Minister to the Prime Minister’s Office, Mr Khamjane Vongphosy (fifth from left), stands with other officials from Laos and Japan at the Laos Investment Forum in Osaka, Japan, on July 10.

Laos unveils investment incentives in bid to attract Japanese firms

The Lao government is offering a range of investment incentives — including tax exemptions, VAT reductions and improved business enviroment — to enhance the competitiveness of businesses operating in the country, a senior official told investors at the Laos Investment Forum in Osaka, Japan, on July 10.
Speaking at the forum held in the Japanese city, Minister to the Prime Minister’s Office, Mr Khamjane Vongphosy, said “The government is introducing special investment incentives such as exemptions on import duties for raw materials and construction equipment used in production, as well as reduction of VAT on the supply of electricity, water, and other essential aspects of operations in industrial parks.”
The forum is an annual event co-organised by the Lao investment promotion and management committee, ASEAN-Japan Centre, JETRO Vientiane Office, and other agencies.
The forum drew over 120 participants from Laos and Japan and coincided with “Lao Day” celebrations at the Expo 2025 in Osaka, commemorating 70 years (1955–2025) of diplomatic relations between the two countries.
The event showcased Laos’ potential and opportunities for foreign direct investment, particularly in Special Economic Zones and industrial parks, and outlined the government’s investment promotion policies.
Across Laos, 12 special and specific economic zones (SEZs) have been estabpished to attract investments, supported by the government’s incentives and improved connectivity.
The Osaka forum served to strengthen economic ties between Laos and Japan, while creating a platform for Lao and Japanese business operators to network and explore opportunities across sectors such as agriculture, industry, transport, tourism, and services.
Mr Khamjane observed that the forum was taking place at a time when Laos is carrying out key reforms to its investment promotion policy. He added that one-stop services are also being rolled out in industrial parks, while broader reforms are being pursued to improve the business environment.
These include the digitalisation of business registration and tax declarations, enhanced customs enforcement using modern technology, and the establishment of transparent data systems and dialogue platforms between the government and business sector to address operational challenges.
Mr Khamjane said he hoped the forum would foster stronger business networks and new partnerships between Lao and Japanese companies.
The forum informed participants about the latest updates to Laos’ investment promotion framework, especially the newly established policies for Special Economic Zones and the prime ministerial decree on industrial parks, which aim to create a more specific and enabling environment for investors.
Lao and Japanese business operators shared their experiences, success stories, and challenges in doing business in Laos.
These exchanges covered a broad range of areas such as manufacturing, services, transport, and tourism-related sectors like hospitality and restaurants, as well as agriculture and industry.

by Siladda Suliyong
 (Latest Update July 16, 2025)