The Lao government aims to regulate foreign currency earned from foreign investment. (Photo: VT)The decision was issued after the government foundthat foreign investment inflows recorded in the banking system were much lowerthan the agreed value of investment capital, Vientiane Times reported.
The move by the central bank is part of thegovernment’s efforts to ensure that more foreign currency enters the bankingsystem and is used to address the shortfall in the overall balance of payments,believing that stabilising the value of the kip will help resolve the country’sfinancial woes.
Accordingly, foreign investors must open bankaccounts in Lao kip and foreign currencies at a commercial bank in Laos within15 working days after receiving their business licence or having theirinvestment proposal approved.
The document states that all financial transactionscarried out by the investors must be done through the said bank accounts. Thisincludes the transfer of investment capital to Laos, profit transfer, andrepayment of the principal and interest of the approved company to foreigncountries.
In addition, foreign investors wishing to pay forgoods and services, debts, dividends and salary/wages must convert theirforeign currency into the Lao domestic currency through commercial banks and keep the money-changingdocuments for auditing purposes.
In addition, foreign investors are required totransfer all investment capital into Laos in the amount stipulated in theirinvestment approval/business licence. If the investment capital transfer intoLaos is in the form of equipment or goods, the relevant documents are needed.
Foreign investors are prohibited from carrying outfinancial transactions through bank accounts other than the ones specificallyopened for this purpose at a commercial bank in Laos.
They are also not allowed to changemoney through individuals/legal entities, except commercial banks./.
VNA
