Agreement between the Government of the Lao People's Democratic Republic and the Government of the Socialist Republic of Vietnam for the Promotion and Protection of Investments
老挝人民民主共和国政府和越南社会主义共和国政府关于促进和保护投资协定
ສັນຍາລະຫວ່າງລັດຖະບານແຫ່ງສາທາລະນະລັດປະຊາທິປະໄຕປະຊາຊົນລາວ ແລະ ລັດຖະບານແຫ່ງສາທາລະນະລັດສັງຄົມນິຍົມຫວຽດນາມ ວ່າດ້ວຍການສົ່ງເສີມ ແລະ ຄຸ້ມຄອງການລົງທຶນ
Summary
Key protection provisions include: Most-Favored-Nation Treatment (Article 3), ensuring that investors of a Contracting Party enjoy treatment no less favorable than that accorded to investors of any third State in the establishment, management, operation, and other aspects of their investments; Expropriation and Compensation (Article 5), stipulating that expropriation shall be carried out for a public purpose, in a non-discriminatory manner, in accordance with due process of law, and with prompt, adequate, and effective compensation; Repatriation of Investments (Article 6), guaranteeing investors the free transfer of capital, profits, dividends, and other funds related to their investments without undue delay; Dispute Settlement (Article 7), providing that investment disputes between an investor and a Contracting Party, if not resolved through consultations, may be submitted to conciliation in accordance with the UNCITRAL Conciliation Rules (1980) or to arbitration in accordance with the UNCITRAL Arbitration Rules (1976). For investors in Laos, this Agreement provides legal certainty, reduces political risks, and protects their investments from discriminatory treatment, unlawful expropriation, and exchange restrictions, thereby enhancing investment confidence. For Lao investors investing in Viet Nam, they equally enjoy reciprocal protection, promoting two-way capital flows and economic cooperation.
Articles
Article 0
AGREEMENT BETWEEN THE GOVERNMENT OF THE LAO PEOPLE'S DEMOCRATIC REPUBLIC AND THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM FOR THE PROMOTION AND PROTECTION OF INVESTMENTS
The Government of the Lao People's Democratic Republic and the Government of the Socialist Republic of Vietnam, hereinafter referred to as the "Contracting Parties",
Desiring to expand and deepen economic and industrial cooperation on a long-term basis, and in particular, to create favourable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party;
Recognising the need to protect investments by investors of both Contracting Parties and to stimulate the flow of investments and individual business initiative with a view to the economic prosperity of both Contracting Parties;
Have agreed as follows:
Article 1
Article 1 Definitions
(1) For the purpose of this Agreement:
(a) "investment" means every kind of asset and in particular, though not exclusively, includes:
(i) movable and immovable property and any other property rights such as mortgages, liens and pledges;
(ii) shares, stocks and debentures of companies or interests in the property of such companies;
(iii) a claim to money or a claim to any performance having financial value;
(iv) intellectual and industrial property rights, including rights with respect to copyrights, patents, trademarks, trade names, industrial designs, trade secrets, technical processes and know-how and goodwill;
(v) business concessions conferred by law or under contract, including concessions to search for, cultivate, extract, or exploit natural resources;
The said term "investment" shall refer:
(a) with respect of investments in the territory of the Socialist Republic of Vietnam, all the investment projects which are approved by the Government of the Socialist Republic of Vietnam on the basis of the current legislation; and
(b) with respect to investment in the territory of the Lao People's Democratic Republic, all investment projects licensed by the Government of the Lao People's Democratic Republic on the basis of the Lao laws and regulations.
Any alteration of the form in which assets are invested shall not affect their classification as investments, provided that such alteration is not contrary to the approval, if any, granted in respect of the assets originally invested.
(b) "returns" mean the amount yielded by an investment and in particular, though not exclusively, includes profit, interest, capital gains, dividends, royalties or fees.
(c) the term "investor" means:
(i) any natural person possessing the citizenship of or permanently residing in the territory of a Contracting Party in accordance with its laws; or
(ii) any corporation, partnership, trust, joint-venture, organisation, association or enterprise incorporated or duly constituted in accordance with applicable laws of that Contracting Party;
who makes the investment;
(d) "territory" means:
(i) with respect to the Socialist Republic of Vietnam all land territory (including islands), territorial sea and airspace above, over which the Socialist Republic of Vietnam has sovereignty, the right of sovereignty and jurisdiction in accordance with the national and international laws.
(ii) with respect to the Lao People's Democratic Republic the territory over which the Lao PDR has sovereignty and/or jurisdiction in accordance with international law,
(e) "freely usable currency" means the United States Dollar, Pound Sterling, Deutschemark, French Franc, Japanese Yen or any other currency that is widely used to make payments for international transactions and widely traded in the international principal exchange markets.
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