On Perfection Of Laos’ Foreign Investment Promotion System

Since the formulation of the "Foreign Investment Law",Laos has been promoting opening up and strengthening the introduction of foreign investment.Laos has now formed an external management system consisting of three parts: laws,regulations,and local government regulations.However,it also has the problem that foreign investment legislation is too abstract in principle,the foreign investment review system is not perfect,and there is a lack of private international law.At the institutional level,with the deepening reform of Laos’ opening to the outside world,Laos has formulated corresponding promotion policies for foreign investment to attract foreign investors,hoping to promote the development of Laos’ economy through foreign investment.However,at the same time,some problems have gradually emerged in Laos’ promotion policies for foreign investment,such as loose foreign exchange control,unfair preferential system,and lack of practicality.These problems are affecting foreign investors in Laos.Investment Environment.By comparing and learning from China’s promotion system for foreign investment in the early 21 st century,it can be found that Laos needs to increase tax rates,reduce land lease time,establish efficient approval procedures.Laos also needs to improve supporting systems for foreign investment,such as improving the ability of labor talents and state-owned enterprises system,formulating specific foreign exchange management laws,and establishing an operational investment dispute settlement mechanism.These measures can help Laos to further improve the promotion system for foreign investment,so as to gradually rationalize and normalize the domestic investment environment in Laos,create a better investment environment,and attract more foreign investors to invest in Laos.