Bank of the Lao PDR (BOL) regulates cross-border capital and money market transactions. Inward remittances and repatriation of portfolio investments are generally allowed for both residents and nonresidents.

The International Monetary Fund’s Annual Report on Exchange Arrangements and Exchange Restrictions for Lao PDR, available only in hard copy, summarizes latest regulations on portfolio investments.

Capital Inflow

Nonresident investors are allowed to purchase shares, bonds, and money market instruments. Foreign investors can hold up to 100% equity in a Lao registered entity, as long as funds are not borrowed from domestic banks or other financial institutions.

Capital Outflow

Resident investors are allowed to invest abroad, subject to the approval of the Committee for Planning and Investment.

To repatriate capital and profits, nonresident investors are required to open an account with any commercial bank operating in Lao PDR along with an account at a foreign correspondent bank. The following documents are required: (1) application to transfer; (2) evidence of bringing in capital, certified by the BOL; (3) account statement issued by the commercial bank; (4) tax payment certification; and (5) decision of the board or shareholder on the dividend of the company.