New Decree on Industrial Estate
Written by: Oulayvone Banouvong | Lao Premier International Law Office
A new Decree on Industrial Estate No. 313/GOV, dated 6 June 2025 has been officially enacted, effective from 23 July 2025, with the goal of enhancing industrial development in a modern, green, and sustainable direction. The decree outlines the legal framework for the promotion, protection, development, and supervision of industrial zones to strengthen the national socio-economic foundation.
Key Highlights
Definition of Industrial Estate
A designated area authorized for the development of technical infrastructure, encompassing roads, electricity, water supply, telecommunications, drainage, waste treatment, flood control, housing, fire prevention systems, and other essential facilities necessary to support industrial investment.
Minimum Requirements for Industrial Estate
- A total land area of not less than thirty (30) hectares;
- Basic infrastructure, including roads, electricity, water supply, and telecommunications;
- Office facilities and training centers;
- Commercial amenities, including shops and restaurants;
- Waste treatment, flood control, and safety/security systems;
- Other support facilities as may be necessary.
Investment Models for Industrial Estate Development
- 100% privateinvestment
- 100% state-owned investment
- Public-private partnership model – No minimum shareholding ratio is prescribed; the proportion of shareholding shall be mutually agreed upon by the investors.
Incentive Policies
Developers of an industrial estate shall be entitled to tax incentives, land use privileges, infrastructure development support, and such other incentive policies as may be determined for the specific industrial estate.
Key Changes from the Regulation on Industrial Estate No. 1510/MOIC, dated 30 Oct 2019
Although no written legal announcement has been issued, it may be implied that the Regulation on Industrial Estate No. 1510/MOIC, dated 30 October 2019, has been repealed and replaced by the Decree on Industrial Estate No. 313/GOV, dated 6 June 2025.
Key changes under the new Decree include:
- Removal of minimum capital requirement – The previous requirement for a minimum registered capital of LAK 25 billion has been abolished.
-
More comprehensive provisions on documentation and legal
responsibilities
of developers and investors, including:
- Labor and financial management obligations;
- General and specific prohibitions applicable to industrial estate developers and investors;
- Strengthened provisions on workplace safety and enhanced inspection mechanisms within industrial estate.
Comparison of Key Changes: 2025 Decree vs. 2019 Regulation
Types of Industrial Zones
Regulation No. 1510/MOIC (2019): Defined multiple types of zones in Article 5
Decree No. 313/GOV (2025): Abolished category (Article 5 removed)
Investment Models
Regulation No. 1510/MOIC (2019): 4 models including state-to-state investment
Decree No. 313/GOV (2025): Reduced to three models: private, state, and joint venture; state-to-state model removed
Minimum Capital Requirement
Regulation No. 1510/MOIC (2019): Minimum capital of LAK 25 billion
Decree No. 313/GOV (2025): No minimum capital requirement
Documentation Requirements
Regulation No. 1510/MOIC (2019): General requirements, less specific
Decree No. 313/GOV (2025): Expanded and more detailed requirements for establishing industrial zones
Roles of Developers and Investors
Regulation No. 1510/MOIC (2019): Less distinction between roles
Decree No. 313/GOV (2025): Clearly separated and defined
New Chapter on Labor and Finance
Regulation No. 1510/MOIC (2019): Not included
Decree No. 313/GOV (2025): Included (Chapter 4)
Inspection and Workplace Protection
Regulation No. 1510/MOIC (2019): Limited detail on inspection mechanisms
Decree No. 313/GOV (2025): Enhanced inspection mechanisms and workplace safety provisions in Chapter 7
Prohibited Activities
Regulation No. 1510/MOIC (2019): Not clearly specified
Decree No. 313/GOV (2025): Clearly detailed in Chapter 6 (general and specific prohibitions)
Summary
The Decree on Industrial Estate No. 313/GOV, dated 06 June 2025 introduces significant reforms, simplifying investment models, removing minimum capital requirements, and enhancing regulatory clarity on roles, prohibited activities, and workplace protections. These changes signal the Lao government’s commitment to fostering a more conducive, transparent, and responsible industrial investment environment, consistent with sustainable development objectives.
For tailored legal advice or assistance with industrial zone compliance and investment structuring, please contact the LPI Legal Team.