[:en]After promulgation, the upcoming Civil Code currently being drafted by the Government of Lao PDR (the “GOL”) will replace the Property Law; Contract and Tort Law; Family Law; Heritage and Basis of Inheritance; Secured Transaction Law; Nationality Law; Enterprise Law; and others. It aims to homogenise and clarify the legal concepts expressed in different, and sometimes contrary, ways across the scope of numerous laws.

In accordance with the 5 Year Work Plan 2010-2015 for the Creation and Revision of Laws, the Committee for Drafting the Civil Code (the “Committee”) was established in 2012. The Committee is comprised of representatives from a 7-sector cross-section of the GOL:

• The Ministry of Justice;
• The National Assembly;
• The People Courts;
• The Offices of People Prosecutors;
• The Ministry of Foreign Affairs;
• The Ministry of Industry and Commerce; and
• The National University of Laos.

The Committee is chaired by the Chairman of the Law Commission of the National Assembly and divided into 4 sub-committees. The first meeting of the Committee was held on 8 June 2012 to discuss the basis and need to implement a Civil Code, including its structure, contents, implementation and to review and discuss the experiences of foreign countries in the implementation of similar legislation. The drafting is being supported by Japan International Cooperation Agency in providing funding and consultation from senior Japanese experts.

The overriding purpose and goal of the Civil Code is to create a united and constant civil legal framework that can be used consistently by the GOL, the judiciary, legal practitioners, companies and citizens. It will create consistent pathways for the conduct of judicial proceedings and standardize definitions and concepts that are codified in numerous forms throughout current legislation.

For example, currently definitions of terms such as ‘individual’ and ‘legal entity’ are provided for separately in various laws, sub-laws and regulations such as in the Property Law, Contract and Tort Law, Secured Transaction Law and others.  In some cases this has created complication and confusion for the relevant authorities in determining the nature of relationships between parties and the legal framework which should be applied to such.

The current draft of the Civil Code is comprised of 11 Chapters and 615 Articles.

Since 2012, the draft Civil Code has been presented in consultations throughout Lao PDR and in Japan on numerous occasions. Most recently, the draft was submitted the General Meeting of the National Assembly on 16 April 2017 for comments only, not adoption. The current draft has since been under renewed consultation with stakeholders.

To receive updates on the progress of the consultations on the draft Civil Code please contact Arion Legal at enquiries@arionlegal.com to be added to our mailing list.

Author: Khamkong Liemphrachanh, Senior Counsel – Head of Government Relations[:]

[:en]How to protect your Intellectual Property in Lao PDR

Enacted on 20 December 2011, the Law on Intellectual Property No. 01/NA (the “Law”) is the principle legislation governing intellectual property (“IP”) protection in Lao PDR. The Law defers ultimate authority at the top of the hierarchy of IP regulations to international conventions and agreements to which Lao PDR is a party. As such, where inconsistencies exist between the Law and international conventions and agreements, the provisions of the international convention or agreement shall prevail.

The Law is drafted to conform with and implement the current international IP protection frameworks including the Berne Convention for the Protection of Literary and Artistic Works (link), and the Paris Convention for the Protection of Industrial Property (link).

Why you should protect your IP in Lao PDR

As Lao PDR’s economy grows and more companies begin conducting commercial activities here it will become increasingly important for businesses to protect and maintain their competitiveness in the market. A company’s failure to effectively protect its IP or to restrict infringement of its IP can lead to the loss of market share, revenue, reputation, opportunity and competitive advantage.

IP protection is essential for a company or individual to maintain effective control over the way their invention, innovation, product or work is accessed, used and exploited in the marketplace and how they benefit from it.

Though there are many different IP protection mechanisms, the primary vehicles of IP protection in Lao PDR are trademarks, patents, copyright, and industrial designs.

Trademarks

Lao PDR is a member of the Madrid System (link) of trademark registration that offers protection in up to 115 member countries worldwide. Trademarks registered in other Madrid System countries may be granted reciprocal registration and a trademark certificate acknowledging protection over the relevant mark in Lao PDR.

To obtain IP protection for a trademark in Lao PDR a trademark certificate must be issued in respect of the mark. A trademark may be any sign, or combination of signs, capable of distinguishing the goods or services of one entity or product from those of other entities or products. Such signs may include words and personal names, letters, numerals, figurative elements and combinations of colours and signs. Eligible signs must be visually perceptible and not identical to a previously registered mark, well-known mark, or geographical indication for the same or similar goods or services where the later mark would tend to cause confusion as to the source of the goods or services or create a false impression that they are connected or associated with another party.

As such, registration of a trademark offers the right to protect such mark from unauthorised use by a third party in Lao PDR that would infringe on it in such a way as described above.

Determining whether a mark is considered ‘well-known’ for the purposes of determining eligibility of a similar mark is a process subject to the Law and includes how recognizable it is within a relevant industry in Lao PDR, the volume and period of use of the mark, and any goodwill associated with the use of the mark, amongst other factors.

Applications for trademark registration are conducted through the Ministry of Science and Technology and may be made to apply to one or more classes of goods or services as described in the Nice Agreement for Classification of Goods and Services (link) (although Lao PDR is not a signatory to the Nice Agreement trademark registration in Lao PDR uses the same classes of goods and services as set out therein).

Trade names are protected under the law without the obligation of registration, regardless of whether or not it forms part of a trademark.

Patents

A patent is a bundle of IP protection rights held by an inventor or their assignees with respect to an invention in which information concerning the invention is protected from being exploited by third parties.

Under the Law a patent “means the official certificate issued by the state organisation to protect inventions.” An application to obtain a patent with respect to an invention in Lao PDR must demonstrate that the respective invention satisfies the following requirements:

1. The invention must be new –e. the invention has not existed, not been disclosed to the public by publication or use or in any other means in the Lao PDR or any other place prior to the date on which the respective application for registration is made;
2. The invention involves an inventive step. The invention must not be obvious to a person having ordinary knowledge in the field or industry in which the invention seeks to be used or applied; and,
3. The invention is industrially applicable. The invention must be able to be “applied usefully in industry, handicraft agriculture, fishery, services, etc”.

Petty patent protection may be offered to innovations which do not reach the threshold required for patent protection. Petty patent protection may be applied for for a utility innovation which meets the following requirements:

1. It is new in the sense that it has not previously been know or used within one year prior to the date of application within Lao PDR;
2. It involves a new technical improvement that involves an inventive step which may be a lesser step than that required for a patent; and,
3. It is industrially applicable, meaning that it can be “applied usefully in industry, handicraft, agriculture, fishery, services, etc”.

Certain inventions may be ineligible for patent or petty patent protection for the following reasons:

1. They are discoveries of existing things including living organisms or parts of living organisms that exist in nature; and
2. They are scientific theories or principles, mathematical algorithms, or sets of rules for doing business or playing games, noting that such things may form part of eligible inventions.

Likewise, diagnostic, therapeutic and surgical methods of treatment of humans and animals, and essentially biological processes for the production of plants or animals are also ineligible for patent protection. Noting, again, that such elements may constitute part of an eligible invention.

The Law also retains special discretion to refuse registration of a patent with respect to an invention where it is considered necessary to prevent its commercial exploitation to protect the culture and traditions of Lao PDR or where it is necessary for the protection of essential security interests of Lao PDR.

Noting the above, the registration process for patents and petty patents in Lao PDR will grant priority, in the case of disputed applications, to whoever files the application first.

While the granting of a patent or petty patent may take years from the date of filing the application, patents offer protection for twenty years from the date of filing and petty patents for 10 years.

Copyright

Copyright refers to the rights protecting works of authorship in art and literature, including scientific works and computer programs, in accordance with the Law. Copyright protection arises in artistic or literary works immediately upon the creation of such works and exists regardless of registration of such protection. Copyright owners may apply to the Department of Intellectual Property to have their copyright recorded to simplify the settlement of any disputes that may arise with regards to the protected works.

Copyright is the IP regime for the protection of artistic works such as drawings, paintings, sculptures, photographs, illustrations, musical works and compositions, and works of literature such as books, brochures, speeches, plays, and academic works.

The owner of copyright in a work will be the author, or authors, except in particular cases in which the rights have been assigned or transferred or in some cases of work commissioned by a third party which provides compensation to the author/s for the copyright to the respective work or works.

The Law provides a list of exclusive economic and moral rights of copyright owners with respect to the work that applies equally to foreign and Lao authors in Lao PDR. Such exclusive rights include the rights to disclosure and publication of the work, to object to misattribution of authorship, to compile a collection of copyright works, to reproduce or translate the work, and to gain economic benefits from the sale, broadcast, performance, communication, etc. of the work.

Industrial Designs

IP protection of a product’s industrial design protects the “new and ornamental… form or shape of the product.”

The Law sets out requirements to obtain an industrial design certificate in order to protect IP in an industrial design as ‘new and ornamental.’

An industrial design shall be deemed ‘new’ for the purpose of the Law if it has not been disclosed to the public by publication, display or use, in Lao PDR or anywhere else, prior to the date of filing of the application for registration. An industrial design will be considered ‘ornamental’ for the purpose of the Law if it gives a special appearance to the object to which the design is applied or in which it is embodied and such appearance is not functional or dictated by technical features of the object.

Designs ineligible for industrial design registration are those in which the appearance of the design is dictated by technical features of the object to which the design is applied or in which it is embodies, and designs that are considered contrary to social order and the fine traditions of the nation by the relevant authorities.

Enforcement

Under the Law, violations of IP rights may be subject to civil enforcement proceedings, administrative enforcement and customs border measures including seizures of infringing property at point of importation into Lao PDR.

Civil enforcement proceedings may be brought by any interested party through a claim in the Peoples’ Court of Lao PDR. Such actions may also be initiated by federations and associations representing interested parties and by collective management organisations.

Remedies available from civil enforcement proceedings include orders of seizure of goods or suspension of import of goods, damages and expenses, and orders that the infringing goods be destroyed. Provisional measures may also be taken by the Courts in order to prevent an infringement of IP from occurring, to prevent infringing goods from entering the market, and to preserve evidence in regard to alleged infringements.

Under the Law, the Lao PDR Customs Department can provide for the suspension of goods that infringe a trademark, copyright or other IP rights from customs upon entry into Lao PDR. Such enforcement requires a complaint to be filed with the Department of Intellectual Property or the Customs Department, as relevant, informing such of the infringing goods.

Applying for IP Protection in Laos

IP protection can be applied for by all Lao citizens and companies and all citizens of nations that are members of international IP treaties or conventions to which Lao PDR is also a member. Individuals or entities that do not fall into these categories will be required to have a representative that does in order to apply for IP protection in Lao PDR.

IP protection applications may be filed in either English or Lao, though Lao language translations of submissions made in English must be provided to the relevant authorities within 90 days of the initial submission.

Contact our team at Arion Legal for more information and assistance to protect your intellectual property in Lao PDR. Email us at enquiries@arionlegal.com or call us on +856 (0) 21 313 718.

Author: Lochlan Reef MacNicol, Legal Advisor

 [:]

[:en]The Lao People’s Democratic Republic’s (“Lao PDR”) amended Law on Investment Promotion (the “Law”) recently came into force on 19 April 2017. The Law sets out some new and amended articles regarding promoted business sectors and investment incentives, forms and types of investment, and investment management mechanisms that aim to better facilitate company incorporation and improve investment throughout the country.

1. Changes to Minimum Registered Capital

The Ministry of Industry and Commerce (“MOIC”) recently released a Notification (No. 2633/MOIC dated 7 November 2017) (the “Notification”) regarding the abolishment of the minimum registered capital requirement for foreign investors in general business companies. This follows the enactment of the amended Law, which omitted the minimum capital requirement for general business companies.

While no implementing guidelines have been released, we understand that foreign-owned general business companies will no longer be required to meet the current standard minimum registered capital requirement of one billion kip. Instead, companies will be required to meet a certain minimum registered capital threshold nominated by the MOIC having regard to consideration of the individual proposed Lao-registered entity.

Current industry-specific minimum registered capital requirements that are set out in specific laws and regulations are not affected by the Notification.

We have yet to see how the above will be implemented by authorities and will provide further detail as it becomes available.

2. Promoted business sectors with investment incentives

Investment incentives under the Law (the “Incentives”) with respect to exemptions on profit tax (3-15 years) and rent/concession fee exemptions (5-15 years) will be offered to investors based on whether they invest in a promoted business sector and the economic status of the zone in which they invest as determined by the government of Lao PDR from time-to-time. Besides the Incentives, investors also enjoy import tariff and value-added tax exemptions in cases in which they:

• import equipment unable to be sourced or produced in Lao PDR to form fixed property, or machinery/vehicles for direct use in manufacturing;
• import raw materials, equipment or components used in production of goods for export; and,
• utilize local raw materials (excluding natural resources) to manufacture finished and semi-finished products for export.

Existing companies that meet the eligibility requirements and are not already receiving the Incentives under the Law may apply for them. While the deadline for the application to receive the Incentives lapsed on 17 August 2017, we have been informed that the One-Stop Service Office (the “OSSO”) of the Ministry of Planning and Investment will still receive and consider such applications on a case-by-case basis.

Companies wishing to claim the Incentives must fulfil the following requirements and conduct commercial operations in accordance with at least one of the listed activities set out below:

• the investment value is at least LAK 1.2 billion (approximately US$150,000);
• at least 30 Lao national technical staff are employed by the company on a long-term basis; or
• at least 50 Lao nationals are hired on contracts of at least 1-year duration.

While a detailed list of commercial activities which, if conducted, will deem a company eligible to receive promotional incentives has yet to be released by the government, companies conducting the following activities will be eligible to claim the Incentives:

• Activities that utilise modern technology, scientific analysis/research, research and development, innovation, environmentally friendly practices, and sustainable use of natural resources and energy;
• Organic agriculture, animal and plant breeding, industrial plantations, forestry development, protection of the natural environment and biodiversity, rural development and poverty alleviation support activities;
• Environmentally friendly industrial processing of agricultural products, and industrial production of handicrafts uniquely related to Lao national heritage;
• Activities that develop the historical, cultural and eco-tourism industries in an environmentally friendly manner;
• Education, sports and gymnastics, human resource development, skill development, vocational training centers or institutions, and production of educational and sports equipment;
• Building of modern hospitals, pharmaceutical and medical equipment factories, and production of, and treatment by, herbal medicines;
• Servicing and development of public infrastructure to resolve road traffic issues in cities and high-density housing areas, infrastructure building for agricultural and industrial production, goods transportation, national transport networks, and transit services;
• Banks and microfinance institutions with policies aimed at alleviating poverty and supporting communities who are unable to access existing banks;
• Modern shopping centers promoting domestic products and internationally well-known brands, exhibition centers and market fairs of industrial, handcrafted and agricultural domestic products.

3. Investment forms and types and management authorities

Investors can choose any of the following investment forms as set forth under the Law, subject to any additional requirements:

• 100% foreign or Lao owned company;
• joint venture between foreign and Lao investors;
• joint business investment by contract;
• joint venture company between state-owned and private enterprises;
• joint venture agreement between the government of Lao PDR and private investors.

Restrictions for foreign investors (minimum registered capital, minimum shareholding requirements, corporate governance, etc.) to any of the above forms of investment are specified under respective relevant laws and regulations and will depend on the commercial activities a company intends to undertake.

The Law provides that businesses can invest in two types of activities:

• “general investment activities” and
• “concession investment activities”.

General investment activities

General investment activities are divided into two categories in the Law: ‘activities in the negative list’ and ‘activities outside the negative list.’

The authorities under the Ministry of Planning and Investment manage the activities in the negative list, while the authorities under the MOIC administer the activities outside the negative list. For activities outside the negative list which fall in the promoted business sectors discussed above, investors can apply for the Incentives with the OSSO after the successful registration of their Lao entity.

The registered capital for general investment activities is based on the business activities of the relevant company, with at least 30% of the total registered capital needing to be paid up-front within 90 days of the date of issue of the investment licence. The remaining balance must be paid within 1 year or a period otherwise set out in specific regulations enacted by the authorities governing the proposed activities of the relevant company. The capital contribution can be made in cash and in-kind and requires a certification of the capital importation from the Bank of Lao PDR for all capital brought in from outside of Lao PDR.

The investment term for general business activities is unlimited unless otherwise stated in the relevant industry-specific regulations.

Concession investment activities

Concession investments comprise of the following main activities:

• Activities requiring a concession for use of government-owned land;
• Development of Special Economic Zones and ‘Industrial Processing for Export’ zones;
• Mining;
• Development of energy resources; and
• Airlines and telecommunications.

For concession investment activities, the minimum registered capital must be at least 30% of the total capital. The minimum paid up registered capital is based on the investment value in which 1% to 3% of the registered capital must be paid within 90 days of the date of issue of a company’s investment licence with the remaining balance paid within 2 years. The registered capital shall be made up of assets the value of which shall not be less than the registered capital during the entire period of business operation.

The investment term for a concession project varies depending on the type, scale, value, conditions and feasibility studies of the project with a maximum possible term of 50 years. The government, the National Assembly or the Provincial People’s Assembly may allow investors to apply for an extension of their concession investment term on a case-by-case basis.

If you would like more information about the Investment Promotion Law or investing in Lao PDR please contact the Arion Legal team at enquiries@arionlegal.com to find out how we can help.

 [:]

[:en]One of the most common agreements made in Lao PDR are lease agreements, whether they are for residential accommodation, office or shop space, factory or farm land or any other personal or commercial purposes. However, from time to time, disputes or disagreements may arise from the lease agreement, many of which could have been avoidable through clearly stated terms in a lease contract or a legal review for compliance under Lao PDR law.

The three most common tenancy disputes in Lao PDR we have encountered from our clients include:

• the misrepresentation of the signatory of the lease agreement being the ‘landlord’ or owner of the premises when the signatory in fact does not have such authority;
• the premises being used by the landlord as collateral for a loan without the knowledge of the tenant (and in the worst-case scenario, default of the loan and repossession of the property by the creditor without proper compensation to the tenant); and
• the premises being used by the tenant for a purpose other than for the permitted purpose (e.g. a residential lease being used by the tenant as an office to run commercial operations).

In light of the above, how can parties to a lease agreement protect their interest, anticipate issues that may arise and agree on an amicable resolution to their problems?

Irrespective of whether you are the tenant or landlord, it is in the interest of both parties to enter into a clear and detailed lease agreement which identifies the terms and conditions under which the arrangement for the lease of premises will be made to avoid any misunderstandings or disputes which may arise from the agreement.

At a minimum, a lease agreement should contain the following details:

• Name and contact details of the tenant and landlord: including contactable phone numbers, physical addresses and email addresses (retaining a copy of the ID of the parties is useful);
• Details of the lease premises: including the exact location and description of the lease area (attaching a map or land title of the lease premises to the lease agreement is particularly useful to indicate whether the entire plot of land and/or the building is being leased and whether there are any existing easements or encumbrances);
• Rent: stating the agreed amount to be paid by the tenant to the landlord for the lease of premises and the payment schedule according to which rent will be paid;
• Security deposit: if required by the landlord and if so, the permitted uses or deductions which may be made from the security deposit and terms upon which the return of the security deposit will be made to the tenant at the end of the lease;
• Term and extension of term: stating the exact duration of the lease of premises to the tenant, including any option for an extension or renewal of term.
• Permitted uses of the premises: stating clearly the permitted uses of the premises ensures the landlord may terminate the lease agreement if the premises was used for another purpose.
• Representations and Warranties:
  • The parties should obtain a representation and warranty from the other party that it has the power and authority to sign the lease agreement. For the tenant, this is reassurance that the landlord is the true owner of the lease premises or has a power of attorney to sign on behalf of the true owner. For the landlord, this is reassurance that a tenant signing on behalf of a company has the authority to sign for and on behalf of that company.
  • The tenant should also seek a representation and warranty from the landlord that as of the effective commencement date of the lease, the premises is not subject to any third-party encumbrance and will not be encumbered unless the tenant consents and the third party agrees to enter into a deed of assignment agreeing to be bound by the terms of the existing lease agreement.
• Obligations of the Parties: typically, this should include provisions to the effect that:
  • the landlord must ensure quiet enjoyment of the premises;
  • the landlord may inspect the premises upon reasonable advanced notice to the tenant;
  • the tenant must use the premises without disturbances to its neighbours;
  • there should be a clear delineation of responsibility for either the landlord or tenant to be responsible for damages or repairs on the premises and costs for such repairs;
  • the parties should agree on whether installation of fixtures or improvements is permitted (and what type); and
  • whether the premises must be returned in its original condition with installations removed or kept by the landlord.
• Termination: the parties should agree on the circumstances in which the lease agreement may be terminated with notice and whether advance payments will be returned in the event of early termination of the lease agreement.
• Dispute Resolution Mechanism: as a low-cost option, parties should agree to first use their best efforts to resolve any dispute amicably, failing which, they bring the matter to the village chief for mediation. Submission of the dispute to the Arbitration of the Centre for Economic Dispute Resolution of Lao PDR or People’s Court of Lao PDR should be a measure of last resort.

Pursuant to the Lao PDR Law on Contracts, lease agreements must be executed by the tenant and the landlord and signed by two witnesses for each party and the village chief of the location of the lease premises in order to be effective. To ensure legal validity and authenticity of the contract, the executed lease agreement should subsequently be submitted to the Notary Office of the Ministry of Justice for certification.

As with any contractual document, there is room for negotiation or further contractual clauses to be inserted or amended in the interest of either or both parties. To avoid being caught up in a potential dispute arising from the lease agreement, we strongly recommend that prospective tenants and landlords enter into clear and concise lease agreements which are compliant with Lao PDR laws.

This article has been provided by  Arion Legal. Operating in Lao PDR since 2008, Arion Legal’s experienced team of lawyers provides focused, results orientated and cost effective legal and tax services to foreign and Lao investors. Should you have any questions relating to our article or would like further advice or our assistance to review or draft a lease agreement from a Lao PDR law perspective, please contact the Arion Legal team at enquiries@arionlegal.com.[:]

[:en]The Ministry of Industry and Commerce (“MOIC”) recently released a Notification (No. 2633/MOIC dated 7 November 2017) (the “Notification”) regarding the abolishment of the minimum registered capital requirement for foreign investors in general business companies. This follows the recent enactment of the amended Law on Investment Promotion (No. 14/NA dated 17 November 2016) which omitted the minimum capital requirement for general business companies.

While no implementing guidelines have been released, we understand that general business companies will no longer be required to meet the current standard minimum registered capital requirement of one billion kip. Instead, companies will be required to meet a certain minimum registered capital threshold nominated by the MOIC having regard to consideration of the individual proposed Lao-registered entity.

Current industry-specific minimum registered capital requirements that are set out in specific laws and regulations are not affected by the Notification.

We have yet to see how the above will be implemented by authorities and will provide further detail as it becomes available.[:]

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ປັດຈຸບັນ, ຂໍ້ຂັດແຍ່ງທີ່ດິນແມ່ນບັນຫາທີ່ເກີດຂຶ້ນຫຼາຍ ໃນ ສປປ ລາວ, ຊຶ່ງສັງເກດຈາກການເພີ່ມຂຶ້ນຂອງຄະດີກ່ຽວກັບທີ່ດິນ ຢູ່ ສານປະຊາຊົນໃນຂອບເຂດທົ່ວປະເທດ ຢ່າງຫຼວງຫຼາຍໃນໄລຍະຫຼາຍປີທີ່ຜ່ານມາ. ໃນນີ້, ການທີ່ຂໍ້ຂັດແຍ່ງທີ່ດິນຖືກຮ້ອງຟ້ອງໄປທີ່ສານປະຊາຊົນນັ້ນ ອາດຈະເຮັດໃຫ້ຄູ່ກໍລະນີທັງສອງຝ່າຍຕ້ອງລໍຖ້າ ແລະ ໃຊ້ເວລາໃນການແກ້ໄຂຂໍ້ຂັດແຍ່ງເປັນເວລາຍາວນານ ເນື່ອງຈາກວ່າ ບັນຫາທີ່ດິນຕ້ອງປະກອບມີເຈົ້າໜ້າທີ່ຈາກຫຼາຍພາກສ່ວນເຂົ້າຮ່ວມນຳ. ສະນັ້ນ, ຈະເປັນການດີ ຫຼື ບໍ່ ຖ້າທ່ານສາມາດແກ້ໄຂບັນຫາທີ່ດິນຂອງທ່ານໄດ້ໂດຍຜ່ານຂະບວນການຍຸຕິທຳນອກສານ ໂດຍການນຳໃຊ້ທີ່ປຶກສາກົດໝາຍທີ່ມີຄວາມຮູ້ ແລະ ຊ່ຽວຊານທາງດ້ານກົດໝາຍທີ່ດິນ ເພື່ອຊ່ວຍໃຫ້ຂໍ້ຂັດແຍ່ງທີ່ດິນດັ່ງກ່າວເປັນໄປຕາມຂັ້ນຕອນນອກສານທີ່ຖືກຕ້ອງຕາມລະບຽບກົດໝາຍ.

ດ້ວຍເຫດນີ້, ບໍລິສັດ ອາຣຽນ ລີໂກລ໌ (ລາວ) ຈຳກັດຜູ້ດຽວ ຈຶ່ງໄດ້ເລີ່ມສະໜອງການບໍລິການຕາງໜ້າ ຫຼື ເປັນຕົວແທນ ໃຫ້ແກ່ ລູກຄວາມຂອງພວກເຮົາ ໃນຂະບວນການເຈລະຈາ ແລະ ໄກ່ເກ່ຍ ຂໍ້ຂັດແຍ່ງກ່ຽວກັບທີ່ດິນ ກັບ ຄູ່ກໍລະນີ ແລະ ພາກສ່ວນທີ່ກ່ຽວຂ້ອງ ພ້ອມທັງບໍລິການຮ່າງເອກະສານທີ່ຈຳເປັນພາຍໃຕ້ລະບຽບກົດໝາຍຂອງ ສປປ ລາວ ທີ່ກ່ຽວຂ້ອງກັບບັນຫາທີ່ດິນ.

ຖ້າທ່ານຕ້ອງການຂໍ້ມູນເພີ່ມເຕີມ ກ່ຽວກັບ ການບໍລິການດັ່ງກ່າວ ພວກເຮົາສາມາດໃຫ້ຄວາມຊ່ວຍເຫຼືອແກ່ທ່ານໄດ້. ກະລຸນາຕິດຕໍ່ ທີ່ປຶກສາກົດໝາຍຄົນລາວຂອງບໍລິສັດ. ຕິດຕໍ່ໄດ້ທີ່: +856 (0) 21 313 718. mamchintala@arionlegal.com ແລະ soulignasack@arionlegal.com[:]

[:en]On 11 May 2017 the Draft Amended Law on Water Resources (the “Draft Law”) was adopted by the National Assembly and is currently under committee review.

The Law on Water and Water Resources (the “Law“) has been in its current form since 1996 and the ongoing review intends to clarify and improve provisions of the Law which have caused difficulties in interpretation and implementation.

The amendments to the Law  aim to develop water resources in an environmentally sound and sustainable manner and in accordance with the international best practice to ensure the protection of water resources and ecosystems. New provisions have been added on water rights and use, including waste-water discharge permits, wetlands and water-resources protection, ground-water management, and reservoir management. Additionally, the Draft Law expands the terms and conditions of large, medium, and small-scale uses and includes articles on environmental flows for hydropower as well as stipulations related to irrigation use.

A significant development is the establishment of a National Water Resources Data and Information System administered by the Ministry of Natural Resources and Environment (“MONRE”), the details of which will be set out in a subsequent specific regulation. Access to information and data stored in the system will be available to all individuals and organisations. The Draft Law also grants greater responsibility to the MONRE to develop and implement management plans of river basins throughout the country.

Another promising addition is a requirement for minimum water flow determinations to be made that set a minimum threshold for all watercourses to meet the basic needs of people whose livelihoods rely on them and the sustainability of the ecosystems within the affected area. In addition to the new Water Resource Reserved Areas scheme, designated for the protection of water resources, the Draft Law appears to be providing legal mechanisms to fulfill its ambitious aims.

The final Draft Law shall be submitted on 22 June 2017 to the Standing Committee of the National Assembly for consideration.[:]

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In accordance with the 5 Year Work Plan for the Creation and Revision of Laws of the VIII National Assembly (2016-2020) No. 02/NA dated 27 April 2016, the Law on Minerals No. 02/NA (the “Law on Minerals”), dated 20 December 2011, is currently under revision.

Arion Legal attended the first Workshop on the Revision of the Law on Minerals held in Vientiane on 12 June 2017.

The amendments to the Law on Minerals aim to centralise the management of mineral resources and to develop the mining industry in an environmentally sound and sustainable manner; to encourage and support domestic and foreign investment in the mining industry in accordance with international best practice; to provide effective enforcement standards within the mining industry; to emphasise the importance of good mine closure and rehabilitation practices; to provide clear mechanisms for dispute resolution arising from mining activities; and to ensure the sustainability of the development of the mineral resource sector.

The current draft of the Revised Law on Minerals will be reviewed in workshops held in Savannakhet later this month and in Luang Prabang in early July 2017. The outcomes of these workshops will form the basis of the final version to be submitted to the Prime Minister’s Office for consideration at the end of July 2017.[:]

[:en]In accordance with the Bank of Lao PDR (the “BOL”) Notice on Temporary Suspension of Issuance for Financial Institutions Operating Licences in Lao PDR No.95, dated 18 May 2017 (the “Notice”), new investment, both foreign and domestic, in all business relating to financial institutions (including deposit/non-deposit-taking micro financial institutions, credit unions and savings, leasing companies, pawn shops, money transfer companies, etc) is subject to temporary suspension from 1 March 2017 until 28 February 2019.

The purpose of the Notice is to allow the Government of Lao PDR an opportunity to review and evaluate the implementation of the laws and regulations currently in effect in this field and, if required, to provide any necessary amendments to the existing legal framework with a focus on maintaining the economic development of Lao PDR.

With respect to applications lodged prior to 1 March 2017, the BOL will continue to consider issuing business operating licences for financial institutions subject to the application documents being complete, valid and in compliance with the regulations.[:]

[:en]In line with the policy to adjust the maximum ceiling of the insurable earnings under the National Social Security Fund (“NSSF”) framework at five times the minimum wage set by the Government of Lao PDR and adjusted from time to time, as of 1 January 2017 the maximum ceiling of insurable earning has been raised from 2 million Kip to 4.5 million Kip under Ministry of Labour and Social Welfare Decision No. 1740/MOLSW dated 25 April 2016 (the “Decision”).

Articles 55 and 56of the Social Security Law (No. 34/NA dated 26 July 2013) requires non-government employers to contribute 6% of an employee’s monthly salary to the NSSF, with a further 5.5% to be contributed by insured employees. In preactice, the 5.5% employee contribution should be deducted from an employee’s salary and be paid by the employer to the NSSF.

Employees of the government will have 8.5% of their monthly salary contributed to the NSSF by the government and are required to make an additional contribution of 8 percent themselves.

As a result of the new maximum ceiling of insurable earnings coming into force, the maximum monthly NSSF contribution payable on behalf of non-government employees earning 4.5 million Kip or above per month shall be capped at 6% of 4.5 million Kip – 270,000 Kip. Likewise, NSSF contributions made by insured non-government employees earning 4.5 million Kip or over per month shall be capped at 5.5% of 4.5 million Kip – 247,500 Kip.

The Decision also sets the minimum level of insurable earnings at not less than 50% of the current monthly minimum wage (900,000 Kip) where an employee’s monthly income is lower than the prescribed monthly minimum wage. As such, the current minimum level of insurable earnings on which NSSF contributions are to be made by employers on behalf of individual employees is 450,000 Kip.

As noted, the Decision is now in force, replacing the previous Decision No. 1851/MOLSW, and must be strictly implemented by all employers and employees in Lao PDR.

Benefits under the NSSF include the provision of funds for health care during child birth, workplace injuries and illnesses, old age pensions, funeral grants, surviving family benefits, and unemployment benefits.

If you would like more information on your National Social Security Fund compliance requirements please contact our team at Arion Legal at enquiries@arionlegal.com to find out how we can help.

Author: Lochlan Reef MacNicol, Legal Advisor

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