Agreement between the Government of the Kingdom of Thailand and the Government of the Lao People's Democratic Republic for the Promotion and the Protection of Investments
泰王国政府和老挝人民民主共和国政府关于促进和保护投资协定
ສັນຍາລະຫວ່າງລັດຖະບານແຫ່ງຣາຊະອານາຈັກໄທ ແລະ ລັດຖະບານແຫ່ງສາທາລະນະລັດ ປະຊາທິປະໄຕ ປະຊາຊົນລາວ ວ່າດ້ວຍການສົ່ງເສີມ ແລະ ຄຸ້ມຄອງການລົງທຶນ
Summary
Core provisions include: national treatment and most-favoured-nation treatment ensure that investors enjoy treatment no less favourable than that accorded to investors of a third State or of the host State; the expropriation and compensation clause stipulates that any expropriation shall be based on public interest, be non-discriminatory, and be accompanied by compensation that is adequate, effectively realisable and made without delay; the free transfer clause guarantees the free transfer of investment principal, profits and other returns in a convertible currency; dispute resolution is limited to settlement between the Contracting States through consultation and negotiation, and if not resolved within six months, may be submitted to an ad hoc arbitral tribunal (with arbitrators appointed by the President of the International Court of Justice in case of deadlock); this Agreement contains no clause for investor-State dispute settlement (ISDS). This Agreement is of significant importance to Thai investors investing in Laos and Lao investors investing in Thailand, as it reduces political risk, enhances investment predictability, and promotes bilateral capital flows and economic cooperation through a clear legal framework.
Articles
Article 0
AGREEMENT
BETWEEN
THE GOVERNMENT OF THE KINGDOM OF THAILAND
AND
THE GOVERNMENT OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC
FOR THE PROMOTION AND THE PROTECTION OF INVESTMENTS
* * * * * * *
The Government of the Kingdom of Thailand and the
Government of the Lao People's Democratic Republic, hereinafter called
"Contracting Parties",
Recognising that the good neighbourly cooperation in the
fields of economics and trade through investments will promote
progressive development for the well being of the people of both
States,
Desiring to create favourable conditions for greater
economic cooperation between them and in particular, for the
investment of capital by nationals and companies of one State in the
territory of the other State,
Recognising that the reciprocal encouragement and protection
of such investment of capital and the investment under international
agreement will be conducive to the stimulation of individual business
initiative and will increase prosperity in both States,
Have agreed as follows:
Article 1
Article 1 Definitions
For the purposes of this Agreement:
1. The term "national" shall mean any person who possesses nationality under the law in force in each of the Contracting Parties.
2. The term "companies" shall mean juridical persons incorporated or constituted under the law in force in the territory of either Contracting Party whether or not with limited liability and whether or not for pecuniary profit.
3. The term "investments" shall mean every kind of asset, including in particular, but not exclusively:
(a) movable and immovable property and any other property rights such as mortgages, liens or pledges;
(b) shares, stock and debentures of companies wherever incorporated or interests in the property of such companies;
(c) claims to money or to any performance under contract having a financial value;
(d) patents, trade-marks, trade-name and good will;
(e) business concession conferred by law or under contract, including concessions to search for, cultivate, extract or exploit natural resources.
4. The term "returns" shall mean the amounts yielded by an investment and in particular, though not exclusively, shall include profit, interest, capital gains, dividends, royalties or fees.
5. The term "territory" shall mean territory over which a Contracting Party has sovereignty and/or jurisdiction.
Article 2
Article 2 Scope of Application
(1) The benefits of this Agreement shall apply only in cases where the investment of capital by the nationals and companies of one Contracting Party in the territory of the other Contracting Party has been specifically approved in writing by the latter Contracting Party.
(2) Nationals and companies of either Contracting Party shall apply for such approval in respect of any investment of capital whether made before or after entry into force of this Agreement.
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