Flash Report on MORNE Decision on Payment for Land-use Rights through Banking Channels

On 10 April 2025, the Ministry of Natural Resources and Environment of the Lao People’s Democratic Republic (“MORNE”) issued the Decision on Payment for Land-use Rights through Banking Channels No. 0506/MONRE, imposing restrictions on the purchase and sale of land-use rights. It mandates that such transactions must be conducted exclusively through formal banking channels—namely, commercial banks, other financial institutions, or licensed payment service providers—and settled in Lao Kip only, reinforcing thePrime Minister’s Order on Foreign Currency Management No. 10 dated 14 July 2023, which assigns the MONRE the responsibility to ensure that all payments related to land-use rights transactions are conducted solely in the national currency.

The decision designates the Land Department of the MONRE as the authority responsible for reviewing and approving land title deed registration applications. Article 7 specifies that both the buyer and seller involved in a land-use rights transaction must submit an application to the Land Department along with supporting documentation verifying that the payment was made through a recognized banking channel in Lao Kip. The supporting documentation must contain the following details:

• Name of the bank or other financial institution
• Name of the seller
• Name of the buyer
• Date of the transaction
• Transaction reference number
• Payment amount
• Stated purpose of the transaction

Upon approval of the transaction, the Land Department will issue a new land title deed in the name of the buyer. Where payments are made in installments, the Land Department will issue the land title deed in the buyer’s name upon submission of documentation confirming the initial installment payment. This payment will be recorded on the reverse side of the land title deed. The seller retains the right to hold the original title deed until full payment has been made.

There is an exception for individuals residing in remote rural areas without access to banking services. In such cases, the use of cash is permitted for these transactions provided there is official confirmation from the village-level local government.

This decision entered into effect on 28 May 2025.

For more information on this alert, or any other queries on land related policies, please contact the undersigned or your usual VDB Loi adviser.