Agreement between the Federal Republic of Germany and the Lao People's Democratic Republic concerning the Encouragement and Reciprocal Protection of Investments
德意志联邦共和国和老挝人民民主共和国关于促进和相互保护投资条约
ສັນຍາລະຫວ່າງ ສາທາລະນະລັດ ສະຫະພັນ ເຢຍລະມັນ ແລະ ສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ ວ່າດ້ວຍ ການສົ່ງເສີມ ແລະ ການປົກປ້ອງການລົງທຶນ ເຊິ່ງກັນ ແລະ ກັນ
Summary
The core protections include national treatment and most-favored-nation treatment, ensuring that covered investments are accorded treatment no less favorable than that granted to domestic or third-party investors. In the event of expropriation, the treaty mandates prompt, adequate, and effective compensation, subject to due process of law. It guarantees the free transfer of capital, profits, and other related payments in a freely convertible currency without undue delay. Dispute resolution mechanisms are robust, offering investors access to international arbitration under ICSID or before an ad hoc arbitral tribunal (with the Secretary-General of the Permanent Court of Arbitration in The Hague assisting in appointing arbitrators on the investor's side), thereby providing a neutral forum for resolving investment disputes. For German investors in Laos, this treaty significantly reduces political and regulatory risks by ensuring fair treatment, protection against uncompensated expropriation, and the ability to repatriate funds. For Lao investors in Germany, it similarly safeguards their interests and provides enforceable rights. The treaty also includes a protocol clarifying specific provisions, reinforcing its practical applicability and legal certainty for both contracting parties.
Articles
Article 0
Agreement between the Federal Republic of Germany and the Lao People's Democratic Republic concerning the Encouragement and Reciprocal Protection of Investments
The Federal Republic of Germany and the Lao People's Democratic Republic -
Desiring to intensify economic co-operation between both States,
Intending to create favourable conditions for investments by nationals and companies of either State in the territory of the other State,
Recognizing that the encouragement and contractual protection of such investments are apt to stimulate private business initiative and to increase the prosperity of both nations -
Have agreed as follows:
Article 1
Article 1 Definitions
For the purposes of this Agreement,
1. the term "investments" comprises every kind of asset, in particular:
(a) movable and immovable property as well as any other rights in rem, such as mortgages, liens and pledges;
(b) shares of companies and other kinds of interest in companies;
(c) claims to money which has been used to create an economic value or claims to any performance having an economic value;
(d) intellectual property rights, in particular copyrights, patents, utility-model patents, registered designs, trade-marks, trade-names, trade and business secrets, technical processes, know-how, and good will;
(e) business concessions under public law, including concessions to search for, extract and exploit natural resources;
any alteration of the form in which assets are invested shall not affect their classification as investment;
2. the term "returns" means the amounts yielded by an investment for a definite period, such as profit, dividends, interest, royalties or fees;
3. the term "nationals" means
(a) in respect of the Federal Republic of Germany:
Germans within the meaning of the Basic Law of the Federal Republic of Germany,
(b) in respect of the Lao People's Democratic Republic:
persons who are Lao nationals in accordance with the laws of the Lao People's Democratic Republic;
4. the term "companies" means
(a) in respect of the Federal Republic of Germany:
any juridical person as well as any commercial or other company or association with or without legal personality having its seat in the territory of the Federal Republic of Germany, irrespective of whether or not its activities are directed at profit,
(b) in respect of the Lao People's Democratic Republic:
any company with a limited liability incorporated in the territory of the Lao People's Democratic Republic or any juridical person constituted in accordance with its laws and having its seat in the territory of the Lao People's Democratic Republic.
Article 2
Article 2 Promotion and Protection of Investment
(1) Each Contracting Party shall in its territory promote as far as possible investments by nationals or companies of the other Contracting Party and admit such investments in accordance with its legislation. It shall in any case accord such investments fair and equitable treatment.
(2) Neither Contracting Party shall in any way impair by arbitrary or discriminatory measures the management, maintenance, use or enjoyment of investments in its territory of nationals or companies of the other Contracting Party.
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