Govt offers permanent residency to foreign investors
Govt offers permanent residency to foreign investors
The Lao government is allowing foreign businesspeople to apply for permanent resident status as part of efforts to boost foreign investment in the country.
According to a prime ministerial decree on the permanent resident status of foreigners living in Laos, which the cabinet endorsed at the end of 2011, foreign businesspeople can apply for a permanent resident card if they have an investment project in Laos with registered capital of at least US$500,000.
They must also have operated a business in Laos for at least five years and fulfill tax obligations before they can apply for a permanent resident card, which enables them to live in Laos.
Foreigners with permanent resident status do not need to extend a visa to live in Laos. Currently, visa extensions cost a lot of money and consume a lot of time.
The decree also allows foreign experts and those who have contributed to Lao national liberation, protection and development to apply for the status. People of Lao ethnicity who are now nationals of other countries can also apply for the card.
Those who wish to attain permanent residency must make a commitment to respect Laos' constitution and laws. The government can revoke the residency status if a permit holder is found to have broken the law or is sentenced to jail for up to five years. Anyone who threatens national security and interests may also have their residency revoked, according to the decree.
In 2009, the government revised the Foreign Investment Promotion Law, allowing non-nationals who invested US$500,000 or more in Laos to purchase a plot of land up to 800 square metres in for residential purposes.
This is an important consideration because it allows foreign businesspeople to buy land on which offices and houses can be built.
Policy makers believe that giving foreign nationals the option to own land and obtain permanent residency will attract money into the country and bolster efforts to boost economic growth.
At present, the main foreign investors in Laos come from Vietnam, China and Thailand. Most of the investment is in natural resource extraction such as mining and hydropower. The government now wants foreign businesses to work within the non resource sector.
The government abolished the centrally planned economy in 1986, allowing the private sector to take part in socio-economic development. Over 27 years after this policy reform, private enterprise now plays a significant role in driving economic growth in Laos.
At present, domestic and foreign private enterprise contributes about 16 percent of the GDP, while state and semi-state ventures contribute just 8 and 7.3 percent to GDP respectively.
vientiane times
