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Dealing with Construction Permits in

Lao PDR

Below is a detailed summary of the procedures, time and costs to build a warehouse in Lao PDR. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Lao PDR to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Purchase the application forms for a building permit

    Agency: District Construction Division

    BuildCo must purchase the application forms to apply for a building permit from the District Construction Division. Vientiane Prefecture is divided into four districts, which are further subdivided into villages.

    1 day LAK 20,000
    2

    Request and obtain residence certificate from Village Chief

    Agency: Village Chief

    BuildCo must obtain 3 copies of a residence certificate certifying that the applicant (the company's manager) has a permanent address. The certificates are should be stamped and signed by the Village Chief who checks the history of the land and location.

    1 day LAK 30,000
    3

    Submit building permit application to the District Construction Division

    Agency: District Construction Division

    BuildCo must submit the application for a building permit, along with a copy of the land title and documents described above (four copies of each).

    1 day LAK 100,000
    4

    Receive pre-approval inspection from the District Construction Division

    Agency: District Construction Division

    The District Construction Division inspects the property. If the inspectors approve the application, the head of the district signs the approval. For buildings larger than 200 sq. m., the district chief sends a letter to the Vientiane Prefecture’s Office of Building and Urban Planning for final approval. The District Construction Division notifies the applicant that the letter has been forwarded to the Prefecture.

    1 day no charge
    5

    Receive pre-approval inspection from the Vientiane Prefecture

    Agency: Vientiane Prefecture

    The inspectors verify that the construction plan complies with building regulations.

    1 day no charge
    6

    Obtain building permit from Vientiane Capital

    Agency: Vieintiane Capital

    After the plan is approved, the Office of Building and Urban Planning of Vientiane Capital contacts the applicant to pick up the permit. If the Prefecture does not contact the applicant within 30 days, the plan is deemed approved.

    30 days LAK 320,000
    7

    Receive setting-out inspection from Department of Urban Planning & Environment

    Agency: Department of Urban Planning & Environment

    The department conducts an inspection prior to the commencement of construction to ensure that the boundaries are correct.

    1 day no charge
    8

    Receive foundation inspection from Department of Urban Planning & Environment

    Agency: Department of Urban Planning & Environment

    The department conducts a foundation inspection during construction.

    1 day no charge
    9

    Request and receive final inspection from Committee for Management of Construction

    Agency: Committee for Management of Construction

    After construction is completed, the project owner or building owner must submit a request in writing to the Construction Management Committee (CMC) to inspect the construction according to the issued building permit. If the construction complies with construction regulations, the Housing and Urban Planning Department, in coordination with State Asset and Housing Department, officially issues a correct construction certificate (a correct construction certificate means a certificate issued by the CMC to certify that the construction complies with the regulation).

    Regulation No. 1512 (dated September 28, 1991) has been replaced by Decision No. 7681 (dated June 29, 2005).

    1 day no charge
    10

    Request and receive connection to water and sewage services

    Agency: Water Supply Authority of Lao PDR (WASA)

    To obtain a water and sewerage connection to the land where the building will be constructed, BuildCo must enclose the building permit or a correct construction certificate with the application.

    45 days LAK 3,000,000
    * 11

    Obtain certificate of completion of building works

    Agency: Housing and Urban Planning Department

    20 days no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 6.5
    Quality of building regulations index (0-2) 0.0
    How accessible are building laws and regulations in your economy? (0-1) Not easily accessible. 0.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents. 0.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.5
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Construction company. 0.5
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 0.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Being a registered architect or engineer. 0.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Being a registered architect or engineer. 0.0