Law on Cooperatives (No. 54/NA, 2024).

This Law on Cooperatives of Lao PDR (No. 54/NA, 2024) establishes the legal framework for the creation, operation, and supervision of cooperatives. Its purpose is to promote collective economic organizations that enhance production, services, and trade, contributing to poverty reduction and national socio-economic development. Cooperatives are defined as voluntary associations of Lao citizens pooling resources for mutual benefit. The Law outlines principles such as transparency, equality, and alignment with national development plans, and applies to individuals, legal entities, and organizations both domestic and foreign. It categorizes cooperatives into six types: agricultural and forestry, savings and credit unions, trade, handicraft and processing, service, and others.
The Law details conditions for establishment, governance structures, rights and obligations of cooperatives and members, and financial provisions including capital contributions, dividend distribution, and reserves. It introduces policies for cooperative promotion, such as tax incentives, access to funding, technical support, and market expansion. Prohibitions target corruption, unauthorized activities, and misuse of cooperative status. Oversight mechanisms include centralized supervision by the agriculture and forestry sector, inspection agencies, and sanctions for violations. The Law also provides for cooperative federations, promotion committees, and a dedicated fund to strengthen the sector.