Bolikhamxay province encourages and provides various favourable facilities and conditions for investment through one-stop service mechanism based on mutual interest. The relevant management committee in the province is capable to approve an investment maximum up to USD 5 million, while the central committee authorizes from than 5 million up. Any investor has choices investing on own preferred sectors, for instance industry, agriculture, communication, transport, construction, tourism, and services. There are 3 modes of investment including a single-party (domestic and foreign), partnership between domestic investor with foreign one, and contracted business investment.


The following benefits are provided to investors:

·         Protection by the Lao Government according to the rule of law.

·         Ownership of property and materials from own investments.

·         Right to rent and transfer assets.

·         Right to purchase land for constructing residential and commercial facilities.

·         Technical advice and assistance by the relevant government authority.

·         Facilitation from the government in terms of production and business running.

·         Facilitation of settling in Laos, including the stays of the investor himself/herself, personnel and his/her families in Laos.

·         Right to remit own profits and funds back his/her country via a Lao commercial bank after clearing taxes and fees.


Investment Policy:

·         Exemption from profit tax for 7 years, but then pays only 10% if investing within the zone 1 (non-basic infrastructure and various facility of an area).

·         Exemption of 5 years of paying profit tax, and then pay only half of 15% for three consecutive years, hence paying a full percentage of 15% onwards if investing within the zone 2 (not much of basic infrastructure and various facility provided in such an area).

·         For 2 years exempted for not paying profit tax if investing in the zone 3 (much better facility and basic infrastructure area), and two years later to pay only a half percentage of 20% charges, and while full percentage of 20% continue to pay from such time on.


Land lease and concession

·         The provincial investment committee has power to approve renting and having concession of land area only from 100-150 ha per concession.

·         If the plot of land that is unable to recover/reforest for various reasons to maximise 150 ha, and as well as a non-grass and forest plot.

·         The rental and concession payment of land use depends on the zone type as per project and activity, as set out in thepresidential provision No. 02/pd and dated 18 Nov 2009, and the prime ministerial decree No. 135/pm and dated 25 May 2009.


Collection of land rental and concession

·         To commence from the year of production or the date of services kick off.

·         An investor has right to purchase an 800 m2 plot of land within his/her concession zone for building office, and can also use this property for a guarantee, but this land returns to the government while the concession period ends.

·         Exception of land rental and concession payment while those investors aim to use for constructions of hospital, school, research centre, some infrastructure inside the zone 1 with the period of 15 years, in the zone 2 for 10 years and 3 years for the zone 3 respectively, as set out in the law on investment promotion.


Direction for Socio-Economic Development 2011-15 and 2020

In the five-year investment plan, 3rd edition, it has to be apparently and effectively seen especially for the public investment. The province requires to invest 701 projects in total, with the values of 5,553 billion kip, but estimated that the real figure could only reach 3,501 billion kip. While the remainder is able to include the five-year plan and carrying on in the next years (2016-20). Such investment would also focus on developing productive and social infrastructures in the rural and remote areas, for instance construct and widen roads, irrigation scheme, different dimensions of canal, telecommunication network, electricity, school, health centre and passenger transport. Besides, the fund injection would go for commercial prioritized productions those defined by the province, such as rice cultivation, maize, cassava, animal raising, handicraft and tourism.


The mega projects planned to implement:

·         Construct a new town detour to help reduce traffic jam to Pakxan town, where the point to start from Nam Ngiap intersection to Km 4 intersection, approximately 20 km long.

·         Arrange an urban planning and develop a new town within the provincial municipality area.

·         Survey and construct the friendship bridge connecting Pakxan-Bungkun, linking with the regional through the road No.4B, 1D to the social republic of Vietnam. Complete a 73 km road construction from Viengthong to Xaychamphne district, and a 60 km road from Xaychamphone municipality to Nam-On area, 42 km long of the road from Ban Phon Ngam to Veo. Build various roads along the border of Laos-Vietname such as Bolikhamxay-Vinh and Nge An, and the road No.11 from Bolikhamxay to Khammouan province. Apart from, there are constructions of Nam Xoun river irrigation scheme and completed in 2013. The water-irrigated water supply ups to 1,500 ha.

·         Surveyed the Nam Ngiap 1 dam downstream, with capacity of 50,000 ha irrigated area (four districts share the area), and Nam Thouay dam downstream can irrigate up to 5,000ha, Nam Mang irrigation scheme is capable of 1,400 ha and the same capacity of ha for Nam Joy river as well.

·         Expand an electrical network to rural and remote areas, and complete the construction of an electricity grid from Viengthong to Xaychamphone district. Hydropower plant constructions of Nam Mang 1, Nam Ngiap 1, Nam Ngiap MuangMai, Nam Xan 2, Nam Mouan, Theun 1, Theun-Hinboun Expansion, and Theun 4. Besides study feasibility of various streams/ rivers in order to build hydropower plants inside the province.

·         Promote the private establishment of ordinary and vocational schools more and more in the province.

·         Clean water supply to be established up to 80% compared to the population.

Private investment promotion in the next years

Bolikhamxay province tries to create various favourable conditions and attract both domestic and foreign investment into the area, with an estimate of 1,529.35 billion kip or averagely 38.28% of whole investment. In order to achieve such targets, the province defines its development zones and encourages private sectors to invest. For the defined areas allowing investment in various activities; namely, the sector of agricultural processing – setting up the factories of tapioca, para rubber, canned vegetable and fruits; rice seed dryer and other foodstuff.


Establish tour companies in the form of ‘home stay’ facilitation and provision, linking with living conditions of Lao ethnic groups, eco-tourism, and developing various tourist sites, namely Tadgnong, Tadxai, Tadfan and Tadnampa waterfalls, Mangone cave, Nam Hong cliff cave, Nam Phomhom cave. Constructions of water pool, complete amusement park,golf course and nightclub.  In addition, establishing and showcasing ODOP, OTOP attached to tourism festivals, constructions of transport terminal, warehouse and freight forwarder.


Provincial Special Economic Zone and Development Focal Sites

1.    Viengkham-Thasaad Special Economic Zone

This zone has a total area of 4,585.622 ha, facilitating various favourable conditions to many ways, because it is a point of passing things from Vientiane prefecture to the southern provinces, and this is the shortest distance travel from Thailand to Vietnam via the road No.8. So, this has been suitable for trade, services, supermarket, tourism, hotel investment and etc.

2.    Nam Ngang Services Zone

This has an area of 294.7 ha, having potential for development, which is quite different compared to other zones, owing to its location in between Khamkeut district’s municipality and Namphao-Cau treo international checkpoint. The location is suitable for establishing trade and services centre here, such as restaurant, discotheque, hotel, guesthouse and warehouse.

3.    Services and trade in Laksao municipality

It is situated at km 109, on the road No. 8A, in Thongchaleun village, with a total area of 80,849 ha.

4.    Cultural Tourism Service Zone

This located on the road No. 8A, at km 91, with a total area of 193ha, which is defined by the government as a cultural tourism site, consisting of historical display, culturally ethnical unique products.

5.    Nam Xan River Mouth Development Zone

Being a natural beauty where Nam Xan river meets Mekhong river, reflecting a two colour water here. The zone has an area of 300 ha, situated in the high density population as a highlight for recreation place. It is suited to do investment pertaining to the public park, golf course, water pool, gym centre, shop, nightclub, five-star hotel and restaurant.

6.    New town development zone

It is an estimate of 1,000 ha projected, at present, the provincial authority and the Ministry of Public Works and Transport prepare to make a survey a new town detour construction, and planned the future railway development to pass and parallel with this area.

7.    Trade and services at the Lao side - Mekhong friendship bridge

The bridge is planned to build at km 136 on the road No. 13th South, located in Ban Kouay village, with a total area of 20 ha approximately. Potential investments in the area to include building commercial center, tax free shop, complete amusement park, warehouse and others.

8.    Thasi Focused Economic Development Zone

The zone is situated at km 78 on the road end No. 4B, or where this connects with the road No.1D, with an approximate 300 ha of the area. The high potentials for investment here include building the factories of tapioca, para rubber, canned vegetables and fruits, rice seed dryer, foodstuff and others.

9.    Nam-on Checkpoint Trade and Service Zone

The checkpoint is located in Ban Sopteung village, with a total area of 22 ha, and investment demands including tapioca factory set-up, canned vegetables and fruit factory, and commercial services.