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From time to time, Laos has been growing economically, matching its neighboring countries and more promising opportunities from foreign investors. Laos is joining its position as one of the fastest-growing economies in the world, leveraging on its strategic position as a prime spot for cross-border investments and exports to neighboring countries. The goal to be a “Land-Link” country with several routes connected with five countries can assure you that Laos can give you many profits if you give it a try. 

Here are fives reasons why you should invest in Laos

1. Potential Growth

Laos has a goal towards graduating from Least Developed Country status by 2024 and has continued to show a strong, sustainable, and inclusive economic growth, as well as establishing 12 Special Economic Zones (SEZs) for further development in the country. The SEZs will create clusters/new developing industries, attract local and foreign direct investments, establish an infrastructure network to support operations and export; Provide strong supply chain and access to neighboring markets; and developing talent to support businesses.

2. Abundance of Resources

Laos has plenty of natural resources like agriculture, forestry, minerals (gold, copper, zinc, and lead), electricity generated from hydropower, and tourism. To attract quality Foreign Direct Investment (FDIs), Laos has also taken gradual steps to increase its economic base as sustainable growth, from electricity generation, agriculture, and mining sectors, which took up close to 65% of total FDI in 2015.

3. The Stable Governance

Laos is one of the most politically stable countries in the region, For ease of having a pro-business environment, Lao PDR has been taking a multi-sectoral strategy to introduce policies and regulated mechanisms that are followed throughout ministries and local governments.

4. The BRI (Belt and Road) Initiatives

As becoming a Land-Link country there are various routes to connect ASEAN to China such as Road No. 3 (R3) connecting Thailand-Laos-China called North-South Corridor and  East-West Corridor, connecting Thailand-Laos-Vietnam. Not to mention the upcoming high-speed railroad connecting from China to Laos. As China's BRI project is underway, construction service and construction materials are in high demand.

5. Incentives

Laos has investment incentives under the promotion law (IP Law) such as:

Investment promotion incentives - if you are interested in investing in agriculture or handicraft, the details will be determined by the Government and classified into three different levels based on prioritized activities such as poverty reduction, improving living conditions of people, construction of infrastructure, human resource development, jobs creation, etc. 

Specific Promotion Incentives - where you can invest in the construction of hospitals, schools, research centers, and other public utilities, allows the exemption rental or land concession. 

Other Promotion Incentives -  in addition to the profit tax incentives, investors should be qualified for customs duty and tax incentives like exemption from profit tax in the next accounting year, exemption from import duties for the imports that are directly used for production, exemption from export duties for exporting goods and products. If an investor suffers losses after the conclusion of tax finalization with the tax office, the investor can be permitted to carry the losses forward to three consecutive years.