Instruction on Investment Approval and Land Management Mechanism for Leasing or Concession to Cultivate Crops no. 0457/MPI.

This Instruction is made to implement the Law on Investment Promotion, dated 17 November 2016, the Land Law, dated 21 October 2003, the Agriculture Law, dated 10 October 1998, the Environmental Protection Law, dated 18 December 2012, the Prime Minister Decree on Land Lease or Concession, dated 25 May 2009, and to identify principles, rules and measures on investment approval considerations and land management mechanisms for leasing or concession to cultivate crops, use the State land or the land owned by Lao citizens and conduct business in safely and environmental friendly manner. Investment in cultivation means the use of funds, vehicles, techniques and technical approaches into operating cultivation activities related to the leasing or concession of State’s or Lao citizens’ lands in accordance with the Laws. It is an activity which complies with the process of feasibility study of economics-technical and environmental, social and natural impacts with the approval by the relevant sectors.
This Instruction defines the following terms: investment, investor, domestic and foreign investor, crop, annual plant, standard, good agriculture practice, chemical substances, restricted chemicals, plant varieties, investment contract, local authority, controlled business activity, environmental protection for cultivation, Lao citizens’ land, State land leasing or concession. Matters covered by this Instruction concern: consideration of investment approvals for cultivation; procedures for investment approval and security deposit; recording information and reporting; investment incentives and use of labour; environmental protection, including: prevention measures against impacts, storage of chemicals and hazardous wastes, treatment of waste water; responsibilities of relevant sectors; rights and obligations of investors; participation of people; management and monitoring; final provisions.