministry of Justice 
Decision on the Impact Assessment of Draft Legislation; and produce better legislation in accordance 
with best practice principles. S ince 2014, the Centre for Regulatory Impact Assessment for Draft 
Legislation under the Department of Legislation of the Ministry of Justice has been in place. Its main 
functions consist of: capacity building on the RIA for draft legislation; providing advi ce and holding 
workshops on RIA for agencies responsible for law making; and surveying the RIA in areas within 
its responsibility for monitoring compliance. Since 2016, the Centre has completed 72 RIAs.  WT/TPR/M/394/Add.1  
 
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  Summary by the US  
The Secretariat 's Report indicates that not all government agencies post their laws and regulations 
in the online Official Gazette.  
Q11 
What steps are being taken to ensure there are uniform policies and procedures in place for 
government agencies to make draft regulatio ns available for notice and comment?  
Response:  
The government is aware that these instructions are not followed by all entities and is setting up the 
contact point at Provincial Department of Justice to facilitate the publication of legislations at the 
provincial level as well as disseminating the obligations under the Law on Making Legislation 
throughout the country.  
2 Trade and Investment Regimes - 2.2 Trade Po licy Formulation and 
Objectives - 2.2.3 Trade Laws and Regulations - Page 34, paragraph 2.29  
Text: 
Since its WTO accession, Lao PDR submitted notifications to the WTO mainly pertaining to tariffs, 
trade facilitation, customs valuation, rules of origin, import licensing procedures, SPS, subsidies, 
agriculture, IPRs, and regional trade agreements (RT As)/services (Table A2.1 and Section 3.1.1). 
One regular notification on domestic support to agriculture, import licensing procedures and 
subsidies was received during the review period (Section 4.1). Since 2014, Lao PDR has submitted 
its customs tariff to  the WTO Integrated Data Base annually; however, no trade data submissions 
took place. The customs tariff and trade data for 2018 were submitted to the WTO Secretariat in the 
context of the current TPR.54 The authorities indicated that the lack or delay in  the submission of 
notifications is due to a lack of human resources; a list of notifications to be completed exists. To 
address this issue, the authorities plan to hold regular meetings on the follow -up of WTO 
commitments. Relevant inter -ministerial mecha nisms aimed at streamlining the notification process 
are also being developed. For instance, the SPS -TBT Notification Unit of the Department of Foreign 
Trade Policy, MoIC, synchronizes  the relevant activities undertaken in its area by different 
ministries.  
Summary by the US  
Lao PDR is delinquent on some WTO committee notifications.  
Q12 
Is there a timeline for submitting those notifications identified as late?  
Response:  
The Government has declared that it plans to fulfill its notification requirements within 2020. Priority 
will be given to new laws and to fields were there re major changes. A major stumbling block are 
translations and any help there would be appreciated. Lao PDR requests some relief of notification 
requirements that are dif ficult to compile such as agricultural subsidies. It proposes, in the absence 
of major changes to simply confirm that no major changes have taken place or to notify those 
changes.  WT/TPR/M /394/Add.1  
 
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  3 Trade Pol icies and Practices by Measure – 3.1 Measures Directly Affecting Imports - 
3.1.1 Customs Procedures, valuation, and requireme nts - Page 47, paragraph 3.7   
Text:  
After the document check, ASYCUDA issues "lane" instructions. A trader whose declaration has been 
selected for "green lane" treatment may proceed for clearance  without inspection and, once 
clearance has been obtained, the goods are in free circulation within the country. A trader whose 
declaration has been selected for "blue lane" treatment may proceed for clearance without 
inspection, similar to "green lane" tr eatment, but will be subject to Customs control at a later stage. 
A trader whose declaration has been selected for "yellow lane" treatment is subject to documentary 
inspection; if no irregularities are found, the trader may proceed with clearance. If irreg ularities are 
found, the trader may be subject to physical inspection of the goods. A trader whose declaration has 
been selected for "red lane" treatment will be subject to physical inspection of the goods. If no 
irregularities are found, the trader may pr oceed with clearance. According to the authorities, over 
60% of goods pass through the green lane; some 20% -25% pass through the blue and yellow lanes; 
and approximately 5% -10% are subject to red lane procedures. If irregularities are found, Customs 
may re quire the trader to amend the declaration before being able to proceed with clearance. If an 
irregularity is deemed to constitute a serious offence, in breach of the Customs Law and related 
regulations, Customs may decide to take appropriate enforcement ac tion, such as detaining or 
seizing the goods; initiating investigations; conducting post -seizure analysis; and imposing fines 
commensurate to the offence.  
Summary by the US  
Lao PDR has established a system for customs checks that provides "lane" instructions. A trader 
whose declaration has been selected for "blue lane" treatment may proceed for clearance without 
inspection, similar to "green lane" treatment, but will be subje ct to Customs control at a later stage.  
Q13 
Could Lao PDR please provide an example of a situation where getting selected for "blue lane " 
treatment is appropriate?  
Response:  
Currently, "blue lane " treatment  has been abolished.  
Q14 
How much later in the process does Customs control take place?  
Response:  
Please the response to the Question 13.  
Q15 
Under "yellow lane " treatment a documentary inspection takes place. Does the same documentary 
inspection take place for "blue lane " treatment or does a different process take place?  
Response:  
Please the response to the Question 13.  WT/TPR/M/394/Add.1  
 
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  3 Trade Po licies and Practices by Measure – 3.1 Measures Directly Affecting Import - 
3.1.1 Customs Procedur es, valuation, and requirements - Page 47, paragraph 3.12  
Text:  
According to the authorities, Customs planned to launch a scheme of authorized economic operators 
(AEOs) from September 2017. However, the scheme has not been launched yet, but the authorities 
stated that it would be implemented in 2019.  
Summary by the US  
Lao PDR 's Customs authorities planned to launch a scheme of authorized economic operators (AEOs) 
from Septembe r 2017. However, the scheme has not been launched yet, but the authorities stated 
that it would be implemented in 2019.  
Q16 
Could Lao PDR please provide a timeline for when its AEOs scheme will be functional?  
Response:  
We expect that the AEOs scheme will b e functional in 2020.  
3 Trade Po licies and Practices by Measure – 3.1 Measures Directly Affecting Import - 3.1.1 
Customs Procedure s, valuation, and requirements - Page 51, paragraph 3.24   
Text:  
As at June 2019 the applied MFN rate exceeded the bound rate for 26 lines (Table A3.2). The 
products affected include, inter alia: live animals for breeding, fruits and vegetables, diesel fuels, 
toothpaste tubes, cellular telephones, vacuum cleaners, bamboo panels, and cellular wood panels. 
The authorities stat ed that the breaches occurred due to the change in nomenclature of the tariff, 
the Government plans to rectify these before November 2019.  
Summary by the US  
The Secretariat 's Report states that as of June 2019, Lao 's MFN rates exceeded the bound rate for 
26 lines.  
Q17 
Has Lao PDR already reduced  the MFN applied rates in excess of bound rates for 26 lines?  
Response:  
This is technical error and it has been corrected and notified to WTO and it is ready to post in the 
ASYCUDA website .  
Q18 
If not, what is the Government 's plan to rectify this situation?  
Response:  
See answer 17.  WT/TPR/M /394/Add.1  
 
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  3 Trade Policies and Practices by Measure – 3.1 Measures Directly Affecting import - 3.1.5 
Import prohibitio ns, restrictions and licensing - Page 56, paragraph 3.29  
Text:  
Lao PDR operates both automatic and non -automatic licensing for imports. The licensing regime is 
governed by Decree No. 180/PM of 7 July 2009 on Import Licensing Procedures and Decree No. 
114/GoL of 6 April 2011 on Import and  Export of Goods. These were notified to the WTO.  
Summary by the US  
Lao PDR notified to the WTO its import licensing regime, which is governed by Decree No. 180/PM 
of 7 July 2009 on Import Licensing Procedures and Decree No. 114/GoL of 6 April 2011 on Impo rt 
and Export of Goods, in 2014. It does not appear that Lao PDR has notified to the WTO any other 
changes to its import licensing regime.  
Q19 
Can Lao PDR confirm that no changes to its import licensing regime have occurred since 2014?  
Response:  
Lao PDR is  in an advanced stage of reviewing its licensing requirements in view of facilitating them.  
Q20 
When does Lao plan to submit their annual questionnaire on import licensing procedures?  
Response:  
Lao PDR will submit the questionnaire on import licensing proc edures as soon as the review 
mentioned above is finished but no later than the end of 2020.  
3 Trade Policies and Practices by Measure – 3.1 Measures Directly Affecting import - 3.1.6 
Anti-dumping, counte rvailing and safeguard measures - Page 58, paragraph 3.37  
Text:  
The Law on Safeguards was promulgated on 7 December 2017. The Law on Anti -dumpin g and 
Countervailing Measures was approved by the NA in June 2019 and is expected to be promulgated 
by the end of the year.  
Summary by the US  
The Secretariat 's Report states that the Law on Safeguards was promulgated in December 2017, 
while the Law on Anti -dumping and Countervailing Measures was approved by the National Assembly 
in June 2019 and is expected to be promulgated by the end of 2019.  
Q21 
Please state when the respective laws will be notified to the applicable WTO committees for review 
by Members.  
Response:  
The laws will be notified to WTO committees as soon as they are translated, but no later than end 
of 2020  WT/TPR/M/394/Add.1  
 
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  3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.2 Standards a nd other technical requirements - Page 67, paragraph 3.76   
Text:  
According to the authorities, Lao PDR recognizes the results of conformity assessment conducted by 
the relevant bodies in exporting countries if they are similar to Lao technical regulations and 
standards, including for construction materials, textiles and  chemicals (Regulation No. 1226/PMO -
NAST on Quality Inspection of Goods). The quality attestation should be accompanied by a certificate 
from a testing laboratory accredited by the national standardization body in the exporting country. 
Furthermore, in pra ctice, goods meeting international standards, such as those established by the 
ISO and the IEC, are cleared for import. Lao PDR also implements MRAs on conformity assessment 
through recognizing test reports issued by testing laboratories accredited by the National 
Accreditation Bodies of ASEAN members that are signatories to the MRAs of the International 
Laboratory Accreditation Cooperation (ILAC). Lao PDR has requested technical assistance to build 
capacity and fully establish the basis to assess equivalen ce.  
Summary by the US  
The Secretariat 's report notes that Lao PDR recognizes the results of conformity assessment 
conducted by the relevant bodies in exporting countries if they are similar to Lao PDR technical 
regulations and standards, including for con struction materials, textiles and chemicals (Regulation 
No. 1226/PMO -NAST on Quality Inspection of Goods). However, Lao PDR has only notified one 
relevant technical regulation/standard to the WTO Technical Barrier to Trade (TBT) Committee – the 
Law on Stan dardization 2014 – since 2014.  
Q22 
When does Lao PDR plan to notify the WTO of all technical regulations and standards that impact 
trade?  
Response:  
We are planning to revise the Regulation No. 1226/PMO -NAST, dated 17 July 2009, on Quality 
Inspection of Goods and will notify the WTO accordingly. During 2020, we will notify the Law on 
Metrology No 36/NA, dated 13 December 2013, the Decision on Electrica l Equipment safety 
management No. 0058/MOST, dated 12 January 2018 and Decision on Quality certification and 
Inspection of construction materials No. 0307/MOST, dated 01 March 2018.  
Q23 
Please explain how Lao PDR determines whether the results of conformi ty assessment conducted by 
the relevant bodies in exporting countries are similar enough to Lao PDR 's technical regulations and 
standards in order to receive recognition.  
Response:  
Lao PDR looks at the criteria and the process of certification in the expor ting country. If similar of 
what is required in Lao PDR, we will give recognition. Given our limited capacity to certify product 
standards, we apply this rule rather extensively unless health or protection of consumers are major 
concerns.  
We recognize same  as ASEAN harmonization and refer to Mutual Recognition Arrangements relevant 
to each sector based on ISO/IEC 17025.  WT/TPR/M /394/Add.1  
 
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  3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.4 Compet ition policy and price controls - Page 73, paragraph 3.108  
Text:  
The functions of the LCC are to consider and adopt plans, programmes and projects concerning 
competition, based on proposals from the LCC Secretariat; to propose the adoption of legislation 
concerning competition, and advocate and disseminate such legislat ion; to apply administrative 
measures against individuals or legal entities who breach the Law or relevant regulations; to issue 
orders, inspection decisions and apply measures against violators, based on the decision of relevant 
agencies as stipulated in the Criminal Procedure Law; to submit criminal referrals to the Office of 
the Public Prosecutor for prosecution in accordance with justice processes; and to collaborate and 
cooperate with foreign countries, and regional and international organizations conc erning 
competition affairs.  
Summary by the US  
The Secretariat 's report describes the functions of the LCC.  
Q24 
Please identify whether parties subject to antitrust civil proceedings have access to all information 
reviewed by the LCC, including confidenti al information.  
Response:  
Parties subject to antitrust civil proceedings have access to all information reviewed by the LCC.  
Q25 
Please also explain how the LCC determines an appropriate remedy for a violation of antitrust laws.   
Response:  
Specific regulation on remedy for violation of antitrust law will be further elaborated and it is 
expected to be finished in 2020.  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.5 State trading enter prises, SOEs, and privatization - Page 74, paragraph 3.112  
Text:  
Lao PDR does not have any state -trading enterprises as defined under Article XVII of the GATT, and 
has notified this to the WTO.  
Summary by the US  
The Secretariat 's report indicates that the last notification of state trading enterprises was made in 
2014 
Q26 
Please indicate when updated notifications (i.e., for the periods ending in 2016 and 2018) will be 
made to the Working Party on State Trading Enterprises.  
Response:  
The discussions during the report by the secretariat has shown that all Ministries do not have a full 
understanding of the definition of SOEs in WTO. Our lis ts are inconsistent: some Ministries include 
SOES which are no longer active and are inexistent, but have not officially been closed, others WT/TPR/M/394/Add.1  
 
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  include Government services. We are currently investigating the situation and will notify as soon as 
we have reliab le information.  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.5 State trading enterprises, SOEs, and privatization  - Page 75, table 3.13  
Text:  
The Government sees the private sector as central to the country's future prosperity.29 As such, the 
role of the State had been scaled down, with the number of SOEs dropping from 800 in 1990 to 
37 in 2002 (Tables 3.13 and 3.14). It was estimated that the 37 SOEs employed less than 
15,000  people and accounted for  approximately 4% of GDP in 2002.30 Private and public enterprises 
compete under the same terms and conditions. Public enterprises are not entitled to special trading 
rights or privileges. According to the authorities, the State plays a minor role in the e conomy, except 
for the provision of public services. Furthermore, the authorities stated that there were 
187 enterprises in Lao PDR, of which 135 had the Government as the majority shareholder, and 
122 were entirely owned by the State.  
 
Summary by the US  
In the table, there are nine state -owned enterprises listed that import certain equipment and 
products.  
Q27 
Please state whether any of these enterprises were given authority by the government to import 
such products.  
WT/TPR/M /394/Add.1  
 
- 59 - 
 
  Response:  
There is no difference for SOE s and no specific authority given by the Government to these 
enterprises.  There is competition in the imp orts, also for certain sensitive products and products 
where there exist natural monopolies.  
Q28 
If so, please state why such authority would not be considered a special right under the working 
definition of "state trading enterprise " in paragraph 1 of the  Understanding on the Interpretation of 
Article XVII of the General Agreement on Tariffs and Trade 1994.  
Response:  
There is no special or discriminatory right for those SOEs.  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.6 Government Procurement  - Page 76, paragraph 3.116  
Text:  
Procurement by public sector entities is a vital aspect of Lao PDR's financial management, as 
expenditure by such entities is responsible for a considerable amount of budgetary allocations. 
However, public procurement data was not available.  
Summary by th e US 
While the Secretariat 's report does not state it, Lao PDR is neither a party nor an observer to the 
WTO Government Procurement Agreement (GPA). Becoming an observer to the GPA would allow 
Lao PDR to engage with other countries on matters relating to g overnment procurement and would 
not require Lao PDR to take on any obligations.  
Q29 
Will Lao PDR consider becoming an observer to the WTO GPA?  
Response:  
Lao PDR would like to be an observer to the GPA as efficient procurement is a major concern of the 
Government and as a participation in GPA would enhance our capacity to use best practices. 
Unfortunately, our delegation in Geneva is very small and overburdened. As long as the current 
negotiation cycle is on -going, we unfortunately, do not have the capacity to participate in the 
discussions in the GPA. Therefore, at this stage, Lao PDR is not ready to join the GPA; however, the 
GPA principle, especially transparency has been included in Lao PDR 's Law on Government 
Procurement.  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.6 Government Procurement - Page 77, paragraph 3.121  
Text:  
The Law allows for various procurement methods, depending on the type and magnitude of the 
procurement. Details of procurement thresholds, procedures and implementation guidelines for each 
procurement method were not available. For works, goods and services, the following methods may 
be used: open bidding; limited bidding; requests for quotations (price comp arison); and direct 
contracting. Open bidding are tenders formally announced through mass media or electronic 
systems, without limitation of participants. In national open bidding, only local individuals and legal 
entities are allowed to participate in the  tenders; international open bidding is open to both local 
and foreign individuals and legal entities. Limited bidding is applied when tenders require high 
expertise or specific techniques that only a limited number of contractors, suppliers and/or service  WT/TPR/M/394/Add.1  
 
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  providers can provide. As such, tenders are announced by project owners or procuring entities 
directly to contractors, suppliers and/or service providers for price competition. Requests for 
quotations are applied for the procurement of small works, routin e maintenance, supplies of office 
equipment, and other services within set budgets. They are solicited by way of direct invitations or 
through appropriate electronic systems to no less than three participants. Direct contracting refers 
to an agreement betw een project owners and contractors, procuring entities, suppliers and/or 
service providers without a competitive procurement process. As per the provisions of the Law, direct 
contracting is only permissible for: single sources of products linked to IPRs; s pecific equipment and 
goods from contractors, suppliers and/or service providers for maintenance or replacement; 
extensions for additional works, goods and/or services and consulting services of a similar nature 
whose value does not exceed 20% of the origi nal contract; government projects and activities in 
isolated areas with poor infrastructure or very limited interest from bidders; within budgets set under 
regulations; and in cases of force majeure or urgency. Article 45 of the Law also provides for 
domestic preferences in government procurement. Details of conditions under which preferences are 
given and the preference margins were not available.  
Summary by the US  
 The Secretariat 's report identifi es the various procurement methods used by Lao PDR in its 
government procurement under Law No. 30/NA on Public Procurement. The Secretariat 's report also 
notes that details of procurement thresholds, procedures, implementation guidelines, and 
information o n domestic preferences were "not available. " 
Q30 
Please explain why these details are not available.  
Response:  
The law on public procurement (law No 30/NA) has been enacted in 2017 and the associated 
regulations in 2018. The law, which is quite specific, a s well as the associated regulations have been 
published in the official gazette. While the law has been translated into English, this is not yet the 
case for the associated regulations.  
Q31 
Please explain what steps Lao PDR is taking to make details avail able, particularly  relating to 
procurement procedures and the application of domestic preferences.  
Response:  
Lao PDR would very much appreciate support in the translation, which would speed up the 
publication in English.  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.7 IPRs  - Page 80, paragraph 3.133  
Text:  
Under the Law, use without authorization of the right holder may be authorized on four grounds: (i) 
situations of national  emergency or circumstances of extreme emergency; (ii) non -commercial use 
by the Government; (iii) anti -competitive practices, albeit subject to judicial process; and (iv) failure 
to work. The Law provides that such authorization takes place predominantly for the supply of the 
domestic market, and only if voluntary licensing has been attempted first. The latter may be waived 
in cases of national emergency or public non -commercial use. Such authorization is considered on 
individual merits, and is non -exclusi ve and non -transferrable. The right holder is paid adequate 
remuneration, has the right to propose terms for compensation, may request the MOST to reconsider 
the value of the compensation or unreasonable circumstances, and receives immediate notice of any 
decision to grant such authorization or regarding the compensation.53 According to the authorities, 
there have been no such cases in Lao PDR since the implementation of the IPR regime.  WT/TPR/M /394/Add.1  
 
- 61 - 
 
  Summary by the US  
The Secretariat 's report states that, under the Law o n IP, "use without authorization of the right 
holder may be authorized " for "failure to work. " 
Q32 
Article 27.1 of the TRIPS Agreement requires that patents shall be available and patent rights 
enjoyable "without discrimination as to . . . whether products are imported  or locally produced. " 
Would the importation of products covered by a patent be suffic ient to avoid the issuance of a 
compulsory license on the ground of "failure to work "?  
Response:  
Importation of products covered by a patent would not be sufficient to avoid the issuance of a 
compulsory if that importation still fails to meet the demand i n Lao PDR and there are sufficient 
evidence that the demand for the patented invention is unmet in the Lao PDR. (IP Law, article 64 
authorization to exploit without permission of patent or petty patent owner).  
In the text of the Secretariat's Report there is an issue of incorrect translation into English of the 
original Lao version of IP Law 2017 article 64 .1.4, which provides: "In order to sufficiently meet the 
demand for the invention with in Lao PDR in the case that the owner failed to meet that demand ", 
not "failed to work " (emphasis added).  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.7 IPRs - Page 81, paragraph 3.135  
Texts:  
Both goods and services are eligible for trademark registration. The amended Law expands the 
coverage of protection for trademarks to three -dimensional picture and motion images.56 The Law 
explicitly stipulates that the nature of the goods or services is not grounds for denying registration 
of a trademark.  However, marks that are identical or similar to a well -known mark, consist of a 
geographical indication (GI) identifying a place other than the place of origin57, or contain national 
emblems or an emblem of an international organization, are not eligible for trademark registration. 
Trademark applicants may claim a priority date based on one or more applications previously filed 
either with the MOST or in another country or office in accordance with international treaties to 
which Lao PDR is a party. The pr iority period for trademarks is six months from the priority date. 
The term of protection of trademarks is ten years from the date of filing instead of the date of 
registration, and are renewable indefinitely. While the Law does not clearly provide for act ual use of 
a mark as a condition for the filing of an application for registration, it sets forth some provisions for 
the non -use of a trademark under which a third party may request the MOST to cancel or revoke 
the registration of such trademark. Non -use of a trademark means that a trademark has either not 
been used for five consecutive years, or it has been merely token used or not used in good faith.58 
While a trademark application is still being processed, the application is published. A third party may  
file an opposition within 60 days of the date of such publication.59 As at early -April 2019, 46,452 
filings for trademarks had been submitted.  
Summary by the US  
The Secretariat 's report states that the term of protection for trademarks is 10 years from th e date 
of filing instead of the date of registration.  
Q33 
Could  you provide the pendency rate for trademark applications at the Lao Intellectual Property 
Office?  WT/TPR/M/394/Add.1  
 
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  Response:  
According to the revised IP Law 2017, the term of protection is 10 years from the filing date for 
registration and can be renewed indefinitely. The application is published while still processed. 
Trademarks applicants may claim a priority date. The pendency of trademark registration in Lao IP 
Office is 10  months, due to the limited number of trademark examiners. There are still some 
backlogs, which are expected to be eliminated over time, reducing the registration time.  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.7 IPRs  - Page 82, par agraph 3.139  
Text:  
The Law provides for a minimum level of protection for GIs. While providing protection to goods in 
general, particular attention is given to the quality, reputation, or other characteristics of the goods, 
focussing on natural and human factors.65 Under the  Law, six categories of indications are ineligible 
for registration. These include indications that are likely to mislead or confuse consumers; that have 
become customary names; lead to misunderstanding; or are not, or cease to be, protected in their 
count ry of origin. In particular, GIs for products of rice, coffee, tea, and wine that are identical to 
customary names of these varieties in Lao PDR, or GIs homonymous with a protected GI for 
mentioned goods, are ineligible for registration. A third party may file an opposition to a GI 
application within 60 days from the date of publication of the application. If an applicant fails to 
perform under the requirements of the registration of the GI, a third party may request the MOST 
to suspend the exploitation of the registered GI. If such an applicant continues to fail to comply with 
the requirements within a given time, the MOST may suspend the exploitation of the GI. The term 
of protection of GIs is unlimited, effective from the date of receipt of the registrati on certificate, with 
one-time fee and service charge of approximately US 300. The Law confers the right to the owner 
of a registered GI to prevent others not only from applying the GI but also GI in a trademark. Among 
others, the owner of a registered GI h as the rights to bring legal proceedings against infringers, and 
to be compensated for damages caused by others.66 The authorities stated that three applications 
for GIs had been registered as at June 2019.  
Summary by the US  
The Secretariat 's report state s that the Law on IP provides that a third party may file an opposition 
to a geographical indication (GI) application within 60 days from the date of publication of the 
application.  
Q34 
Does the Law on IP also provide that a third party may file for the in validation of a registered  GI? 
Response:  
The Law on IP also provides that a third party may file request for cancellation or elimination of 
registered GI within period of five years from the date of publication of the registration. (Article 44)  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.7 IPRs  - Page 83, paragraph 3.143  
Text:  
Notification of a copyright or related right may be recorded with the MOST to serve as evidence for 
future violation or dispute. A notification takes place by lodging an application with the MOST and, 
in turn, the MOST issues a receipt, provided the applic ation meets the requirements. The Law confers 
perpetual moral rights, including to performers, and exclusive economic rights to the author or owner 
of the copyright, under which the owner may undertake a wide variety of acts delineated in the Law. 
Likewise , the Law also grants a number of rights to owners of related rights. Regarding limitations 
and exceptions to the rights of the author, the Law employs the notion of "fair use", under which it 
details the acts permitted. Similarly, the Law states that limi tations and exceptions applicable to 
copyright apply to related rights, mutatis mutandis .  WT/TPR/M /394/Add.1  
 
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  Summary by the US  
The Secretariat 's report notes, "[n]otification of a copyright or related right may be recorded with 
MOST to serve as evidence for future violation  or dispute ."  
Q35 
What, if any, benefits accrue to authors who choose to voluntarily register their copyrights, 
compared to those who do not?  
Response:  
No additional benefits accrue. However in practice such voluntary registration generates more 
security for a copyright  owner  as well as an ease of proof  
Q36 
Does Lao PDR have any current public awareness campaigns or messaging to encourage the 
registration of copyrights?  
Response:  
There are no public awareness campaigns specifically aimed at encouraging the notification for  
copyright  and related rights . However, Lao IP office occasionally holds the dissemination seminars 
on IP awareness for private and public sector, which covers all IP fields. Specific seminars on 
Copyright might be organized depending on the financial and technical support from cooperating 
partners.  
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
- 3.3.7 IPRs  -Page 83, paragraph 3.144  
Text:  
The Law follows the minimum term of protection, which is the life of the auth or plus 50 years for 
the copyright owner, commencing from the date of creation. In case of joint authorship, the 50 years 
begins from the death of last surviving author. The term is 25 years from the date of creation for 
works of applied art and photograph ic works. The term of protection for performers and producers 
of phonograms is 50 years from the end of the calendar year in which the fixation was made or 
otherwise published. The term of protection for broadcasters and broadcasting organizations is 50 
years from the end of the calendar year in which the programme was first broadcast. The Law also 
allows for collective management organizations (CMOs) to be formed by agreement among owners 
of copyright and related rights, in accordance with the Law, and und er the management of the MOST. 
Generally, such organizations play roles in respect of managing the rights in question, licensing, 
remuneration, royalties, exploitation, and representation. Such CMOs have certain rights and 
obligations.  
Summary by the US  
The Secretariat 's report notes that the term of protection for works of applied art and photographic 
works is 25 years.  
Q37 
Does Lao PDR have any plans to expand the term of protection for these works to life plus 50 years?  
Response:  
There are currently no plans to expand the term of protection for works of applied art and 
photographic works.  WT/TPR/M/394/Add.1  
 
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  Q38 
If so, what is the timeline for such expansion?  
Response:  
No timeline for expansion could be provided at the moment.  
Questions based on the Government's report (WT/TPR/G/394)  
Part I: State  of Play in the Reform Process - 4 Trade and Investment Regime - 
4.5 Enhancing Transparency - Page 7, paragraph 4.5  
Text:  
During the review period, Lao PDR has undertaken substantial efforts aimed at improving 
transparency of its trade regime. In 2013, electronic version of the Official Gazette (which was 
available only in hard copies before) was launched. The Gazette is the official source for all legally -
enforceable primary and subsidiary legislation of general application for Lao PDR at the national, 
provincial and capital levels. Drafting authorities may post a draft legislation for at least 60 -day 
public comment periods o n this website, however, they also have the option to post such drafts on 
another website (typically their own agency website), in printed media or via other means to ensure 
that the public can have easy access to them. Selected normative acts and draft la ws are available 
in English. Domestic and foreign individuals, legal entities and organizations in both the public and 
private sectors are eligible to provide  comments on draft legislation by sending their comments to 
the authority in charge of making legi slation according to the defined time and procedures. 
Workshops devoted to particular legal drafts are also routinely organized.  
Summary by the US  
The Government 's report outlines several efforts taken to improve the transparency of its trade 
regimes.  
Q39 
Laws are published in the Official Gazette, but please explain how comments from stakeholders  are 
taken into account?  
Response:  
Comments are to be addressed to the responsible Ministry/Agency of the laws/regulations. It is up 
to them to take the comments into account. Comments and suggestions are also received in the 
consultation meetings and the thematic meetings with the private sector.  
Q40 
How can interested parties submit comments to the Official Gazette?  
Response:  
See response to question 39  
Q41 
Please  provide an example of a draft regulation that was revised after comments were received.  
Response:  
Refer to the recent Law on Safeguard and Law on Anti -dumping and Countervailing measures. The 
comments and suggestions of the public and private sector were taken into account in drafting the WT/TPR/M /394/Add.1  
 
- 65 - 
 
  laws and regulations mostly through the consultation meeting that took place with the publi c and 
private sector especially in the thematic groups throughout the country. The Draft of these Laws 
were also published in the Official Gazette during the consultation period. The Government 
appreciates and uses the various analyses submitted by the var ious business associations in defining 
both the need for reforms as well as how to implement them.  
Q42 
Are comments submitted directly online to the relevant regulator, by mail, or other means?  
Response:  
See above  
Q43 
Do notices of draft laws provide a point of contact where an interested party may request additional  
information?  
Response:  
Yes. The notices of draft identify the agency which is responsible for the law and which needs to be 
contacted for comments.  
Part I:  State  of Play in the Reform Process - 6 Trade Policy by Sector – 6.1 Goods - 6.1.2 
Forestry - Page 12, paragraph 6.9  
Text:  
Lao PDR has also introduced a ban on exports of unprocessed wood from natural forests with the 
aim to better control illegal loggin g and to promote the transformation of wood in Lao PDR.  
Summary by the US  
The Government 's report mentions the introduction of a ban on exports of unprocessed wood from 
natural forests with the aim to better control illegal logging and to promote the transformation of 
wood in Lao PDR.  
Q44 
Please provide  information on steps Lao has taken to e nforce the ban, including any information on 
seizures and sanctions applied in relation to the ban.  
Response:  
Any export of unprocessed wood has to submit a certificate that it is produced in plantations.  
Part I: State  of Play in the Reform Process - 6 Trade Policy by Sector, 6.2 Services, 6.2.1 
Financial Sector / Bank of Lao PDR - Page 14, paragraph 6.17  
Text:  
The amended legislation on the BOL (2018), the Law and Commercial Bank (2018); and the 
establishment of the Law on Payment System (2017) provide an opportunity for the BOL to take 
into account good international practices, including on management of the BO L and modernizing the 
instruments of the central bank while the Law on Commercial Banks allowed the BOL to move toward 
risk-based supervision and introduced relevant provisions on crisis management and bank 
resolution. To ensure the expansion of financial technology and cost -efficient payment system are 
safe and risks being addressed, the BOL has closely supervised the payment system through the 
establishment of the Payment System Department. Reflecting an anti -money -laundering effort, the WT/TPR/M/394/Add.1  
 
- 66 - 
 
  Lao PDR was also delisted from the grey list in 2017. Following the latter, the Anti -Money Laundering 
Office has been working closely with line ministries and associated competent authorities to conduct 
national risk assessment on Anti -Money Laundering (AML)/Counter Financ ing for Terrorism (CFT) in 
preparation for the upcoming Mutual Evaluation under Financial Action Task Force (FATF) new 40 
recommendations in 2020.  
Summary by the US  
The Government 's report mentions the establishment of the Law on Payment System (2017) and 
this same law is mentioned in the Secretariat 's report (Page 113, Paragraph 4.88).  
Q45 
Would Lao further explain  the policy rationale for this law?  
Response:  
This Law on payment system defines principles, regulations and measures on the management and 
monitor of payment system activities in order to make those works to be more convenient, swift, 
safe, transparent, modernized and effective; aiming at stabilizing the financial and monetary 
situation, ensuring the promotion of trade, service s, investment, and access to financial services and 
enabling the integration with the region and international as well as making  a contribution to the 
national social -economic development.  
Payment system in Lao PDR is in the process of development and the landscape is still dominated 
with cash with multi -currency of payment. The need of a sound and predictable legal environment 
for payments is one of the key requirements for the safe functioning of payment systems. Given this 
background, the law on payment system was enacted 2017. The major thrust of the policies is to 
set principles and measures on the supervision on payment system activities in order to ensure the 
accessibility, safety, transparency, modernization and effectiveness of such as activities. T his will in 
turn promote financial stability and inclusion and the ability of regional and international integration. 
Furthermore, the said law lays a broad framework to supervise and protect the right of payment 
system operators, payment service providers  and users of payment service providers. Importantly, 
this law seeks to create a level playing field for market participants, protect consumer and promote 
transparent market oversight in light of the increasing role of DFS in Lao PDR.  
Q46 
Does this measur e apply to retail electronic payment service suppliers that supply services cross -
border as well as those companies supplying services through commercial presence in Lao? " 
Response:  
According to t he Article 6, Scope of Application of Law on Payment System,  the Law applies to 
domestic and foreign individuals, legal entities and organizations participating in the Payment 
System of Lao PDR in the country and abroad.  
Further to the adoptions of PFMI and regional and international practices, BOL 's rules and regulations 
are to set up clear terms and condition of retail electronic payment service of suppliers that supplies 
cross-border as well as those companies supplying service through commercial presence in Lao PDR . 
The rules specified in the sec ondary regulations are to define roles and functions which payment 
service providers, whether acquirer or issuer, are authorize d to undertake. The principle concern of 
Lao PDR  as well as BOL regarding to the secondary regulations on payment is aligned with  
international practices and consumer protections, especially cross -border transactions.  
In this regard, BOL 's upcoming Decision on Payment Service Providers is being drafted to set criteria 
and conditions for all current types of payment services to be s upplied in Lao PDR ; for example, 
Payment Card Network, Electronic Money, Electronic Payment Acceptance, Electronic Payment 
Acquiring, Payment Facilitating, Bill Payment Service and Electronic Money Transfer Service. This 
Decision will also specify payment service providers into 3 tiers: (1) large scale service provider, 
having large scale countrywide and cross -border coverage, is required to be licensed by BOL; (2) WT/TPR/M /394/Add.1  
 
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  medium scale service provider, serving its own business and having transaction less 10 billio n LAK 
within 6 -month cycle, is required to be registered with BoL; and (3) small scale service providers, 
serving its own business and have transaction less than 5 billion LAK, is required to notify its payment 
service to BO L. 
II. Questions based on the Re port by the Government  
Part II:  Major thrusts of Lao PDR 's trade policy reforms in the upcoming years – 
Introduction - Page 16, paragraph 1.1  
Text 
1.1. As described in Part I above, since its accession to the WTO, Lao PDR has made a substantial 
effort in bringing its trade regime and economic policies in line with best international practices. 
Lao PDR has adopted necessary laws to comply with best international practices and has revised its 
laws in line with the requirements of its international and region al commitments. It has adopted a 
large number of plans and policies in view of transforming its economy and trade pattern to the 
requirements of international and regional integration and to ensure that the private sector benefits 
of a conducive environmen t to develop its entrepreneurial spirit and to become competitive so as to 
be able to benefit from its comparative advantage. The export strategy defined how Lao PDR wants 
to take advantage of its integration into the world economy. The Law on Lawmaking en sures that 
new laws and regulations are drafted in a transparent way and that effects of laws and regulations 
on the environment and other public goods are accounted for. Many technical regulations have been 
adopted and sanitary and phytosanitary measures – implemented to ensure that products respond 
to the demand of the global market. Lao PDR has adopted Intellectual Property Rights legislation 
responding to international standards and a trade regime in line with the accession commitments. 
It has also revi sed investment legislation to ensure equal treatment of foreign investment and 
defined a policy for Special Economic Zones to attract foreign investment.  
Summary by the US  
The Government 's report mentions the Law of lawmaking.  
Q47 
How is the Law on Law  making enforced?   
Response  
The Law on the Making Legislation stipulates that all laws of general application are subject to 
consultations with line Ministries and the general public based on the publication in the official 
gazette. Otherwise, it is ineffec tive. The government is aware that these instructions are not followed 
by all entities and is setting up the contact point at Provincial Department of Justice to facilitate the 
publication of legislations at the provincial level as well as disseminating th e obligations under the 
Law on Making Legislation throughout the country.  
Q48 
Is there a coordination mechanism in place to ensure that all ministries implement the principles, 
regulations and procedures set forth in the Law?  
Response  
Please see the answer 47.  WT/TPR/M/394/Add.1  
 
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  2 Implementation of the laws and development programmes - 2.4 Measures with respect 
to review and streamlining of procedures - Page 18, paragraph 2.5 (iii) (a)  
Text 
(a) Ensure that laws, decrees and regulations are published promptly in an accessible way to 
everybody: The Government has made great progress in this domain by publishing online the Official 
Gazette as well as the trade portals on all procedures and regulations which have a direct linked to 
trade in goods and in services. Contin uing to provide the necessary resources to ensure that those 
platforms are up to date and relevant is a priority of the Government. One bottle neck is the 
translation of the information into English. While Lao PDR benefits from technical assistance to keep  
up the portals, it will need financial support to ensure the up -keep and especially the translation of 
the content of the official Gazette.  
Summary by the US  
Ensuring that laws, decrees, and regulations are published promptly in an accessible way to 
every body.  
Q49 
How is it decided which draft laws and normative acts are made available in English?  
Response:  
English version of Draft legislation usually depends on the technical assistance provided by 
development partners to support the translation due to lac k of technical capacity. If English version 
is available, both versions will be published publicly in the government gazette.  
2 Implementation of the laws and development programmes - 2.4 Measures with respect 
to review and streamlining of procedures - Page 18, paragraph 2.5 (iii) (b)  
Text 
(b) Inform and consult with the private sector: Regular consultations with the business community 
through the dialogue has greatly improved the coordination between the Government and the private 
sector and is deemed very  useful by both sides. Such consultations could be used to identify 
problems with implementation of new measures and reforms. The private sector which is at the 
receiving end of measures is an excellent monitoring source of how well measures and reforms ar e 
implemented. The Government intends to strengthen this dialogue in particular in the following 
ways:  
• Ensure participation of MSMEs and underprivileged segments of the society. Unfortunately, 
currently, the consultations are largely limited to bigger com panies, which have resources 
to participate, while MSMEs are often lacking means and knowledge to effectively engage in 
such consultations. Special efforts to inform and train MSMEs and underprivileged groups 
(especially women entrepreneurs) are needed. Te chnical assistance for this purpose would 
be highly appreciated and necessary;  
• Conduct regular assessment of implementation and the effects of various measures. Such 
oversight would allow to adapt laws and procedures to the requirements of development. A 
monitoring and evaluation system which provides timely statistics on the effects of the 
measures implemented would allow the Government to adjust reforms and policies according 
to their purpose. To start, the Government intends to distribute to the private sector specific 
questionnaires on various measures implemented to monitor and evaluate their impact. 
Technical assistance to establish these questionnaires would be necessary.  
Summary by the US  
Inform and consult with the private sector.  WT/TPR/M /394/Add.1  
 
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  Q50 
With respect t o consultation with the private sector, are there formal procedures in place?   
Response:  
Yes. The consultation meetings are formally conducted with public and private representatives, 
including the representatives from the National Chamber of Commerce and Industry and 
international chambers of commerce.   
Q51 
Has the GOL established expert advisory groups for consultation, or is consultation conducted on an 
ad hoc basis?  
Response:  
The drafting committee comprising of relevant agencies is always established on ad -hoc basis until 
the draft legislation has been signed or approved.  
  WT/TPR/M/394/Add.1  
 
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  UNITED STATES OF AME RICA  - FOLLOW -UP QUESTIO NS 
PART I : Questions based on the Report by the Secretariat  
2 Trade and Investment Regimes, 2.2 Trade Policy Formulation and  Objectives, 2.2.3 
Trade Laws and Regulations - Page 31, paragraph 2.20  
Text:  
The adoption of a Law on Making Legislation in 2012 allowed for important reforms in transparency, 
participation and consultation, impact assessment, and systemization. The e -version of the Lao PDR 
Official Gazette, with legislation in Lao language, was launched online in 11 October 2013; existing 
legislation not posted on the Gazette website by January 2015 was seemingly no longer valid.31 The 
Law on Making Legislation sets out principles, regulations and procedures for the making and 
amending of legislation; it requires an assessment of the regulatory and budgetary impacts of the 
draft legislation, which is to be reported in an Impact Assessment Note (IA Note).32 Drafts of all 
new laws and regulations must be published in the Official Gazette for at least 60 days. However, it 
seems that not all government agencies post their laws and regulations, and often when they do, 
few opportunities remain for shaping the draft law.33 The 20 16 Ministry of Justice Decision on the 
Impact Assessment of Draft Legislation ensures consistent quality in the development of draft 
legislation through detailed, systematic and transparent analysis, and that draft legislation achieves 
objectives and avoid s unintended consequences. In June 2016, Regulatory Impact Assessment 
(RIA) Guidelines were issued to support the objectives of the NSEDP and of the Legal Sector Master 
Plan. They provide guidance to authorities making and amending legislation to: meet the  
requirements for impact assessment under the Law on Making Legislation and the Ministry of Justice 
Decision on the Impact Assessment of Draft Legislation; and produce better legislation in accordance 
with best practice principles. Since 2014, the Centre f or Regulatory Impact Assessment for Draft 
Legislation under the Department of Legislation of the Ministry of Justice has been in place. Its main 
functions consist of: capacity building on the RIA for draft legislation; providing advice and holding 
workshop s on RIA for agencies responsible for law making; and surveying the RIA in areas within 
its responsibility for monitoring compliance. Since 2016, the Centre has completed 72 RIAs.  
Summary by the US  : 
The Secretariat 's Report indicates that not all government agencies post their laws and regulations 
in the online Official Gazette.   
Initial Q11  
What steps are being taken to ensure there are uniform policies and procedures in place for 
government agencies to make draft regulations available for notice and comment?  
Response from Lao PDR:  
The Government is aware that these instructions are not followed by all entities and is setting up 
the contact point at Provincial Department of Justice to facilitate the publication of legislations at the 
provincial level as well as disseminating the obligations under the Law on Making Legislation 
throughout the country.  
US Follow -up  
Q1 
Thank you for your response. Will the Government undertake similar steps with respective 
government a gencies and line ministries at the central government level to ensure all draft 
regulations are available online for notice and comment?  
Follow -up response:  
Yes, a contac t point is maintained in every line ministry  and similar steps  are undertaken  at the 
central government throughout the country , as required  under the Law on Making Legislation. T he WT/TPR/M /394/Add.1  
 
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  Law on Making Legislation also requires governmental agencies and line ministries to publish the 
draft law  / regulations either on their website s or by posting on Laos 's official website.  
Part II : Questions based on the Report by the Government  
Part I: State of Play in the Reform Process - 4 Trade and Investment Regime - 
4.5 Enhancing Transparency - Page 7, paragraph 4.5  
Text:  
4.1. During the review period, Lao PDR has undertaken substantial efforts aimed at improving 
transparency of its trade regime. In 2013, electronic version of the Official Gazette (which was 
available only in hard copies before) was launched. The Gazette is the official source for all legally -
enforceable primary and subsidiary legislation of general application for Lao PDR at the national, 
provincial and capital levels. Drafting authorities may post a draft legislation for at least 60 -day 
public comment periods o n this website, however, they also have the option to post such drafts on 
another website (typically their own agency website), in printed media or via other means to ensure 
that the public can have easy access to them. Selected normative acts and draft la ws are available 
in English. Domestic and foreign individuals, legal entities and organizations in both the public and 
private sectors are eligible to provide comments on draft legislation by sending their comments to 
the authority in charge of making legi slation according to the defined time and procedures. 
Workshops devoted to particular legal drafts are also routinely organized.  
Summary by the US  : 
The Government 's report outlines several efforts taken to improve the transparency of its trade 
regimes.  
Initial Q39  
Laws are published in the Official Gazette, but please explain how comments from stakeholders  are 
taken into account?   
Response from Lao PDR:  
Comments a re to be addressed to the responsible Ministry/Agency of the laws/regulations. It is up 
to them to take the comments into account. Comments and suggestions are also received in the 
consultation meetings and the thematic meetings with the private sector.  
Follow-up Q2  
How do parties that submit comments know that the comments have been addressed by the 
responsible ministry/agency?  For example, does the ministry/agency reference how it took 
comments into account when it publishes the final regulation; does t he ministry contact the private 
sector party directly by letter to acknowledge the comments, or is there some other process?  
Follow -up response:  
The relevant ministries / agencies proceed in different ways. Some minis tries/ agenc ies responsible 
for drafting a law will report i n the redrafted proposal that they have revised the draft according to 
the comments received, while others will report back to related ministries/agencies where the 
comments can be included in the draft or not.  
Part I: State of Play in the Reform Process - 6 Trade Policy by Sector – 6.1 Goods - 
6.1.2  Forestry - Page 12, paragraph 6.9  
Text:  
Lao PDR has also introduced a ban on exports of unprocessed wood from natural forests with the 
aim to better control illegal logging and to p romote the transformation of wood in Lao PDR.  WT/TPR/M/394/Add.1  
 
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  Summary by the US  : 
The Government 's report mentions the introduction of a ban on exports of unprocessed wood from 
natural forests with the aim to better control illegal logging and to promote the transformatio n of 
wood in Lao PDR.  
Initial Q44  
Please provide  information on steps Lao has taken to enforce the ban, including any information on 
seizures and sanctions applied in relation to the ban.  
Response from Lao PDR:  
Any export of unprocessed wood has to submit a certificate that it is produced in plantations .  
Follow -up Q3  
How does Lao verify the legitimacy of the certificate to ensure the legal origin of the unprocessed 
wood?  Has Lao taken any enforcement actions against violators of the ban?   
Follow -up response:  
Since Prime Minister 's Order No. 15/PM was issued in 2016, the Government of Lao PDR prohibits 
the export of logs and semi -finished products from natural timber. The objective is to promote value 
addition while achieving sustainable forestry management, aiming to make forestry  covering 70% 
of the country's land area.  
As such, the Ministry of Industry and Commerce is drafting Regulation on Chain of Custody (CoC) in 
wood processing and trade areas. The main aim of the draft CoC 's decision is to ensure input and 
output of the woo ds and wooden products  in the area of processing and  trade are legal and can be 
verified. The draft CoC 's decision project has been supported by GIZ under the FLEGT programme.  
The measures against violators of the ban are enforced through provisions stipu lated in Order No. 
15/PM, which are related to fines on and seizures of illegal unprocessed log exportation.   
Part I: State of Play in the Reform Process  - 6 Trade Policy by Sector, 6.2 Services, 
6.2.1  Financial Sector / Bank of Lao PDR - Page 14, paragraph 6.17  
Text:  
5. 1. The amended legislation on the BOL (2018), the Law and Commercial Bank (2018); and the 
establishment of the Law on Payment System (2017) provide an opportunity for the BOL to take 
into acc ount good international practices, including on management of the BOL and modernizing the 
instruments of the central bank while the Law on Commercial Banks allowed the BOL to move toward 
risk-based supervision and introduced relevant provisions on crisis m anagement and bank 
resolution. To ensure the expansion of financial technology and cost -efficient payment system are 
safe and risks being addressed, the BOL has closely supervised the payment system through the 
establishment of the Payment System Departmen t. Reflecting an anti -money -laundering effort, the 
Lao PDR was also delisted from the grey list in 2017. Following the latter, the Anti -Money Laundering 
Office has been working closely with line ministries and associated competent authorities to conduct 
national risk assessment on Anti -Money Laundering (AML)/Counter Financing for Terrorism (CFT) in 
preparation for the upcoming Mutual Evaluation under Financial Action Task Force (FATF) new 40 
recommendations in 2020.  
Summary by the US  : 
The Government 's repo rt mentions the establishment of the Law on Payment System (2017) and 
this same law is mentioned in the Secretariat 's report (Page 113, Paragraph 4.88).   WT/TPR/M /394/Add.1  
 
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  Initial Q46  
Does this measure apply to retail electronic payment service suppliers that supply services cross -
border as well as those companies supplying services through commercial presence in Lao? " 
Response from Lao PDR:  
According to the Article 6, Scope of Application of Law on Payment System, the Law applies to 
domestic and foreign individuals, legal entities and organizations participating in the Payment 
System of Lao PDR in the country and abroad.  
Further to the adoptions of PFMI and regional and international practices, BOL 's rules and regulations 
are to set up clear terms and condition of ret ail electronic payment service of suppliers that supplies 
cross-border as well as those companies supplying service through commercial presence in Lao PDR. 
The rules specified in the secondary regulations are to define roles and functions which payment 
service providers, whether acquirer or issuer, are authorize to undertake. The principle concern of 
Lao PDR as well as BOL regarding to the secondary regulations on payment is aligned with 
international practices and consumer protections, especially cross -border transactions.  
In this regard, BOL 's upcoming Decision on Payment Service Providers is being drafted to set criteria 
and conditions for all current types of payment services to be supplied in Lao PDR; for example, 
Payment Card Network, Electronic Money , Electronic Payment Acceptance, Electronic Payment 
Acquiring, Payment Facilitating, Bill Payment Service and Electronic Money Transfer Service. This 
Decision will also specify payment service providers into 3 tiers:  (1) large scale service provider, 
having large scale countrywide and cross -border coverage, is required to be licensed by BOL; (2) 
medium scale service provider, serving its own business and having transaction less 10 billion LAK 
within 6 -month cycle, is required to be registered with BoL; and  (3) small scale service providers, 
serving its own business and have transaction less than 5 billion LAK, is required to notify its payment 
service to BOL  
Follow -up Q4  
Regarding Lao PDR 's response on the Bank of Laos ' upcoming draft Decision on Payment Service 
Providers, what is the anticipated timeline for issuance, and how can stakeholders provide input or 
comments on the draft?   
Follow -up response:  
The BOL emphasizes the importance of transparent regulations and po licies governing the activities 
of financial and payment services. As such, BOL ensures that any proposed laws and regulations are 
made available to interested parties while allowing adequate opportunity for them to comment. With 
regard to the upcoming Dec ision on "Payment Service Provider ", to date, there has been two rounds 
of internal and external consultations. Internally, the relevant departments were invited to provide 
inputs on the draft. Externally, the BOL held a meeting with stakeholders on Octobe r 23, 2019 with 
participants from 28 commercial banks, microfinance institution, 1 telecommunication company and 
7 private entities who are interested in obtaining payment service license. Most of banks who are 
the current service providers such as interna tional cards issuance and/or acquiring also participated 
in this public consultation. The new regulation is aimed to be issued by December 2019 .  
II. Questions based on the Report by the Government  
Part II:  Major thrusts of Lao PDR 's trade policy reforms in the upcoming years – 
Introduction - page 16, paragraph 1.1  
Text:  
5. 2. The amended legislation on the BOL (2018), the Law and Commercial Bank (2018); and the 
establishment of the Law on Payment System (2017) provide an opportunity for the BOL to take 
into account good international practices, including on management of the BO L and modernizing the 
instruments of the central bank while the Law on Commercial Banks allowed the BOL to move toward 
risk-based supervision and introduced relevant provisions on crisis management and bank WT/TPR/M/394/Add.1  
 
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  resolution. To ensure the expansion of financial technology and cost -efficient payment system are 
safe and risks being addressed, the BOL has closely supervised the payment system through the 
establishment of the Payment System Department. Reflecting an anti -money -laundering effort, the 
Lao PDR was also delisted from the grey list in 2017. Following the latter, the Anti -Money Laundering 
Office has been working closely with line ministries and associated competent authorities to conduct 
national risk assessment on Anti -Money Laundering (AML)/Counter Financ ing for Terrorism (CFT) in 
preparation for the upcoming Mutual Evaluation under Financial Action Task Force (FATF) new 
40 recommendations in 2020.  
Summary by the US  : 
The Government 's report mentions the Law of lawmaking.  
Initial Q48  
How is the Law on Lawmaking  enforced?   
Response from Lao PDR :  
Please see the answer 47.  
Follow -up Q5  
By a coordination mechanism, we are asking whether there is a committee or office in the 
government that ensures that laws are reviewed by ministries other than the one pr oposing the 
law.  This can help to avoid duplication and ensure compliance with international obligations before 
a law is finalized.   Would this be the "drafting committee " described in Answer 51?  
Follow -up response:  
The Ministry of Justice, under The Law on Making Legislation is responsible for monitoring the legality 
of the draft law and compliance with treaties / international agreements to which Lao PDR is a party.  
 
  WT/TPR/M /394/Add.1  
 
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  HONG KONG, CHINA  
WT/TPR/S/394 – WTO Secretariat's Report  
4 Trade Policies by Sector – 4.4 Services - 4.4.3 Financial services - 4.4.3.1 Banking and 
Finance – Regulatory framework - Pages 113 -114, paragraph 4.88 -4.91 
Texts:  
During the review period, the main regulatory framework governing banking was reviewed and 
updated, to better align it with current developments and international best practices.189 The Law 
on the Bank of Lao PDR (amended) No. 47/NA, 19 June 2018, was enacted; as at June 2019, the 
amendment to the Law on Commercial Banks (final draft) had not been passed by the NA .190 The 
Law on Payment System No. 32/NA, 7 November 2017, creating a national payment system, was 
enacted, providing much -needed digital financial services (DFS) regulations; the decrees needed to 
enable interbank payments are being developed and, as at J une 2019, were still pending.191 
According to the IMF, a 2011 Regulation on Loan Classification and Provisions remains an effective 
tool to accurately capture problematic loans. Microfinance is, inter alia, regulated by: the Regulation 
for Deposit -Taking M icrofinance Institutions (No. 04/BOL 2008); the Regulation for Non -Deposit -
Taking Microfinance Institutions (No. 02/BOL 2008); the Regulations for Savings and Credit Unions 
(No. 03/BOL 2008); the Decree on Microfinance Institutions (No. 460/G), 3 October 2 012; and the 
Implementation Guidelines on the Decree on Microfinance Institutions (No. 01/BOL), 19 April 
2016.192  
4.89. Other changes in the regulatory framework include the promulgation of the 2014 Law on Anti -
Money Laundering and Counter -Financing of Terrorism in 2015.193 Lao PDR graduated from the 
Financial Action Task Force (FATF) grey list (monitoring process und er its ongoing global AML/CFT 
compliance process) in June 2017; since then, the Anti -Money Laundering Office has been working 
closely with line ministries and associated competent authorities to strictly carry out the task of 
AML/CFT.194 In addition, the N ational Risk Assessment (NRA) on AML/CFT was completed, in 
parallel with the identification of deficiencies to prepare for the upcoming Mutual Evaluation (ME) in 
the year 2020. In the 2018 Basel Anti -Money Laundering Index, Lao PDR ranked 4th out of 129 
countries (16th out of 149 countries in 2016), indicating that, despite improvement, the country was 
regarded as having a relatively weak AML/CFT framework.195  
Regarding commercial presence in banking and finance services, under Lao PDR's GATS 
commitments, since 2018, foreign equity participation is limited to 51%.  
The banking system remains highly dollarized, with weak profits and pockets of fragility; asset 
quality issues, thin capital buffers, and weak profitability continue to weigh on parts of the banki ng 
system (see below).197 During the review period, the BOL took a number of pre -emptive steps to 
enhance the resilience of the financial system, by transforming the compliance -based supervisory 
framework into risk -based supervision and the transition to t he Basel II compliance framework, 
which requires further capital buffers.198 A new supervisory manual reflecting key principles of the 
risk-based approach to supervision was drafted in 2017; it includes templates of Institutional Profile 
(IP), Risk Assessm ent Summary (RAS), and Report of Onsite Examination (ROX). In 2018, a Master 
Plan was adopted to guide institutional set -up during the transition period, for full -fledged Basel II 
compliance.  
Summary by Hong Kong, China  
Payments in Lao PDR are made mainly in cash. Due to the lack of regulation on digital financial 
services (DFS), no Fintech industry development has yet taken place. Instead, temporary 
agreements with foreign payment providers ' solutions are in place.  
Q1 What is the latest progress of the decrees needed to enable interbank payments? What is 
Lao PDR's policy towards the development of Fintech industry?  
Response:   
Bank of the Lao PDR (BOL) as a government body in charge of promoting the efficiency of paymen t WT/TPR/M/394/Add.1  
 
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  system in Lao PDR  focuses on payment system. In regard to FinTech, BOL therefore focuses on 
promoting and developing electronic payment system. In order to perform the above -mentioned 
tasks, BOL aims to adopt and enhance predictable and enforceable legal  framework in line with the 
relevant payment infrastructures in our jurisdictions. Laws and regulations, governing the payment 
system in Lao PDR , are as follows:  
To draft above law and regulations, BOL set up working groups to develop a consistent and well -
articulated legal framework to address both legal obstacles and regulatory stances, taking into 
account of the Principles for Financial Market Infrastructures (PFMI) issued by the IOSCO together 
with regional and international practices, and of stakeholde r engagement. This ensures the well -
founded, clear, transparent, and enforceable legal basis; promote the safety and efficiency of the 
FMI, support the stability of the broader financial system, have the comprehensive management of 
risks and a sound risk -management framework for comprehensively managing legal, credit, liquidity, 
operational, and other risks, and accommodation of view and comments of relevant stakeholders  
No Name of Law/Regulation  Enacted 
year Last Amendment  Enacted 
body  
1 Bank of the Lao PDR Law  1995 1999 and 2018  National 
Assembly  
2 Commercial Bank Law  2006 2019 National 
Assembly  
3 Microfinance institution Decree  2012  
National 
Assembly  
4 Securities Law  2012  
National 
Assembly  
5 Electronic Transaction Law  2012  
National 
Assembly  
6 Law on AML/CFT  2015  
National 
Assembly  
7 Payment Systems Law  2017  
National 
Assembly  
8 Regulation on Payment and Settlement 
System  2016  
BOL  
9 Regulation on Real Time Gross Settlement 
System (RTGS)   2016  
BOL  
10   Decision on Systematic Important Payment 
systems  2019  BOL 
11 Decision on Retail Payment Systems  2019  BOL 
  New Regulations under consideration  Expected Year of Adoption    
1 Decision on Payment Service providers  Dec 2019  BOL  
2 National QR Code for Payments  2020 BOL  
 
What is Lao PDR's policy towards the development of Fintech industry?  
Digital Financial Services (DFS) can be defined as the broad range of financial services accessed and 
delivered through digital channels, including payments, credit, savings, remittance, insurance and 
mobile financial services. Broadly speaking, digital payment not only brings efficiency and 
convenience, but often also preconditions o ther digital financial services and products as well as 
reduction in the use of cash with multi -currency of payment as a whole.  
Given the paramount importance of DFS, BOL has highly committed to supporting Fintech 
development in the nation while taking in to account any potential risks that may cause disruption 
to payment system and banking sector stability. Such high commitment and supports are revealed 
that BOL established its Payment System Department in 2018, with its core mandates of payment 
system sup ervision and development and issuance of license for payment service provider. As a 
result, BOL received more than 40 applications for payment service licensing, licensing renewal, WT/TPR/M /394/Add.1  
 
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  development approval dealing 2018 -2019. However, the licenses were issued only to those who met 
the defined criteria and requirements such as risk management, prudential conditions, governance, 
consumer protections, and creditability. In 2019, there are di fferent payment service providers, as 
follows:  
1. Card Payment:  This service is being offered by 18 commercial banks, totaling about 
1.420.000 domestic ATM cards , 9.868 VISA debit cards , and 64,395 VISA  credit cards.  
2. Mobile Payment:  This service through smar tphone applications is being offered by twelve 
commercial banks,  one microfinance institution, and one telecom company.  
3. SWIFT Money Transfer:  This service is being offered by 15 MoneyGram agents and 16 
Western Union agents.  
4. E-Money:  This service is being offered by four bank and non -bank providers namely: 
Kasikorn Bank (E -wallet), ACLEDA Bank, Star Fintech (U -money), and New concept (E -
wallet),  
5. Electronic Payment Acquiring:  This service is being offered by three commercial banks 
(Alipay) and one commercial  bank (Wechatpay) acquiring services.  
In addition to the above payment services, BOL also promotes regional payment linkages. In 2019, 
banks from Lao PDR  and Thailand signed cross -border payment arrangements namely (1) the cross -
border QR payment service b etween BCEL bank ( Lao PDR ) and TBank (Thailand), which allow their 
clients to make payments in both countries in real -time by simply scanning their standardized QR 
Code, and (2) "Krungsri Blockchain Interledger " is a real -time international fund transfer service 
allowing business operators to transfer money from Lao PDR  to Thailand or vice versa.  
Payment system in Lao PDR  is classified into two main types, as follows.  
1. Large Value Payment System:  
The Large Value Payment System was launched in 2011, as part of the National Payment System 
Project (NPS). Its main objectives are to replace a manual and paper -based processing of interbank 
large-value payment, to provide fully an automatic settlement system in real -time on a transaction -
by-transaction basis with settlement finality,  and to serve as high value interbank credit transfer. In 
2019, there are 44 members using this system as such: Mistry of Finance, Lao Automatic Payment 
System (LAPS), Lao Securities Exchange,  Banking Operations Department of BOL, and 40 
commercial banks.  
2. Retail Payment System:  
LAPS was launched in Dec 2015. Its functions serve as a switching and settlement system for 
electronic payment in Lao PDR , including debit cards and credit cards. This s ystem equips with latest 
technology and meets international standards and practices. To enhance market competition, LAPS 
was incorporated as limited company with 8 shareholders in April 2019.  
❖ Financial Inclusion Initiative through DFS  
Beside the electronic payment services above, BOL also emphasize the importance of technology 
and innovations like DFS in order to enhance financial inclusions. Since 2015, BCOME network of 
BCEL bank was established as the first branchless banking in Lao P DR with a key objective to expand 
banking service to access to people in rural areas or people who are otherwise financially excluded. 
The program design and development has been innovative and grounded in best practices around 
the world. In 2019, there ar e 573 outlets, with 13.336 users, using BCOME.  
4 Trade Policies by Sector  – 4.4 Services  – 4.4.3 Financial services - 4.4.3.1 Banking and 
Finance Services - Page 116, paragraph 4.94 -4.95 
Texts:  
Since 2011, the Lao Securities Exchange (LSX), a joint venture between the Government of Lao 
PDR and Korea Exchange (KRX), has offered increased access to the equity capital markets in the 
country. In accordance with its Joint -Venture Agreement, the LSX is  capitalized by both parties; 
BOL owns 51% of the registered capital, and KRX the remaining 49%. Two types of securities are WT/TPR/M/394/Add.1  
 
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  listed on the LSX (common shares and government bonds), and nine majority state -owned 
companies are listed: EDL -Gen, BCEL, Lao Worl d Public Company (LWPC), Petroleum Trading Lao 
(PTL), Souvanny Home Center Public Company (SVN), Phousy Construction and Development Public 
Company (PCD), Lao Cement Public Company (LCC), Mahathuen Leasing Public Company (MHTL), 
and Lao Agrotech Public Com pany (LAT). EDL -Gen accounts for over 68% of the market 
capitalization of the LSX. Since its establishment, the LSX has experienced modest levels of activity; 
between 2011 and 2019 (May), the LSX's market capitalization rose from USD 580 million to USD 
1.08 billion, or approximately 6.10% of GDP.  
The Strategic Plan on Capital Market Development for 2016 -25 aims at having 25 listed companies 
by 2020, and 60 listed companies by 2025. However, challenges facing the development of a vibrant 
capital market in L ao PDR include difficulties in disclosure of financial and non -financial information 
by firms, the small size of the market, the low level of liquidity, and the short hours of operation of 
the LSX.203 To address these issues, recently, the LSX improved its  trading operations by launching 
the government bond market system, extending trading hours to 8.30 a.m. – 3 p.m. without 
intermission, and introducing new types of orders (Market Order, Conditional Order, Preliminary 
Reserve Order), block trade and tick s ize.  
Summary by Hong Kong, China  
Lao PDR 's capital market is small with a few listed companies. The Strategic Plan on Capital Market 
Development for 2016 -25 aims at having 25 listed companies by 2020, and 60 listed companies by 
2025.  
Q2 
We note that there are a number of challenges in developing a vibrant capital market, such as its 
small size and low liquidity level. There are also difficulties for firms to disclose financial and non -
financial information. What actions have been taken by La o PDR to address these challenges? Will 
new measures be developed in the near future?  
Response:  
Improving Market Liquidity  
▪ The Lao Securities Commission office (LSCO) in cooperation with related parties have issued 
the Capital Market Development Plan (201 7-2020) on May 2016. The main purpose of this 
plan is to boost market 's liquidity by formulating conditions and facilities for market 
development. There are several contents including appointing national committee for listing 
promotion, market maker tradin g, extending trading hours, tick size, multi types of market 
order development, expansion of investor base and promoting institution investors, seminar 
and training course, and improving market accessibility.  
▪ To implement these plans, we have conducted se veral seminars and training course for 
investors and market participants in order to raise the public awareness and interest on 
securities investment. In addition, some related regulations such as regulations on stock 
listing and fund management company we re issued and amended. IT system of Lao 
Securities Exchange has also been improved to support securities trading and market 
liquidity;  
▪ Additionally, the Lao Securities Committee Commission (LSC) have recently issued 
regulations related to new financial pro ducts which are Collective Investment Scheme (CIS), 
government bonds and corporate bonds in order to create more investment instruments. 
Also, the regulations relating to securities intermediaries which is fund management 
company has been issued to facilit ate the capital market development; conducting the study 
on Over -the-counter (OTC) market for Micro, Small and Medium Enterprises (MSME).  
Disclosure of financial and non -financial information  
▪ The LSC has attached great importance to the promotion of good corporate governance 
practice among listed companies in Lao PDR , including promotion of corporate transparency WT/TPR/M /394/Add.1  
 
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  as well as protection of rights and equitable treatment of shareholders. With regard to 
disclosure, in order to ensure that the regulatory framew ork provides a disclosure regime 
that promotes transparency, the LSC issued a detailed regulation governing the disclosure 
of both financial and non -financial information namely Decision on Reporting and information 
Disclosure (Amended version), No. 04/LSC , dated 28 January 2019. In practice, some listed 
companies performed well and some at times failed in the implementation of the Decision. 
Therefore, pursuant to this Decision, in recent years the LSC imposed administrative 
penalties including warning and fines on those who violated the Decision to prevent non -
compliance.  
▪ Additionally, in order to enhance the corporate governance standards of listed companies in 
Lao, the LSC formulates and promulgated the Guidelines on Corporate Governance for Listed 
Companies, No. 11/LSC, dated 26 April 2019. We expect that good cooperate governance 
culture to be aware and gradually embedded in the listed companies in the near future.  
▪ Regarding Accounting, In Lao PDR, Accounting standards are formulated by accounting 
Department, Ministry of Finance. The amended Law on Accounting enacted in 2013 (Replace 
Law on Accounting of 2007) applies to entities including both public and private sector 
involving accounting activities in Lao PDR. Pursuant to this Law, Fin ancial Reporting 
Standards to be applied by the entities in Lao PDR are divided in 3 categories. Firstly cash 
basic is required to be applied by the public sector, while PIEs are required to apply IFRS in 
the preparation of their financial statements and N on-PIEs are required to comply with LFRS 
which are equivalent to IFRS for SMEs.  
Regarding the development of accounting in order to increase confidence in investment in the Lao 
capital market and to prepare for regional and international capital market int egration, the LSC has 
promoted the listed to adopt International Financial Reporting Standard (IFRS) in the preparation of 
their financial statements from the third year from listing on the securities. Also, the LSC has 
cooperated with other relevant agenc ies in providing training on IFRS to the listed firms.  
4 Trade Policies by Sector – 4.4 Services - 4.4.4 Communications Services – 
Pages  119-122, paragraph 4.107 -4.115  
Text : 
With economic activities and government services increasingly moving online, acc ess to affordable 
and reliable internet services has become a key driver of economic and social development globally. 
However, telecom penetration remains relatively low in Lao PDR, and the existing regulations of the 
sector (e.g. minimum telecom tariffs) appear to have constrained the development of new services 
and kept mobile Internet prices high and limited in quality.  
Q3 
All minimum telecom tariffs were last set in 2015. Does the Lao PDR government have any plan to 
review the tariffs and relevant regul ations with a view to promoting the development of this sector?  
Response:  
At this stage, Lao PDR still maintains on the Minimum telecom tariffs as set in 2015. Currently, the 
Lao Telecom Regulatory Authority is establishing the Committee comprising of concerned 
Departments within Post and Telecommunication Ministry to review the  telecom tariffs; the agreed 
minimum telecom tariffs would be decided by the Committee and subject to the Government 's 
approval.  
4 Trade Policies by Sector – 4.4 Services - 4.4.4 Communications Services - Page 122, 
paragraph 4.116, Hong Kong, China  
Text:  
The universal service obligation (USO) scheme envisioned by national legislation has not yet been 
established. According to legislation, a Telecommunication Development Fund is to help develop, WT/TPR/M/394/Add.1  
 
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  expand, advance, and modernize the telecommunication network to cover all remote rural areas.237 
Financing would be provided by: the state budget; grants from foreign countries and international 
organizations; contributions from both domestic and foreign individuals and organizations; a 
deduction from the fines acco rding to the regulations; and income generated from 
telecommunication activities and charges from using telecommunication resources.238 The Fund 
has not been established yet.  
Summary by Hong Kong, China  
According to the Law on Telecommunication, the State  authorizes the establishment of a 
Telecommunication Development Fund to improve the national digital connectivity, inter alia, to 
modernise the telecommunication network to cover all remote rural areas.  
Q4 
What is the latest status of the Telecommunicatio n Development Fund? W e are interested to know 
more about the details of the fund, such as its intended scope, mode of operation and the eligibility 
criteria.  
Response:  
The Telecom Development Fund is under discussion. In particular, relevant research and feasibility 
studies are being conducted with respect to the intended scope, mode of operation and eligibility 
criteria. The survey is also carried out to collect the position of telecom operators and assure their 
cooperation in order to establish the Fund as soon as p ossible. However, n o timeline is available yet.  
4 Trade Policies by Sector – Services - 4.4.6 Distribution and e -commerce - 
4.4.6.2  E-commerce - Pages 129 -130, paragraphs 4.141 -4.144, Hong Kong, China  
Text : 
According to the Secretariat Report, e -commerce  in Lao PDR remains relatively poorly developed 
due to, inter alia, an incomplete regulatory infrastructure, and high trade facilitation and logistics 
costs. The authorities were concerned over potential revenue losses created by the absence of 
dedicated r egulations for e -commerce activities. Initial steps regarding the regulation of e -commerce 
were taken in the review period. A Decree on e -Commerce was being drafted to fill the gaps in the 
existing legislation, in particular by including provisions on onli ne consumer protection.  
Q5 
Apart from online consumer protection, what other issues would be addressed by the Decree? What 
are the current status of the Decree and timetable for implementation?  
Response : 
Lao PDR has established inter-ministerial committees to draft Decree on E -commerce and to draft 
an e-commerce strategy. This covers all relevant dispositions to make e -commerce useful for Lao 
PDR and efficient and is not limited to consumer protection; it also covers comprehensiv e areas of 
e-commerce such as e -contract s, personal data protection and cybersecurity, e -commerce business 
registration, dispute settlement, roles and functions of the e -commerce management agency. Some 
of these elements are elaborated on the basis of  the existing laws under cyber legal framework such 
as Law on Consumer Protection No.02/NA, dated 30 June 2010, Law on Electronic Transaction No. 
20/NA, dated 07 December 2012, Law on Cyber Crime No. 61/NA, dated 15 July 2015, and Law on 
Electronic Data Protect ion No. 25/NA, dated 12 May 2017. Currently, the drafting committee is 
conducting public consultation throughout the country , which are expected to finish at the end of 
November 2019. The final draft will expectedly be submitted to the Government for appro val in 
February 2020.  WT/TPR/M /394/Add.1  
 
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  In addition, one of the reasons for Lao PDR to have joined the Joint Statement Initiative  on e-
commerce at WTO is its desire to learn about it and to make sure that its regulatory framework 
corresponds to best international practices.  It is planned that the committees will submit their 
proposals during 2020.  
Q6 
Are there any plans to put in place a national strategy for development of e -commerce?  
Response : 
Yes. A national strategy for the development of e -commerce has regularly been di scussed within the 
Committee on drafting an e -commerce Decree. It is expected that a national e -commerce Strategy 
will be formulated right after the draft Decree enters into force. In the draft Decree, there is one 
provision on roles and e -commerce managem ent agency , which is expected to be assigned  to the 
Ministry of Industry and Commerce – MOIC as the governmental leading agency to promote and 
manage e -commerce in Lao PDR as well as to develop the National Strategy for development of e -
commerce in collabo ration with other government agencies.  
  WT/TPR/M/394/Add.1  
 
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  MALAYSIA   
WT/TPR/S/394 – WTO Secretariat's Report  
1 Economic environment – 1.2 Recent Economic Developments - 1.2.6 Balance of payment 
- Page 20, table 1.4  
 
Q1 
What are the mechanisms in place to ensure effective industrial development for services sector in 
Lao PDR, given that services sector is the largest contributor to GDP and many ministries are in 
charge of services sub -sectors?  
Response:  
Lao PDR is aware of the importance of transport for its devel opment and has a policy of becoming 
from a land locked to a land linked country. Priority is given to the development of economic corridors 
and investments in regional transport facilities. To promote regional integration, Lao PDR 
participates in two major  regional agreements, the Cross Border Transport Agreement (CBTA) and 
the ASEAN Free Trade Area. Our transport sector is still underdeveloped and relatively inefficient. 
Lao PDR attempts to strengthen the local transport sector by (i) facilitating logistic s; and (ii) by 
creating hubs to facilitate sabotage. Access to ports is essential for Lao PDR: it therefore has created 
a web of agreements with its neighbours. The freedom to transport through Lao PDR by its 
neighbours ensures competition and prices have decreased although they are still high in comparison 
with other ASEAN members.  
Q2 
Construction – initiatives undertaken by Lao PDR in creating surplus in this account  
Response:  
Lao PDR 's construction sector is still in its infancy, however, is developing r apidly. Through 
cooperation with foreign firms and thus acquiring technology and management and by investing in 
the sector, Lao PDR expects to increase the value added of this sector.  
Q3 
Insurance on trading activity – does Lao PDR have a policy on Cost, I nsurance and Freight (CIF) and 
Free on Board (FOB)?  
WT/TPR/M /394/Add.1  
 
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  Response:  
In the Law on Insurance, No. 06/NA, dated 21 December 2019, the policy on Cost, Insurance and 
Freight (CIF) and Free on Board (FOB) are not regulated; however, the insurance companies have 
their own private policy with respect the covered insurance.   
2 Trade and Investment Regimes - 2.2 Trade Policy Formulation and Objectives – 2.2.1 
Trade policy formulation – 2.2.1.1 Executive branches of government - Page 27, paragraph 
2.8 
Text:  
The Ministry o f Industry and Commerce (MoIC) remains responsible for the formulation, 
implementation and coordination of policies and activities relating to manufacturing and trade, as 
well as for representing Lao PDR in regional and international business forums.13 It remains the focal 
point for WTO -, regional trade agreement - (RTA) and Enhanced Integrated Framework (EIF) -related 
activities and issues (Section 2.3). Other line ministries or agencies involved in trade or tariff policy 
matters include the Prime Minister's  Office, the BOL, the Ministry of Finance (including the Customs 
Department), the Ministry of Agriculture and Forestry (agricultural policy, sanitary and phytosanitary 
measures), the Ministry of Health (health safety relating to food and drugs), the Minist ry of Public 
Works and Transport (e.g. technical barriers to trade (TBT) issues), the Ministry of Energy and Mining 
(TBT, environmental protection), the Ministry of Home Affairs (e.g. TBT issues), the Ministry of 
Information, Culture and Tourism (e.g. copy right), the Ministry of Science and Technology (e.g. TBT 
and protection of IPRs), the Ministry of Planning and Investment (MPI), the Ministry of Education 
and Sports, the Ministry of Labor and Social Welfare, and the Ministry of Foreign Affairs.  
Q4 
What a re the mechanisms in place to ensure effective industrial development for services sector in 
Lao PDR, given that services sector is the largest contributor to GDP and many ministries are in 
charge of services sub -sectors?  
Response:  
Lao PDR has largely followed a sectoral approach to the development of the service sectors giving 
priority to those services which are increasing the efficiency of its productive sector.  
Although services sub -sectors are under a number of ministries, the Ministry of Industry and 
Commerce is the main government body that coordinates with line agencies related to trade in 
services policies and ensure that government legal instruments are compliant with the commitments 
under WTO and FTAs. In addition, the Min istry and Industry and Commerce also takes a leading role 
in dissemination of services legislation via Lao Services Portal, in which line ministries are committed 
to share services related information including legislation. In addition, since services sect or is the 
main contributor to GDP, Lao PDR sees the importance of having the national strategy on services 
development to serve as a guiding direction to the development of services subsectors carried out 
by different agencies. Currently, we are welcome th e technical assistance to develop this service 
development strategy.  
3 Trade Policy and Practices by Measure  – 3.3 Measures Affecting Production and Trade – 
3.3.1  Incentives  - 3.3.1.2 Incentives - Page 30, paragraph 3.62  
Text:  
Incentives granted by zones  are also divided into three categories, these are: Zone 1: Poor and 
remote areas with socio -economic infrastructure unfavourable to investment; Zone 2: Areas with 
socio-economic infrastructure favourable to investment; and Zone 3: Special economic zones 
(SEZs).  
Q5 
What are the initiatives by the Government to improve the gaps between the 3 zones?  WT/TPR/M/394/Add.1  
 
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  Response:  
Lao PDR gives high priority to a balanced development and a more equally distributed income. 
Numerous policies are contributing to this objective besides the incentives for investments in the 
disadvantaged regions. First and foremost, we have policies in place to improve the connectivity of 
those regions both in terms of transport (roads) as well as electrification and access to informatio n. 
Our export promotion strategy also puts heavy accent on products which benefit the disadvantaged 
areas (handicraft, agricultural processing). A major effort is underway to increase the productivity 
of the agricultural sector, which is the main source of  income in those regions, by expanding the 
irrigated areas, providing technology and by promoting specialties which have a higher value added.  
2 Trade and Investment Regimes – 2.4 Investment Regime - 2.4.4 investment promotion 
- Page 43, paragraph 2.54  
Text: 
Tax incentives for investment are generous and SEZ development has an important role in the 
Government's investment promotion objectives. An investment in any business sector entitled to 
incentives must have a minimum investment capital of LAK 1.2 billion or employ at least 30 Lao 
technical staff or use 50 or more Lao workers with an employment contract of at least one year. 
Support for the development of SEZs and unique economic zones (UEZs) has been provided (Section 
3.3.1.2). So far, the IPD has focused its investment promotion efforts on a limited number of 
countries, and has established offices in key partner countries, namely China, France, Japan, the 
Russian Federation, Thailand, and Viet Nam.  
Q6 
What are the sectors targeted by the Investment  Promotion Department (IPD) to attract investments 
from selected countries?  
Response:  
Lao PDR investment promotion activities concentrate on investments in the manufacturing and 
services sector that provide employment and value added to its economy. Priority is given to the 
transfer of technology and the transformation of its primary products such as agriculture and mining 
resources. Lao PDR also tries to use its comparative advantage in clean energy to promote industrial 
development. While w e do not target specific countries for specific investments, we obviously take 
into account the strength of various partners and their willingness to invest.  
3 Trade Policy and Practices by Measure – 3.2 Measures Directly Affecting Exports - 3.2.4 
Export s upport and promotion - Page 62, paragraph 3.51  
Text:  
Under Law No. 02/NA on Investment Promotion, of 2009, and the Decree on the Implementation of 
the Investment Promotion Law No. 119/PM, of 2011, Lao PDR provides incentives for enterprises 
operating in pr omoted activities or regions.11 These incentives are not contingent upon local content 
or export performance requirements. Incentives include exemption from the payment of customs 
duty for imports of raw materials, equipment, machinery, spare parts and veh icles that are directly 
used for production (except for all types of fuel), when investing in promoted activities and 
prescribed concession activities; and exemption from the payment of export duty for exporting 
general products.  
Q7 
What are the measures u ndertaken by Lao PDR in creating local linkages / spill over from 
investments (other than minimum investment capital requirement and employment of Lao PDR 
skilled labour/workers)?  WT/TPR/M /394/Add.1  
 
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  Response:  
The creation of linkages between the local economy and foreign investments is an important 
objective of Lao PDR. First and foremost, such linkages can be promoted by providing an efficient 
labor market through education and training as well as the promotion of SMEs which can become 
suppliers for foreign invest ments. Lao PDR is negotiating with foreign investors conditions to promote 
and sue linkages in concession agreements and in investments in the special economic zones. Lao 
PDR believes that linkages can best be promoted by cooperative agreements promoting c ollaboration 
between foreign investors and local economic agents rather than imposing specific targets which 
risk to diminish the comparative advantage of Lao PDR as an investment destination.  
3 Trade Policy and Practices by Measure  – 3.2 Measures Directly  Affecting Exports  – 3.3.2 
Standards and other technical requirements - Conformity assessment and product 
certification - Page 68, paragraph 3.80  
Text:  
The LNAB is also mandated to: monitor and inspect accredited laboratories, inspection bodies, and 
confo rmity assessment and certification bodies, in compliance with international standards and 
practices; suspend, withdraw or cancel accreditation if a violation occurs; and coordinate and carry 
out inter -comparison activities among laboratories within the cou ntry.19 The LNAB maintains a 
published State Register of accredited laboratories and certification bodies, provides technical 
assistance on conformity assessment procedures to relevant government authorities at the central 
and local levels, and promotes pu blic awareness of conformity assessment  
Q8 
Is it mandatory for all laboratories, inspection bodies, and conformity assessment and certification 
bodies in Lao PDR to be accredited? If yes, how is this undertaken and which is the responsible 
authority?  
Respo nse 
According to Standard Law, we had recently set up Lao National Accreditation Bureau (LNAB). The 
Bureau is now in process to set up Quality Manual (QM), Procedure Manual (PM) and also to establish 
National Accreditation Technical Committee and Accredita tion Council (AC) but according to 
international requirement, we have to use the Accredited in ASEAN to support conformity 
Assessment Activities based on ISO/IEC 17025, ISO/IEC 17065, ISO/IEC 17011 and ISO/IEC 17020.  
  WT/TPR/M/394/Add.1  
 
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  CHINA   
PART I Questions based on Report by the Secretariat  
3 Trade Policies and Practices by Measure – 3.1 Measures Directly Affecting Imports - 
3.1.4 Other charges affecting imports Page 52, paragraph 3.26  
Text:  
"In addition to customs duties, imports are also subject to VAT (Section 3.3.1.1), which is applied 
at a flat rate of 10%. However, according to the Law on VAT of 20 June 2018 (No. 48/NA), several 
products are exempted from VAT. " For imported goods: traditional medicine is included.  
Q1 
Where are these traditional medicines from? What kinds of traditional medicines are imported?  
Response:  
Most of traditional medicines have been imported from China, Thailand and Viet Nam  without 
identifying as medical medicine items, per se, but rather than ingredients or herbals used as 
traditional medicines for the traditional treatment, for instance, Chinese herbal medicines, Lao herbal 
medicines.   
3 Trade Policies and Practices by Measure – 3.3 Measures Affecting Production and Trade 
– 3.3.1 Incentives – 3.3.1.2 Incentives - Page 64, paragraph 3.60  
Text:  
"Business sectors identified for incentives include: …development of modern hospitals, and 
pharmaceutical and medical equipment factories, and traditional medicine production and 
treatment… " 
Q2 
Which cou ntry is the major partner for the production of traditional medicine?  
Response:  
To our knowledge, the major partner for the production of traditional medicine is China.  
3 Trade Policies and Practices by Measure – 3.1 Measures Directly Affecting Imports – 
3.1.1 Customs procedures, valuation and requirements - Page 47, paragraph 3.9  
Text:  
"The Customs Law (Articles 28 and 29) also allows for Advance Rulings and Pre -Arrival  Clearance. 
To apply for an advance ruling, the declarant must provide in writing documents and/or samples of 
goods to the Customs Administration, which will consider the request and issue an official certificate 
of approval within 15 working days. The cer tificate is valid for one year, as long as the specifications 
regarding the imported goods do not change. If there is strong evidence or information that the 
goods have changed, the certificate will be cancelled. " 
Q3 
In terms of the scope of declarant, dos e the declarant for an advance ruling need to register and are 
foreign stakeholders included ？ WT/TPR/M /394/Add.1  
 
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  Response:  
Yes, the declarant for advanced ruling has to be registered for simple practical reasons. Foreign 
stakeholders are included.  
Q4 
What matters could the Customs make an advance ruling on ？ 
Response:  
Customs can make an advanced ruling on imports that are standard ized, do not need special 
inspection in terms of quality or for health or other reasons and for an agent which has a track record 
of obeying by the rules.  
Q5 
Is advance ruling given by the local branches of the Customs of Lao PDR or by the competent 
depart ment of the General Administration of the Customs, Lao PDR ？How many people are 
responsible for advance ruling issues currently and how many applications for advance ruling are 
accepted every year?  
Response:  
Advance ruling is not limited by region. However , in practice, given the capacities in the various 
offices, advanced rulings are most probably applied in more important checkpoints.  
Q6 
Is the advance ruling applicable throughout the customs territory or limited by region?  
Response:  
Advance ruling is not limited by region. However, in practice, given the capacities in the various 
offices, advanced rulings are most probably applied in more important checkpoints.  
Q7 
Will the advance ruling of Customs be made public? If so, what is the form shall be adopt ed? 
Response:  
Advanced rulings are not made public and Lao PDR sees no reason to make them public as the 
concern a specific agent.  
3 Trade Policies and Practices by Measure – 3.1 Measures Directly Affecting Imports – 
3.1.1 Customs procedures, valuation and  requirements - Page 47, paragraph 3.11  
Text:  
"…According to the authorities, about 90% of the measures stipulated in the Road Map have already 
been implemented. These include: the single window, single stop inspection, post clearance audit, 
risk management, advance ruling, transparency (making information available to the public), and 
the introduction of procedures for appeal… " 
Q8 
Please introduce how the single stop inspection works and what achievement has been made.  WT/TPR/M/394/Add.1  
 
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  Response:  
Single Stop Inspec tion is in the process of being implemented under the current Trade Development 
Facility (TDF) 3, Challenge Facility Program. Participating Ministries and Departments include the 
Customs Department, Department of Import and Export, F ood and Drug Department , Department 
of Livestock and Fishery & Department of Agriculture. Inspections are Risk Managed through 
ASYCUDAs selectivity module and messaging alerts all parties. The program is working at one site 
and is in the process of being rolled out across Lao PD R. The project implementation should be 
completed by December 2021.  
In addition,  Lao and Vietnam Customs established a Common Control Area  where  customs officers 
from both countries inspect the goods, vehicles and people together, which results in saving time to 
conduct import -export formality because it is a 1 time inspection.  
4 Trade Policy by Sector – 4.1 Agriculture, Forestry, and Fisheries – 4.1.4 Domestic 
support measures – Land concessions - Page 91, paragraph 4.23  
Text:  
"…The authorities indicated that they had suspended the granting of all new land concessions in 
agriculture, to review their policy and prepare a survey of all cultivatable  areas, so as to determine 
the land which could be used for land concessions ." 
Q9 
Has Lao PDR already set up a specific plan for policy review and a survey of all cultivatable areas?  
Response:  
The review of the concessions is on -going and involves various levels of Government as well as the 
populations concerned. The survey of cultivable land is under way in the provinces and at different 
level of advancement in the various provinces. Given the sensitive nature of this question, we are 
not in a posi tion to give a timeline. However, the Government intends to move ahead as quickly as 
possible and feasible given the fact that the Government intends to ensure that concessions are one 
of the means of increasing the productivity and value added of small sc ale farmers.  
Q10 
Please introduce the plan and the time schedule for the review and the survey, if any.  
Response:  
Please see r esponse  to Question  9 above  
PART II Questions based on Report by the Government  
Part I: State  of Play in the Reform Process - 4 Trade and Investment Regime – 
4.2 Constitutional Amendments of 2015 - Page 7, paragraph 4.2  
Text:  
"The amendment of the Constitution in 2015 strengthened the framework of policies and 
coordination in the Government towards the enforcement of the rule of law. 64 provisions were 
amended and another 24 introduced, in particular, (i) reinforcing democratic governance through 
establishment of elected People's Councils and clarification of status and functions of the state organs 
belonging to each of the state powers – legislative, executive and judicial; (ii) improving 
accountability with respect to budgetary outlays – by setting the State Audit Organization; and (iii) 
putting a stronger emphasis on democratic rights and entitlements, including education, publi c 
health services and public participation. " WT/TPR/M /394/Add.1  
 
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  Q11 
What role does traditional medicine play in public health services?  
Response:  
Thus far, there is no policy on the roles of traditional medicine in public health services available . 
  WT/TPR/M/394/Add.1  
 
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  CHINA – FOLLOW -UP QUESTIONS  
PART I : Questions based on the Report by the Secretariat  
Summary - Page 10, paragraph 29  
Text:  
"Telecoms penetration remains relatively low, except for mobile telephony; five main 
telecommunications providers, with a varying degree of  state participation, operate in Lao PDR's 
relatively small market. In addition to the establishment of the Lao Telecommunication Regulatory 
Authority in 2017, the legislation was updated in certain areas, including telecommunications 
competition and licen sing. No number portability or universal service obligation (USO) schemes are 
in place yet. Domestic and international long -distance call rates fell rapidly; however, tight 
regulations constrained the development ." 
Follow up Q1  
What effect do the reform me asures in the telecommunications sector have on the conduct of new 
business in this sector?  
Follow –up response:  
Since the establishment of the Lao Telecommunication Regulatory Authority, it has facilitated all -
round based on policies and regulations withou t discrimination of new and existing providers. It is 
evident that business operations operate smoothly on a fairly competitive basis. But inevitably, in 
the process of developing new technologies and small Lao telecom markets, higher -end investors 
have gr eater infrastructure that provides greater access to services.  
2 Trade and Investment Regimes – 2.2 Trade Policy Formulation and Objectives – 
2.2.3  Trade laws and regulations - Page 30, paragraph 2.18  
Text: 
"…Since WTO accession, new trade and trade -related legislation or regulations were passed, mainly 
in areas such as investment promotion, competition, IPRs, safeguards, anti -dumping and 
countervailing measures, minerals, electricity, banking, and telecommunications... " 
4 Trade policies by sect or - Page 85, paragraph 4.1  
Text: 
"…Telecoms penetration remains relatively low except for mobile telephony; in addition to the 
establishment of the Lao Telecommunication Regulatory Authority, the legislation was updated in 
certain areas, including telecommunications competition and licensing... " 
4  Trade Policies by Sector – 4.4 Services - 4.4.4 Communications – Policy and institutional 
framework - Page 120, paragraph 4.110  
Text: 
"…The LTRA's purpose and principles include: promoting compe tition, connectivity and coverage; 
and ensuring independence in governance and in the allocation of telecom resources according to 
Lao PDR laws and regulations... " 
Follow up Q2  
Please kindly introduce the newly enacted laws and regulations in the telecommunications sector 
since Lao PDR 's WTO accession, as well as the provisions governing telecommunications competition 
and licensing. How will the foregoing measures facilitate the realization of the Lao WT/TPR/M /394/Add.1  
 
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  Telecommunication Regulatory Authority 's purpos e and principles ? 
Follow –up response:  
The newly -enacted laws and regulations are: Cybercrime Law (2015); ICT Law (2016); Radio 
Frequency Law (2017); Personal Data Protection Law (2017); E -signature Law (2018); and National 
Frequency Allocation Table (2017). National Broadband Policy and National Digital Transformation 
Master Plan are being drafted.  
Legislation that we made based on the WTO principles, facilitates the achievement of more effective, 
transparent and competitive ICT strategies of the Mini stry. Because the right to get a license of using 
telecom resources, infrastructure and equipment is easily applied through a single window. Business 
operations are based on a flexible market mechanism , having a clear procedure for conflict 
settlement and neutrality for making regulation with no interference in the telecom business.  
Part III : Other Questions  
Follow -up Q3  
Please introduce the legal system governing civil aviation in Lao PDR.  
Follow –up response:  
In Lao PDR, the legal system consists of 5 hi erarchical layers as follows:  
1. Constitution;  
2. Laws → Law on Civil Aviation of the Lao PDR of 26th June 2018 (Revision);  
3. Presidential Decrees;  
4. Prime Minister 's Decrees;  
5. Minister 's Decisions → Lao Civil Aviation Regulations endorsed by the Dire ctor General of the 
Department of Civil Aviation of the Lao PDR (LCARS); and Official Letter signed by the Director 
of a Division under the Department of Civil Aviation of the Lao PDR (DCAL).  
Technical requirements, including Safety and Security measures, are managed effectively by LCARS, 
the DCAL.  
Follow -up Q4  
Please introduce the legal provisions related to the management of the airports in Lao PDR.  
Follow –up response:  
The management of the airports is regulated by the Minister 's Decision on the Roles and  
Responsibilities of the Airport of Laos, No: 6313/MPWT, dated 26th March 2018.  
The Assets of airports across Lao PDR are owned by the Government of Lao PDR, represented by 
the Ministry of Finance;  
The management of airports  is as follows : 
• The Airport Asse ts are managed by the Airport of Laos (AOL);  
• The Terminal Services is provided by an Airport Terminal Service Company (Private or Joint 
Venture), in other words under a "Concession "; 
• Ground Handling Services (the GHS) are ensured by the Terminal Service Provider; in most 
provincial airports, the GHS are mainly provided by Lao Airlines  State Enterprise , except for 
Wattay International Airport .   
 WT/TPR/M/394/Add.1  
 
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  Follow -up Q5  
How are the public air transport and the general aviation defined in Lao PDR? Please clarify whether 
the economic and safety management policies applied for public air transport and the general 
aviation are the same or not. If not, please introduce the differences.  
Follow –up res ponse:  
The definitions of Public Air Transport and the General Aviation are defined as following : 
Public Air Transport  is a flight operation activity that operates either scheduled flights or charter 
flights for commercial benefits domestically and interna tionally.  
General Aviation : According to the Law on Civil Aviation of Lao PDR (2018 Revision) Article 130 
(New), General Aviation is an activity that uses an aircraft to perform test flight operations, survey, 
landscape photography, science research, fores try and agricultural activities, education and sports 
activities, cultural activities, tourisms, public health activities, search and rescues and individual 
activities which are not categorized in public air transport services for commercial benefits. In t he 
case of general aviation that provides services for commercial benefits, the relevant service provider 
/ operator is required to have an Air Operator Certificate (AOC) under the regulations and laws and 
also meet the economic and technical requirements including safety and security measures;  
Follow -up Q6  
Please introduce the transport prices and charges management policies and models for the public 
air transport and the general aviation in Lao PDR.  
Follow –up response:  
Lao PDR does regulate air fares or a ir transport prices for domestic flights across the country, 
meanwhile air fares and air ticket prices for international flights are subject to the terms and 
conditions of bilateral or multilateral agreements to which Lao PDR is bound.  
For the related char ges, please refer to the Presidential Decree No: 003/PS, dated 26th December 
2012, where overflight fee, landing fee, air navigation service charges, transit passenger fees, and 
other fees are clearly stated  
http://www.laoservicesportal.gov.la/index.php?r=site%2Fdisplaylegal&id=188   
Follow -up Q7  
What are the government support policies for civil airports, regional aviation, international air routes, 
general aviation, cargo aviation, and air services for remote areas in Lao PDR? Please make a brief 
introduction to the sources of the funding, as well as standards and methods for such subsidies.    
Follow –up response:  
There are no policies that provide financial incentive s or subsidies to civil airports, regional aviation, 
international air routes and so on.  
Follow -up Q8  
Does Lao PDR have policies aiming to regulate subsidies for domestic air transport?  
Follow –up response:  
There are no such policies.  WT/TPR/M /394/Add.1  
 
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  Follow -up Q9  
Please i ntroduce Lao PDR 's policies for managing flight schedules, as well as the methods and 
procedures to obtain the flight schedules.  
Follow –up response:  
Lao PDR is in the process of drafting a Ministerial Decision on a Slot Allocation and Flight Schedule 
Procedures. Meanwhile, there is a Slot Committee which is established under the Director General 's 
Decision and consists of:  
• Air Navigation Services Division, DCAL;  
• Aerodrome Division, DCAL;  
• Flight Safety Standard Division, DCAL;  
• Security Division , DCAL;  
• Airport of Laos (AOL);  
• Lao Air Navigation Services (LANS);  
• Lao Airlines State Enterprise;  
• Lao Skyway State Enterprise;  
• Lao – Japan Airport Terminal Services Company Limited (LJATS);  
Apart of that, the following procedures have been applied in consideration of both schedule and non -
schedule flight applications:  
1. Submission of Flight Application by an Airlines;  
2. Document Check -List; 
3. Time Slot Verification through Data Analysis and Airport Capacity with the confirmation from 
the airport operators;  
4. Provision of alternatives or comments to the respective airlines, if applicable;  
5. Submission for the resolution of Slot Committee;  
6. Granting Time Slot and Flight Permit signed by the Director General of the Department of 
Civil Aviation of the Lao PDR.  
Follow -up Q10  
Please make a brief introduction to the air space management system and operation model of Lao 
PDR. 
Follow –up response:  
The Air Space Management System is managed legally by the Lao Air Navigation Services (LANS), 
as a service provider, which is und er the Ministry of Public Works and Transport. LANS also provides 
airspace management and services in relation to Area Control Center (ACC), Terminal Control Area 
(TCA or TMA), Tower Control, and Flight Plan Information Center.  
The Airspace of Lao PDR cons ists of Two FIRs, the Northern FIR and Southern FIR respectively. 
Meanwhile, due to the increasing number of overflights, Lao PDR expects to divide the airspace into 
4 FIRs in the next few years.  
A foreign company named C.I.T Laos Company Limited has been authorized to install and provide 
maintenance services for The Air Navigation Services Equipment and Telecommunication Equipment 
nationwide.  
Follow -up Q11  
Does Lao PDR have market access restrictions for foreign investors to invest in its civil air transpo rt 
sector, e.g. the public air transport, general aviation, civil airports, air traffic control, aircraft repair, 
ground services, passenger/cargo transport agency services, air fuel, and computer reservation 
system? Please introduce the legal basis for su ch foreign investment access restrictions in the 
foregoing industries. Are there any market access restrictions in other areas than the above -
mentioned ones? If yes, what is the legal basis to impose such restrictions?  WT/TPR/M/394/Add.1  
 
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  Follow –up response:  
Lao PDR does not impose any restrictions on foreign investors to invest in civil aviation sectors. All 
foreign investments in relation to Civil Aviation are subject to the Law on Investment Promotion . 
In addition, ground handling services in some airports are operated under the concession of airport 
operator, in Wattay International Airport in Vientiane, for instance.  
Follow -up Q12  
Please introduce the terms of reference, the respective management responsibilities and the legal 
basis of civil aviation administration and  other relevant departments in anti -trust review in the civil 
aviation sector.   
Follow –up response:  
Air Transport Division, the Department of Civil Aviation of the Lao PDR (DCAL) is also in charge in 
observing and monitoring aviation business operations o f enterprises established and operated in 
the Lao PDR in order to ensure  avoidance of anti-competition practices. In this regard, anti -
competition practices are subject to the Business Competition Law. However, Lao PDR has not got 
specific anti -trust provi sions pertaining to civil aviation business.  
 
  WT/TPR/M /394/Add.1  
 
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  EUROPEAN UNION   
WT/TPR/S/394 – WTO Secretariat's Report  
2 Trade and Investment Regimes – 2.2 Trade Policy Formulation and Objectives – 
2.2.1  Trade policy formulation – 2.2.1.2 Advisory bodies - Pages 27 and 28, paragraphs 
2.9 and 2.10  
Texts:  
2.9. During the review period, the Government continued to hold regular consultations with the 
private sector, enabling it to advocate, raise concerns directly with, and provide inputs on business 
and trade -related po licies, laws and regulations. [The private sector is mainly represented by the 
Lao National Chamber of Commerce and Industry (LNCCI), an umbrella organization for all business 
membership organizations, as well as foreign investor associations (e.g. the Ame rican-Lao Business 
Association and the European Chamber of Commerce and Industry in Lao PDR (ECCIL))].  
2.10. The Lao Business Forum(LBF), launched  in 2005 as a joint initiative  between  the International 
Finance Corporation (IFC) and the MPI, facilitates th e dialogue process between the private sector 
and the Government; as from mid -2015, the MoIC undertook the coordinating role on behalf of the 
Government.[ Since May 2016, the LBF has received technical support from the Second Trade 
Development Facility – TDF II to resume the public private dialogue process with a full functional 
secretariat set up under the LNCCI and a focal point for the public sector under the Department of 
Planning and Cooperation at the MoIC responsible for overall oversight and follow -up. Over the 
years, the LBF has made contributions to resolving some concrete issues facing the private sector, 
in the areas of tax administration, trade facilitation and law making. Since May 2016, the LBF has 
discussed 19 priority issues faced by the pri vate sector, which led to the complete resolution of 4 
issues: collection of VAT on bank charges; abolishment of VAT on the logistical cost of transit goods; 
reclassification of printing businesses to be eligible for lower electricity tariffs; and reductio n of the 
registration fee for bank collateral. It also made partial progress towards resolving seven issues: 
access to labour market information; reduction of time and cost of imports and exports; streamlining 
procedures for exporting planted wood; access to import and export data; simplification of the 
business registration and licensing regime; access to long -term and affordable bank loans; and 
enhancing SME access to public procurement. The 11th LBF was held on 5 July 2018, and the 12th 
was scheduled for  October 2019].  
Q1 
Could Lao PDR indicate how these consultations and dialogues could be improved?  
Response : 
Lao PDR has reached out to the private sector to discuss policies, laws and regulations and holds 
annual meetings with the Lao National Chamber of Commerce and Industry (LNCCI), which is open 
to local and foreign businesses. In addition, since 2005, the Lao Business Forum has met 12 times 
and operates through 12 sectoral working groups and 4 other working groups on cross -cutting 
issues. Ex periences in this work will allow to further improve their functioning addressing issues 
identified such as the translation of laws and regulations; the possibility to participate in the process 
of changes during the consultation. Lao PDR appreciates very much the contributions and studies 
made by the European Business Chamber and attempt to include the valuable remarks into their 
policy formulation.  
2 Trade and Investment Regimes – 2.2 Trade Policy Formulation and Objectives – 
2.2.4  Transparency - Page 31,  paragraph 2.21  
The Secretariat's report states that "Lao PDR attaches importance to making laws more transparent 
and readily accessible. However, most laws are still published in Lao language only (some are 
translated into English) in the Official Gazette  (Section 2.2.3), which is updated daily and is available 
to all individuals and institutions, both in hard copy and online. Since 2012, the Department of 
Import and Export of the MoIC hosts the Lao PDR Trade Portal 
(https://laotradeportal.gov.la/index.php ?r=site/index) on behalf of all government agencies WT/TPR/M/394/Add.1  
 
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  involved in the import/export process; it contains trade and trade -related legislation and 
information. The websites of relevant ministries and agencies contain information mostly in the Lao 
language… " 
Q2 
Could Lao PDR indicate how it could increase available publications translated into English? Could 
Lao PDR indicate whether it could publish proposed changes to legislation in the e -Gazette during 
the consultation period?  
Response:  
Lao PDR recognizes the  need to publish information also in English. Our capacity to do so is limited, 
especially at the technical level. Any assistance in translation would be highly appreciated and useful. 
Lao PDR has noted the request to publish proposed changes to the legisl ation during the consultation 
process and will endeavor to do so as far as feasible given the time frame. The Law on Making 
Legislation stipulates that all laws of general application are subject to consultations with line 
Ministries and the general public  based on the publication in the official gazette.  Otherwise, it is 
ineffective. The government is aware that these instructions are not followed by all entities and is 
setting up the contact point at Provincial Department of Justice to facilitate the publ ication of 
legislations at the provincial level as well as disseminating the obligations under the Law on Making 
Legislation throughout the country.  
2 Trade and Investment Regimes – 2.3 Trade Agreements and Arrangements – 2.3.1 WTO 
– 2.3.1.4 Notification - Page 34, paragraph 2.29  
Text:  
The Secretariat's report states that "…The authorities indicated that the lack or delay in the 
submission of notifications is due to a lack of human resources; a list of notifications to be completed 
exists. To address this issue, the authorities plan to hold regular meetings on the follow -up of WTO 
commitments. Relevant inter -ministerial mechanisms aimed at streamlining the notification process 
are also being developed…. " 
Q3 
Could Lao PDR share the li st of notifications to be completed? This information could be useful to 
table the specific assistance needs in order to improve Lao PDR 's compliance with notification 
obligations.  
Response:  
As mentioned, Lao PDR will use 2020 to fulfill its notification c ommitments. A list of the required 
notifications is attached.  
2 Trade and Investment Regimes – 2.4 Investment Regime - Page 40, paragraph 2.44  
Text:  
The Secretariat's report states that "…The MPI [Ministry of Planning and Investment] , and 
particularly its Investment Promotion Department (IPD), is responsible for investment -related 
matters regarding concessions and general activities specified under the controlled list, while other 
concerned line ministries play a key role in project evaluat ion, and comment based on their relevant 
regulation... " 
Q4 a)  
Regarding the procedure to apply for investment authorization, would Lao PDR be willing to look into 
a more flexible procedure?  WT/TPR/M /394/Add.1  
 
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  Response:  
Lao PDR is looking into the question of procedures to apply for investment authorization within its 
effort to improve its ranking in the Doing business report of the World Bank.  
Q4 b)  
It is important to ensure a sufficient level of protection of foreign investments. Therefore, could Lao 
PDR reco nsider ensuring investment protection measures similar to that provided in the ASEAN 
Comprehensive Investment Agreement (ACIA) in order to attract foreign investments?  
Response:  
Lao PDR is aware that protection of business is important to attract investmen ts and has defined the 
principles and applies them. There have not been any expropriations or other measures which have 
restricted business unfairly. the Government inspires itself with this ACIA to find measures adapted 
in the Section III, Article 21, 22 and 23 of the Lao PDR 's Law on Investment Promotion, Ref. 032/NA, 
dated 17 November 2016.  
4 Trade Policies by Sector – 4.2 Mining and Energy – 4.2.2 Energy - Page 102 and 103, 
paragraph 4.57  
Text : 
The Secretariat's report states that  "Under the 8th NSEDP, Lao PDR's energy policy is focussed on 
hydropower development, thermal electric power, solar energy and industrial plant energy to turn 
the power sector into a sustainable income -generating sector to support various production activities 
and to addr ess poverty issues. Its objective for a strategy and development plan for energy in the 
context of Vision 2030 includes: developing energy and ensuring its sustainability; helping build 
capacity; and enhancing electricity supply for the development of ener gy and mines in order to 
increase greener energy."  
Q5 
Does Lao PDR consider reforming its energy market? Could Lao PDR explain i ts objective for a 
strategy and development plan for energy?  
Response:  
Lao PDR 's energy sector is in constant reform and the objectives are clearly established in our Vision 
2030: clean energy, using energy to develop our industry, enhance the electricity supply in the rural 
areas and many policies are implemented or in process of being developed in this sense. Lao PDR is 
monito ring the situation and will, if needed develop a development plan for energy.  
4 Trade Policies by Sector – 4.4 Services - 4.4.3 Financial services – 4.4.3.1 Banking and 
Finance – Regulatory framework - Page 114, paragraph 4.89  
Text:  
The Secretariat report states that "Other changes in the regulatory framework include the 
promulgation of the 2014 Law on Anti -Money Laundering and Counter -Financing of Terrorism in 
2015. Lao PDR graduated from the Financial Action Task Force (FATF) grey l ist (monitoring process 
under its ongoing global AML/CFT compliance process) in June 2017; since then, the Anti -Money 
Laundering Office has been working closely with line ministries and associated competent authorities 
to strictly carry out the task of AML /CFT. In addition, the National Risk Assessment (NRA) on 
AML/CFT was completed, in parallel with the identification of deficiencies to prepare for the upcoming 
Mutual Evaluation (ME) in the year 2020. In the 2018 Basel Anti -Money Laundering Index, Lao PDR 
ranked 4th out of 129 countries (16th out of 149 countries in 2016), indicating that, despite 
improvement, the country was regarded as having a relatively weak AML/CFT framework ." WT/TPR/M/394/Add.1  
 
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  Q6 
What measures have been taken to improve the AML/CFT framework?  
Response:  
In 2018, Lao PDR has completed the National Risk Assessment (NRA) on Money Laundering (ML) 
and Terrorist Financing (TF), which finding shows three aspects of deficiencies as follows.  
1. Threats:  7 priorities predicate offenses are Production and tra fficking of narcotics; Cheque 
counterfeiting, use of counterfeited bond or illegal bonds; Environment Crime; Theft; 
Currency counterfeiting or use of counterfeiting currency; Document forgery or use of forged 
documents and Frauds.  
2. Vulnerabilities : quality of AML policy and strategy, effectiveness of ML crime definition, 
effectiveness of investigations, effectiveness of monitoring and inspection, effectiveness of 
KYC, STR and analysis, effectiveness of domestic and international cooperation.  
3. 8 Sectorial  exploit to ML risks:  Casino, Commercial Banks, Valuable material and antique 
trading business, Securities companies, Insurance Companies, Currency Exchange Shops, 
Money Transfer Service Provider, and Real -Estate Trading Agencies.  
In addition to the completion of NRA, Lao PDR is currently gearing up for the preparation towards 
APG's Mutual Evaluation (ME) during 2020 -2021. To date, a number of priority tasks have been 
identified including the Technical Compliance Report to be submitted in March 2020; Immediate 
Outcome "IO" in June 2020, which seeks to help pre -ME mission in August 2020, an on -site visit in 
November 2020 and a face -to-face meeting in April 2021.  
To materialize key objectives in addressing deficiencies identified in NRA outcome and th e 
preparation towards the ME, the High Level Committee led by Deputy Prime Minister was set up in 
2019, which comprises of 25 members from relevant ministries and associated agencies. The 
Committee has divided into 4 different working groups as follow:  
1) Awareness raising on the outcomes of the NRA and AML/CFT framework:  
 Focusing on IO.1 (Risk and policy cooperation), which is related to 
Recommendation (R) R.1, 2, 33 and 34.  
- Held a number of workshops on the recent National Review outcomes to investigation 
authorities, supervisors and reporting entities . The outcomes of the National Review are 
also published via AMLIO website.  
2) Legal and Mechanism of Implementation:  
 Focusing on IO.2 (International cooperation),  which is related to R.36 -40: 
- Completed Penal Co de while in the process of drafting some legislation namely: Law on 
Mutual Legal Assistance, Decree on Entrust, Decree on Trade Management of Dual -Use 
Goods, Order on the Withholding; and Freezing or Seizure of Funds relating to 
Proliferation Financing (ex pected to be done prior of ME).  
- In the process of preparing the access to Egmont Group, the platform  consisted of 164 
FIUs to for secured exchange in financial intelligence to combat AML/CFT  
3) Supervision Legal and Mechanism of Implementation:  
 Focusing on IO.3 (Supervision), IO.4 (Preventive measures), IO.5 (Transparency 
of legal persons and arrangements)  which is related to R.9 -28, 34 and 35.  
Moving towards risk -based approach (RBA) with assistance from the World Bank  and European Union  
under 2  prioritized groups : WT/TPR/M /394/Add.1  
 
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  - Group  1: Commercial banks, securities companies and insurance companies (completed)  
- Group 2: Casino, valuable materials and antique trading business, currency exchange 
Shops, money transfer service provider and real estate Agencies  (By 2020). 
4) Investigation and Prosecution:  
 Focusing on IO.6 (Financial Intelligence), IO.7 (ML investigations and 
prosecutions), IO.8 (Confiscation), IO.9 (TF investigations and prosecutions), 
IO.10 (TF targeted financial sanctions and non -profit organizations), IO.11 
(Proliferation financing targeted financial sanctions and domestic coordination), 
which is related to R.1, 3 -8, 29 -32, and 39.  
The current investigation and prosecution framework remains inconsistent with threat and predicate 
offence such as production and trafficking of narcotics, cheque counterfeiting, use of counterfeited 
bond or illegal bonds, environment crime and financial investigation. In this regard, Lao PDR seeks 
supports from UNODC to provide technical assistance to law -enforcement agencies nationwide over 
the period of 2019 -2021. AMLIU also developed online platform to facilitate cross border reporting 
and worked with customs authorities at 13 border checkpoints and also provided notice signs with 
support from ILSTA.  
4 Trade Policies by Sector – 4.4 Services - 4.4.3 Financial services – 4.4.3.2 Insurance – 
Regulatory framework - Page 118, paragraph 4.101  
Text:  
The Secretariat report states that "…According to the Law on Insurance and the amended Law on 
Investment Promot ion (Section 2.4.3), any person wishing to operate an insurance business (either 
life or non -life) is first required to obtain an investment licence, issued within approximately 65 
working days from the submission date of a complete application, and all re quired supporting 
documents from the MPI [Ministry of Planning and Investment] . Upon issuance of this licence, an 
insurance operating licence is required by the MoF [Department of State -Owned Enterprises 
Management] ; it is issued in about 15 working days f rom the date of submission of a complete 
application…. " 
Q7 
It seems that in order to provide insurance services, an investor first has to apply for an investment 
license and then for an insurance operating license. Why is there a need to obtain 2 separate 
licenses? Why can 't they be issued together? Is it possible for an investor to obtain an investment 
license to set up an insurance company and then be refused an insurance operating license? What 
are the costs associated with obtaining both licens es? Are the requirements for each license 
completely different? Are the requirements for insurance company capital non -discriminatory  
Response:  
Investment licenses are not specific to an activity and are issued through  the One -stop service office 
of Minist ry Planning and Investment for consideration. Insurance license, which requires an 
assessment of the reliability of the agent, are given by Ministry of Finance  and the requirements are 
very different.  
Both local and foreign investors that wish to provide insurance services in Lao PDR need to summit 
a request and fill out all information required and then later send to single investment window which 
is the Ministry of Planning and Investment to consider in issuing for an investment license. However, 
before the Ministry of Planning and Investment issue an investment license, the Ministry needs to 
ask for comments from the Ministry of Finance (the Ministry that regulates insurance businesses). 
The Ministry of Planning and Investment acts as an Investment Promotion Organization and the 
Ministry of Finance acts as an Insurance Regulator. The investment license comprises of Investment 
ID, Enterprise ID and Tax ID. If it is a general business, when the investmen t license is approved, 
the investors can start operating the business right away, however if the business is under a 
controlled list, when the investment license is approved, the investors need to ask for the insurance WT/TPR/M/394/Add.1  
 
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  operating license from related Minist ry. In this case, insurance business is under a controlled list of 
the Ministry of Finance. In process of establishing an insurance provider company is similar to the 
process of establishing bank business.  
In general, investors that obtain an investment l icense will also obtain insurance operating license 
if all the conditions set out are provided.  
For the registration fee in issuing the license for insurance provider, investor must pay 10,000,000 
kip for either Life or Non -life insurance business to the Ministry of Finance (Government Budget).  
All the conditions set out are identical for local and foreigner investor s, includ ing the registration fee 
for insurance provided , which varies by the insurance service expected to be provided.  
4 Trade Policies by S ector – 4.4 Services – 4.4.5 Transport – 4.4.5.3 Railways - Page 127 
and 128, paragraph 4.136  
Text:  
The Secretariat report states that "Railway transport continues to be limited. There is just one active 
railroad, a short spur line from Nong Khai, that be gan operations in 2009 and opened its freight 
facilities in 2016…Under the 8th NSEDP, the authorities focused on the development of vertical and 
horizontal railway line networks, to enable basic connectivity with neighboring countries and 
potential markets . The railway from Vientiane to the Chinese border, currently under construction, 
is to be completed in 2021, and will form part of a railway line from Kunming (China) to Bangkok 
(Thailand)… " 
Q8 
How will Lao PDR ensure that the railway will play a full role in benefiting the economy and attracting 
foreign investments? What are the plans of Lao PDR to reach out to foreign investors and businesses 
about the conditions of making use of the railway, including technic al details and transport 
operations, in order to draw full potential of the rail connection? For example, what will be the freight 
service offer and the cost charged? Which stations will be accessible for which type of cargo? Will 
there be any specific cus toms treatment in place to handle train freight?  
Response:  
Lao PDR 's Government is fully aware of the need to realize the development potential of this big 
investment. The issues mentioned by the EU are important ones and the Government is about to 
study the possibility to enhance the benefits and will consult the private sector on how to organize 
the services mentioned.  Due to the lack of skilled personnel in the public and private sector, the 
development of laws, regulations, standards and expertise in t he sector has been delayed. 
Accordingly, the Department of Transport is focused on prioritizing personnel in the logistics sector, 
in order to develop rules, regulations and standards that are key factors in the development of the 
logistics system.  
4 Trade Policies by Sector – 4.4 Services – 4.4.7 Tourism - Page 131, paragraph 4.147  
Text:  
The Secretariat report states that "…The 2010 National Export Strategy places high importance on 
tourism because of: its high foreign exchange earnings; its ability t o support the expansion of other 
services such as telecoms, banking, insurance and transport; its strong growth potential; and its 
ability to provide income and employment opportunities throughout the country. The National 
Tourism Strategy (NTS) 2012 –20 se ts the vision for Lao PDR to become a sustainable tourism 
destination. However, beyond the NTS and individual actions of a few tourism organizations, there 
has been very little action to ensure this vision is achieved… " WT/TPR/M /394/Add.1  
 
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  Q9 
Could Lao PDR explain what it has done to increase tourist facilities, transportations, and visa 
procedures? What action will Lao PDR take to become a sustainable tourism destination?  
Response:  
Lao PDR policy is to promote high value tourism rather than mass tourism in cluding eco -tourism. 
Lao PDR takes into account the needs of the tourist industry in developing its transport 
infrastructure, has developed many tourist attractions, organized Visit Lao PDR  Year 2018 putting 
emphasis on culture and traditions; has establis hed visas upon entry in 13 out of 27 international 
checkpoints and is in defining with tourist operators integrating Lao PDR into tourists ' circuits, 
especially within ASEAN.  
4 Trade Policies by Sector – 4.4 Services – 4.4.7 Tourism - Page 131, paragraph 4 .149 
Text:  
The Secretariat report states that "…The 2010 -20 Human Resource Development Vision and 
Strategic Recommendations define three strategic pillars to augment improvements in service 
quality, namely: strengthening public -sector leadership; improving stakeholder collaboration and 
coordination; and developing sector education and training provisions… " 
Q10 
What action will Lao PDR take to improve on service quality in order to catch more long -term 
tourism?  
Response:  
Lao PDR policy is to promote high value tourism rather than mass tourism including eco -tourism. 
Lao PDR takes into account the needs of the tourist industry in developing its transport 
infrastructure, has developed many tourist attractions, organized Visit  Lao PDR  Year 2018 putting 
emphasis on culture and traditions; has established visas upon entry in 13 out of 27 international 
checkpoints and is in defining with tourist operators integrating Lao PDR into tourists ' circuits, 
especially within ASEAN.  
WT/ TP R/ G / 394 – Government Report  
Part I: State  of Play in the Reform Process - 4 Trade and Investment Regime – 4.3 Trade 
Policy formulation and mainstreaming of trade - Page 7, paragraph 4.3  
Text:  
[The Ministry of Industry and Commerce of Lao PDR carries out the tasks of formulation, 
implementation and intra - and inter -ministerial coordination of trade policies, represents Lao PDR in 
business fora and serves as a focal point for the WTO -, RTA - and EIF (Enhanced Integrated 
Framework) -related develop ments. While trade is mainstreamed into national development plans 
(notably, the 7th (2011 -2015) and the 8th (2016 -2020) NSEDP, wide range of issue -specific 
strategies and plans are also in place. The latter occasionally overlap with respects to the target s 
set and implementation strategies adopted (including the allocated budgetary outlays)]. While ad 
hoc inter -ministerial coordination mechanisms are being often established to address particular 
issues, ensuring coordination remains difficult and requires improvement, which, in its turn, 
necessitates further technical assistance and capacity building.  
The Report states that "…While ad hoc inter -ministerial coordination mechanisms are being often 
established to address particular issues, ensuring coordinatio n remains difficult and requires 
improvement… " WT/TPR/M/394/Add.1  
 
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  Q11 
How will Lao PDR ensure  to have in place horizontal and permanent coordination mechanisms with 
a holistic view on the functioning and the needs of the trade and investment environment?  
Response:  
The Government has various standing committee to ensure coherence of its policies Please name 
them both at the overall level, presided by the Prime Minister and at specific policy and legal level. 
An example is trade facilitation which requires the cooperation  of many Ministries and Agencies. 
Another one is the recent conference of all concerned agencies, both at the central and provincial 
level to discuss ways and means to improve the ranking in the doing business analysis (give name 
and date) While ad -hoc int er-ministerial coordination mechanisms work, there is a recognized need 
to improve their functioning. Technical assistance is needed to establish efficient and permanent 
secretariats to ensure that holistic committees do their work.  
 
  WT/TPR/M /394/Add.1  
 
- 103 - 
 
  THAILAND  
Part I: Questions regarding the Secretariat's report  
2 Trade and Investment Regime  - 2.4 Investment Regime  - 2.4.2. Restricted Activities  - 
Page 42, para 2.50   
Text:  
Foreign investors can only lease land for a maximum period of 50 years. In principle, investors ca n 
lease a land parcel allocated by the Government; in practice, however, it appears that no state land 
parcel has ever been allocated to foreign investors, who, as a result, access land through leaseholds 
directly concluded with private domestic owners.  
Q1 
Since Lao PDR 's provincial governor is appointed directly by Prime Minister and have their own 
authority which equivalent to Minister, how can Lao PDR ensure the foreign investor will have an 
investment protection especially from local government?  
Response:  
Yes, the provincial Governors have autonomy; however, they are required to implement the national 
laws including Law on Investment Promotion.  
2 Trade and Investment Regime  - 2.4 Investment Regime  - 2.4.5. Dispute Settlement - 
Page 44 , para 2.55   
Text:  
The existence of a robust mediation and arbitration system in the economy would be seen as a 
distinct advantage by foreign investors. [The Law on the Resolution of Economic Disputes, amended 
and in effect as from 6 December 2018, govern s mechanisms of mediation and arbitration, mainly 
within the borders of Lao PDR. These mechanisms are implemented at the non -autonomous 
Economic Dispute Resolution Centre (EDRC) within the Ministry of Justice, which is the mediation or 
arbitration centre f or commercial disputes in Lao PDR. The amendments to the Law strengthened 
the dispute resolution mechanisms, including more comprehensive procedures related to mediation 
and arbitration and the process of dispute resolution proceedings. The time periods ap plicable to the 
EDRC for the resolution of economic disputes in certain circumstances were shortened. The amended 
Law allows the domestic courts to enforce and recognize foreign arbitral awards in accordance with 
the law on civil procedure. Parties in Lao PDR may now establish ad hoc arbitration, which is subject 
to government approval. Furthermore, the proceedings would no longer rendered null and void, even 
if the respondent fails to receive a summons or to participate in the hearing. Under the amended 
Law, either party can request r ecusal of an arbitrator if the arbitrator is, or may be, subject to a 
conflict of interests. The amended Law also expanded the scope of matters that are not capable of 
being arbitrated]. Foreign arbitrators and mediators may now register with the Ministry of 
Justice; however, this is only permitted under certain circumstances.   
Q2 
Could Lao PDR describe the procedure of arbitrator and mediator registration for foreigner? Are there 
any differences in registration process between local and foreign arbitrator/ mediator?  
Response:  
The Law on Economic Dispute Resolution allows foreign arbitrators and mediators to practices in 
Lao PDR by registering with Ministry of Justice. The Economic Dispute Center is currently drafting 
the procedure.  
 WT/TPR/M/394/Add.1  
 
- 104 - 
 
  Part II: Questions regard ing the Government Report  
Part I: State  of Play in the Reform Process - 5 Selected Trade Policies and Practices by 
Measure - 5.2 Str eamlining of Customs Procedures - Page 9, para 5.3   
Text:  
Throughout the review period, Lao PDR has continued to improve and expand the functionality 
of Automated Systems for Customs Data Management (ASYCUDA World). The system is currently 
used at 25 major border posts and offices, covering around 90% of formal trade. Risk management 
approach is applied. Electronic d uty-tax payment system (SMART -Tax) has been in operation at 
ASYCUDA -enabled customs ports. With automation system, businesses are able to file customs 
declarations electronically, however the submission of the printed copies is still required. As per the 
Time Release Study (TRS) conducted in 2016 by Lao Customs Department, the average clearance 
time of imports was 6 and a half hours, which indicates significant drop from the average clearance 
time of 11 and a half hours in 2012. Besides the measures taken b y Lao Customs Department aiming 
at trade facilitation, the improvement of the border procedures has been a combined result of efforts 
made under Greater Mekong Sub Region and ASEAN initiatives, particularly under the ATIGA and 
the ASEAN Framework Agreement  for the Facilitation of Goods in Transit (AFAFGIT) . Streamlining 
of customs clearance process in Lao PDR was positively noted by the World Bank in its Ease of Doing 
Business Report 2019. The AEO (Authorized Economic Operators) scheme is expected to be la unched 
by the end of the 2019.  The responsible authority has formed the AEO Steering Committee in order 
to drive the project smoothly. In 2016, Lao PDR acceded to International Convention on the 
Simplification and Harmonization of Customs Procedures (Revis ed Kyoto Convention) .  
Q3 
According to paragraph 5.3., Lao PDR is streamlining the customs procedure and already apply the 
Automated Systems for Customs Data Management at 25 border posts and offices. Is it true that 
the process of verify ATIGA Form -D docu ments still have to do at Customs office in Vientiane? If 
yes, does Lao PDR have plan to verify these documents at border posts to facilitate trade between 
neighbour countries?  
Response:  
Yes, the process of verify ATIGA Form -D documents still have to do at Customs office in Vientiane . 
Thus far, there is no plan to verify these documents at border posts . 
  WT/TPR/M /394/Add.1  
 
- 105 - 
 
  DOMINICAN REPUBLIC  
Questions Regarding the Secretariat Report  
3.1 Measures Directly Affecting Imports - 3.1.1 Customs Procedures, Valuation, And 
Requirements – Page 125, paragraph 4.125  
Text:  
"Cooperation with neighbouring countries is vital for Lao PDR to access seaport gateways for its 
overseas trade. Lao PDR participates in two main regional agreements: the GMS  Cross Border Transit 
Agreement of 1999; and the ASEAN Framework Agreement on the Facilitation of Goods in Transit of 
1998. These have a significant impact on the efficiency of regional corridor operations. At the same 
time, Lao PDR maintains several bilateral agreements with all its immedi ate neighbours, mostly 
under the GMS umbrella."  
Q1 
In what way and under what parameters is there cooperation with neighbouring countries to ensure 
access to seaport gateways?  
Response : 
We have the Agreement on Road Transport between Lao PDR and Viet Nam; the Agreement between 
Lao PDR and Cambodia on Road Transport; the Transit Transport Agreements between Lao PDR and 
Thailand. Lao PDR is also a member of the ASEAN Framework Agreement on the Facilitation on 
Goods in Transit Agreement.  
Questions Regarding t he Government Report  
Part I: State  of Play in the Reform Process - 5 Selected Trade Policies and Practices by 
Measure – 5.2 Streamlining of Customs Procedures – Page 9, paragraph 5.3  
Text:  
"Throughout the review period, Lao PDR has continued to improve and expand the functionality of 
Automated Systems for Customs Data Management (ASYCUDA World). The system is currently used 
at 25 major border posts and offices, covering around 90% of formal trade. Risk management 
approach is applied. Electronic d uty tax payment system (SMART Tax) has been in operation at 
ASYCUDA enabled customs ports. With automation system, businesses are able to file customs 
declarations electronically, however the submission of the printed copies is still required. As per the 
Time Release Study (TRS) conducted in 2016 by Lao Customs Department, the average clearance 
time of imports was 6 and a half hours, which indicates significant drop from the average clearance 
time of 11 and a half hours in 2012. Besides the measures taken b y Lao Customs Department aiming 
at trade facilitation, the improvement of the border procedures has been a combined result of efforts 
made under Greater Mekong Sub Region and ASEAN initiatives, particularly under the ATIGA and 
the ASEAN Framework Agreement  for the Facilitation of Goods in Transit (AFAFGIT). Streamlining of 
customs clearance process in Lao PDR was positively noted by the World Bank in its Ease of Doing 
Business Report 2019. The AEO (Authorized Economic Operators) scheme is expected to be lau nched 
by the end of the 2019. The responsible authority has formed the AEO Steering Committee in order 
to drive the project smoothly. In 2016, Lao PDR acceded to International Convention on the 
Simplification and Harmonization of Customs Procedures (Revise d Kyoto Convention)."  
Q2 
What is the purpose of the mandatory printed submissions? Is there a final date for the elimination 
of this requirement?  WT/TPR/M/394/Add.1  
 
- 106 - 
 
  Response:  
The ASYCUDA system of Lao PDR does not yet allow to have attachment of the supporting documents 
in the system. Further development of the system is foreseen.  
Part III  : Lao PDR 's Graduation Preparatory Policy - 2 Short -Term Measures to Ensure a 
Smooth Transition From the LDC Status - 2.3 Potential loss of the ODA and tightening of 
its conditions – Page 23, paragraph 2.11  
Text:  
"There are four major sources of the Official Development Assistance (ODA) for Lao PDR:  […] (iii) 
LDC specific support: EIF, ACWL as well as some UN funds such as the UN Capital Development 
Fund (UNCDF), the Technology Bank for LDCs, the United Nations Framework Convention on Climate 
Change (UNFCCC) LDC Fund (LDCF) among others, are LDC spec ific. For Lao PDR the following 
programmes are of relevance: EIF and ACWL. The EIF grants an extension period for graduating 
LDCs and ACWL is available to non LDCs albeit at a cost. Lao PDR intends to negotiate generous 
extension periods for these two prog rammes in its transition strategy. The LDCF: The loss of support 
from this Fund may well be of great importance to Lao PDR given its big exposure to climate change 
issues. To be able to implement its climate change mitigation measures, Lao PDR will elabora te a 
clear programme of measures to be submitted to the donors. It is believed that the elaboration of a 
coordinated programme with detailed projects will allow to mobilize support for these important 
activities. Lao PDR requests technical assistance from donors to elaborate such a programme to be 
included in its transition strategy."  
Q3 
In the light of the shared interest in awareness raising and the need for environmental conservation, 
we would welcome information on the climate change mitigation measures  under consideration by 
the Lao PDR and, if possible, the programme of projects.  
Response:  
Please see the strategy on Climate Changes of Lao PDR in the website: 
http://mirror.unhabitat.org/downloads/docs/12679_1_595432.pdf   
Part III  : Lao PDR 's Graduation Preparatory Policy - 3 Longer Term Measures To Ensure 
Lao PDR's Sustained Development - Page 24, Paragraph 3.1  
Text:  
"Short -term measures to ensure a smooth transition are necessary, but insufficient. Lao PDR has to 
address its structural issues to ensure sustainable and inclusive development. The issues which 
threaten the susta inable development of Lao PDR are well established: (i) structural change in the 
economy to reduce its dependence on capital intensive resource based development towards a 
broader development pattern of inclusive and value added economy and (ii) the reduct ion of external 
vulnerability due to the heavy concentration of the export pallet as well as of the destination of its 
exports coupled with fiscal and current account deficits, a limited foreign exchange reserve. The two 
constraints are interrelated and ne ed longer term policies linked to a more favourable environment 
for the private sector and FDI, the acquisition of technology to improve its competitiveness, the 
development of human resources to provide the necessary skills for an expanded production basi s 
and a strong integration into regional and global value chains, given the relatively small internal 
market."  
Q4 
What steps have been taken to effectively measure the service sector within the economic structure 
of the Lao PDR?  WT/TPR/M /394/Add.1  
 
- 107 - 
 
  Response:  
Lao PDR  has studi es on sectoral services sectors, especially tourism and transport, but has yet to 
take step to accurately measures the contribution overall services sectors to the economy.  
  WT/TPR/M/394/Add.1  
 
- 108 - 
 
  ICELAND   
Part III: Other Questions  
Q1 What is the participation of women in the economy of Lao PDR?  
Response:  Women occupy central role in traditional ethnic Lao communities, nevertheless, their 
current participation in Lao economy varies per sector and is overall uneven. While most official 
bodies are required to include a repres entative of the Lao Women 's Union, and various other 
government policies promote gender equality, the implementation of such measures could be 
improved.  
Women 's labour rights are protected under the 2004 Law on the Development and Protection of 
Women (art . 15), the amended Labour Code (2013) (art. 87, 96 -100 and 141), and the 2013 Law 
on Social Security (art. 16 -19). The principle of non -discrimination based on sex applies to the choice 
of profession , the right to open a business, the right to equal pay fo r work of equal value, and the 
right to participate in trainings and to gain new labour skills. Nevertheless,  women generally occupy 
the lower rungs of the labour market and are less present in the formal sector. Women make up 64 
per cent of workers in ele mentary occupations. On a positive note, in 2017 Lao PDR had one of the 
highest proportion of women in national parliaments – 27.5%, with the President and Vice -President 
of the same being women. Meanwhile, representation of women in the other governmental  entities 
varies. Women are reported to run about a third of Lao SMEs. Special initiatives facilitating access 
of women to financial and non -financial products and services are launched by financial institutions, 
for instance Bank Franco Lao (BFL) in coope ration with the IFC. A National Strategy for Financial 
Literacy is being developed. SME Service Centre (SSC), under the Lao National Chamber of 
Commerce and Industry (LNCCI) ; Participatory Development Training Center; Women in Lao (an 
NGO) ; Young Entrepren eurs Association of Lao PDR are also engaged in women capacity building 
and empowerment.  
Q2 Have specific barriers that limit women 's participation in trade been identified?  
Response:   
Among particular barriers preventing more extensive participation of w omen in trade are gender gap 
in education  (subject to bridging recently), professional training and capacity building as well as 
adherence to traditional gender roles, which, inter alia , assign to women household and family tasks.  
Q3 Has Lao PDR implemented any specific measures to encourage women 's participation in trade 
and promote women 's entrepreneurship, or are such measures being developed?  
Response:  
Yes, Lao PDR recognizes that Improving women 's economic will help unlock their economic pote ntial 
and contribute development and growth. Accordingly, it h as implemented specific measures aimed 
at encouraging and enhancing women participation in its economy. Certain of such measures are 
discussed below:  
Gender analysis informed the 8th NSEDP, espe cially in the area of education. One specific gender 
objective was identified in Outcome 2 – that both sexes have access to quality education and health 
services. The achievement of gender equality was listed as a target under reduction of the poverty 
gap in urban areas. In addition, the state -funded Lao Women 's Union (the LMU) was part of the plan 
formulation process.  
Capacity building workshops are routinely held by varied governmental entities. For instance, The 
Ministry of Posts and Telecommunications and APCICT/ESCAP co -organized the National Training on 
Women ICT Frontier Initiative (WIFI): An Enabling Environment for Women Entrepreneurs on 
4-5 July 2019 in Vientiane. This workshop informed policymakers and support their policymaking 
skills with gender -related knowledge to create an enabling environment for ICT -empowered women 
entrepreneurs. Participants were introduced to the concepts of gender and empowerment within the 
context of the sustainable development goals with a focus on women and information and 
communication technologies (ICTs), including the gender divide in the use of ICTs. The regulatory WT/TPR/M /394/Add.1  
 
- 109 - 
 
  environment and processes necessary to ensur e gender -sensitive policymaking, and actionable 
strategies to enable women 's entrepreneurship, particularly through the use of ICTs, were also 
discussed.  The event was attended by representatives from relevant ministries, academia and 
training institutions , civil society organizations and women entrepreneurs ' associations.  
Recognising adverse effect of mechanization and commercialization in agriculture on women, the 
2011- 2020 National Agriculture Development Strategy aims to support women in this context 
through various measures, including by promoting female participation in farmer organisations, 
providing literacy support and safety nets to female farmers, and by support female farmers ' access 
to trade and business opportunities.  
Lao PDR supported Minist erial Declaration on Women and Trade in Buenos Aires.  
Q4 Are the effects of trade policy on women and men measured and monitored, and if so how?  
Response:  
Lao labour law obliges e mployers to provide quarterly updated gender -disaggregated data on the 
number of employees.  
The 8th NSEDP provides for collection of gender - disaggregated data in education, literacy, 
employment, nutrition, health, infant mortality, access to social prote ction, etc. It also identifies a 
set of indicators to assess progress toward gender equality and empowerment of women.  
The monitoring of such effects is also carried out by the international partners, such as UNDP, UNEP, 
GGGI  and others.  
 
  WT/TPR/M/394/Add.1  
 
- 110 - 
 
  TURKEY  
Section II : Questions based on the Report by the Government  
5 Selected Trade Policies And Practices By Measure - 5.7. Special and Specific Economic 
Zones - Page 10, paragraph 5.8  
Text 
It is stated in the Government Report that “… Lao PDR currently hosts 1 2 Special or Specific Economic 
Zones (SEZ). Nevertheless, many zones are still at an early stage of infrastructure development. 
Only few zones have started production and exports. Incentives available in different SEZ vary …”  
Follow -up Q1  
Could Lao PDR fur ther explain the incentives provided to firms that plan to invest in Special Economic 
Zones?  
Follow -up response:  
In order to attract Foreign Direct Investment (FDI), incentives and facilitation mechanisms in Special 
Economic Zones (SEZs) are implemented based on the government’s Decree on Special Economic 
Zone No. 188/ PMO issued on 7 June 2018, as well as different a greements that each SEZ has signed 
with the Government.  
Investors in Special Economic Zone are entitled the following tax and customs incentives:  
1. Tax and custom incentives for import and export shall be as specified in the Law on 
Investment Promotion;  
2. Investment in sectors specified in Article 9 of Law on Investment Promotion shall be 
exempted from profit tax for additional two years in addition to the profit tax exemption 
period as stipulated in Article 11, Paragraph 2 and 3 of the Law on Investment Promo tion. 
In addition, investments in business activities as specified in Article 9, points 3, 4, 5 and 6 
of the Law on Investment Promotion, upon the expiration of the profit tax exemption period, 
shall pay the profit tax at thirty -five percent (35%) of the p rofit tax rate specified in the Tax 
Law for five years and thereafter pay the profit tax in accordance with the Tax Law;  
3. Factory construction for hundred percent (100%) production for export shall be exempted 
from the value added tax and receive incentives  for use of electricity and water in the 
production by paying the value added tax at fifty percent (50%) of the value added tax rate 
specified in the Value Added Tax Law;  
4. For the construction and development of infrastructures to support business operation s of 
the investors in sectors that are not hundred percent (100%) production for export, investors 
shall pay fifty percent (50%) of the value added tax rate as specified in the Value Added Tax 
Law; 
5. Import of raw material, equipment and spare parts for productions, processing or assembling 
in the Special Economic Zones for domestic sales, shall follow the laws and regulations of 
tax and customs;  
In addition, investors shall be entitled to other tax incentives specified in the Law on Investment 
Promotion.  
Apart from incentives, Special Economic Zone Authority (SEZA) in each SEZ also establishes a One -
Stop Investment Service Unit to coordinate with relevant sector, facilitate domestic and foreign 
investments.   
Please also see Annex 1. 
  WT/TPR/M/394/Add.1  
 
- 111 - Annex  1: SEZ Incentives (according to Decree No. 188/PMO)  
 
Tax incentives for investors  (Article  43) 
Sectors will receive investment incentives  Profit tax exemption  Paying 
at 35% 
of 
normal 
rate  General investment  SEZ 
Zone  1 Zone  2  
Zone  1 Zone  2 
1. High and modern technology application, scientific research, research 
and development, use of innovative, environmental friendly and efficient 
use of natural resource and energy.  10 years  4 years  + 2 years  12 years  6 years  - 
2. Clean, toxic -free agriculture, planning seed production, animal 
breeding, industrial plantation, forestry development, protection of 
environment and bio -diversity, activities promoting rural development 
and poverty reduction.  15 years  7 years  + 2 years  17 years  9 years  - 
3. Environmental -friendly agricultural processing industry, national 
traditional and unique handicraft processing industry.  15 years  7 years  + 2 years  17 years  9 years  5 years  
4. environmental -friendly and sustainable natural, cultural and historical 
tourism development industry.  10 years  4 years  + 2 years  12 years  6 years  5 years  
5. Education, sports -gymnastics, human resource development and labor 
skill development, vocational training institutions or centers, production 
of educational and sports equipment.  15 years  7 years  + 2 years  17 years  9 years  5 years  
6. Construction of modern hospitals, pharmaceutical and medical 
equipment factory, production of and treatment by traditional medicine  15 years  7 years  + 2 years  17 years  9 years  5 years   
  WT/TPR/M/394/Add.1  
 
- 112 - 7. Investment, service provision and development of public infrastructure 
for urban traffic congestion reduction and residence facilities, 
infrastructure development for agricultural and industrial production, 
transportation services of goods, transit services and international 
linkage  10 years  4 years  + 2 years  12 years  6 years  - 
8. Policy banks and micro -finance institutions, focusing on poverty 
reduction for people and communities who have less access to a bank.  10 years  4 years  + 2 years  12 years  6 years  - 
9. Modern commercial centers promoting domestic productions and 
world -renowned brands, exhibition centers, fairs for domestic industrial, 
handicraft and agricultural products.  10 years  4 years  + 2 years  12 years  6 years  - 
 
 
  
  WT/TPR/M/394/Add.1  
 
- 113 - Annex 2: Lao PDR Notifications Plan  
- Lao PDR is fully aware of its notification commitments and will comply as much as possible given its limited administrative c apacities. The 
attached table gives the priorities we have established; and  
- Lao PDR will require technical assistance for the set up of the structure and the WTO conform implementation of trade remedy laws that have 
been recently promulgated.  
Relevant 
article(s) or 
text Type of m easure / 
commitment / 
obligation  Notification 
focal point 
and other 
relevant 
agencies  Periodicity  Format and 
relevant WTO 
body  Notifications made prior  Remarks  Deadline  
AGREEMENT ON AGRICULTURE  
Article 18.2  Domestic support – 
Total Aggregate 
Measurement of 
Support (green, blue 
and amber box 
subsidies)  MoIC, Ministry 
of Agriculture 
and Forestry  Biennial (for 
LDCs)  G/AG/2, pages 
12-23; Committee 
on agriculture  G/AG/N/LAO/2, 9 April 
2018 (Fiscal Year 2016)    As soon as 
possible  
Article 18.2  Export subsidies – 
budgetary outlay and 
quantity reduction 
commitments  MoIC, Ministry 
of Agriculture 
and Forestry  Annual  G/AG/2, pages 
24-30; Committee 
on agriculture  G/AG/N/LAO/1, 
5 February  2014   2020 
AGREEMENT ON IMPLEMENTATION OF GATT ARTICLE VI (ANTI -DUMPING)  
Article 16.5  Competent 
investigation 
authority  MoIC (DFTP)  Once G/ADP/N/14; AD 
Committee  G/ADP/N/193/LAO, 
4 July 2013 New 
notification 
would be 
necessary 
when the AD 
authority will 
be established  N/A (after 
establishment of 
the AD authority 
and subject to 
technical 
assistance)  
Article 18.5  Law/regulations and 
changes  MoIC  Once and ad 
hoc if there 
are changes  G/ADP/N/1 and 
Suppl.1; 
AD Committee  G/ADP/N/202/LAO, 
4 July 2013 New Law has 
to be notified  Subject to 
assistance with 
translation   
  WT/TPR/M/394/Add.1  
 
- 114 - AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES  
Article 25.1 
and GATT 
Article XVI  Any specific subsidy 
within meaning of 
Article 2 as well as 
any other subsidy 
which causes 
increased exports or 
decreased imports  MoIC (DFTP)  Triennial  G/SCM/6/Rev.1 ; 
SCM Committee  G/SCM/N/253/LAO, 
19 July 2013   Done  / N/A  
(update if / when 
subsidies as 
described are 
introduced)  
Article 25.12  Authorities competent 
to initiate and 
conduct 
countervailing duty 
investigations and 
domestic procedures 
governing the 
initiation and conduct 
of such investigations  MoIC (DFTP)  Once and ad 
hoc if 
authority is 
established  G/SCM/N/18 ; 
SCM Committee  G/SCM/N/202/LAO, 
4 July 2013 New 
notification to 
be made when 
competent 
authority is 
established.  N/A (after 
establishment of 
the competent 
authority and 
subject to 
technical 
assistance)  
Article 32.6  Laws/regulations and 
changes thereto, 
including changes in 
the administration of 
such laws  MoIC (DFTP)  Once and ad 
hoc if there 
are changes  G/SCM/N/1; SCM 
Committee  – New Law has 
to be notified  Subject to 
assistance with 
translation  
AGREEMENT ON SAFEGUARDS  
Article 12.6  Laws/regulations and 
changes thereto, 
including changes in 
the administration of 
such laws  MoIC Once G/SG/N/1 and 
Suppl.1; SG 
Committee  G/SG/N/1/LAO/1, 
1 July 2013 New Law has 
to be notified  Subject to 
assistance with 
translation  
AGREEMENT ON IMPLEMENTATION OF GATT ARTICLE VII (CUSTOMS VALUATION)  
Article 22  Notification of 
national legislation  MoIC – 
Ministry of 
Finance  Once Committee on 
Customs 
Valuation  G/VAL/N/1/LAO/1, 
10 July 2013 and 
G/VAL/N/1/LAO/1/Add.1, 
2 August 2013  – Done   
  WT/TPR/M/394/Add.1  
 
- 115 - Article VII 
GATT and 
Decision on 
checklist of 
issues 
(G/VAL/5 
para. B.3)  Response to checklist 
of issues  MoIC – 
Ministry of 
Finance  Once Annex of 
G/VAL/5; 
Committee on 
Customs 
Valuation  –   Subject to 
technical 
assistance  
AGREEMENT ON IMPORT LICENSING PROCEDURES  
Article 7.3  Reply to 
questionnaire on 
import licensing 
procedures  MoIC (DIMEX)  Annual  Annex of G/LIC/3; 
Committee on 
Import Licensing  G/LIC/N/3/LAO/1, 
11 March  2014 Each year by 
30 September  2020 
Article 1.4(a) 
and 8.2(b)  Sources of 
publications for 
information on 
licensing and changes 
to relevant laws, 
regulations and 
administrative 
procedures  MoIC (DIMEX)  Upon 
accession and 
ad hoc  for 
changes  Committee on 
Import Licensing  G/LIC/N/1/LAO/1, 
3 February 2014  To notify any 
changes as 
well as change 
of the relevant 
legislation and 
procedures.  Done  / N/A 
(update if / when 
changes would be 
made)  
Article 5.1 -5.4 New import licensing 
procedures or 
changes thereto  MoIC (DIMEX)  Ad hoc  Committee on 
Import Licensing  G/LIC/N/2/LAO/1, 
3 February 2014  Notification to 
be made 
within 60 days 
after 
publication of 
measures.  Done / to be 
updated in 2020  
AGREEMENT ON RULES OF ORIGIN  
Article 5.1  Non-preferential rules 
of origin, acts of 
general application on 
rules of origin  MoIC (DIMEX) 
– Ministry of 
Finance  Once Committee on 
Rules of Origin  G/RO/N/96, 26 July 2013  – Done   
  WT/TPR/M/394/Add.1  
 
- 116 - Annex II(4)  Preferential rules of 
origin, with indication 
of preferential 
agreements to which 
they apply  MoIC (DIMEX) 
– Ministry of 
Finance  Once Committee on 
Rules of Origin  G/RO/N/96, 26 July 2013  – Done  
AGREEMENT ON PRE -SHIPMENT INSPECTION  
Article 5  Laws and regulations 
by which the 
agreement is put into 
force, as well as any 
other laws and 
regulations relating to 
pre-shipment 
inspection and 
changes thereof  MoIC (DFTP), 
Ministry of 
Finance  Once Council for Trade 
in Goods  G/PSI/N/1/Rev.1/Add.2  – Done  
AGREEMENT ON THE APPLICATION OF SANITARY AND PHYTOSANITARY MEASURES  
Annex B, 
paragraph 3  Enquiry point  Ministry of 
Agriculture and 
Forestry  Once but 
subject to 
updates  WTO Secretariat  No separate notification but 
this information is in the 
disposal of the WTO 
Secretariat 
(G/SPS/ENQ/26)  – Done  
Annex B, 
paragraph 10  Notification authority  MoIC Once but 
subject to 
updates  WTO Secretariat    – Done  
Article 7 and 
Annex B, 
paragraphs 5 -
10 Proposed 
sanitary/phytosanitar
y regulations and 
measures (new or 
changes)  MoIC, Ministry 
of Agriculture 
and Forestry, 
Ministry of 
Public Health  Ad hoc  G/SPS/7/Rev.3; 
WTO Secretariat  G/SPS/N/LAO/1, 6 June 
2013; G/SPS/N/LAO/2, 
6 December 2017  Any proposed 
regulation 
pertaining to 
SPS issues has 
to be notified 
promptly.  Done  / N/A 
(update if / when 
new SPS 
regulations would 
be proposed)  
Annex B, 
paragraph 6  Emergency actions - 
sanitary and 
phytosanitary 
regulations and 
measures  MoIC, Ministry 
of Agriculture 
and Forestry, 
Ministry of 
Public Health  Ad hoc  G/SPS/7/Rev.3; 
WTO Se cretariat  G/SPS/N/LAO/3, 
2 October  2018 – Done  / N/A 
(update if / when 
emergency SPS 
actions are taken)   
  WT/TPR/M/394/Add.1  
 
- 117 - AGREEMENT ON TECHNICAL BARRIERS TO TRADE  
Article 15.2  Administrative 
arrangements and 
laws and regulations 
– Measures in 
existence or taken to 
ensure the 
implementation and 
administration of TBT 
Agreement and any 
changes thereafter  MoIC (DFTP), 
MoST  Once and ad 
hoc if there 
are changes  G/TBT/1/Rev.11; 
Committee on 
TBT G/TBT/2/Add.111, 
20 November 2013; 
G/TBT/N/LAO/1, 
9 April 2014 Any related 
change should 
be notified 
promptly. The 
amendment 
law in 2014 
was 
mistakenly 
notified under 
Article 2.9.2 
on 09.04.14, 
but should 
have been 
notified under 
Article 15.2. 
This mistake 
should be 
notified to the 
TBT 
Committee  Done / N/A 
(update if  / when 
changes would be 
made)  
Article 10.1 
and 10.3  Enquiry point  MoST, MoIC  Once but 
subject to 
updates  Committee on 
TBT G/TBT/2/Add.111, 
20 November 2013  Any related 
change should 
be notified 
promptly.  Done / N/A 
(update if / when 
changes would be 
made)  
Annex 3:C  Acceptance 
of/withdrawal from 
the Code of Good 
Practice for the 
Preparation, Adoption 
and Application of 
Standards  MoST, MoIC 
(DFTP)  Once Committee on 
TBT through 
ISO/IEC 
Information 
Center  G/TBT/CS/N/181, 
14 May 2013 – Done   
  WT/TPR/M/394/Add.1  
 
- 118 - Annex 3:J  Notify the existence 
of the work 
programme at least 
once every 6 months  Department of 
Standardizatio
n and 
Metrology, 
MoST  Once every 
six months  G/TBT/W/4/Rev.1
; ISO/IEC 
Information 
Centre  – The 
notification 
under the 
Code of Good 
Practice for the 
Preparation, 
Adoption and 
Application of 
Standards is to 
be made by 
the 
standardizing 
body that has 
accepted the 
Code, i.e. 
MoST DSM.  Subject to 
technical 
assistance  
AGREEMENT ON TRADE -RELATED INVESTMENT MEASURES  
Article 6.2  Publication in which 
TRIMs may be found  MoIC Once and 
updates  G/TRIMS/5; 
Committee on 
TRIMs  G/TRIMS/N/2/Rev.23/Add.1
, 16 September 2013; 
G/TRIMS/N/2/Rev.28, 27 
September 2018  The 
notification is 
without 
prejudice to 
the legal 
consistency of 
any TRIMs 
which  
may be found 
in these 
publications 
notified. Any 
updates in 
used 
publication 
should be 
notified.  Done  / N/A 
(update if/ when 
there would be 
any updates)  
AGREEMENT ON TRADE FACILITATION  
Article 15  Notification of 
Category A 
commitments  MoIC (DIMEX) 
– Ministry of 
Finance  Once Committee on 
Trade Facilitation  G/TFA/N/LAO/1, 2 March 
2018 – Done   
  WT/TPR/M/394/Add.1  
 
- 119 - Article 16.2  Notification of 
definitive dates for 
implementation of 
Category B and C 
commitments  MoIC (DIMEX) 
– Ministry of 
Finance  Once WT/L/931;  
Preparatory 
Committee on 
Trade Facilitation  G/TFA/N/LAO/1, 
2 March  2018; 
G/TFA/N/LAO/1/Add.16 
September 2019; 
G/FTA/N/LAO/1/Add.2   LDCs may 
notify their 
indicative 
dates of 
implementatio
n by 
22/02/2018 
and will notify 
their definitive 
dates by 
22/02/2020  
  
LDCs will 
notify their 
indicative 
dates of 
implementatio
n by 
22/02/2021 
and will notify 
their definitive 
dates by 
22/08/2022  As soon as 
possible  
Article 1.4  Notification of:  
a) the official place(s) 
where the items in 
subparagraph 1.1 (a) 
to (j) have been 
published;  
b) the Uniform 
Resource Locators of 
website(s) referred to 
in paragraph 2.1; and  
c) the contact 
information of 
enquiry points 
referred to in 
paragraph 3.1  MoIC (DIMEX) 
– Ministry of 
Financ e Once Committee on 
Trade Facilitation  G/TFA/N/LAO/2, 
17 January  2019;    
Done  
Article 10.4.3  Notification of details 
of operation of the 
single window  MoIC (DIMEX) 
– Ministry of 
Finance  Once Committee on 
Trade Facilitation  G/TFA/N/LAO/2, 
17 January  2019;  To notify the 
further 
progress  
Done   
  WT/TPR/M/394/Add.1  
 
- 120 - Article 10.6.2  Notification on 
measures on the use 
of the customs 
brokers / subsequent 
modifications to such 
measures  MoIC (DIMEX) 
– Ministry of 
Finance  Once / Ad hoc  Committee on 
Trade Facilitation  G/TFA/N/LAO/2, 
17 January  2019;  To notify in 
case of 
modification of 
the measures  Done  
Article 12.2.2  Notification of a 
contact point for the 
exchange of 
information between 
customs authorities  MoIC (DIMEX) 
– Ministry of 
Finance  Once Committee on 
Trade Facilitation  G/TFA/N/LAO/2, 
17 January  2019;  When the 
measure will 
be 
implemented  Done / N/A 
(update if / when 
measures would 
be implemented)  
GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT)  
Decision on Notification Procedures for Quantitative Restrictions  
Decision on 
Notification 
Procedures for 
Quantitative 
Restrictions 
G/L/59/Rev.1  Quantitative 
restrictions and other 
non-tariff measures, 
as well as changes 
thereto. Reverse 
notification of non -
tariff measures can 
also be made unde r 
the Decision on 
Reverse Notification 
of Non -Tariff 
Measures (G/L/60).  MoIC (DIMEX)  Biennial and 
ad hoc for the 
changes  JOB/MA/101 
(guide) and 
Annex of 
G/L/59/Rev.1; 
Committee on 
Market Access  G/MA/QR/N/LAO/1, 
2 March  2015 A notification 
of all QRs, 
impor t-export 
prohibitions 
and other 
measures. Has 
to be 
submitted 
every 2 years. 
Includes: 
products/tariff 
lines, type of 
restriction, 
WTO 
justification 
and effects of 
the measure 
(quota 
quantity, 
utilization rate, 
etc.).  As soon as 
possible   
  WT/TPR/M/394/Add.1  
 
- 121 - GENERAL AGREEMENT ON TRADE IN SERVICES (GATS)  
Article III:4  References of enquiry 
point MoIC Once but 
subject to 
updates  Council for Trade 
in Services  No separate notification but 
this information is in the 
disposal of the WTO 
Secretariat 
(S/ENQ/78/Rev.19)  
11 March 2011)  – Done  
Article V:7 and 
V bis Economic integration 
agreements, their 
enlargement or 
significant 
modifications, labour 
markets integration 
agreements.  MoIC (DFTP)  Ad hoc  S/L/5; Council for 
Trade in Services  All RTAs to which Lao PDR 
is party have been notified 
already by Lao PDR itself 
and/ or its trade partners. 
Amongst the most recent 
notifications: S/C/N/822, 
24 August 2015, and 
S/C/N/954, 17 June 2019.    Done  
AGREEMENT ON TRADE -RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS (TRIPS)  
Article 63.2  Laws and regulations 
made effective 
pertaining to TRIPS, 
and amendments 
thereof (modifications 
or introduction of new 
ones)  MoST, MoIC  Once  (as 
soon 
as possible  
after an  
obligation  
under the  
TRIPS  
Agreement  
becomes  
effective) and 
ad hoc for 
amendment
s IP/C/2, 3, 4 and 
5; Council for 
TRIPS  – Legislation 
related to the 
TRIPS has to 
be notified  2020 
Article 69  Contact point in the 
administration for the 
purposes of 
cooperation with  
other Members aimed 
at the elimination of 
trade in infringing 
goods (including 
relevant changes).  MoST, MoIC  Once / ad hoc 
for changes  WTO/AIR/168; 
Council for TRIPS  IP/N/3/LAO/1, 
24 September 2014  Notification of 
the changes, if 
any Done  / N/A 
(update if / when 
changes would be 
made)   
  WT/TPR/M/394/Add.1  
 
- 122 - OTHER NOTIFICATION REQUIREMENTS  
Regional trade arrangements  
GATT Article 
XXIV and its 
Understanding
; GATS Article 
V; Decision on 
differential and 
more 
favourable 
treatment, 
reciprocity and 
fuller 
participation of 
developing 
countries  
(Enabling 
Clause), 
paragraph 4 
(BISD  
26S/203)  All kind of regional 
trade arrangements 
(customs union, free 
trade areas, interim 
agreements, 
preferential trade 
arrangements 
between developing 
countries, unilateral 
preferential schemes) 
including the ones 
which cover services 
(economic integration 
agreements).  MoIC Ad hoc  WT/COMTD/63; 
CTG for RTAs in 
goods; CTS for 
RTAs which 
include services; 
CTD for RTAs 
amongst 
developing 
countries and 
other preferentia l 
schemes 
(WT/COMTD/73 
for latter)  All RTAs to which Lao PDR 
is party have been notified 
already by Lao PDR itself 
and/ or its trade partners. 
Amongst the most recent 
notifications: S/C/N/822, 
24 August 2015, and 
S/C/N/954, 17 June 2019.  Any new 
arrangemen ts 
have to be 
notified 
promptly; any 
significant 
changes 
and/or 
developments 
in the 
agreements  
should be 
reported as 
they occur.  Done  
 
 
__________