Investment Licensing Authority Shifts to Prime Minister's Office Following Ministry Merger

Following the recent merger of the Ministry of Planning and Investment into the Ministry of Finance, there's a significant change in how businesses can obtain investment licenses in Laos. The Investment Promotion Department, which was formerly part of the Ministry of Planning and Investment, is now under the direct control of the Prime Minister's Office.

This means that any business requiring an investment license—including those in controlled and concessionary business activities—must now apply to the newly established Investment Promotion and Management Committee (IPMC), which operates under the Prime Minister's Office.

New Decree on the Organization and Activities of the IPMC

The new organizational structure is outlined in the Prime Minister's Decree No. 530/PM, dated August 11, 2025. The decree clarifies the IPMC's new role, responsibilities, and structure, aiming to create a more centralized, transparent, and efficient system for attracting and managing private investment in Laos.

Key Highlights of the Decree:

1. Role and Authority:

• The IPMC is an organization of the government that reports directly to the Prime Minister.

• Its main role is to act as a staff agency for the government, overseeing the promotion, approval, and management of both domestic and foreign private investment.

• This also includes the management of public-private partnerships and the development and management of special economic zones and specific economic zones, such as industrial parks and high-tech zones.

2. Duties and Responsibilities:

• Central Level: The IPMC is responsible for developing and improving national investment policies, creating a modern statistical database for investments, and proposing legal acts related to investment. It will also handle major investment proposals, resolve investor-related issues, and monitor the implementation of investment projects.

• Provincial Level: At the provincial level, the IPMC will serve as a staff agency for the provincial administration. It will focus on implementing national investment policies at the local level, streamlining investment approval procedures, and managing investment projects within its province.

3. Scope of Rights:

• Central Level: The IPMC has the authority to propose new legal acts to the government, issue investment licenses and other related approvals, and take action against investors who do not comply with regulations, including issuing warnings or revoking licenses. It can also manage international cooperation and agreements related to investment.

• Provincial Level: The provincial IPMC can issue investment licenses and approvals for projects under its jurisdiction and issue warnings or temporary suspension notices for non-compliant investors.

4. Organizational Structure:

• The IPMC has a two-level structure: the Central-level Investment Promotion and Management Committee (C-IPMC) and the Provincial-level Investment Promotion and Management Committee (P-IPMC).

• The C-IPMC is chaired by the Deputy Prime Minister in charge of the economic and foreign cooperation sector. It includes non-standing members from various ministries, such as Finance, Industry and Commerce, and Public Security.

• The P-IPMC is chaired by the Provincial Governor. Its members are the heads of provincial departments like Industry and Commerce and Public Works and Transport.

The new decree aims to simplify and modernize the investment process, making it easier and more attractive for both domestic and foreign investors to contribute to Laos' socio-economic development.