The Govemment of Lao PDR prohibits business activities using Hazardous Chemicals Type I, except for the activities relating to research, technology development, protection and prevention of danger which may arise against health, life, property or environment and the use of national defence and public security activities, provided that such activities are approved by the Govemment of Lao PDR.

Source of Measure:

Law on the Chemicals Management (No. 07/NA, dated 10 November 2016), Article 10

2. Sector: Central Bank Currency Issuance

Subsector: Paper money, money printing inks, money printing machinery and coin smelting equipment

Industry Classification:

Level of Govemment: Central

Obligations Concerned: National Treatment

Description:

According to the Law on the Bank of Lao PDR, Article 24 states that the Bank of Lao PDR has the sole right to issue notes and coins (including paper money, money printing inks, money printing machinery and coin smelting equipment) with the approval of the Govemment of Lao PDR.

Source of Measure

Law on the Bank of Lao PDR (No. O5/NA, dated 14 October 1999), Article 24

3. Sector: Manufacturing Sectors

Subsector: Weaving of textile Needlework

Industry Classification: ISIC 1312, 1321

Level of Govemment: Central

Obligations Concerned: National Treatment

Description:

Investments in weaving of textile with unique ethnic designs by hand, not including industrial textiles and clothes manufacturing, are reserved for citizens of Lao PDR.

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

Source of Measure:

Notification on the List of Types of Businesses Reserved for Citizens of Lao PDR (No. 1328/MOIC.DERM, dated 13 July 2015)

4. Sector: Manufacturing Sectors

Subsector: Manufacturing of other products of wood Manufacture of articles of cork, straws, and plaiting materials

Industry Classification: ISIC 1629

Level of Govemment: Central

Obligations Concerned: National Treatment

Description:

Investments in small wood processing factories and businesses of manufacturing carved wood and wicker with unique ethnic sculpture are reserved for citizens of Lao PDR.

Source of Measure

Notification on the List of Types of Businesses Reserved for Citizens of Lao PDR (No. 1328/MOIC.DERM, dated 13 July 2015)

5. Sector: Manufacturing Sectors

Subsector: Manufacturing of porcelain and ceramic products

Industry Classification: ISIC 2393

Level of Govemment: Central

Obligations Concerned: National Treatment

Description:

Investments in businesses relating to local handicraft porcelain and ceramic products with unique ethnic design are reserved for citizens of Lao PDR.

Source of Measure:

Notification on the List of Types of Businesses Reserved for Citizens of Lao PDR (No. 1328/MOIC.DERM, dated 13 July 2015)

6. Sector : Manufacturing Sectors

Subsector: Manufacturing of jewellery and related articles Manufacture of imitation jewellery and related articles

Industry Classification: ISIC 3211, 3212

Level of Government: Central

Obligations Concerned: National Treatment

Description :

Investments in businesses of production of local handicraft jewellery products and related articles with unique ethnic designs are reserved for citizens of Lao PDR.

Source of Measure :

Notification on the List of Types of Businesses Reserved for Citizens of Lao PDR (No. 1328/MOIC.DERM, dated 13 July 2015)

7. Sector: Forestry Sectors

Subsector: Exploitation of timber and non-timber forest products of national forest (NTFPs) Forestry, logging and related activities

Industry Classification: ISIC 0200, 0220

Level of Govemment: Central

Obligations Concerned: National Treatment Prohibition on Performance Requirements

Description:

Investments in exploitation of timber and non- timber forest products of national forests are reserved for domestic investors.

Forestry, logging and related activities are subject to specific approval by the Govemment of Lao PDR.

Source of Measure:

- Forestry Law (No. O6/NA, dated 24 December 2007), Article 49;

- Prime Ministers Order Regarding the Increase of Strictness in Forest Management and Logging Business in 2007-2008 (No. 30/PM, dated 17 August 2007)

8. Sector: Mining Sectors

Subsector: Mining of Uranium and Thorium Ores (Radioactive Mineral)

Industry Classification: ISIC 0721

Level of Govemment: Central

Obligations Concerned: National Treatment

Description:

The Govemment of Lao PDR defines reserved areas and protects some mineral resource areas in accordance with the national social-economic development plan for exploration, planning development and mining operations, in support of the national interest and the sustainability of natural resources.

Source of Measure

Law on Minerals (No.02/NA, dated 20 December 2011), Article 10

9. Sector: Fishery Sectors

Subsector: Commercial omamental fisheries

Industry Classification: 

Level of Govemment: Central

Obligations Concerned: National Treatment

Description:

Any foreign individual or organisation with the aim of engaging in commercial omamental fisheries such as aquaculture, breeding, propagation, and import shall seek approval of the relevant authorities in accordance with the Law on Investment Promotion.

Source of Measure

- Law on Fishery (No. 03/NA, dated 9 July 2009), Article 31

- Law on Investment Promotion (No. 14/NA, dated 17 November 2016)

10. Sector: Agriculture

Sectors: Subsector Guano (Bat Dung)

Industry Classification: -

Level of Government: Central

Obligations Concerned: National Treatment, Prohibition of Performance Requirements

Description:

Investments in Guano (Bat Dung) businesses are reserved for domestic investors.

Source of Measure

- Order of the Minister of Agriculture and Foresiry (No. 2050/MAF99, dated 20 December 1999), regarding prohibition of Guano excavation for export

- Order of the Minister of Agriculture and Foresiry (No. 613/MAF99, dated 8 July 2005), regarding utilisation and management of Guano in Lao PDR

LIST B. EXPLANATORY NOTES

1. This List B sets out, pursuant to Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment), the specific sectors, subsectors or activities for which Lao PDR may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:

(a) Article 3 (National Treatment) of Chapter 11 (Investment);

(b) Article 5 (Senior Management and Boards of Directors) of Chapter 11 (Investment); or

(c) Article 6 (Prohibition of Performance Requirements) of Chapter 11 (Investment).

2. Each entry in this List B sets out the following elements: 

(a) Sector refers to the sector or sectors for which the entry is made;

(b) Subsector refers to the specific sector for which the entry is made;

(c) Industry Classification refers to the activities covered by the entry according to:

(i) Intemational Standard Industrial Classification (ISIC) Revision 3 for manufacturing, agriculture, fishery, forestry, mining and quarrying;

(ii) If the entry does not exactly conform to the ISIC, Lao PDR specified the coverage of the entry, as necessary and appropriate;

(d) Level of Government indicates the level of government maintaining the listed measures;

(e) Obligations Concerned specifies the obligations referred to in Paragraph 1 that, pursuant to Article 13 (Reservations and Non-Conforming Measures), do not apply to the sectors, subsectors or activities listed in the entry;

(f) Description sets out the sector, subsector or activities covered by the entry; and

(g) Existing Measures identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, subsectors or activities covered by the entry.

3. List A and this List B pursuant to Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment) follow the negative list with two-list approach as follows:

(a) List A sets out commitments in relation to existing non-conforming measures which are subject to standstill obligations but not subject to ratchet mechanism; and

(b) this List B sets out policy flexibility in relation to measures in sectors, subsectors and activities.

4. In accordance with Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment), the Articles of this Agreement specified in the Obligations Concemed element of an entry do not apply to the sectors, subsectors and activities identified in the Description element of that entry.

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

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

1. Sector : All Sectors

Subsector: -

Industry Classification: -

Level of Govemment: Central

Obligations Concemed: National Treatment

Description :

In the case of joint ventures between domestic and foreign investors, the foreign investor is required to contribute at least 10 per cent of the total capital. (1)™

Existing Measures :

Law on Investment Promotion (No. 14/NA, dated 17 November 2016), Articles 26 to 31

2. Sector: Concession Investment

Subsector:

Industry Classification:

Level of Govemment: Central

Obligations Concerned: National Treatment

Description:

The registered capital of concession businesses shall not be less than 30 per cent of the total capital.

For general businesses, the registered capital shall comply with the Law on Enterprise.

Existing Measures

- Law on Investment Promotion (No. 14/NA, dated 17 November 2016), Articles 51 and 52

- Law on Enterprise (No. 46/NA, dated 26 December 2013)

3. Sector: All Sectors

Subsector: -

Industry Classification :

Level of Govemment: Central

Obligations Concemed: National Treatment

Description

Foreign employees shall not exceed 15 per cent for technical experts undertaking physical work and 25 per cent for technical experts undertaking mental work of the total number of Lao workers in the enterprise. Working permission shall be obtained from the Ministry of Labour and Social Welfare.