Business Reforms in Lao PDR
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Starting a Business: The Lao People’s Democratic Republic made the process of starting a business faster by implementing simplified procedures for obtaining a license and a registered company seal.
Getting Electricity: Lao PDR improved the regulation of outages by beginning to record data for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI).
Getting Credit: The Lao People’s Democratic Republic improved access to credit information by eliminating the threshold for the minimum size of loans to be included in the credit registry’s database and by expanding borrower coverage.
Labor Market Regulation: Lao PDR capped the duration of renewable fixed-term contracts (previously unlimited) at 36 months and reduced the maximum length of a probationary period from 3 months to 2. It also eliminated the requirement for third-party approval before an employer can dismiss one worker or a group of nine workers and reduced the severance payment for employees with 5 and 10 years of tenure.
Getting Credit: The Lao People’s Democratic Republic improved access to credit by implementing a modern, unified, notice-based collateral registry.
Protecting Minority Investors: The Lao People’s Democratic Republic strengthened minority investor protections by introducing requirements for directors to disclose in detail their conflicts of interest to the other board members and for companies to promptly disclose related-party transactions to the Securities Commission and to include the information in their annual reports.
Paying Taxes: Lao PDR made paying taxes less costly for companies by reducing the corporate income tax rate—though it also introduced a new property transfer tax.
Starting a Business: Lao PDR made starting a business easier by allowing entrepreneurs to apply for tax registration at the time of incorporation.
Paying Taxes: Lao PDR made paying taxes less costly for companies by reducing the corporate income tax rate.
Trading across Borders: Lao PDR reduced the time to export and import by implementing the ASYCUDA electronic data interchange system at at the Thanaleng–Friendship Bridge border crossing.
Getting Credit: Lao PDR improved access to credit information by establishing a public credit registry.
Registering Property: Lao PDR made resgistering property faster by moving to a title system.
Paying Taxes: Lao PDR replaced the business turnover tax with a new value added tax.
Paying Taxes: Lao PDR made paying taxes easier for companies by consolidating several taxes into one improved form and improving the lodgment process and staffing at the tax office.
Starting a Business: Lao PDR made starting a business easier by speeding up the process of obtaining an operating license and eliminating the requirement to obtain approval for registration of a new company from the relevant ministry.
Trading across Borders: Lao PDR took measures aimed at making it easier to trade across borders, including the introduction of new regulations limiting the government agencies that may be involved in inspecting goods at the border.