in and communication. The general costs of hotels, health ... · Source: Lao Statistic Bureau, Ministry of Planning and Investment. Translation Cost A4-sized Paper (300 Words) with

i

Foreword

The Investment Promotion Department at the Ministry of Planning and

Investment is committed to providing investors with relevant information to

support the development of successful business operations. This guide will assist

investors to understand some of the general costs associated with doing business

in Vientiane, Laos.

Investors will find information on the costs of visas, permit cards registration,

labor registration and employment, taxation, utilities, as well as transportation

and communication. The general costs of hotels, health services, schools,

insurance and sport membership fees have also been supplied.

We hope you find the 2015 Cost of Doing Business handbook useful. If the

Investment Promotion Department can be of any further assistance please do not

hesitate to contact our One Stop Service.

Thank You

Mr. Manothong VONGSAY

Director of Investment Promotion Department

i

Foreword





in Vientiane, Laos.








Thank You



ii

Contents

Part 1: The Typical Cost of Starting a Business in Vientiane ..................................... 1

Type of Investment ........................................................................................................... 1

Starting a Business ........................................................................................................... 1

Part 2: Cost of Visa, and Permits .......................................................................................... 2

Part 3: Office Space Rental Fee in Vientiane Capital .................................................... 2

Part 4: Labor ............................................................................................................................... 3

Labor Overview in Vientiane Capital ......................................................................... 3

Sources of Labor Supply in Vientiane Capital in 2014 ..................................................... 3

Policy to Import Foreign Labor ................................................................................................. 3

Application Costs to Import Foreign Workers .................................................................... 4

Wage Rates .......................................................................................................................... 4

Wage by Position ............................................................................................................................ 4

Translation Cost .............................................................................................................................. 4

Oral Translation Costs .................................................................................................................. 5

Overtime Regulation ........................................................................................................ 5

Severance Payment Entitlement ................................................................................. 5

The Minimum Wage ......................................................................................................... 5

iii

Part 5: Utilities Costs ............................................................................................................... 6

Water Tariff......................................................................................................................... 6

Electricity Tariff ................................................................................................................ 6

Fuel Cost ............................................................................................................................... 7

Cooking Gas Cost ............................................................................................................... 7

Garbage Collection Costs ................................................................................................ 7

Part 6: Cost of Communication ............................................................................................. 8

Bus Fares .............................................................................................................................. 8

Local Bus Fare in Vientiane Capital ........................................................................................ 8

Domestic Bus Ticket (From Vientiane Capital to Other Provinces)............................ 8

Taxi Rates ............................................................................................................................ 9

Flight Ticket Fares ............................................................................................................ 9

Domestic Flight Ticket Fares ..................................................................................................... 9

Flight Ticket Fare from Vientiane Capital to Selected Countries in Asia ............... 10

Air Cargo Shipping from Vientiane Capital ............................................................ 10

Domestic Air Shipping Cargo .................................................................................................. 10

World -wide Air Cargo Shipping Rates with Lao Airlines ............................................ 11

World-wide Air Cargo Shipping Rates with Thai Airway ............................................ 11

Cargo Shipping Rates ..................................................................................................... 12

Express Postal Rates from Vientiane ....................................................................... 13

iv

Domestic Express Postal Rates from Vientiane ............................................................... 13

International Express Postal Rates from Vientiane Capital ........................................ 13

Part 7: Costs of Communication ......................................................................................... 14

Telephone Rates .............................................................................................................. 14

International Telephone Rates ............................................................................................... 14

Domestic Fixed Line Service ................................................................................................... 14

Domestic Cellular Mobile Service .......................................................................................... 15

Internet Service ............................................................................................................... 15

ADSL and Direct to Home Internet ....................................................................................... 15

Fiber High Speed Internet ........................................................................................................ 15

Part 8: Taxation ....................................................................................................................... 17

Profit Tax ........................................................................................................................... 17

Income Tax ........................................................................................................................ 17

Value Added Tax .............................................................................................................. 17

Custom Tax ........................................................................................................................ 17

Part 9: Living in Vientiane Capital .................................................................................... 18

Accommodation ............................................................................................................... 18

Apartment Rental Fees .............................................................................................................. 18

House Rental Fees ....................................................................................................................... 18

International School Fees in Vientiane Capital .................................................... 19

Health Services ................................................................................................................ 20

v

Part 10: Annex ......................................................................................................................... 21

Hotel Rates ........................................................................................................................ 21

Fitness Club Membership ............................................................................................. 21

Golf Club Membership ................................................................................................... 22

Vehicle Rental Fees......................................................................................................... 22

Annual Motor Insurance Fees ..................................................................................... 23

Annual Health Insurance Fees ................................................................................... 23

Bank Holiday in 2015 .................................................................................................... 24

Lao Language Instruction ............................................................................................. 24

Emergency Number in Vientiane Capital................................................................ 25

State Offices for Investment Registration .............................................................. 25

1

Part 1: The Typical Cost of Starting a Business in Vientiane

Type of Investment

Three Investment Types in Lao

PDR

Business License issued by

Concession business activities One Stop Service, Investment Promotion Department,

Ministry of Planning and Investment

General business activities Registration and Management of Enterprises

Department, Ministry of Industry and Commerce

Business activities for development in

Special Economic Zone (SEZ)

Developers (A)

Secretariat to National Committee for Special Economic

zones, Government Office

Investors (B) The Administrative Assembly of each Special Economic

Zone

Source: OSS Guidebook, Investment Promotion Department, Ministry of Planning and Investment.

Starting a Business

Forms/Fees/Certificates

Fees

1Gerneral

Business

()

2Concession

Business

()

3Business

in SEZ

()

LAK US$ A B

Company stamp seal 75,000 9.375

Enterprise registration

certificate* 20,000 - 5,000,000 2.5 – 625

Enterprise registration form 10,000 - 60,000 1.25 – 7.5

Enterprise registration service fee 40,000 - 90,000 5 – 11.25

Investment application form 50,000 6.25

Investment regulation 30,000 - 50,000 3.75 – 6.25

Enterprise registration number 10,000 1.25

Tax identification number 30,000 3.75

Assets registration 250,000 2.5 – 65

Concession registration certificate 70,000 8.75

Registration service fee 250,000 31.25

Concession registration certificate

for developers in SEZ

1,000,000 - 2,500,000 125 – 312.5

Other services

Note: * Fee of enterprise registration certificate depends on capital registration of the company

Source: 1

Registration and Management of Enterprises Department, Ministry of Industry and Commerce 2OSS Guidebook, One-Stop-Service, Investment Promotion Department, Ministry of Planning and Investment.

3Lao National Committee for Special Economic Zone, Secretariat, Government’s Office

Note: All US$ conversions are calculated at US$ = LAK 8,000

2

Part 2: Cost of Visa, and Permits

Source: One-Stop-Service, Investment Promotion Department, Ministry of Planning and Investment.

Part 3: Office Space Rental Fee in Vientiane Capital

Note: The rates above are calculated as

the survey average.

Source: Rentsbuy.com. www.rentsbuy.com/

*Vientiane Industrial and Trade Area

Visas/Permits Fees (US$)

VISA LA B2 / NI-B2

VISA certificate (US$/person) 120

Work Permit Work permit registration (US$//card/person) 6.50

Work permit certificate for 12 months (US$//card/person) 120 Stay Permit Card

Stay permit certificate (US$/person) 63

Multiple Entry Visa Multiple entry visa registration application form (US$/person) 0.65

Multiple entry visa certificate for 12 month (US$/person) 120

Total expense (US$/person) 430

(Price/m2/month) Commercial Spaces

Grade A

LAK 120,000 – 400,000

US$ 15 – 50

Grade B

LAK 40,000 – 120,000

US$ 5 – 15

Land Leasing in Special Economic Zone*

LAK 304 – 352

US$ 0.038 - 0.044

3

Part 4: Labor

Labor Overview in Vientiane Capital

Sources of Labor Supply in Vientiane Capital in 2014

Note: the chart above displays the number of senior students from state colleges in Vientiane Capital.

Source: Education Statistic and Information Technology Center, Ministry of Education and Sport

Policy to Import Foreign Labor

In order to ensure sufficient supply of labor force to fill technical positions, the government

is implementing policy through the decree of Laos’ president on the promulgation of the

amended labor law, No 068, issued 28 January 2014. Some of the policy requirements on

foreign workers include:

Source: Ministry of Labor and Social Welfare

Bachelor's Degree

Technical Degree

Vocational Diploma's

Degree

Master's Degree

668

(Female:329)

739

(Female:177)

8,053

(Female: 3,391)

3,364

(Female: 1,477)

Not more than 15% of the enterprise’s labor force Physical Labor

Not more than 25% of the enterprise’s labor force Intellectual Labor

4

Application Costs to Import Foreign Workers

Fees

LAK US$

Application form: Quota for foreign workers (fee/form/work unit) 10,000 1.5

Approval certificate: Quota for foreign workers (fee/ form/work unit) 50,000 6.5

Application form: Importing foreign workers (fee/ form/work unit) 10,000 1.5

Source: Ministry of Labor and Social Welfare

Wage Rates

Wage by Position

Average minimum and maximum monthly salaries in the private sector

LAK US$

Min Max Min Max

Manager Position 900,000 18,000,000 112.5 2,250

Technical Position 900,000 8,000,000 112.5 1,000

Unskilled workers 900,000 3,000,000 112.5 375

Note: The information above is the summary of labor section of the 5th

Lao Expenditure and Consumption Survey

(LECs V)*.

Source: Lao Statistic Bureau, Ministry of Planning and Investment.

Translation Cost

A4-sized Paper (300 Words)

with Non-technical Texts

A4-sized Paper (300 Words)

with Technical Texts LAK US$ LAK US$

English – Lao

Lao – English 126,000 - 146,000 15.75 – 18.25 168,000 - 240,000 21 – 30

Viet – Lao

Lao – Viet Start from 100,000 Start from 12.5 Start from 100,000 Start from 12.5

Chinese - Lao

Lao – Chinese Start from 180,000 Start from 22.5 Start from 180,000 Start from 22.5

Other – Lao

Lao – Other Start from 220,000 Start from 27.5 Start from 220,000 Start from 27.5

English - Other

Other - English Start from 220,000 Start from 27.5 Start from 220,000 Start from 27.5

Note: The above rates exclude 10% VAT.

Source: Center Link Company

5

Oral Translation Costs

Source: Center Link Company

Overtime Regulation

Overtime rate during regular working day

17:00-22:00 150% of hourly wages for regular working day


Overtime rate during holidays or weekends




Source: Amended Labor Law, No 068, issued 28 January 2014, Ministry of Labor and Social Welfare.

Severance Payment Entitlement

If an employee has been working for three years or more, but less than 15 years and

resigns from his job, the employ would receive a severance entitlement of 1.5 x monthly

wage (an average of the last six months’ salary) x number of years worked.

Source: Amended Labor Law, No 068, promulgated on 28 January 2014, Ministry of Labor and Social Welfare

The Minimum Wage

The minimum wage is 900,000 LAK/month/person.

Source: Notification on the amendment of the minimum wage of workers in Lao PDR, No 808, promulgated on 09

February 2015.

1 hour

LAK 800,000

US$ 100

Half day (4 hours)

LAK 1,600,000 - 2,800,000

US$ 200 - 350

Full day (8 hours)

LAK 2,400,000 - 4,800,00

US$ 300 - 600

6

Part 5: Utilities Costs

Water Tariff

Note: - Type 2 customers are subject to pay fixed rate.

- The above rates exclude 10%VAT.

- Water capacity in Vientiane Capital is 180,000 m3 per day

Source: Nam Papa Nakhoneluang.

Electricity Tariff

Price /KWH /month

LAK US$

Customer Type 1 : Low voltage (household)

0-25 KWH 341 0.04

26-150 KWH 405 0.05

>150 KWH 979 0.12

Customer Type 2: Low voltage (non-household)

Enterprises related to temporary electricity service 1,058 0.13

Enterprises related to education and sports 831 0.10

Enterprises related to entertainment 1,401 0.18

Enterprises related to agriculture and irrigation 506 0.06

Enterprises related to industry 749 0.09

Customer Type 3 : Medium voltage

Enterprises related to temporary electricity service 898 0.11

Enterprises related to education and sports 706 0.09

Enterprises related to entertainment 1,331 0.17

Enterprises related to agriculture and irrigation 431 0.05

Enterprises related to industry under 5 MW 636 0.08

Enterprises related to industry over 5 MW 687 0.09

Note: - Type 2& 3 customers are subject to pay the fixed tariff

- The above rates exclude 10% VAT

- Electricity supply in Vientiane Capital (2014) was 1,187,030,381 KWH /Year

Source: Electricite du Laos (EDL)

Price /m3 /month

LAK US$

Customer Type 1: Household

1-10 m3 1,339 0.16

11-30 m3 1,854 0.23

31-50 m3 2,369 0.3

Over 51 m3 2,884 0.36

Customer Type 2: Hotels, restaurants, ice and drinking water

enterprise 2,884 0.36

7

1.29 1.26

1.23 1.20

1.17 1.15 1.13 1.10

1.07 1.05 1.03

1.01 1.01 0.98 0.95

0.92 0.90

0.88

8/1 19/1 30/1 13/2 27/2 25/3

Rate of Gasoline 95 Rate of Gasoline 91

Rate of Diesel

Fuel Cost

Note: All rates above are calculated in Lao currency (Kip)

Source: Lao State Fuel Company

Cooking Gas Cost

LAK US$

Price per kg 11,000 – 14,000 1.4 – 1.8

Note: The price above is the average price from some of the cooking gas services in Vientiane Capital.

Source: Bounnum Gas, Pasansack Gas, Khamsai Khualuang Gas.

Garbage Collection Costs

Note: Household units are subject to pay according to type 1, business units such as offices, hotels, companies are

subject to pay according to type 2.

Source: Vientiane Urban Development and Administration Authority.

LAK

US$

Type1: less than

20 liters per time

Type2: less than

60 liters per time

7,000 10,000

0.9 1.3

(Date/Month)

8

Part 6: Cost of Communication

Bus Fares

Local Bus Fare in Vientiane Capital

Source: Vientiane Capital State Bus Enterprise.

Domestic Bus Ticket (From Vientiane Capital to Other Provinces)

Price /ticket

Destination LAK US$

Vientiane Province (Vang Vieng) 50,000 6.5

Louang Pra Bang Province 110,000 - 150,000 14 – 19

Oudomxai Province 150,000 - 190,000 19 – 3

Luang Num Tha Province 200,000 25

Borkeo Province 230,000 - 250,000 29 – 32

Phongsaly Province 210,000 - 230,000 26.5 – 29

Xieng Kuang Province 150,000 19

Hua Phan Province 170,000 - 210,000 21.5 – 26.5

Xaiyabouly Province 110,000 - 130,000 13.5 – 16.5

Xaysomboun Province 80,000 10

Khammuan Province (Tha Khaek) 60,000 7.5

Savannakhet Province 75,000 - 120,000 9.5 – 15

Champasak Province (Pakse) 110,000 - 170,000 13.5 – 21.5

Salavan Province 130,000 16.5

Sekong Province 130,000 16.5

Attapeu Province 140,000 - 200,000 17.5 - 25

Source: North Bus Station & South Bus Station

Local Bus Fare Depends on Routes

2,000 – 6,000

LAK

0.3 – 0.8

US$

9

Luang Num Tha Louang Pra Bang

Oudomxai Pakse Savannakhet Xieng Kuang

Taxi Rates

Flight Ticket Fares

Domestic Flight Ticket Fares

Note:

- Airport tax and fuel surcharge are included

- Prices are subject to daily changes.

Source: http://www.laoairlines.com

LAK

US$

Round Trip Fare/ticket

1,920,000 1,856,800 1,920,000 2,200,800 1,920,800 1,536,800

LAK

240 232 240 275 240 192

US$

One Way Trip Fare/ticket

1,028,400 988,400

1,028,400 1,180,400 1,028,400 828,400

LAK

129 124 129 148 129 104

US$

Note: The rates above are the rates by meter.

Source: Vientiane Capital Taxi group.

First

Kilometer

Every 300

Meter

15,000

2,000

1.9 0.3

http://www.laoairlines.com/

10

Flight Ticket Fare from Vientiane Capital to Selected Countries in Asia

Round Trip Fare /ticket

Destination LAK US$

Siem Reap 2,512,000 – 2,752,000 314 - 344

Kunming 3,238,400 – 5,278,400 405 – 660

Guangzou 4,038,400 – 6,358,400 505 – 795

Seoul (South Korea) 4,420,000 – 8,460,000 553 - 1,058

Singapore 2,764,000 – 6,684,000 346 – 836

Bangkok 1,968,000 – 3,568,000 246 – 446

Hanoi 2,644,000 – 3,084,000 331 – 386

Ho Chi Minh 2.,132,000 – 3,212,000 267 - 402

Note:

- Airport tax and fuel surcharge are included

- Prices are subject to daily changes. Source: Commercial Department, Lao Airlines

Air Cargo Shipping from Vientiane Capital

Domestic Air Shipping Cargo

Luang Pra Bang Pakse Xieng Khuang Huay Xay

LAK US$ LAK US$ LAK US$ LAK US$

1-6 kg 30,000 3.75 30,000 3.75 30,000 3.75 30,000 3.75

7-44kg 4,800 0.6 4,400 0.55 4,300 0.54 4,500 0.54

+45kg 4,500 0.56 3,300 0.41 3,200 0.4 3,600 0.45

+100kg 3,800 0.48 2,800 0.35 2,700 0.34 3,200 0.4

+500kg 3,000 0.38 2,500 0.31 2,400 0.3 2,800 0.35

Oudomxai Luangnumtha Savannakhet

LAK US$ LAK US$ LAK US$

1-6 kg 30,000 3.75 30,000 3.75 30,000 3.75

7-44kg 4,500 0.56 4,500 0.56 4,500 0.56

+45kg 3,600 0.45 3,600 0.45 3,300 0.41

+100kg 3,200 0.4 3,200 0.4 2,600 0.33

+500kg 2,800 0.35 2,800 0.35 2,400 0.3

Note: -The prices exclude AWB surcharge (LAK10,000 or US$1.25 /bill)

- The above prices exclude 10% VAT

Source: Cargo department, Lao Airlines

11

World -wide Air Cargo Shipping Rates with Lao Airlines

Bangkok,

Hanoi Kunming Singapore Phnom Penh Incheon

Price/kg LAK US$ LAK US$ LAK US$ LAK US$ LAK US$

1-44 8,320 1.04 10,400 1.3 10,160 1.27 7,360 0.92 14,480 1.81

+45kg 6,720 0.84 9,120 1.14 7,840 0.98 6,960 0.87 13,040 1.63

+100 kg 5,760 0.72 8,240 1.03 7,440 0.93 5,920 0.74 11,040 1.38

+300kg 5,120 0.64 7,040 0.88 6,720 0.84 5,280 0.66 9,360 1.17

+500kg 4,400 0.55 5,920 0.74 5,360 0.67 4,480 0.56 8,000 1

+1000 kg 4,160 0.52 5,040 0.63 5,120 0.64 4,320 0.54 6,400 0.8

Note: The above rates exclude 10% VAT, service surcharge (US$1/kg for weight under 44 kg, US$0.05/kg for weight

over 45 kg), fuel surcharge (US$ 0.01/kg for weight over 45kg only) and AWB surcharge (US$2/bill)

Source: Cargo Department, Lao Airlines

World-wide Air Cargo Shipping Rates with Thai Airway

Hong Kong Philippines Malaysia* Japan** Australia ***


+45kg 21,200 2.65 22,000 2.75 18,800 2.35 27,600 3.45 29,200 3.65

+100 kg 20,800 2.6 21,200 2.65 14,800 1.85 26,800 3.35 27,600 3.45

+300kg 20,400 2.55 20,400 2.55 14,000 1.75 26,000 3.25 26,800 3.35

+500kg 18,400 2.3 19,600 2.45 13,600 1.7 24,400 3.05 25,200 3.15

+1000 kg 17,200 2.15 19,200 2.4 13,200 1.65 23,600 2.95 24,400 3.05

Note: -* Kuala Lumpur, Penang

-** Osaka, Fukuoka, Narita, Nagoya, Haneda,

-*** Melbourne, Sydney

-The above rates exclude VAT, X-ray surcharge (US$0.21/kg), AWB surcharge, (US$2/bill) and other

charges for import control system code (for European country only US$6.57/bill).

Source: Thai Air way

Paris London New York Dubai Africa


+45kg 40,400 5.05 41,200 5.15 42,800 5.35 31,600 3.95 51,600 6.45

+100 kg 36,400 4.55 35,600 4.45 42,000 5.25 29,600 3.7 48,400 6.05

+300kg 34,000 4.25 34,000 4.25 41,200 5.15 28,800 3.6 46,000 5.75

+500kg 32,400 4.05 32,400 4.05 39,600 4.95 28,000 3.5 43,600 5.45

+1000 kg 30,000 3.75 30,000 3.75 37,200 4.65 27,200 3.4 41,200 5.15

12

Cargo Shipping Rates

From Vientiane Capital to:

Note: - The above price is for general non-hazardous cargo.

- The prices exclude 10% VAT

- The freight rates are subject to changes base on market condition and without prior notification

Source: Lao Nissin SMT Co., LTD

China (Shanghai)

China (Huangpu)

Hong Kong

Singapore

Malaysia (Port Kelang)

Thailand (Bangkok)

Vietnam (Hanoi)

Cambodia (Phnom Penh)

Myanmar (Yangon)

Japan (Osaka)

Japan (Tokyo)

Japan (Yokohama)

India (Nhava Sheva)

Australia (Melbourne)

New Zealand (Auckland)

France (Le Havre)

Germany (Hamburg)

England (Southampton)

USA (New York)

USA (Los Angeles)

Canada (Vancouver)

Mexico (Lazaro Cardenas)

United Arab Emirates Dubai

Spain (Barcelona)

14,000,000 14,400,000 12,880,000 14,000,000 14,400,000 10,800,000 14,800,000 20,800,000 20,400,000 14,640,000 13,840,000 14,640,000 18,000,000 16,400,000 17,200,000 19,600,000 21,200,000 18,400,000 39,600,000 22,480,000 25,720,000 19,800,000 18,000,000 16,400,000 27,600,000

1,750 1,800 1,610 1,750 1,800 1,350 1,850 2,600 2,550 1,830 1,730 1,830 2,250 2,050 2,150 2,450 2,650 2,300 4,950 2,810 3,215 2,475 2,250 2,050 3,450

16,400,000 16,800,000 14,000,000 16,400,000 16,400,000 11,200,000 16,800,000 23,600,000 26,800,000 16,800,000 16,400,000 16,800,000 24,000,000 21,200,000 22,800,000 27,600,000 30,800,000 25,200,000 43,200,000 24,400,000 28,000,000 24,400,000 23,600,000 20,400,000 41,800,000

2,050 2,100 1,750 2,050 2,050 1,400 2,100 2,950 3,350 2,100 2,050 2,100 3,000 2,650 2,850 3,450 3,850 3,150 5,400 3,050 3,500 3,050 2,950 2,550 5,225

20 –foot Container 40 -foot Container

LAK US$ LAK US$

13

Express Postal Rates from Vientiane

Domestic Express Postal Rates from Vientiane

Weight

(kg) LAK US$ Kg LAK US$

Weight

(kg) LAK US$

0.02 16,000 2 3.5 110,000 13.75 7.5 166,000 20.75

0.1 43,000 5.38 4 116,000 14.5 8 172,000 21.5

0.5 58,000 7.25 4.5 122,000 15.25 8.5 187,000 23.38

1 70,000 8.75 5 129,000 16.13 9 193,000 24.13

1.5 80,000 10 5.5 141,000 17.63 9.5 199,000 24.88

2 87,000 10.88 6 147,000 18.38 10 205,000 25.63

2.5 93,000 11.63 6.5 153,000 19.13 15 281,000 35.13

3 99,000 12.38 7 159,000 19.88 20 344,000 43

Note: All domestic destinations are calculated with the same rates.

Source: EMS Service, Enterprise des Postes Lao.

International Express Postal Rates from Vientiane Capital

Weight

(g)

0.5

(US$/g)

1

(US$/g)

2.5

(US$/g)

5

(US$/g)

10

(US$/g)

25

(US$/g)

Additional

after 10g

or 25g

(US$/g)

Zone 1 30.52 38.9 64.08 116.75 152.62 259.47 7.3

Zone 2 68.77 78.71 108.47 165.67 228.98 411.88 8.53

Zone 3 76.40 92.42 140.54 191.8 228.98 411.9 10.27

Zone 4 76.4 93.19 143.61 199.19 229.02 411.91 11.66

Zone 5 84.04 104.64 166.48 236.11 305.44 565.00 16.22

Zone 6 91.67 113.04 177.18 250.88 305.4 564.96 17.11

Zone 7 99.33 123.8 197.11 273.08 382.01 718.01 20.47

Zone 8 106.96 135.23 220.02 295.2 381.99 717.99 22.24

Source: DHL Service, Enterprise des Postes Lao.

Zone Index

Zone1 : Cambodia, Thailand, Vietnam, Burma

Zone2: Brunei, China, Hong Kong, Indonesia, Macau, Malaysia, Philippines, Singapore, Taiwan

Zone3: Australia, Bhutan, East Timor, India, Korea south, New Zealand

Zone4: Japan

Zone5: Canada, Mexico, U.S.A

Zone6: France, Germany, United Kingdom

Zone7: Norway, Poland, Russia

Zone8: Cuba

http://spotonlaos.com/place/vientiane-lao-postal-service/

http://spotonlaos.com/place/vientiane-lao-postal-service/

14

Part 7: Costs of Communication

There are four main telecommunication companies providing telephone and 4G internet

services throughout Laos.

The fees shown below are average telephone and internet rates in Laos

Telephone Rates

International Telephone Rates

Country 1. Code Price /minute

Country 2. Code Price /minute

LAK US$ LAK US$

1 Australia 61 2,000 0.25 18 Mexico 52 2,000 0.25

2 Bhutan 975 2,000 0.25 19 New Zealand 64 2,000 0.25

3 Brunei 673 2,000 0.25 20 Philippine 63 2,000 0.25

4 Cambodia 855 2,000 0.25 21 Russia 7 2,000 0.25

5 Canada 1 2,000 0.25 22 Singapore 65 2,000 0.25

6 Chile 56 2,000 0.25 23 South Korea 82 2,000 0.25

7 China 86 2,000 0.25 24 Sweden 46 2,000 0.25

8 France 33 2,000 0.25 25 Switzerland 41 2,000 0.25

9 Germany 49 2,000 0.25 26 Taiwan 886 2,000 0.25

10 Greece 30 2,000 0.25 27 Thailand 66 2,000 0.25

11 Hong Kong 852 2,000 0.25 28 UK 44 2,000 0.25

12 Hungary 36 2,000 0.25 29 USA 1 2,000 0.25

13 India 91 2,000 0.25 30 Vietnam 84 2,000 0.25

14 Indonesia 62 2,000 0.25 31 Burma 95 3,000 0.38

15 Italy 39 2,000 0.25 32 North Korea 850 5,000 0.63

16 Japan 81 2,000 0.25 33 Cuba 53 10,000 1.25

17 Malaysia 60 2,000 0.25 34 East Timor 670 20,000 2.5

Source: Lao Telecommunications Company

Domestic Fixed Line Service

Installation Fee and Call Rate

LAK US$

Installation fee 350,000 43.75

Fixed line to fixed line/Cellular

mobile 250 0.031


15

Domestic Cellular Mobile Service

Pre-paid Post-paid

LAK US$ LAK US$

SIM card 10,000 1.25 10,000 1.25

Same-network call (per Minute) 800 1 300 0.04

Different-network call (per

Minute)

100 0.013 100 0.02

Same-network texting (per time) 200 0.025 200 0.03


Internet Service

ADSL and Direct to Home Internet

Pre-paid 1

month

Pre-paid 3

month

Pre-paid 6

month

Pre-paid 12

month

256 kbps LAK 150,000 240,000 380,000 1,440,000

US$ 18.75 30 47.5 180

1 Mbps LAK 420,000 690,000 1,080,000 2,400,000

US$ 52.5 86.25 135 300

2 Mbps LAK 780,000 1,320,000 2,040,000 3,840,000

US$ 97.5 165 255 480


Fiber High Speed Internet

1Mbps 2Mbps 3-4Mbps 5-6Mbps 7-10

Mbps

Pre-paid 1 month

LAK 250,000* 350,000* 550,000* 900,000 1,500,000

US$ 31.25 43.75 68.75 112.5 187.5

Pre-paid 3

month

LAK 720,000* 1,020,000 1,620,000 2,670,000 4,200,000

US$ 90 127.5 202.5 333.75 525

Pre-paid 6

month

LAK 1,380,000 1,920,000 3,120,000 5,280,000 7,800,000

US$ 172.5 240 390 660 975

Pre-paid 12

month

LAK 2,400,000 3,600,000 6,000,000 10,200,000 14,400,00

US$ 300 450 750 1275 1800

Note: The prices above exclude IP surcharge (LAK 50,000 or US$6.25 /month) and (*) modem surcharge

(LAK 500,000 or US$ 62.5) which is to be paid as the initial fee


16

Lease Line Data (International Private Leased Circuit: IPLC)

Monthly Fee

Speed LAK US$

512 kbps 1,170,000 146.25

1 - 4 MB 1,800,000 225

5 - 9 MB 1,710,000 213.75

10 - 49 MB 1,530,000 191.25

Over 50 MB 1,350,000 168.75


17

Part 8: Taxation

Profit Tax

Types of Enterprises Tax Rate

Businesses of domestic and foreign legal entities 24%

Businesses of legal entities related to production, import and purchase of tobacco

products 26%

Sole-trader enterprises and freelancers

3,600,000 Kip and below Exception

3,600,001-8000,000 Kip 5%

8,000,001-15,000,000 Kip 10%

15,000,001-24,000,000 Kip 15%

24,000,001-40,000,000 Kip 20%

Above 40,000,001 Kip 24%

Source: Law on Tax Decree (amendment) No 058, Issued 16 January 2012

Income Tax

Taxable Salary at Each Level Tax Rate

1,000,000 Kip and below Exception

1,000,001-3,000,000 Kip 5%

3,000,001-6,000,000Kip 10%

6,000,001-12,000,000 Kip 12%

12,000,001-24,000,000 Kip 15%

24,000,001-40,000,000 Kip 20%

Above 40,000,000 Kip 24%

Note: Incomes from dividends, profit from sales shares, loan Interests, commissions and leases of house, heavy

equipment, and other assets are subject to 10% tax.

Source: Law on tax Decree (Amendment) No 058, issued 16 January 2012

Value Added Tax

Value added tax for goods and general service 10%

Note: Material, chemicals, machines and other fix assets for the manufacturing and investment are exempt.

Source: Law of Value Added Tax (Amendment) No 033, issued 30 January 2015

Custom Tax

The import of equipment, materials and vehicles used directly for the manufacturing and

investment are exempt from import tariff. Furthermore, some export/import goods in the

Special or Specific Economic Zones may be subject to other benefits as addressed in the law.

Source: Law of Domestic and Foreign Investment promotion, No 02, promulgated on 8 July 2009

18

Type

Grade A

Grade B

LAK /month

10,880,000 - 20,000,000

5,200,000 - 9,600,000

US$ /month

1,360 - 2,500

650 - 1,200

Part 9: Living in Vientiane Capital

Accommodation

Apartment Rental Fees

Note: The prices are average survey rates.

Source: Rentsbuy.com

House Rental Fees

Rent /month

House Type LAK US$

Modern House with Garden and Swimming Pool 28,000,000 – 32,000,000 3,500 – 4,000

Villa House

In business areas 4,800,000 – 11,200,000 600 – 1,400

On alleyways 2,000,000 – 4,800,000 250 - 600

Note: The prices are average survey rates

Source: Rentsbuy.com

19

International School Fees in Vientiane Capital

The fees below show the annual school fees for selected schools (2014-2015)

Vientiane International School (International Curriculum)

Registration Fee LAK US$ Tuition Fee LAK US$

Application 8,000,000 1,000 Kindergarten 64,000,000 8,000

Annual capital

fee

20,000,000 2,500 Pre-primary 118,800,000 14,850

Primary 1-5 118,800,000 14,850

Year 6;7;8 136,160,000 17,020

Year 9;10;11;12 151,680,000 18,960

PANYATHIP International School (International Bilingual Curriculum)


Application 4,000,000 500 Kindergarten 1 &2 19,200,000 2,400

Kindergarten 3 22,400,000 2,800

Primary 1-5 20,000,000 2,500

Year 6;7;8 22,000,000 2,750

Year 9;10;11 24,000,000 3,000

Year 12 26,000,000 3,250

French International School


Application 4,800,000 600 Kindergarten 32,360,000 4,045

Primary 1-5 35,280,000 4,410

Year 6;7;8 47,880,000 5,985

Year 9;10;11;12 52,080,000 6,510

There are more than 10 international schools

registered with the Ministry of Education and

Sport, Laos. There are three types of international

schools: international curriculum schools,

international bilingual curriculum schools and

French curriculum schools.

20

Health Services

Consultation Fee 250,000 31.5 Health Check Package

Under 30 years old (Standard Check) 640,000 80

30-40 years old (Detailed Check) 1,280,000 160

Above 40 years old (Comprehensive Check)

2,000,000

250

Male above 50 years old (Vital Health Check)

3,360,000

420

Hospital Ward Charge (Single Bed) *

For Lao citizens 150,000/night 19/night For foreigners 280,000/night 35/night

Source: Alliance International Medical Centre

*International Clinic Department (Mahosot Hospital)

LAK US$

21

Part 10: Annex

Hotel Rates

Fitness Club Membership

Source: Sengdara fitness & Recreation

Lao Plaza Fitness Service

LAK US$

Daily pass 80,000 - 220,000 10 – 27.5

Monthly pass 800,000 - 2,200,000 100 – 275

Note: The prices are average survey rates

Source:

- Lao Plaza Hotel, Settha Palace Hotel, Green Park, Rashmi the Plaza Hotel

- Luxay Hotel, Vientiane Plaza, DHAVARA Hotel

- Chanthapanya Hotel, Mekong Hotel, City Inn Hotel, Vansana Riverside Hotel

Single/Double

Level LAK /night US$ /night

1,320,000 – 2,424,000 165 - 303

520,000 – 1,200,000 65 – 150

360,000 – 800,000 45 - 100

22

Golf Club Membership

Source: Sea Game Golf Club & Lao Country Club

Vehicle Rental Fees

LAK /day US$ /day

Bicycle* 10,000 1.5

4-door vehicle

Car (up to 2000 cc)* 440,000 - 560,000 55 - 70

Car (over 2000 cc) 680,000 - 880,000 85 - 110

Van **

15 Seats 800,000 100

12 Seats 680,000 85

Note: * The rental of bicycle and car up to 2000 cc is available only in Vientiane Capital area

** Van rental fee excludes driver fee (US$ 40/ day) and this rate is for travelling from Vientiane capital to

other provinces.

Source: Asia Vehicle Rental Co Ltd

Daily pass LAK US$

Week day 120,000 - 390,000 15 - 49

Weekends 120,000 - 500,000 15 - 62.5

Membership

One nominee

per annual 17,600,000 - 24,000,000 2,200 - 3,000

23

Annual Motor Insurance Fees

Compulsory

LAK US$

Private Automobile ( Up to 2000 cc ) 184,000 23

Private Automobile ( Over 2000 cc ) 200,000 25

Heavy Equipment ( up to 10Ton) 200,000 25

Heavy Equipment (Over 10 Ton) 244,000 30.5

Note: - These prices are annual tariffs for the third-party liability

- Exclusive of 10% VAT & US$ 0.8 Registration fee

Source: Lao-Viet Insurance Company

Annual Health Insurance Fees

Male Female

Age LAK US$ LAK US$

Hospitalization

1 month 1 day - 5 years 537,000 67.5 537,000 67.5

6 – 15 years 322,000 40.5 322,000 40.5

16 - 35 years 269,000 4 349,000 44

36 - 40 years 322,000 40.5 419,000 52.5

41 - 45 years 349,000 44 454,000 57

46 - 50 years 403,000 50.5 524,000 66

51 - 55 years 430,000 54 559,000 70

56 - 60 years 537,000 67.5 698,000 87.5

Out Patient

1 month 1 day - 5 years 457,000 57.5 457,000 57.5

6 – 15 years 357,000 45 357,000 45

16 - 60 years 328,000 41 460,000 57.5

Note:

- These prices are the annual tariffs.

- Exclusive of 10% VAT & US$ 1.25 Registration fee

Source: Allianz General Laos

24

Bank Holiday in 2015

New Year 1 January

International Women’s Day 9 March

Lao New Year 14,15,16 April

International Labor Day 1 May

Lao Women Union’s Day 20 July

Bank of Laos Establishment Day 7 October

Boat Racing Festival Day 28 October

Thatluang Festival Day 25 November

Lao National Day 2 December

Source: Banque Pour Le Commerce Exterieur Lao (BCEL)

Lao Language Instruction

Note: Average class rate

Source: ANOU language Center & Masters class

Fee per hour per person

LAK

US$

67,000 – 75,000

8.5 – 9.5

25

Ministry of Planning and

Investment

Investment Promotion

Department (IPD)

One Stop Service (OSS)

Souphanouvong Road,

Sikhotthabong District,

Vientiane Capital,

Lao PDR

Call: (856-21) 21 7012

Fax: (856-21) 21 5491

www.investlaos.gov.la

[email protected]

Emergency Number in Vientiane Capital

Fire 1190

Police 1191

Electricity 1199

Water Supply 1169

Avian Influenza 166

Rescue 1623 Operator 178

Source: Yellow Page 2014/15

State Offices for Investment Registration

Lists Call

Ministry of Industry

and Commerce

Registration and

Management of

Enterprises

Department

Phonxay Village,

Saisethta District,

Vientiane Capital

Lao PDR.

Call: (856-21) 41 2011

Fax: (856-21) 45 3865

www.ero.gov.la

Government Office

Lao National

Committee for Special

Economic Zone

Secretariat (SNCSEZ)

Chanthabouly District,

Vientiane Capital,

Lao PDR

Call: (856-21) 25 4474

Fax: (856-21) 25 4474

www.sncsez.gov.la/

First published in July 2015

i

Foreword





in Vientiane, Laos.








Thank You



Documents

in and communication. The general costs of hotels, health ... · Source: Lao Statistic Bureau, Ministry of Planning and Investment. Translation Cost A4-sized Paper (300 Words) with