Decree No. 135/PM on State Land Lease or Concession.

This Decree, consisting of 53 articles divided into eight Parts, regulates State Land Lease or Concession. It determines the principles, procedures, and measures regarding granting of state land for lease or concession with the aim to ensure the uniform management and use throughout the country, to boost the development of state land, to turn land into capital, to promote the investment for cash crop production and for services, and to build income for the state budget. The person who is entitled to lease state land shall be a Lao citizen, foreign resident, stateless people, foreigner, organization, state economic unit, collective organization and individual, embassies or international organizations, domestic and foreign investors. The Lessee has to pay the rental fee in accordance with the rate specified in the law and regulations. The person who is entitled to concede state land shall be domestic and foreign legal entities. The concessionaire have to pay land concession fees, cost for natural resources (royalties), tax, and fees as specified in Land Law.The general principles for Granting Lease or Concession of State Land establish that before determining the typology of land areas for lease or concession purpose (construction, agricultural, forestry, coastal, industrial, cultural and communication land), it is necessary to do a land survey, prepare a land map and land use plan based on land zoning and land classification (specified in art. 5). Zoning and Classification of state land for lease and concession is based on geographical landscape, socio-economic situation in each zone, and the government policy for sectoral promotion which being divided in 3 specific areas for investments. It also deals with land lease or concession being extended to cover the land use rights maintained by advising the lessee or the concessionaire to conclude contracts with land owners or to give such land into a share with the lessee or the concessionaire, in compliance with art. 56 and 67 of Land Law. In case compensation is required, the project’s owner shall compensate for the loss to the land use right holders by calculating the value of production or the value received from land development as the basis for determining the cost of compensation, as specified in art. 43 of this Decree, or to find other suitable land area to be agreed by the government on a case by case basis.

Implements: Land Law (No. 04/NA). (2003-10-21)