RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/LAO/3 
16 October 2007 
 
 (07-4439) 
Working Party on the 
Accession of Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Initial Offer on Specific Commitments in Services  
 
 
 The following submission, dated 10 October 2007, is being circulated at the request of the 
Government of the Lao People's Democratic Republic (Lao PDR). 
 
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  Lao PDR, as a least-developed country, has presented this offer taking in account the Decision of the General Council on LDCs' accession of 10 December 2002, particularly with regard to 
the guidelines for market access negotiations.  Lao PDR requests Members to exercise restraint in 
seeking commitments on services trade from acceding LDCs, taking into consideration the levels of 
commitments undertaken by existing WTO LDC Memb ers, and to be commensurate with Lao PDR's 
development, financial and trade needs, in line w ith the spirit of Article IV and XIX of the GATS. 
  Lao PDR has also taken into consideration fl exibility provided for in the Modalities for LDCs' 
Negotiations, 3 September 2003.  Lao PDR also urges Members to facilitate and accelerate its 
accession in accordance with paragraph 42 of the Doha Ministerial Deceleration. 
 
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  WT/ACC/SPEC/LAO/3 
Page 2 Modes of supply: (1) Cross-Border supply  (2) Consumption abroad  (3) Commercial Presence (4) Presence of natural persons 
Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
I.  HORIZONTAL COMMITMENTS (APPLICABLE TO ALL SECTORS IN CLUDED IN THIS SCHEDULE) 
Land ownership  (3), (4) Non-Lao PDR natural and 
juridical persons are not allowed to 
own land but may own premises and lease land up to 75 years.  
Subsidies and investment incentives   (1), (2), (3), (4) Unbound with respect to 
subsidies, investment incentives and 
other state support measures, eligibility for which may be limited 
to particular regions, categories of 
persons, or enterprises.  
Commercial presence (3) To esta blish a commercial presence, 
a services provider must be 
incorporated in Lao PDR and 
foreign equity participation is limited to 40% of registered capital 
for all enterprises. 
 
 
(3) Unbound for measures related to 
publicly funded services including 
with respect to national treatment. (3) Foreign investors shall have an 
obligation to provide training, 
upgrade professional skills and 
transfer of technology, as well as to promote Lao PDR nationals to 
higher skilled and specialized 
positions, including managerial. 
 
(3) Tax measures, generally pertaining 
to small and medium enterprises 
may result in a difference of 
treatment in favour of Lao PDR services and service suppliers.  
Movement of natural persons providing 
services (4) Unbound, except for measures 
affecting the temporary entry and 
stay of natural persons who qualify under one of the following 
categories, and in all cases, total 
number of foreign natural persons, including higher management, of 
any establishment shall not exceed 
10% of the total staff: (4) Unbound, except for measures 
concerning the categories of natural 
persons referred to in the market access column.  Unbound for all 
measures relating to  social insurance 
schemes including inter alia  
unemployment and pension benefits.  
  
A. Services sales persons:  
 
A natural person who:  
- enters Lao PDR to be engaged in    
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 Page 3Modes of supply: (1) Cross-Border supply  (2) Consumption abroad  (3) Commercial Presence (4) Presence of natural persons 
Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
  activities related to representing a 
services supplier for the purpose of 
negotiating for the sale of the services of that supplier; 
- stays in Lao PDR without receiving 
remuneration from sources within Lao PDR; and 
- does not engage in making direct 
sales to the general public or supplying services. 
 
The temporary stay of the services sales persons is subject to a maximum duration 
of stay of thirty days.   
 
  
B. Intra-Corporate Transferees  
 
Natural persons who have been employed 
by a juridical person of another Member 
outside Lao PDR for a period of not less 
than one year imme diately preceding the 
request for transfer to Lao PDR, who seek 
temporary entry to provide services 
through commercial es tablishment of that 
juridical person in Lao PDR, who cannot 
be substituted by Lao PDR nationals, and 
who fall within one of the following categories: 
 
(a) Executives
:  Natural persons within 
an organization who primarily direct 
the management of the organization, 
exercise wide latitude in decision-making, and receive only general 
supervision or direction from 
higher-level executiv es, the board of 
directors, or shareholders of the 
business.  Executives would not 
directly perform tasks related to the 
actual supply of a service or services 
of the organization; and    
  WT/ACC/SPEC/LAO/3 
Page 4 Modes of supply: (1) Cross-Border supply  (2) Consumption abroad  (3) Commercial Presence (4) Presence of natural persons 
Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
 (b) Managers :  Natural persons who 
possess knowledge at an advanced 
level of expertise or proprietary knowledge of a juridical entity 
product, service, research, 
equipment, techniques, or management, and who primarily 
direct the organization or a 
department of the organization; supervise and control the work of 
other supervisory, professional or 
managerial employees; have the authority to hire and fire or 
recommend hiring, firing or other 
personnel actions; and exercise discretionary authority over day-to-
day operations.  They do not include 
first-line supervisors, unless the 
employees supervised are 
professionals, nor do they include employees who primarily perform 
tasks necessary for the supply of the 
service. 
 
For the natural persons in the categories 
defined under intra-corporate transferees, temporary residency and work permit will 
be issued for six months which may be 
renewed for up to one year as long as conditions indicated for each category are 
satisfied.    
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 Page 5Modes of supply: (1) Cross-Border supply  (2) Consumption abroad  (3) Commercial Presence (4) Presence of natural persons 
Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
II. SECTOR-SPECIFIC COMMITMENTS 
1. BUSINESS SERVICES 
A. Professional Services 
(d) Architectural services: 
- Advisory and pre-design 
architectural services (CPC 86711) 
- Architectural design services  
(CPC 86712) 
- Combined architectural design and 
Contract administration services 
(CPC 86714) (1) Unbound 
(2) Unbound 
(3) A juridical entity must be 
established through a joint venture 
with a Lao national architect who is 
a member of the Association of Lao Architects and Civil Engineers 
(ALACE) 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound 
(3) Foreign architects must have the 
professional practicing certificate 
granted or recognized by the 
Government of Lao PDR and cannot be a full member of the ALACE.  
Residency is required 
(4) Unbound, except as indicated in the 
horizontal section  
(e) Engineering services: 
- Advisory and consultative 
engineering services (CPC 86721) 
- Engineering design services for the 
construction of foundations and 
building structures 
(CPC  86722) 
- Engineering design services for 
mechanical and electrical 
installation for buildings (CPC  86723) 
- Engineering design services for 
construction of civil engineering works  
(CPC  86724) (1) Unbound 
(2) Unbound 
(3) A juridical entity must be 
established through a joint venture 
with a Lao national engineer who is 
a member of the Association of Lao 
Architects and Civil Engineers 
(ALACE) 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound 
(3) Foreign engineering must have the 
professional practicing certificate 
granted or recognized by the 
Government of Lao PDR and cannot 
be a full member of the ALACE.  
Residency is required 
(4) Unbound, except as indicated in the 
horizontal section  
(f) Integrated engineering services 
(CPC 86732 and CPC 86733 only) (1) Unbound 
(2) Unbound (3) A juridical entity must be 
established through a joint venture 
with a Lao national engineer who is a member of the Association of Lao 
Architects and Civil Engineers 
(ALACE) 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound (3) Foreign engineering must have the 
professional practicing certificate 
granted or recognized by the Government of Lao PDR and cannot 
be a full member of the ALACE.  
Residency is required 
(4) Unbound, except as indicated in the 
horizontal section   
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Page 6 Modes of supply: (1) Cross-Border supply  (2) Consumption abroad  (3) Commercial Presence (4) Presence of natural persons 
Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
B. Computer and Related Services 
(a) Consultancy services related to the 
installation of computer hardware 
(CPC 841) 
(b) Software implementation services 
(CPC 842) 
(d) Data base services 
(CPC 844) 
(e) Other 
- Maintenance and repair services of 
computer 
(part of CPC 84500) (1) None 
(2) None 
(3) A joint venture with Lao services 
providers is required 
(4) Unbound, except as indicated in the 
horizontal section (1) None 
(2) None 
(3) None  
(4) Unbound, except as indicated in the 
horizontal section  
F. Other Business Services 
(c) Management consulting services 
- General management consulting 
services 
(CPC 86501) 
- Marketing management consulting 
services 
(CPC 86503) (1) None 
(2) None (3) A juridical entity must be 
established through a joint venture 
with a Lao national 
(4) Unbound, except as indicated in the 
horizontal section (1) None 
(2) None (3) None 
 
 
(4) Unbound, except as indicated in the 
horizontal section  
2. COMMUNICATION SERVICES 
C. Telecommunication services 
The following services can be supplied 
only on a facilities basis, for public use, 
with regard to local and national long-
distance services. (d) Telex services 
(CPC 7523**) 
(e) Telegraph services 
(CPC 7522) 
(f) Facsimile services 
(CPC 7521**+ 7529**) 
(h) Electronic-mail 
(CPC 7523**) 
(i) Voice mail 
(CPC 7523**) 
(j) Online information and data base 
retrieval 
(CPC 7523**) (1) Unbound 
(2) None 
(3) Joint venture with Lao services 
providers is required and only through acquisition of existing 
operators 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) None 
(3) Requirement to provide services 
outside Vientiane capital 
 
 
(4) Unbound, except as indicated in the 
horizontal section   
   WT/ACC/SPEC/LAO/3
 Page 7Modes of supply: (1) Cross-Border supply  (2) Consumption abroad  (3) Commercial Presence (4) Presence of natural persons 
Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES 
A. General construction work for 
buildings, with contract value 
US$1 million or more (CPC 512)  (1) Unbound 
(2) Unbound 
(3) Joint ventures, sub-contracting and 
partnerships with Lao services 
providers are required 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound 
(3) None  
 
(4) Unbound, except as indicated in the 
horizontal section  
B. General construction work for civil 
engineering, with contract value 
US$1 million or more (CPC 5131-5133) (1) Unbound 
(2) Unbound 
(3) Joint ventures, sub-contracting and 
partnerships with Lao services 
providers are required 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound 
(3) None   
 
(4) Unbound, except as indicated in the 
horizontal section  
C. Installation and assembly work, with 
contract value US$1 million or 
more: 
- Assembly and erection of 
prefabricated construction (CPC 51400) (1) Unbound 
(2) Unbound 
(3) Joint ventures, sub-contracting and 
partnerships with Lao services 
providers are required 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound 
(3) None 
 
 (4) Unbound, except as indicated in the 
horizontal section  
D. Building completion and finishing 
work, with contract value US$1 million or more: 
- Ornamentation fitting work 
(CPC 51770)  (1) Unbound 
(2) Unbound (3) Joint ventures, sub-contracting and 
partnerships with Lao services 
providers are required 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound (3) None 
 
 (4) Unbound, except as indicated in the 
horizontal section  
E. Other: 
- Rental services related to equipment 
for construction or demolition of 
buildings works with operator 
(part of CPC 518) (1) Unbound 
(2) Unbound (3) Joint ventures, sub-contracting and 
partnerships with Lao services 
providers are required 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) Unbound (3) None 
 
 (4) Unbound, except as indicated in the 
horizontal section   
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Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
5. EDUCATIONAL SERVICES  
 The education curriculum and contents must be approved by the Ministry of Education of Lao PDR. 
 With respect to C and D below, the commitments cover only in technical, natural sciences and technology, business administrati on and business studies, economics, 
accounting, international law and language training fields. 
 The scope of private education services co ncerns only fully-privately funded services.  
B. Secondary education services 
(part of  CPC 922) 
C. Higher education services 
(part of  CPC 923) 
D. Adult education services 
(part of  CPC 924) (1) Unbound 
(2) None (3) A juridical entity must be 
established in a joint venture with 
Lao nationals 
(4) Unbound, except as indicated in the 
horizontal section (1) Unbound 
(2) None (3) Unbound 
 
 (4) Unbound, except as indicated in the 
horizontal section  
7. FINANCIAL SERVICES 
 Access by foreign services suppliers and the provision of new financial services, that have not yet been provided by the priva te sector in Lao PDR at the date of accession, 
may be subject to measures adopted for prudential reasons. 
A. All insurance and insurance-related services 
(c) Reinsurance and retrocession 
(CPC 81299*) (1) None 
(2) Unbound 
(3) Unbound 
(4) Unbound (1) None 
(2) Unbound 
(3) Unbound 
(4) Unbound  
B. Banking and other financial s ervices (excluding insurance) 
 Commitment is with respect to commercial banking only and limited to financial institutions licensed to provide banking servic es.  Foreign juridical person must 
incorporate as either a joint stock or limited liability company, but may not incorporate as a sole ownership limited liability  company.  
(a) Acceptance of deposits and other 
repayable funds from the public 
(CPC 81115-81116) 
(b) Lending of all types, including 
consumer credit, mortgage credit, 
factoring and financing of 
commercial transactions (CPC 81131-81133)  
(e) Guarantees and commitments  
(CPC 81199**) (1) Unbound 
(2) Unbound 
(3) A maximum of one service 
operation of a foreign juridical person is allowed and this operation 
must be located in Vientiane capital 
(4) Unbound, except for executives and 
managers as per conditions in the 
horizontal section (1) Unbound 
(2) Unbound 
(3) Higher technology is required for 
foreign banking services suppliers 
 
 
(4) Unbound, except for executives and 
managers as per conditions in the 
horizontal section   
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Sector or sub-sector Limitations on market access Limitations on nati onal treatment Additional commitments 
8. HEALTH RELATED AND SOCIAL SERVICES 
 (Other than those listed under 1.A.h-j.) 
 The scope of private health related and social serv ices concerns only fully-p rivately funded services. 
A. Private hospital services 
 (Modern hospital with more than 
100 beds located in Vientiane capital 
only) (part of CPC 93110) (1) Unbound 
(2) Unbound 
(3) A juridical entity must be 
established in a joint venture with Lao PDR nationals 
(4) Unbound, except for executives and 
managers as per conditions in the horizontal section (1) Unbound 
(2) Unbound 
(3) Unbound 
  
(4) Unbound, except for executives and 
managers as per conditions in the horizontal section  
9. TOURISM AND TRAV EL RELATED SERVICES 
A. Hotels and rest aurant services: 
- Hotel lodging services 
(CPC 64110) 
- Beverage serving services without 
entertainment 
(CPC 64310) (1) None 
(2) None 
(3) Establishment limited to hotels with 
3 stars rating or higher and subject 
to meeting economic need tests1 
(4) Unbound, except as indicated in the 
horizontal section and only with 
respect to hotels with 3 star rating or higher (1) None 
(2) None 
(3) None  
 
(4) Unbound, except as indicated in the 
horizontal section and only with 
respect to hotels with 3 star rating or higher  
B. Travel  agency and tour operator 
services 
(CPC 74710)  (1) Unbound 
(2) Unbound 
(3) A juridical entity must be 
established in a joint venture with 
Lao nationals. Foreign equity 
participation limited to 49% 
(4) Unbound, except for executives and 
managers as per conditions in the 
horizontal section (1) Unbound 
(2) Unbound 
(3) Foreign service supplying 
enterprises can only do inbound 
services 
 (4) Unbound, except for executives and 
managers as per conditions in the 
horizontal section  
 
                                                      
1 Such assessment may take into account, inter alia, the existing tourism infrastructure, environmental and development impact o n the local community.  
  WT/ACC/SPEC/LAO/3 
Page 10 List of Article II (MFN) Exemptions  
 
Lao PDR's Article II (MFN) Exemption List w ill be submitted at a later point in time. 
 
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