Economic Overview & Business Opportunities
As a member of ASEAN, Laos is integrating into Asian Economic Community and as a part of this integration, Laos has recently revised several related laws and decrees.
In 2016, the revised tax law and public investment law are promulgated; the Ministry of Finance just endorsed the application of full International Financial Reporting Standards (IFRS) for public interest entities and IFRS for SME for non public interest entities. However, the law enforcement and implementation are still a challenge.
LAOS was granted US$3.9 million in February by the European Union, the United Nations, France and the United States to expand the rule of law, so that it might become easier to do business in the country. The donors were worried that Laos had passed only around two laws a year since 1975.
The country is well placed to attain its longer-term goals. It is richly endowed with natural resources such as forests, agricultural land, hydropower and minerals, which make up more than half its wealth. Just two sectors, hydropower and mining, contributed to one-third of economic growth for five years till 2010. As a direct result of revenues earned, the country was able to reduce poverty levels.
The economic outlook remains broadly favorable supported by the power sector and growing ASEAN integration, and the fiscal and external deficits are expected to gradually narrow. GDP growth is projected at 7 percent in 2016. The 1,878 MW Hongsa lignite power plant will largely come on stream in 2016 and together with the output expected from other new power projects is expected to increase power generation by more than 30 percent compared to 2015. Some fiscal expansion (with the deficit increasing to 3.9 percent of GDP) and investments will add to domestic demand. The current account deficit is expected to narrow slightly as power exports increase and recent trends in exports of parts and components continue.
BUSINESS SET UP
- Financial Audit
- Financial due diligence
- Internal Audit
Accounting and Finance
- System Review, assessment and set up
- Training and capacity building
- Bookkeeping and reporting
- Budgeting and financial management
Tax and Legal Advisory
- Arrangement for obtaining tax ID and annual tax certificate
- Tax planning, declaration and payment arrangement