Capital City

Official Language (s)

Language required for filings
Lao & English


6.8 million (2014)

$34.4 billion

Corporate tax rate

Laos has abundant mineral wealth, much of which remains unexploited although many foreign firms are active. The power sector, especially hydropower and coal, is open to foreign investment, with many international firms represented. Agribusiness has also attracted foreign investment.

The Lao economy remains dominated by Thailand, Vietnam, and China, with heavy participation in certain sectors by Korea, France, Japan, India, Malaysia, Singapore and Australia. American companies play almost no role in Laos.

The Lao government has targeted tourism, especially ecotourism, as a major area of future growth.

Business in Laos

Business in Laos
The Ministry of Industry and Commerce is the government ministry responsible for governing and developing industrial activity and commercial activity in Laos. It is responsible for regulating and promoting manufacturing, trade, import and export activity, and for representing Laos and Laotian interests in the international business community.
1.1 Types of Business

There are several types of businesses in Laos

  • Partnership Company
  • Limited Company
  • Public Company

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1.0 Employment

Business in Laos
The relationship between employers and employees in Laos is regulated by the Ministry of Labour & Social Welfare.
1.1 Types of Employment

There are several types of employment that is recognized

  • Indefinite period
  • Definite period

1.2 Mininum Wage

900,000 kip per month.

1.3 Annual Leave

Workers employed under an employment contract made for an indefinite period or for a definite period of one year or more, who have already worked for one full year shall be entitled to 15 days of annual leave, at full pay.

1.4 National Social Security Fund

The employers will have to transfer the contributions of both, employers and employees to the social security fund. The SSO will make the employer responsible to pay for the whole contribution amount, which includes employees’ and employer’s contribution. The total amount is 9.5% of the salary up to a monthly threshold of 1,500,000 Kip. The employer pays 5% and the employee 4.5% of this amount. It’s the employer’s duty to deduct the contributions to be paid by the employee from its salary.

2.0 Taxation
Business in Laos

Lao Tax Department under the Ministry of Finance is the main agency that enforces taxation for the government.

2.1 Corporate Tax

The Corporate Tax Rate in Laos stands at 24%.

2.2 Value Added Tax

The rates of Value-Added Tax as a 10% rate applying to imported [goods and services] and domestically produced and consumed goods and services liable to value-added tax and exemption for goods and services for export abroad. In addition, there is an exemption for imported goods, machines and production machinery from abroad to enable domestic production for which there is insufficient supply for use in production and investment.

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