Tax incentives on offer to foreign investors

The province says it has shifted its focus from the agriculture sector to the development of tourism-related facilities to service the growing number of visitors to Luang Prabang and generate more income for local people.
Bounsom Thatsavong, deputy director of the province’s Department of Planning and Investment, said tourism was the main income generator for Luang Prabang so his agency was paying greater attention to the development of this sector.
“We want more investment for the development of the tourism industry including hotels, restaurants and tourism-related activities and services to entice more visitors to Laos,” Bounsom told Vientiane Times.
The Nation has reported that the director of the department, Siriphone Souphanthong, has said the tax-exemption period would depend on the growth in different parts of the province.
For instance, the City of Luang Prabang would provide a corporate tax waiver for the first two years of operations, whereas seven less developed districts would grant exemptions for four years and the four most remote districts would grant six years.
However, businesses related to food, hotels and tourism services were still limited in the remote areas, according to The Nation’s report.
Speaking at a seminar on business opportunities in Luang Prabang last Saturday, Siriphone said the province was working to improve rules and regulations for investment promotion to create favourable conditions for people to do businesses in the province.
Bounsom said between 20 and 30 investment projects related to tourism-related facilities were being carried out by foreigners, amounting to more than US$50 million (Bt1.76 billion).
In addition, local entrepreneurs operated businesses in the service sector, particularly guest houses, restaurants, transport services, travel agencies and retail.
“We also encourage local people, including businesspeople, to invest in the agriculture sector in order to supply the tourism industry,” he said.
Luang Prabang is a mountainous province in Laos that mainly relies on tourism for its socio-economic development.
The town has become increasingly popular since the United Nations Educational, Scientific and Cultural Organisation inscribed it on the list of World Heritage Sites in 1995. The number of tourist arrivals in the province reached 500,000 people in 2015 and it is expected that figure will increase to about 600,000 this year.
Another significant feature to note is that more direct flights are now operating between Luang Prabang and other cities in the region.
Thai AirAsia launched flights to Luang Prabang from Bangkok in March, the first low-cost airline to break a virtual ban on budget carriers flying to the town.
Singapore’s SilkAir will launch three weekly flights to Vientiane and Luang Prabang from October 31.