M&A

Currently, the insurance business is not a competitive business in the Lao PDR as there are only 6 insurance companies operating within the Lao PDR, i.e. Assurances Generales du Laos, Champa, Lao-Viet Insurance Co., Mitsui Sumitomo: MSIG Insurance (Lao) Com, Ltd., PCT Asia (formerly Insee Insurance Co. Ltd.), and Toko Assurance Co. Ltd.According to the law on Investment Promotion No.02/NA, dated 8 July 2009, the insurance business is listed as a concession business. Therefore, any application in relation to an establishment of an insurance company or insurance broker must be submitted to Ministry of Planning and Investment (the “MPI”) for consideration.

In November 2002, leaders of the Association of the South East Asian Nations (ASEAN) agreed on the proposed creation of an ASEAN Economic Community (AEC) by 2020. This was followed by the adoption of the AEC Blueprint in 2007 along with the affirmed and strong commitment by leaders to accelerate such economic integration by 2015.