Lao Government Halts Registration of New Vehicle Import-Export Business Licenses

As gasoline and diesel prices continue to climb, Lao citizens are exploring alternative options, such as electric vehicles, to cut down on their daily fuel costs. Therefore, the Lao PDR, known as the “Battery of Southeast Asia,” is an ideal location for electric cars due to its affordable electricity rates.

Nevertheless, because of the high demand for electric cars among Lao citizens, many well-established and newly-established companies in the automobile distribution and logistics industry are capitalizing on the opportunity to import large numbers of electric cars into the Lao market, primarily from China.

On 5 July 2024, the Ministry of Industry and Commerce (“MOIC”) issued Notice No. 1662 to halt the registration of new vehicle import-export business licenses. The MOIC cited the need to adjust the quantity of such businesses to better suit the current market situation and effectively manage the granting of such business licenses.

From 9 July to 31 December 2024, the MOIC will not be accepting applications for new vehicle import-export business licenses. Registration is slated to resume on 1 January 2025, but we will keep you posted of any developments regarding this matter. To reiterate, this suspension is for new registrations; it does not apply to amendments of existing business licenses.

If you have any questions about this alert or need further information regarding the above, please contact the undersigned or your usual VDB Loi adviser.