Research On Laos Foreign Investment Law

After ten years negotiations, Laos was ratified by the World Trade Organization and officially became the first 158 members of the World Trade Organization on February 2th, 2013. During the negotiations, Laos again revised the "Investment Promotion Law", unifying the domestic investment and foreign investment into single law, and revised the "Constitution " and "Enterprise Law", "Tariff Act" and a series of related investments laws and regulations, and improved foreign investment approval procedures and investment promotion measures and other aspects regarding investment, further created a favorable investment environment for foreign investment. Accession of WTO will impose a positive effect on promoting Laos social and economic development and technological progress, push Laos to participate in the economic globalization more extensively and more deeply which will contribute to ASEAN economic integration and attract more foreign investors to invest in Laos, stimulate the development of related industries and provide more employment opportunities for the people of Laos. China-ASEAN free trade zone was built on January 1st, 2010 by China and ASEAN. With upgrade negotiations on China-ASEAN Free Trade Area, especially implement the strategy of "Belt and Road", the economic relationship of China and ASEAN becomes more important. From the geographical point of view, ASEAN is an important strategic hinterland of "21st Century Maritime Silk Road". In economic aspect, there is a highly complementary between China and ASEAN and great potential for cooperation. For strategy of the national investment, the establishment of Asian Infrastructure Investment Bank and Silk Road fund will provide the financing guarantee for Chinese enterprises which invest ASEAN and ASEAN will undoubtedly become an important investment target for Chinese enterprises. As a member of ASEAN and the GMS, Laos will inevitably become important country of China’s overseas investment.This paper focus on "Investment Promotion Law" as a research and start form the origin and development of Foreign Investment Law. Through research three aspects on Laos foreign investment access system, foreign investment promotion measures and foreign investment protection system, this paper analyzes legal regime for foreign investment in Laos, and provide legal risk prevention measures for investment in Laos as the aim of this paper.In addition to the introduction, this paper is composed of five parts:The first part introduces the origin and development of the Lao Foreign Investment Law, the legislative model and the new features of 2009 "Investment Promotion Law". Meanwhile analyzes the causes of new 2009 "Investment Promotion Law".The second part focuses on analysis access regime of foreign investment, including scopes and types of foreign investments, foreign investment approval process, and finally analyzes its access system.The third part focuses on foreign investment promotion measures and analyzes its advantages and weakness through research on taxation, land, franchise fees and special economic zones and economic zones and other aspects.The fourth part is the Laos protection policy of foreign investment. By research on the Constitution, the Foreign Investment Law and the concession agreement, it analyzes expropriation, nationalization and compensation, repatriation of investment principal and profit and also analyzes investment dispute settlement mechanism.The fifth part researches legal risks of investment in Laos from the perspective of the practical operation of investment of Chinese enterprises, mainly including Laos local legal risk, legal risks of investment projects, partners,investment agreements and performance and provides legal risk prevention measures for investment in Laos.