Information about Asia and the Pacific Asia y el Pacífico
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Lao People's Democratic Republic

Author(s):
International Monetary Fund
Published Date:
September 2009
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Information about Asia and the Pacific Asia y el Pacífico
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Lao P.D.R.: Basic Data, 2003–08
Nominal GDP (2008 est.): $5,374 million
Population (2008 est.): 6.3 million
GDP per capita (2008 est.): $859
200320042005200620072008
GDP and prices (percentage change)
Real GDP growth6.16.47.18.47.57.2
CPI (annual average)15.510.57.26.84.57.6
CPI (end year)12.68.68.84.75.63.2
Public finances (in percent of GDP) 1/
Revenue10.911.011.812.414.014.3
Of which: Resources 2/0.30.30.82.02.73.3
Grants2.11.11.72.01.71.3
Expenditure18.615.118.217.418.617.7
Overall balance (including grants)-5.7-2.9-4.6-3.0-2.9-2.0
Domestic financing0.8-0.70.2-1.1-0.9-1.1
External financing4.93.64.44.03.83.0
Money and credit (annual percent change)
Reserve money27.412.918.037.258.820.2
Broad money19.222.87.730.138.718.3
Bank credit to the economy 3/-7.09.07.6-9.121.084.6
Interest rates (end-of-period) 4/
On three-month kip deposits14.07.55.55.55.56.0
On short-term kip loans16.017.814.011.511.5
Balance of payments
Exports (in millions of U.S. dollars)4725356971,1331,3211,639
In percent change15.513.530.162.616.624.1
Imports (in millions of U.S. dollars)7861,0561,2701,5892,1562,816
In percent change8.834.320.325.135.730.6
Trade balance (in percent of GDP)-14.6-20.7-20.8-12.8-20.0-21.9
Current account balance (in millions of U.S. dollars)-266-424-492-367-660-887
In percent of GDP-12.4-16.9-17.8-10.3-15.8-16.5
Gross official reserves (in millions of U.S. dollars)216228238336536636
In months of prospective goods and services imports 5/3.23.32.83.23.93.4
External public debt and debt service
External public debt
In millions of U.S. dollars2,0312,1092,2032,3512,5212,931
In percent of GDP94.584.179.865.760.554.5
Exchange rate
Official exchange rate (kip per U.S. dollar; end-of-period)10,43410,35710,7679,6559,3418,466
Official exchange rate (kip per Thai baht; end-of-period)264266265270280281
Nominal effective exchange rate (2000=100)71.667.767.368.367.166.3
Real effective exchange rate (2000=100)93.695.9103.1105.5104.3123.5
Memorandum items:
GDP at current market prices
In billions of kip22,59726,54929,36935,98339,87446,700
In millions of U.S. dollars2,1492,5092,7613,5774,1705,374
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates and projections.

Fiscal year basis (October to September).

Royalties and taxes from mining and hydropower (resource) projects.

Excludes debt write-offs.

Deposit rates are the average of BCEL and Lao Development Bank.

Excludes imports associated with large resource projects.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates and projections.

Fiscal year basis (October to September).

Royalties and taxes from mining and hydropower (resource) projects.

Excludes debt write-offs.

Deposit rates are the average of BCEL and Lao Development Bank.

Excludes imports associated with large resource projects.

Table 1.Lao P.D.R.: Real GDP Growth, 2003–08 1/2/(In percent)
200320042005200620072008
Est.
Agriculture2.53.40.72.58.63.7
Agriculture and forestry2.43.4-0.12.49.43.9
Crops and livestock2.42.10.52.83.03.7
Forestry2.315.0-4.6-0.966.44.5
Fishery3.23.67.43.02.72.6
Industry19.43.710.614.24.410.4
Mining and quarrying985.6-18.4113.846.8-11.320.6
Manufacturing5.615.13.510.114.89.4
Food and beverage-1.0-3.3-0.85.514.71.9
Others9.123.95.111.714.811.8
Electricity and water supply1.0-5.3-5.95.7-3.66.2
Construction11.14.5-4.5-0.49.55.1
Services3.812.09.99.79.19.7
Wholesale and retail trade1.521.29.66.610.57.3
Hotels and restaurants-5.53.63.96.37.56.3
Transportation, warehouse, post, and communication6.3-1.217.78.77.48.1
Banking35.80.8-17.2127.25.222.7
Leasing and real estate-5.12.80.1-1.910.22.6
Ownership and dwelling-4.2-2.9-0.4-4.25.80.7
Others-7.519.61.43.619.86.3
Services to public, individuals, and institutions-3.63.624.83.75.06.2
Household employment35.7-7.020.43.54.710.5
Government services4.424.323.46.015.525.8
Brokerage (In direct measure)-32.0152.351.127.735.336.5
GDP at factor cost6.36.66.48.07.87.7
Import duties5.013.413.119.38.19.0
GDP at constant prices6.27.06.88.77.87.8
Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Base year 2002.

Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Base year 2002.

Table 2.Lao P.D.R.: Nominal GDP by Sector Origin, 2003–08 1/(In billions of kip)
200320042005200620072008
Est.
Agriculture8,2399,2279,95310,91512,62113,889
Agriculture and forestry7,3498,1908,7469,60811,21712,335
Crops and livestock6,6127,2577,7908,5899,44410,464
Forestry7389339561,0191,7731,871
Fishery8901,0361,2071,3071,4041,555
Industry4,2814,8496,37910,03810,72411,954
Mining and quarrying5625081,6754,5444,2454,595
Manufacturing1,7392,1082,3412,7843,3993,999
Food and beverage5706066668009971,120
Others1,1701,5021,6751,9842,4022,879
Electricity and water supply9301,0791,0271,0911,0481,173
Construction1,0501,1551,3351,6202,0312,187
Services7,5619,56510,78512,69514,48717,282
Wholesale and retail trade3,6345,1465,5286,3997,5188,742
Hotels and restaurants165181207240269301
Transportation, warehouse, post, and communication1,0361,1471,4501,6241,7242,120
Banking4284774231,0231,1261,484
Leasing and real estate8981,0191,0931,1461,3191,457
Ownership and dwelling673722771789872945
Others225297323357447512
Services to public, individuals, and institutions367382553614668755
Household employment168158205229253299
Government services9411,2651,6651,8832,2643,085
Brokerage (In direct measure)-75-209-339-463-654-961
Import duties1,2061,5111,8302,3322,6353,090
GDP at current market prices21,28725,15228,94835,98140,46746,215
Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Source: Data provided by the Lao P.D.R. authorities.

Official estimates, which differ from IMF staff estimates.

Table 3.Lao P.D.R.: Output of Major Commodities, 2003–08
Unit200320042005200620072008
Est.
Agriculture
Paddy (rice)thousand tons2,3752,5292,5682,6092,7102,847
Cornthousand tons143204373450688708
Sweet potatoes and cassavathousand tons150175181284341363
Coffeethousand tons66367125252634
Tobaccothousand tons222328252842
Livestock
Buffalothousand heads1,1131,1121,0961,1081,1231,154
Cattlethousand heads1,2451,2491,2721,3211,3531,398
Pigsthousand heads1,6551,7281,8262,0332,1862,359
Goats and sheepthousand heads138139190210268269
Poultrythousand heads19,47519,48119,80120,80320,45321,214
Forestry
Logsthousand m3457325236305448596
Industry
Tintons6071197878091,109260
Gypsumthousand tons98244239206232587
Goldkilograms8,9007,00010,13411,9159,0865,810
Copper 1/thousand tons30616389
Manufacturing
Hydropowermillion kwh3,1793,3473,4303,6063,3623,705
Beerthousand hectoliter7028278851,0581,2081,362
Soft drinksthousand hectoliter164187194240256270
Cigarettesmillion packs688482116124136
Detergenttons7108607001,0821,2551,612
Nailstons7609001,0002,0992,1682,225
Oxygenthousand bottles21232399102111
Plastic productstons4,5305,5006,5007,4517,3837,625
Saltthousand tons222526202525
Wood furnituremillion kip15,55020,33320,05820,150
Rattan furnituremillion kip3504304501,6291,9152,005
Garmentsmillion pieces343738684752
Sugartons4504751,2001,612
Tobaccotons9471,8972,8003,8363,9914,743
Plywoodmillion sheets1,5501,3002,000765952996
Cementthousand tons280282320508528831
Bricksmillion pieces90120100239244266
Woodthousand meters198158148149
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Total of copper production by Lang Xang Minerals and Phu Bia Mining.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Total of copper production by Lang Xang Minerals and Phu Bia Mining.

Table 4.Lao P.D.R.: Consumer Price Index, Main Components, 2005–09(Year-on-year percent change)
Weight20052006200720082009
Mar.Jun.Sept.Dec.Mar.Apr.May
Foods40.912.09.46.09.113.912.410.05.03.41.3
Rice, bread, flour, and other cereals9.417.623.512.013.119.914.49.05.53.1-0.1
Meat and poultry14.310.04.98.712.210.39.66.60.7-1.7-0.6
Alcoholic beverages and tobacco4.23.17.65.56.77.64.24.74.43.12.6
Clothing and footwear3.69.01.73.23.03.53.43.03.93.23.4
Housing3.43.01.46.37.310.213.011.69.88.07.8
Fuel and power2.116.23.07.16.86.88.45.35.24.54.4
Household goods6.08.31.41.81.62.03.03.53.63.63.4
Medical care2.50.70.53.83.85.54.73.63.63.63.6
Transport and communications25.88.5-2.06.27.57.73.6-11.8-12.0-11.5-13.4
Personal transport23.78.8-2.26.37.47.01.8-14.9-14.6-14.0-15.7
Public transport1.58.12.37.311.921.731.631.921.620.413.4
Communications0.61.2-5.10.00.00.00.00.20.20.20.2
Recreation, education, and printed matter5.12.62.92.72.62.42.42.01.71.71.5
Restaurant4.26.49.116.917.415.110.55.35.6
Personal care and effects4.48.17.57.814.710.37.50.0-3.2-2.7-1.6
Total100.08.84.75.67.710.28.53.20.7-0.2-1.6
Core 1/60.35.52.53.14.04.54.53.42.72.01.8
Noncore39.714.68.09.213.018.013.82.9-2.0-3.0-5.8
Source: Data provided by the Lao P.D.R. authorities.

The core CPI is defined as excluding raw food (rice, meat and poultry, fish, fruit, vegetables), water charges, electricity, and fuel.

Source: Data provided by the Lao P.D.R. authorities.

The core CPI is defined as excluding raw food (rice, meat and poultry, fish, fruit, vegetables), water charges, electricity, and fuel.

Table 5.Lao P.D.R.: General Government Operations, 2003/04–2008/09
2003/042004/052005/062006/072007/082008/09
Budget
(In billions of kip)
Revenue and grants3,1043,8864,9626,1347,0358,065
Revenue2,8223,3874,2665,4606,4367,313
Of which: Resource revenue 1/642396801,0481,4781,701
Tax2,3372,8033,6414,7115,6246,338
Nontax484584625749811975
Grants283499696674599752
Expenditure3,8575,2035,9897,2517,9529,783
Current1,8382,5173,1243,4454,6215,702
Wages, salaries, and benefits9001,0581,2631,5342,0572,793
Transfers3095146748061,0131,327
Interest payments235318277277361388
Of which: External194267244244291329
Other recurrent3946269118281,1911,195
Capital and onlending 2/1,6462,2612,4653,1613,1553,569
Others and contingencies 3/237347348586427512
Discrepancy (including unidentified expenditure)136785259-250
Overall balance-753-1,317-1,027-1,117-917-1,718
Nonresource balance 4/-817-1,555-1,707-2,166-2,395-3,420
Financing7531,3171,0271,1179171,718
Domestic financing (net) 5/-17062-363-367-490567
Foreign financing (net)9231,2541,3901,4841,3631,151
(In percent of GDP)
Revenue and grants12.113.614.515.815.615.9
Revenue11.011.812.414.014.314.5
Of which: Resource revenue 1/0.30.82.02.73.33.4
Tax9.19.810.612.112.512.5
Nontax1.92.01.81.91.81.9
Grants1.11.72.01.71.31.5
Expenditure15.118.217.418.617.719.3
Current7.28.89.18.910.311.3
Wages, salaries, and benefits3.53.73.73.94.65.5
Transfers1.21.82.02.12.32.6
Interest payments0.91.10.80.70.80.8
Of which: External0.80.90.70.60.60.7
Other recurrent1.52.22.72.12.62.4
Capital and onlending 2/6.47.97.28.17.07.1
Others and contingencies 3/0.91.21.01.50.91.0
Discrepancy (including unidentified expenditure)0.50.30.20.2-0.6
Overall balance-2.9-4.6-3.0-2.9-2.0-3.4
Nonresource balance 4/-3.2-5.4-5.0-5.6-5.3-6.8
Financing2.94.63.02.92.03.4
Domestic financing (net) 5/-0.70.2-1.1-0.9-1.11.1
Foreign financing (net)3.64.44.03.83.02.3
Memorandum item:
GDP at current market prices (in billions of kip) 6/25,56128,66434,33038,90144,99350,591
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Resource revenue comprises royalties, taxes, and dividends from the mining and hydropower sectors.

Onlending includes gross repayments of funds. For FY2007/08 capital expenditure includes estimated off-budget operations.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Overall balance net of resource revenue.

Excludes bank restructuring bonds.

Staff estimate, which differs from the authorities. Figure for FY2008/09 is the authorities’ assumption contained in the budget.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Resource revenue comprises royalties, taxes, and dividends from the mining and hydropower sectors.

Onlending includes gross repayments of funds. For FY2007/08 capital expenditure includes estimated off-budget operations.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Overall balance net of resource revenue.

Excludes bank restructuring bonds.

Staff estimate, which differs from the authorities. Figure for FY2008/09 is the authorities’ assumption contained in the budget.

Table 6.Lao P.D.R.: General Government Revenue, 2003/04–2008/09
2003/042004/052005/062006/072007/082008/09
Budget
(In billions of kip)
Revenue2,8223,3874,2665,4606,4367,313
Tax2,3372,8033,6414,7115,6246,338
Direct tax4015226931,1701,6551,804
Profit tax2223074599191,3221,440
Mining sector00744778051,020
Hydropower sector04542396575
Others222263343403451345
Income tax179215234252333364
Indirect tax1,9362,2812,9483,5403,9704,534
Turnover tax5946738871,0461,2291,347
Excise tax4835238009991,1911,432
Import duties351429515573674834
Royalties289341447534474473
Natural resource tax 1/3295218274308312
Hydropower royalties325757485661
Timber royalties225189172212110100
Other218315299389401449
Nontax484584625749811975
Dividends106178175157293482
Of which: Mining and hydropower sectors042289211243234
Overflight revenues198222229231235225
Other180185222361283268
(In percent of GDP)
Revenue11.011.812.414.014.314.5
Tax9.19.810.612.112.512.5
Direct tax1.61.82.03.03.73.6
Profit tax0.91.11.32.42.92.8
Mining sector0.00.00.21.21.82.0
Hydropower sector0.00.20.10.10.10.1
Others0.90.91.01.01.00.7
Income tax0.70.70.70.60.70.7
Indirect tax7.68.08.69.18.89.0
Turnover tax2.32.32.62.72.72.7
Excise tax1.91.82.32.62.62.8
Import duties1.41.51.51.51.51.6
Royalties1.11.21.31.41.10.9
Natural resource tax 1/0.10.30.60.70.70.6
Hydropower royalties0.10.20.20.10.10.1
Timber royalties0.90.70.50.50.20.2
Other0.91.10.91.00.90.9
Nontax1.92.01.81.91.81.9
Dividends0.40.60.50.40.71.0
Of which: Mining and hydropower sectors0.00.10.80.50.50.5
Overflight revenues0.80.80.70.60.50.4
Other0.70.60.60.90.60.5
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Comprises mining royalties.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Comprises mining royalties.

Table 7.Lao P.D.R.: General Government Expenditure, 2003/04–2008/09
2003/042004/052005/062006/072007/082008/09
Budget
(In billions of kip)
Expenditure 1/3,7215,1245,9387,1208,2029,783
Current1,8382,5173,1243,4454,6215,702
Wages, salaries, and benefits9001,0581,2631,5342,0572,793
Salaries7068691,0171,1751,5652,061
Remuneration194190245360492732
Transfers3095146748061,0131,327
Allowances and social welfare204317387462
Subsidies and transfers105196287344
Interest payments235318277277361388
Domestic415132327059
External194267244244291329
Other recurrent3946269118281,1911,195
Capital and onlending1,6462,2612,4653,0893,1553,569
Domestically financed5924684038339841,485
Externally financed and onlending (net) 2/1,0541,7932,0622,3282,1712,084
Others and contingency 3/237347348586427512
(In percent of GDP)
Expenditure 1/14.617.917.918.318.219.3
Current7.28.89.48.910.311.3
Wages, salaries, and benefits3.53.73.83.94.65.5
Salaries2.83.03.13.03.54.1
Remuneration0.80.70.70.91.11.4
Transfers1.21.82.02.12.32.6
Allowances and social welfare0.81.11.21.2
Subsidies and transfers0.40.70.90.9
Interest payments0.91.10.80.70.80.8
Domestic0.20.20.10.10.20.1
External0.80.90.70.60.60.7
Other recurrent1.52.22.82.12.62.4
Capital and onlending6.47.97.47.97.07.1
Domestically financed2.31.61.22.12.22.9
Externally financed and on-lending (net) 2/4.16.36.26.04.84.1
Others and contingency 3/0.91.21.11.50.91.0
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Excludes discrepancy shown in Table 5.

Onlending includes gross repayments of funds.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Excludes discrepancy shown in Table 5.

Onlending includes gross repayments of funds.

Includes payments on liabilities carried over from the previous budget years and arrears clearance.

Table 8.Lao P.D.R.: Monetary Survey, 2005–09 1/
20052006200720082009
Dec.Dec.Dec.Mar.Jun.Sep.Dec.

Prel.
Mar.

Prel.
(In billions of kip, end of period)
Net foreign assets3,3894,9127,7798,8668,5537,9327,3647,301
Bank of Lao P.D.R.2,2502,9844,8035,6265,8375,4585,2265,012
Commercial banks1,1391,9282,9763,2402,7162,4752,1382,289
Net domestic assets2,0272,1341,9952,3141,7482,8564,2005,744
Domestic credit2,6892,5282,8912,5562,9413,8515,2016,376
Net claims on government-191-89-275-1,091-1,217-990-643-274
Credit to the economy2,8802,6173,1663,6474,1584,8425,8456,650
Of which: Kip5587091,1151,3761,7182,0642,3392,591
Private sector2,1442,0612,6543,0733,5144,0824,5545,124
State-owned enterprises 2/7365565135756437591,2911,526
Other items (net)-662-394-896-243-1,192-996-1,001-631
Broad money5,4167,0469,77411,18010,30110,78811,56413,045
Of which: Kip2,2582,9434,4504,7824,7045,0485,7406,482
Money1,4151,9983,0653,2143,0773,2753,7154,108
Currency outside banks (kip)8051,2311,8381,8831,7361,7762,2232,377
Demand deposits6107681,2271,3311,3411,5001,4921,731
Quasi-money4,0015,0486,7107,9667,2247,5137,8498,937
Time and savings deposits8439451,3851,5681,6271,7732,0252,374
Foreign currency deposits3,1594,1035,3246,3985,5975,7405,8246,563
(Annual percentage change, unless otherwise indicated)
Domestic credit9.0-6.014.421.554.453.179.9149.4
Credit to the economy7.6-9.121.050.762.665.584.682.3
Private sector27.8-3.928.859.175.470.371.666.7
State-owned enterprises 2/-26.2-24.5-7.817.716.244.0151.7165.6
Broad money7.730.138.740.426.521.718.316.7
Of which: Kip16.030.451.246.838.932.829.035.6
Memorandum items:
Money multiplier3.02.82.52.82.42.62.42.5
Loan-to-deposit ratio (in percent)54.840.837.937.746.250.455.254.1
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

Includes state-owned enterprises and lower levels of government.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

Includes state-owned enterprises and lower levels of government.

Table 9.Lao P.D.R.: Balance Sheet of the Bank of Lao P.D.R., 2005–09 1/
20052006200720082009
Dec.Dec.Dec.Mar.Jun.Sep.Dec.

Prel.
Mar.

Prel.
(In billions of kip, end of period)
Net foreign assets (NFA)2,2502,9844,8035,6265,8365,4585,2265,012
Foreign assets2,5753,2585,0505,8566,0565,6525,4165,176
Foreign liabilities-325-273-247-230-220-194-187-164
Net domestic assets (NDA)-426-482-829-1,594-1,539-1,230-451312
Net domestic credit144108-103-962-900-601166868
Net claims on government-433-282-456-1,418-1,550-1,396-1,057-636
Of which: Foreign currency-501-642-1,007-1,761-1,757-1,493-1,478-1,345
Claims on government2616209079106995339731,160
Government deposits-694-902-1,363-2,328-2,249-1,929-2,030-1,796
Other claims5773903534566507951,2231,504
Of which: Foreign currency373257198272360433813812
Claims on state-owned enterprises228176161142203296685876
Claims on private sector12770000000
Claims on other banking institutions222143192314447500538628
BoL securities00000-151-223-301
Other items (net)-571-590-727-632-639-477-394-255
Government lending funds-340-276-261-236-237-194-183-185
Other items-231-314-465-396-402-283-211-255
Reserve money1,8232,5023,9744,0324,2984,2284,7755,324
Of which: Kip1,1811,8032,9682,9413,0003,0653,5853,817
Currency in circulation8051,2311,8381,8831,7361,7762,2232,377
Vault cash72106226320372317285285
Bank deposits9471,1651,9101,8302,1892,1352,2672,660
Of which: Kip1453157375957078168781,022
Required reserves (kip and foreign currency) 2/525680668682700619653
Kip84116969810696113
Foreign currency441564572584594523540
Excess reserves (clearing deposits held in kip)145231621469350405612776
Capital deposits (held in kip)00030259306170133
Other deposits (held in foreign currency)8024106086638987258671,098
Capital deposits159152166145185157198263
Clearing deposits 3/643258442518713568668835
Private sector demand deposit00000000
(In millions of U.S. dollars, unless otherwise indicated)
NFA of the BoL208308510640668632614585
Foreign exchange component of reserve money5972107124149135141176
Net official international reserves149236403516519497473409
Reserve money (y/y, percent change)18.037.258.847.346.829.520.232.0
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

For 2005, required reserves are included in clearing deposits.

For 2005, includes required reserves.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

For 2005, required reserves are included in clearing deposits.

For 2005, includes required reserves.

Table 10.Lao P.D.R.: Summary Balance Sheet of Commercial Banks, 2005–09 1/
20052006200720082009
Dec.Dec.Dec.Mar.Jun.Sep.Dec.

Prel.
Mar.

Prel.
(In billions of kip, end of period)
Net foreign assets1,1391,9282,9763,2402,7162,4752,1382,289
Of which: State-owned commercial banks (SOCBs)6331,3211,9172,0121,8231,6551,3751,472
Foreign assets2,3063,2144,3954,6994,1983,9854,0214,133
Foreign liabilities-1,167-1,286-1,419-1,459-1,482-1,511-1,883-1,844
Net domestic assets3,4723,8884,9606,0575,8496,5387,2028,379
Of which: SOCBs2,2912,1522,3092,6452,9213,4183,7234,332
Reserves9631,2652,1622,9522,3022,4122,5682,961
Of which: SOCBs5478201,4452,0951,4411,4481,5951,840
Claims on government (net)241193180327333406414362
Of which: SOCBs201153130257228332345302
Claims on government464549797675660685681626
Government deposits-223-156-117-347-127-179-168-264
Claims on the economy2,5252,3703,0063,5053,9554,5465,1595,774
Of which: SOCBs1,7361,4772,0112,4192,8653,3433,5744,000
Claims on state-owned enterprises508380352432440464606650
Of which: SOCBs32810058111143183233250
Claims on private sector2,0171,9902,6543,0733,5144,0824,5545,124
Of which: SOCBs1,4081,3771,9532,3072,7223,1613,3413,759
Credit from monetary authorities-222-143-192-315-148-100-138-628
Of which: SOCBs-150-17-175-205-127-173-120-490
Other items (net)-35202-196-412-193-126-101-89
Of which: Capital account-192-159-184-785-159-1,078-1,190-1,249
Deposits4,6125,8157,9369,2978,5659,0139,34010,668
Of which: SOCBs3,5224,2815,6266,8046,0866,4806,6197,560
Kip deposits1,4531,7122,6122,8992,9683,2723,5174,105
Of which: SOCBs1,2781,4972,2252,4282,4642,7002,9073,393
Current deposits6107681,2271,3311,3411,5001,4921,731
Time and savings deposits8439451,3851,5681,6271,7732,0252,374
Foreign currency deposits3,1594,1035,3246,3985,5975,7405,8246,563
Of which: SOCBs2,2452,7843,4014,3763,6233,7803,7124,183
(In millions of U.S. dollars, end of period)
Net foreign assets105199316368312287253268
Of which: SOCBs59136203229209192162172
Foreign currency deposits292423565727642665688768
Of which: SOCBs208287361497416438438490
Memorandum items:
Net foreign assets’ coverage of foreign currency deposits (in percent)36.147.055.950.648.543.136.734.9
Of which: SOCBs28.247.456.446.050.343.837.035.2
Reserves to deposits ratio (in percent)20.921.827.231.726.926.827.527.8
Of which: SOCBs15.519.225.730.823.722.324.124.3
Exchange rate (kip/U.S. dollar, end of period)10,7679,6559,3418,7358,6958,5168,4668,547

Valued at current exchange rates.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Valued at current exchange rates.

Table 11.Lao P.D.R.: Interest Rates, 2003–09(In percent, end of period)
2003200420052006200720082009
Jan.Feb.Mar.Apr.May
Local banks (representative rates) 1/
Deposit rates
Savings (U.S. dollar accounts)0.40.30.51.31.31.31.31.01.01.31.3
Fixed (U.S. dollar accounts)
3 months0.50.41.01.81.81.81.81.31.31.81.8
6 months0.60.81.32.52.52.52.52.02.02.52.5
12 months0.81.01.53.03.03.03.02.52.53.03.0
Savings (kip accounts)12.05.03.03.03.03.03.03.03.03.03.0
Fixed (kip accounts)
3 months15.08.05.06.06.06.06.06.06.06.06.0
6 months18.09.08.08.08.08.08.08.08.08.08.0
12 months20.010.09.010.010.010.010.010.010.09.09.0
Lending rates
1 year
Kip14.015.513.012.012.012.012.09.09.09.0
Baht7.07.09.58.07.07.07.07.06.56.56.5
U.S. dollar6.07.09.59.07.07.07.07.06.56.56.5
1–3 year
Kip16.015.513.013.013.013.013.011.011.011.0
Baht8.09.09.58.07.57.57.57.56.76.76.7
U.S. dollar7.59.09.59.07.57.57.57.57.57.57.5
Foreign banks (representative rates) 2/
Deposit rates
Savings (U.S. dollar accounts)0.50.40.41.31.51.01.01.01.01.01.0
Fixed (U.S. dollar accounts)
3 months0.80.50.51.82.01.61.61.61.61.61.6
6 months0.80.50.52.52.82.42.42.42.42.42.4
12 months0.80.50.53.03.52.62.62.62.62.62.6
Lending rates
1–3 year
Kip26.022.026.022.022.024.024.024.024.024.024.0
Baht15.013.015.013.014.014.014.014.014.014.014.0
U.S. dollar13.510.013.310.012.012.012.012.012.012.012.0
Source: Data provided by the Lao P.D.R. authorities.

Local banks’ representative rates are from BCEL.

Foreign banks’ representative rates are from Malaysian Public Bank.

Source: Data provided by the Lao P.D.R. authorities.

Local banks’ representative rates are from BCEL.

Foreign banks’ representative rates are from Malaysian Public Bank.

Table 12.Lao P.D.R.: Balance of Payments, 2003–08(In millions of U.S. dollars, unless otherwise indicated)
200320042005200620072008
Est.
Current account-266-424-492-367-660-887
Excluding official transfers-308-460-526-452-723-975
Merchandise trade balance-314-520-574-457-835-1,178
Exports, f.o.b.4725356971,1331,3211,639
Imports, c.i.f.7861,0561,2701,5892,1562,816
Services (net)103132159153202331
Income (net)-121-97-139-208-141-192
Of which: Interest payments-62-77-86-74-83-79
Of which: Public debt-12-22-25-17-19-26
Transfers (net)666262144114152
Private242628595164
Official423634856388
Capital account285442510467862991
Medium- and long-term loans101118110130140112
Disbursements129147153162186173
Amortization-28-29-42-32-45-61
Foreign direct investment 1/39315247335779906
Net foreign assets of commercial banks (increase -)-21-3922-93-11763
Other private flows and errors and omissions167481309560-90
Overall balance191818100202104
Financing-19-18-18-100-202-104
Central bank net foreign assets-19-18-18-100-202-104
Assets (increase -)-20-12-11-98-200-100
Liabilities (reduction -)0-6-7-2-2-4
Memorandum items:
Current account (in percent of GDP)-12.4-16.9-17.8-10.3-15.8-16.5
Excluding official transfers-14.3-18.3-19.0-12.6-17.3-18.1
Gross official reserves216228238336536636
In months of prospective nonresource imports 2/3.23.32.83.23.93.4
In months of goods and services imports2.32.52.12.42.92.6
GDP at current market prices 3/2,1492,5092,7613,5774,1705,374
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes repayment of private debt.

Excludes imports associated with large resource (mining and hydropower) projects.

Staff estimates.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes repayment of private debt.

Excludes imports associated with large resource (mining and hydropower) projects.

Staff estimates.

Table 13.Lao P.D.R.: Merchandise Trade by Major Commodity, 2003–08In millions of U.S. dollars, unless otherwise indicated)
200320042005200620072008
Est.
Merchandise exports471.9535.4696.61,132.61,320.71,638.6
Gold60.157.890.7117.993.2118.9
Copper0.022.9112.1409.3446.0620.3
Electricity114.5117.1125.0122.6114.1118.3
Timber128.2144.9156.2195.6179.0131.4
Garments129.9154.7114.9151.2152.8189.7
Coffee11.214.47.59.828.918.5
Other28.123.790.3126.2306.8441.5
Merchandise imports786.11,055.81,270.21,589.32,156.12,816.1
Petroleum89.6116.9159.5208.7311.0421.8
Capital goods258.3463.7506.4728.11,084.81,171.8
Electricity8.420.126.228.037.443.3
Garments materials86.6115.569.998.780.3143.7
Other343.1339.6508.1525.8642.71,035.5
Memorandum items:
Export volume (percent change)-2.62.713.915.59.318.2
Import volume (percent change)2.433.112.916.427.118.8
Terms of trade (percent change)10.19.15.228.20.5-2.6
Gold volume (′000 ounces)165.3141.2203.8195.1133.8136.4
Copper volume (′000 metric tons)0.08.030.560.862.589.1
Electricity exports (giga-watt hours)2,6952,7672,9882,8072,5282,652
Electricity imports (giga-watt hours)146211199229263
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.
Table 14.Lao P.D.R.: Composition of Net Services and Net Foreign Income, 2003–08(In millions of U.S. dollars, unless otherwise indicated)
200320042005200620072008
Est.
Services (net)103.1131.8159.1152.8202.1331.3
Receipts (+)155.2186.9219.0215.0278.1414.3
Transportation25.429.731.331.530.156.1
Tourism87.3118.9146.8149.3189.4275.5
Communications15.616.516.510.228.732.2
Insurance2.22.65.23.27.28.3
Other24.719.219.220.822.842.2
Payments (-)52.155.159.962.276.182.9
Transportation6.06.57.17.26.514.0
Travel13.514.716.38.98.416.2
Communications4.45.05.02.74.19.4
Insurance4.34.85.312.416.111.3
Construction16.516.818.624.434.926.5
Other7.47.37.66.66.15.6
Foreign income (net)-121.1-97.1-139.2-207.5-140.5-192.3
Receipts (+)9.624.430.3104.2164.8178.6
Income from royalty6.111.925.388.0132.0150.3
Interest receipts2.811.74.212.026.616.7
Interest on Bank of Lao P.D.R. reserve assets1.94.23.18.922.612.1
Interest on commercial banks nostro accounts0.97.51.13.04.04.7
Payments to Lao P.D.R. workers by embassies0.70.80.84.26.211.6
Payments (-)130.6121.5169.6311.7305.3370.9
Income from direct investment in Lao P.D.R.67.344.483.0232.5216.3286.8
Interest payments61.776.685.873.883.078.6
Public11.922.525.516.819.425.6
Interest on official borrowing11.922.425.316.819.425.6
Interest on Bank of Lao P.D.R. foreign liabilities0.00.10.20.00.00.1
Private49.954.160.357.063.653.0
Interest on commercial banks foreign liabilities3.24.54.35.15.111.7
Interest payable on other private debt46.749.656.051.958.541.2
Payments to foreign workers in Lao P.D.R. embassies1.60.50.85.46.05.5
Memorandum items:
Number of tourist arrivals (in thousands)6368951,0951,2151,6241,737
(Percent change)-13.540.622.410.933.66.9
Sources: Data provided by the Lao P.D.R. authorities; Lao National Tourism Administration; and IMF staff estimates.
Sources: Data provided by the Lao P.D.R. authorities; Lao National Tourism Administration; and IMF staff estimates.
Table 15.Lao P.D.R.: External Aid and Loan Disbursements, 2003–08(In millions of U.S. dollars)
200320042005200620072008
Est.
Grants 1/42.436.233.985.062.988.0
Multilateral0.03.214.631.117.648.1
International Development Association (IDA)0.02.613.728.013.530.8
Asian Development Bank (AsDB)0.00.40.83.14.017.3
Other (including NGOs)0.00.10.00.00.00.0
Bilateral42.433.019.353.945.339.9
Program grants12.312.65.412.70.00.0
Project grants30.120.413.941.245.339.9
Loan disbursements128.9113.8152.6161.6185.5173.4
Program loans22.012.34.410.05.712.2
IDA7.012.34.40.00.00.0
AsDB15.00.00.010.05.78.0
Other0.00.00.00.00.04.3
Project loans106.9101.5148.2151.6179.8161.2
Multilateral91.991.8129.2129.9101.582.9
IDA39.627.527.629.029.630.3
AsDB46.051.873.467.257.031.2
International Fund for Agricultural Development3.03.83.95.74.89.3
Organization of the Petroleum Exporting Countries1.92.61.70.32.78.8
Nordic Fund1.46.01.24.37.43.2
European Union0.00.021.323.50.00.0
Bilateral 2/15.09.719.021.878.378.3
Japan9.14.94.10.014.10.0
China0.00.00.00.030.747.1
Thailand4.52.511.313.125.928.6
Other1.42.33.78.77.62.6
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes project-related and general technical assistance.

Includes borrowing for hydropower projects from bilateral creditors.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes project-related and general technical assistance.

Includes borrowing for hydropower projects from bilateral creditors.

Table 16.Lao P.D.R.: Debt Stock and Debt Service 2003–08
200320042005200620072008
Est.
(In millions of U.S. dollars)
Total debt stock (public and private)2,4772,7133,0883,5014,3015,145
Public debt2,0312,1092,2032,3512,5212,931
Bilateral528541544604739833
Multilateral1,3631,4511,5331,6201,7092,035
Commercial 1/1401171271277364
Private debt 2/4466048851,1501,7802,213
Total debt service94.2122.3140.5177.9200.5210.8
Amortization55.670.382.5132.9144.7149.6
Public debt28.229.142.232.045.260.9
Bilateral1.82.34.13.42.17.6
Multilateral26.422.428.628.633.744.0
Commercial0.04.49.50.09.39.3
Private debt27.441.240.3100.999.588.7
Interest payments38.552.058.045.055.761.2
Public debt11.922.525.516.819.425.6
Bilateral0.74.99.45.01.34.4
Multilateral11.216.013.711.814.117.6
Commercial0.01.52.40.04.13.6
Private debt26.729.632.528.236.335.5
(In percent of GDP)
Total debt stock (public and private)115.3108.1111.897.9103.195.7
Public debt94.584.179.865.760.554.5
Bilateral63.457.855.545.341.037.9
Multilateral24.621.619.716.917.715.5
Commercial 1/6.54.74.63.61.71.2
Private debt 2/20.824.132.032.242.741.2
Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes direct borrowing by and on-lent funds to state-owned enterprises on nonconcessional terms.

Mainly for the mining and hydropower sectors.

Sources: Data provided by the Lao P.D.R. authorities; and IMF staff estimates.

Includes direct borrowing by and on-lent funds to state-owned enterprises on nonconcessional terms.

Mainly for the mining and hydropower sectors.

Table 17.Lao P.D.R.: Foreign Investment Approvals by Country and Sector, 2003–08 1/
2003200420052006200720082003–08
(In millions of U.S. dollars)
Total4665331,2452,7001,1371,2167,297
By country
Thailand9657451655933751,728
China12028584234961071,233
Vietnam96343261156149682
France18337012131416
Japan35440261421
India00035000350
Australia2293211142332
Korea1414101648260344
Malaysia71333530134
Singapore363143161101
Others98642823852085191,556
By sector
Electricity generation8661,0651,7773616403,934
Agriculture17761745918478831
Mining213129474115102718
Industry and handicraft813515123134157545
Services6017211218124316
Trading140198861413280
Construction3102131067212
Hotel and restaurant49713325829189
Other activities95111790106273
(In percent of total)
By country
Thailand20.710.736.224.38.230.923.7
China25.75.34.715.743.68.816.9
Vietnam1.911.93.59.713.712.39.3
France3.80.529.70.41.20.05.7
Japan0.70.80.414.90.50.15.8
India0.00.00.013.00.00.04.8
Australia0.354.91.70.11.20.24.6
Korea2.92.70.86.17.24.94.7
Malaysia15.20.60.30.14.70.01.8
Singapore7.80.60.11.61.40.11.4
Others21.012.022.714.218.342.721.3
By sector
Electricity generation18.41.085.565.831.752.753.9
Agriculture3.714.21.417.016.26.511.4
Mining4.458.57.52.710.18.49.8
Industry and handicraft17.36.61.24.611.812.97.5
Services12.93.31.70.415.91.94.3
Trading30.13.60.63.21.21.13.8
Construction0.71.90.14.80.05.52.9
Hotel and restaurant10.51.31.11.25.12.42.6
Other activities1.99.60.90.27.98.73.7
Sources: Lao P.D.R., Ministry of Investment and Planning; and IMF staff estimates.

Approvals of foreign direct investment (FDI). Differs from actual FDI recorded in the balance of payments.

Sources: Lao P.D.R., Ministry of Investment and Planning; and IMF staff estimates.

Approvals of foreign direct investment (FDI). Differs from actual FDI recorded in the balance of payments.

Lao P.D.R.: Summary of Tax System
TaxNature of TaxExemptions and DeductionsRates (in percent, unless otherwise indicated)
1.Taxes on income and profits
1.1Tax on enterprise profits (profit tax)Annual levy on profits derived in the Lao P.D.R. by enterprises from business operations (production, trade, and service), payable in advance on a quarterly basis.
  • Expenses normally incurred in producing income, with limits for reception and travel costs.

  • Asset amortization permitted, using either fixed line or declining balance methods and with the following five annual rates: 50 percent: business formation; 20 percent: land transport, machine, and other equipment; 10 percent: sea transport equipment, office improvement and supplies, and temporary trade premises; 5 percent: air transport equipment, industrial premises used < 20 years, and permanent trade premises; 2.5 percent: industrial premises used between 21–40 years. Unallowed residual is deducted from the sale price to compute the profit or loss.

  • Carry-forward of losses available for up to three years.

  • Three computational regimes. Full real regime: based on an extended accounting system for foreign investors, import-export traders, and businessmen with annual turnover greater than kip 2,400 million; partial real regime: based on an ordinary or common accounting system, for other businessmen with annual turnover of kip 200–2,400 million; contract regime: based on a primary accounting system, with an agreed estimation for turnover of less than kip 200 million with progressive rates for trade (5 percent), production, construction, and transport (8–10 percent), and services and drinking bars (20 percent).

  • Amounts appropriated for savings or recapitalization accounts, bonuses, meeting allowances, or received from capital reduction, enterprise merging, share transfer, bankruptcy, or debt liquidation.

  • Case-by-case tax relief under foreign and domestic investment promotion law.

General rate35
Discount rates

  • For enterprises in designated areas/city

  • For enterprises in rural and lowland areas

  • For enterprises in mountain and remote areas

For foreign investors, discount rates apply only to the sectors under the foreign investment promotion law.


20





15





10



1.2Minimum profit taxApplicable to gross turnover of the previous year of those enterprises subject to the extended or ordinary accounting system. Payment on an annual basis. Creditable against final profit tax liability, but no reimbursement of overpayment.Foreign and domestic investors who qualify for annual profit tax exemption.Domestic production0.25
Other businesses1
1.3Tax on social/religious/cultural organizations and associationsIncomes from immovable property leasing and non-business activities of public or other social associations.None.10
1.4Tax on personal income from employmentLevied on wages, salaries, bonuses, and other emoluments derived from employment in Lao P.D.R. or, when deputed to international organizations, by Lao citizens receiving emoluments abroad on which they are not taxed. Withheld at source by the employer on a monthly basis.All persons with monthly wages or salaries below kip 300,000.Monthly Wage or Salary

(In kip)
Exemptions are granted to a selected list of income/earning activities, including income from agricultural production by peasants.300,001–1,500,0005
1,500,001–4,000,00010
4,000,001–8,000,00015
8,000,001–15,000,00020
15,000,001 and above25
1.5Tax on personal incomes of persons in self-employmentLevied on net profits made by individuals from business operations and immovable property leasing. Payment on an advance quarterly basis.Less than kip 2,400,001 is exempt.General Activities

(In kip)
2,400,001–5,000,00010
5,000,001–10,000,00015
10,000,001–30,000,00020
30,000,001–60,000,00030
60,000,000 and above35
1.6Tax on personal incomes from immovable property leasingLevied on incomes received by individuals from immovable property leasing (percent of rent received).15
1.7Tax on investment incomeLevied on incomes of businesses and individuals from gross market-based rents, dividends, lending interest rates, and guarantee fees on a global basis, where appropriate.Interest on bank deposits.10
1.8Tax on property rightsCopyright or other intellectual property rights of an individual or business entity.None.5
2.Taxes on land and property
2.1Transfer taxesApplied to the market value of real estate property transferred between private persons through inheritance, sale, or gift.None.Transfers between:

  • Direct descendants

  • Second-degree relatives

  • Third-degree relatives

  • Other land and houses

0.1
0.3
0.5
1.0
2.2Land taxAnnual tax levied on land area.
  • Land occupied by temples, public welfare buildings, embassies, and housing for disabled persons (for extensions of less than 5,000 square meters).

  • Agricultural land, not exceeding two hectares per family, occupied by disabled military personnel and civilians.

  • Agricultural land situated in mountainous areas yielding less than 150 kilograms of rice per person per year.

  • Agricultural land affected by natural disaster or other damages.

  • Newly cleared rice fields in mountainous areas (5 years) and flat land (3 years).

  • Industrial orchards (2–3 years).

1. Occupied land

Rates vary from kip 5 to kip 300 per square meter per year in accordance with the use (housing, production factories, business or service, and unused open land) and location.

2. Agricultural land

Rates vary from kip 20,000 to kip 45,000 per hectare per year in accordance with: (i) land use (rice land, garden land, and farm land); (ii) location (level field and mountainous areas); and (iii) type of production (for rice or garden, by number of crops per year, and by type of trees).
Taxable land is divided in two categories:

  • Occupied land (i.e., land occupied by buildings and factories)

  • Agricultural land

3.Taxes on goods and services
3.1Turnover taxThe tax is collected from imports of goods to the Lao P.D.R, first time sale of imported goods, or domestically produced goods and general services

Importers, producers, or service providers who operate inside Lao P.D.R. have the right to get a deduction of initially paid (e.g., at customs checkpoints) turnover tax. Deductions are not allowed for service charges and for purchases of transport vehicles, including accessories and spare parts, that are not used directly by the companies, and for purchases of consumer goods for personal use by companies.

All imports not exempt from import duties are subject to turnover tax. The base of taxation is the customs value, plus customs duty, plus excise duty, if any. In case of first time sale of goods imported or manufactured inside the country, the turnover tax shall be calculated during its selling or delivery by importers or domestic manufacturers. The calculation shall be based on the actual sales amount without turnover tax.
The following activities are exempt from turnover tax:

  • Import of crop seeds, animal breeds, and insecticides.

  • Import of materials, instruments, and chemical components for research purposes.

  • Import of gold for notes-issuing institution, and of bank notes or coins.

  • Import or activity relating to tax or postal stamps.

  • Import of planes, instruments, and components for international air transportation.

  • Import of goods for selling to diplomats and international organizations in the Lao P.D.R. as permitted by the Ministry of Foreign Affairs.

  • Import of goods with tax exemption or for temporary import.

  • Import and sales of animal-treating medicines.

  • Export of goods and services.

  • Sales of self-produced agricultural products by peasants.

  • Forestation activities, industrial trees and fruits planting.

  • Sales of agricultural and handicraft products by government employees or cooperative members on a family basis.

5 or 10
The tax on services shall be calculated after completion of the work. The calculation shall be based on actual service charges without turnover tax.

Turnover tax declarations must be submitted monthly and turnover tax collected must be paid monthly (turnover tax on imports is collected at custom checkpoints). All purchases and sales must be substantiated by tax invoices.
  • Sales of authorized text books and of newspapers and magazines.

  • International transportation and relevant services (transport of passengers or cargoes by land, air, and sea/river).

  • Transport by people and animals by boats without engines.

  • Provision of leasing of immovable properties, such as land, houses, and other structures by persons who do not have business activities.

  • Independent job-occupation by one’s own labor.

  • Educational activities: pre-schools, primary, secondary, and technical schools, and universities.

  • Activities for public benefit held by government authorities or international organizations.

  • Banking and insurance activities.

  • Domestically-produced rice, unprocessed rice, and rice bran.

  • Domestically-produced fertilizer, animal foods, and rice polish.

  • Wheelchairs (for disabled people).

  • Fire trucks, ambulances, and other specified vehicles for official use.

  • Human and animal organs for medical use.

3.2Excise dutiesLevied equally on imported and domestic supplies of petroleum products and select consumer goods. For imported items, excise duty is calculated inclusive of customs duties; for domestically-supplied items, it is calculated based on the ex-factory cost.The following items are exempt:

  • Purchases by embassies and international organizations.

  • Kerosene.

  • Alcohol (90-proof) for medical purposes.

  • Purchases of petroleum products for externally-funded projects.

  • Exports of excisable goods.

Item
Petroleum products:
Premium gasoline25
Regular gasoline24
Diesel12
Kerosene10
Hydraulic, brake, lubricating, and grease oil5
Item
Alcohol:
All types with 15-proof or more70
All types with less than 15-proof60
Beer50
Cigarettes and cigars55
Cosmetics and perfumes30
Playing cards, and the like70
Item
Motor vehicles:
Pickup with two doors20
Pickup with four doors25
Minibus with less than 15 seats25
Bus25
Jeep with soft top30
Jeep with hard top less than 2,000 cc engine65
2,001–4,000 cc70
More than 4,000 cc75
Cars less than 1,000 cc60
1,000–1,500 cc65
1,501–3,000 cc75
More than 3,000 cc90
Motorcycles20
Speed boats, motor boats for sport activities, including their motor and accessories10
Electrical appliances such as air conditioners, satellite TV signal receivers, audio-video cameras and recorders, musical instruments, including components and accessories.15
Freezers, heaters,, washing machines, vacuum cleaners.10
Billiard, snooker, and football game tables, and other game machines; billiard, bowling, and lottery activities.20
Night club, discotheque, and karaoke activity.25
3.3Tax registration licenseLevied annually on registered industrial and commercial enterprises (based on turnover) and on import-export enterprises (based on capital). Payable during the first three months of the year on a current basis.None.Different charges apply depending on type of enterprise.
For local enterprises:
Annual turnover ratesCharge
(In million of kip)(In kip)
0–120
>12–3015,000
>30–8020,000
>80–20050,000
>200–40070,000
>400–1,500100,000
>1,500–2,000150,000
2,000 and above200,000
For import-export enterprises
Paid-up CapitalCharge
(In millions of kip)(In kip)
0–2000
>200–400300,000
>400–1,500400,000
>1,500–2,000500,000
>2,000 and above600,000
3.4Road taxLevied annually on all motor vehicles (motorcycles, cars, trucks, etc.).The following items are exempt:

  • Government cars.

  • Cars of the diplomatic corps, international organizations, and foreign experts.

Fees vary according to size of engine (for cars and motorcycles), weight (for trucks), and number of seats (for buses).Kip 7,000–117,000
3.5Air travel feesLevied annually for:

  • Civil aviation registration.

  • Examination issuance and renewal of permits.

None.Fees vary according to weight.
Kip 7,000,000–3,000,000
Kip 800,000–3,500,000
3.6Airspace overflight feesLevied on all aircraft without regard to nationality flying over the territory of the Lao P.D.R.
  • VIP special aircraft.

  • Hospital aircraft carrying patients.

US$60–320 per overflight
3.7River transport feesLevied annually.None.Fees vary according to size of boats.Kip 3,000–150,000
3.8Border entry and exit fees
  • Diplomatic corps, foreign experts, and their relatives.

Land and water vehicles. Fees vary according to type of vehicleKip 25,000–65,000 (per vehicle)
3.9Fees for extended residence in Lao P.D.R.
  • Diplomatic corps, foreign experts, and their relatives.

Kip US$2 per day
3.10Fee for temporary border passesNone.Kip 15,000
3.11Fees on delivery of passports and visasNone.Fees vary according to nature of document and applicant:

  • Foreigners (for visas)

  • Lao nationals (for passport delivery)

US$10–120
US$10–30
3.12Consular fees overseasLevied every five years.None.Fees vary in accordance with the location of the consular office and type of document.US$12–35
4.Taxes on international trade
4.1Import dutiesImposed on an ad valorem basis. The U.S. dollar values are converted into local currency at the market rate.Imports of diplomats and army/police are exempt. Goods imported by the government for use in externally-financed development projects are also exempt; the government otherwise pays duties on its other imports.

Imports of fuel by Lao Aviation for international transport is exempt. Also exempt are imports under bilateral grants and for humanitarian purposes (externally funded). Imported inputs (raw materials, machinery and equipment, building materials) for approved foreign-financed private sector and joint venture investment projects are subject to an import fee of 1 percent. In highly exceptional cases and by specific decision of the government, foreign investors may also be exempt from the 1 percent duty rate because of the large size of their investments and the significant positive impact that those investments are expected to have on the socio-economic development of the country.

Raw materials and intermediate goods imported for the purpose of processing and then re-exported are fully exempt from import duties.

There are no discretionary exemptions. The Minister of Finance does not have the power to grant duty exemptions. There is also no drawback scheme for import duties paid on inputs for exports.

In May 2008, temporary caps were placed on dutiable (c.i.f.) price of petroleum imports, affecting the amount of import duty, excise duty, and turnover tax collected on petroleum products.
Five rates ranging from 5 to 40 percent. The types of goods subject to these rates are as follows:
Raw materials, chemicals (including fertilizers), packaging materials, some machinery (including tractors and tools for agriculture), and essential consumer goods (rice, wheat flour, salt, baby foods, medicines, books and printed materials), cameras.5
Other machinery and spare parts and less essential goods (sugar, cheese, butter, chocolate, footwear, garments, photographic films, refrigerators, dishwashers, household electrical appliances, stereo systems, carpets, pearls and diamonds).10
Selected luxury consumer goods (premium petrol, cosmetics and toiletries, TVs and VCRs, radio cassette players, table games and fun fair articles, buses and minibuses).20
Other luxury consumer goods (prepared meats and fish, cereals and prepared foods, white chocolate confectionery, toilet soaps and deodorants, perfumes, wines and spirits), pickup trucks.30
Soft drinks, liquors, beer, tobacco, detergents, processed wood, jeeps, cars, motorbikes, cigarettes, cigars.40
4.2Export dutiesAll exported finished products produced from raw materials and intermediate components imported free of import duty under Article 17 of the Law on the Promotion and Management of Foreign Investment in the Lao P.D.R. are exempt.Electricity: 20 percent of invoice value; coffee: 5 percent of f.o.b. value; livestock: 5 percent of f.o.b. value; logs: specific rates; saw wood: specific rates; semi-finished wood products (lumber, parquet): 30 percent of f.o.b. value; finished wood products (plywood): 3 percent of f.o.b. value.
5.Taxes on timber and other natural resources
5.1Timber royaltiesLevied as fixed dollar amount per cubic meter of timber sold, both for domestic use and export.NoneThe timber royalties are set year by year by the Ministries of Industry and Commerce and Agriculture.
5.2Taxes on natural resourcesLevied in the form of specific duties on the volume of mineral extraction, or ad valorem duties on sale price of mineral products.
  • Ferrous metals

  • Non-ferrous metals

  • Coal

  • Construction materials

2(sales value)
2–5
2–3
Kip 50
Source: Ministry of Finance.
Source: Ministry of Finance.

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