Bank of the Lao PDR Privacy and Policies

On the implementation of foreign currency management No. 10/PM, dated 14 July 2023

Overview Policy CMS

• Pursuant to law on the Government of Lao PDR No. 03/NA, dated 16 Nov 2021;
• Pursuant to law on foreign currency management, No. 15/NA, dated 07 July 2022;
• Pursuant to the Resolution of the May 2023 ordinary meeting of government No. 07/GOV, Dated 25 May 2023;
• Pursuant to the Proposal of the Bank of Laos No. 40/BOL, dated 09 May 2023.

Export - Import

3.5 The import-exporter shall follow:

1. Register to be import-exporter with the Department of Industry and Commerce and then report the deposit account information that opened with commercial banks to the Bank of Laos in order to request a certificate. This certificate will inform the commercial bank to either change the current deposit account or open a new one for import-export purposes.
2. Importers must fill in information on payments for goods and services from foreign countries through the banking system in the detailed tax notification within the ASYCUDA system, in accordance with regulations.
3. Exporters must transfer all income from their exports to Lao PDR through an import-export deposit account. If exporters wish to retain export income abroad to repay a loan, they must request permission from the Bank of Lao PDR. This request will be considered based on the importance of the national project and must include documents verifying the fulfillment of foreign loan obligations during the loan repayment period. Any remaining funds after loan repayment must be transferred to the exporter’s import-export deposit account opened with a commercial bank in Lao PDR.

Foreign Direct Investment “FDI”

5. Monitoring cash flow related to Foreign Direct Investment in the Lao PDR

5.1 Assign the Bank of Lao PDR to issue policies and regulations to manage foreign currency flows related to foreign direct investment in the Lao PDR.

5.2 Assign the Ministry of Planning and Investment to do the following:

1. Coordinate with relevant departments to review the structure of all investment capital from foreign investors in order to establish strategies that attract sustainable foreign investment without creating a heavy foreign debt burden for the Lao PDR.

5.5 Foreign investors must act as follows:

1. Notify a commercial bank to open an investment deposit account after receiving an investment license or enterprise registration;
2. Transfer all capital, including registered capital, into the Lao PDR in full, within the time frame specified by relevant laws and regulations. Additionally, submit a request for a capital import certification from the Bank of Lao PDR, and provide the capital import certificate to the authority that issued the investment license or oversees business operations. The use of such capital to make and receive payments for goods, services, and other fees in the Lao PDR must be conducted in kip.

On Foreign Currency Management Relevant to Import-Export Goods and Services No. 677/BOL, dated 24 July 2023

Export - Import (Version 1)

• Pursuant to law on Bank of Lao PDR (Amended) No. 47/NA, dated 19 Jun 2018;
• Pursuant to law on foreign currency management (Amended) No. 15/NA, dated 07 July 2022;
• Pursuant to Order On the implementation of foreign currency management No. 10/PM, dated 14 July 2023
• Pursuant to the research conducted by department of foreign currency management in cooperation with relevant departments.

Notification of Registration as an Import-Exporter and Opening an Import-Export Deposit Account

Article 5: Registration

Import-exporters shall register with the Bank of Lao PDR within 10 business days of receiving the import-exporter registration certificate from the Department of Industry and Commerce in order to receive certificate of register notification for the import-export from BOL to open an import-export deposit account at a commercial bank.

Requested Documents to receive a certificate of register notification for the import-export are as follows:

1. Complete the BOL application form;
2. Provide a copy of the import-exporter registration certificate;
3. Provide a copy of the investment license and/or enterprise registration;
4. Provide a business license from the relevant authority (if applicable);
5. Provide any other documents requested by BOL.

For import-exporters who previously have multiple deposit accounts, they must notify and provide information on all deposit accounts opened with commercial banks to BOL using the provided form.

Article 6: Consideration of Issuance of a certificate of register notification for Import-Export

The Bank of Lao PDR will consider issuing a certificate of register notification for import-exporters within five business days from the date of receipt of the correct and complete documents.

Article 7: Opening of Deposit Account for Import-Export

Import-exporters must open an import-export deposit account with a commercial bank within 10 business days from the date of receiving the certificate of register notification for import-exporters.

On Foreign Currency Management from Export Goods and Services No. 333/BOL, dated 07 March 2024

Export - Import (Version 2)

• Pursuant to law on Bank of Lao PDR (Amended) No. 47/NA, dated 19 Jun 2018;
• Pursuant to law on foreign currency management (Amended) No. 15/NA, dated 07 July 2022;
• Pursuant to Order On the implementation of foreign currency management No. 10/PM, dated 14 July 2023
• Pursuant to the research conducted by department of foreign currency management in cooperation with relevant departments.

Transferring Exporters' Foreign Currency into Lao PDR

Article 4: Exporters' Foreign Currency Income

Exporters' Foreign Currency Income refers to the amount of foreign currency specified in the sale and purchase contracts for goods and services that are exported.

Track

Article 5: Proportion and Timeframe for Transferring Foreign Currency Income into Lao PDR

Exporters must receive payment for goods and services from foreign countries into their import-export deposit account by the due date specified in the sales contract, but no later than one hundred and eighty (180) days. Each sector must transfer foreign currency income into Lao PDR in accordance with the minimum percentage requirements and within the following specified timeframes:

• Mining sector: 85% within 90 days from the date of export.
• Service sector: 80% within 60 days from the date of export.
• Agricultural sector: 75% within 60 days from the date of export.
• Other sectors: 70% within 90 days from the date of export.
• Electricity sector: 20% within 180 days from the date of export.

Lock and Exchange

Article 7: Proportion in the Sale of Foreign Currency to the Banking System

Exporters must sell a portion of their foreign currency income from exports, adhering to the minimum percentage and within a maximum period of three (3) business days from the date of their foreign currency income is transferred to their import-export deposit account. The required sale proportion for each sector is as follows:

1. Mining sector: 35% of the minimum percentage of income that is transferred to Laos.
2. Agricultural sector: 30% of the minimum percentage of income that is transferred to Laos.
3. Electricity sector: 20% of the minimum percentage of income that is transferred to Laos.
4. Service sector: 20% of the minimum percentage of income that is transferred to Laos.
5. Other sectors: 20% of the minimum percentage of income that is transferred to Laos.

Commercial bank (Report BOL)

Article 8: Sale of Foreign Currency to the Bank of the Lao PDR

A commercial bank that has purchased foreign currency from exporter must sell such foreign currency to the Bank of the Lao PDR in an amount of at least thirty percent (30%) of the minimum percentage it has collected and purchased from exporter through the system of the Department of Banking Services, within the date of purchase or by the next business day.

On Foreign Currency Management from Foreign Direct Investment No. 1225/BOL, dated 21 Dec 2023

• Pursuant to law on Bank of Lao PDR (Amended) No. 47/NA, dated 19 Jun 2018;
• Pursuant to law on foreign currency management (Amended) No. 15/NA, dated 07 July 2022;
• Pursuant to Order On the implementation of foreign currency management No. 10/PM, dated 14 July 2023
• Pursuant to the research conducted by department of foreign currency management in cooperation with relevant departments.

Register Bank Account

Article 6. Opening Deposit Account for Investment

Foreign investors must open an investment deposit account with a commercial bank in Kip currency and foreign currency within fifteen business days from the date of receiving the investment license and/or enterprise registration certificate. All financial transactions related to foreign direct investment must be conducted exclusively through these deposit accounts, including transferring capital into the Lao PDR, transferring profits, dividends, and paying capital and interest on loans abroad.

Requested documents to open an investment deposit account are as follows:

1. Application form as provided by the commercial bank;
2. Copy of the investment license and/or enterprise registration certificate;
3. Copy of the business license (if any);
4. Other documents as determined by the commercial bank.

Requested documents to open an investment deposit account are as follows:

1. Application form as provided by the commercial bank;
2. Copy of the investment license and/or enterprise registration certificate;
3. Copy of the business license (if any);
4. Other documents as determined by the commercial bank.

Certification of Transferring Capital for Direct Investment to Lao PDR and Transferring Capital Back to the Country of Origin.

Track Capital Account

Article 9. Transferring Capital for Direct Investment to Lao PDR

Foreign investors must transfer capital for direct investment to the Lao PDR in the amount specified in the investment license and/or enterprise registration certificate. Each time they transfer capital to the Lao PDR, they shall submit transaction documents to the Foreign Exchange Management Department within thirty days from the date of the transfer.