SECTION TWO: FORMS OF FOREIGN INVESTMENT

Article 4: Foreign investors may invest in the Lao PDR in either of two forms:

A Joint Venture with one or more domestic Lao investors or (2) A Wholly Foreign-Owned Enterprise.
A Wholly Foreign-Owned Enterprise.
Article 5: A Joint Venture is a foreign investment established and registered under the laws and regulations of the Lao PDR which is jointly owned and operated by one or more foreign investors and by one or more domestic Lao investors.
The organization management and activities of the Joint Venture and the relationship between its parties shall be governed by the contract between its parties and the Joint Venture's Articles of Association, in accordance with the laws and regulations of the Lao PDR.

Article 6: Foreign investors who invest in a Joint Venture must contribute a minimum portion of thirty percent (30%) of the tota1 equity investment in that Venture. The contribution of the Venture's foreign party or parties shall be converted in accordance with the laws and regulation of the Lao PDR into Lao currency at the exchange rate then prevailing on the date of the equity payment(s), as quoted by the Bank of the Lao PDR

Article 7: A wholly Foreign-Owned Enterprise is a foreign investment registered under the laws and regulations of the Lao PDR by one or more foreign investors without the participation of domestic Lao investors. The Enterprise established in the Lao PDR may be either a new company or a branch or representative of5ce of a foreign company.

Article 8: A foreign investment which is a Lao branch or representative office of a foreign company sha11 have Articles of Association which shall be consistent with the laws and regulations of the Lao PDR and subject to the approval of the Foreign investment Management Committee of the Lao PDR.

Article 9: The incorporation and registration of a foreign investment sha11 be in conformity with the Enterprise Decree of the Lao PDR.