Contents
Article 2.Shopping Centers and Department Stores
Article 4.Basic Principles on the Establishment of Shopping Centers and Department Stores
Part 2:Standards and Conditions of Shopping Centers and Department Stores
Article 6.Standards and Conditions of Shopping Centers
Article 7.Standards and Conditions of Department Stores
Part 3:Establishment of Shopping Centers and Department Stores
Article 8.Investment in the Establishment of Shopping Centers and Department Stores
Article 10.Joint Venture Establishment Investments between Foreign and Domestic Investors
Article 11.Applications for the Establishment of Shopping Centers and Department Stores
Article 12.Consideration of Shopping Centers and Department Store Establishment [Applications]
Part 4:Sale and Lease of Sales Booths and Service Premises in Shopping Centers and Department Stores
Article 13.Sale and Lease of Sales Booths and Service Premises
Article 14.Conditions for the Sale of Sales Booths and Service Premises
Article 15.Registration of Sales Booths, Rented Booths and Service Premises
Article 17.Rights and Duties of Service Providers in Shopping Centers and Department Stores
Part 7:The Shopping Center and Department Store Management Board
Article 21.The Shopping Center and Department Store Management Board
Article 22.Personnel Structure of the Shopping Center and Department Store Management Board
Article 23.Rights and Duties of the Shopping Center and Department Store Management Board
Article 24.Prohibitions on Investors in the Establishment of Shopping Centers and Department Stores
Article 25.Prohibitions on Service Operators
Article 27.Prohibitions on Officers and Employees of the State
Part 9:Shopping Center and Department Store Management Authorities
Article 28.Shopping Center and Department Store Management Authorities
Article 29.Rights and Duties of the Internal Commerce Division
Article 30.Rights and Duties of Provincial and City Industry and Commerce Sectors
Article 31.Rights and Duties of District Industry and Commerce Offices
Part 10:Incentives for Good Performance and Measures Against Violators
Article 32.Incentives for Good Performance
Article 33.Measures Against Violators
Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
Ministry of Industry and Commerce No 1950/MOIC.DTD
Vientiane Capital, Dated 22 SEP 2015
Decision
On Shopping Centers and Department Stores
The Minister of Industry and Commerce issues the following Decision:
General Provisions
This Decision determines the principles, regulations and measures on the establishment, operations, and management of shopping centers and department stores in order to ensure that the operation of shopping centers and department stores businesses is consistent with the relevant laws and regulations with the aim of guaranteeing the fair interests of the State, business units and consumers and to contribute the development of the national socio-economy.
Article 2.Shopping Centers and Department Stores
Shopping centers and department stores are premises where goods are distributed and services are provided which are engineering designed and constructed consistent with the building regulations of the Public Works and Transport Sector and the allocation of goods in accordance with their categories, providing modern and swift services, diversified services and goods.
The terms used in this Decision have the following meanings:
1. Shopping center means a premises where goods are distributed and services are provided which comprise of department stores, booth rental, conference halls, restaurants, etc., in a single center in accordance with standards and conditions provided in Article 6 of this Decision;
2. Department store means a premises where goods are distributed and services are provided comprising shops, restaurants and service provider premises and may be established in shopping centers or independently in many forms, such as: hyper markets as, super centers, super markets and super stores;
2.1 Hyper markets are established in accordance with the standards and conditions determined in Article 7 of this Decision, [and] selling diverse goods, such as: clothing, electrical items, household goods, apparel, fresh-food shops, etc., including food and beverages;
2.2 Super centers are established in accordance with the standards and conditions determined in Article 7 of this Decision [and] sell consumer goods used in daily life, such as: clothing, electrical items, household goods, apparel, fresh-food shops, etc., including food and beverages;
2.3 Super markets and super stores are established in accordance with the standards and conditions determined in Article 7 of this Decision [and] sell consumer goods used in daily life, such as: fresh-food, fruit, vegetables and consumer goods;
3. Service area means the building area, such as: sales booths, service provider premises and car parks; and
4. Manager means sales business operators, booth rental and service premises in shopping centers and department stores having rights assigned by establishment investors or construction investors.
Article 4.Basic Principles on the Establishment of Shopping Centers and Department Stores
The establishment of shopping centers and department stores is based on the following principles:
This Decision applies to individuals, legal entities, domestic and international organizations established and operating businesses relating to shopping centers and department stores in the Lao PDR.
Standards and Conditions of Shopping Centers and Department Stores
Article 6.Standards and Conditions of Shopping Centers
Shopping centers comprise the following standards and conditions:
Article 7.Standards and Conditions of Department Stores
Department stores comprise the following standards and conditions:
1.Service areas for each category as follows:
1.1 Hypermarkets shall have an area of 20,000 to 50,000 square meters;
1.2 Supercenters shall have an area of 10,000 to 20,000 square meters; and
1.3 Supermarkets shall have an area of 5,001 to 10,000 square meters.
2.Buildings and shops shall be designed and constructed in accordance with engineering standards, be beautifully decorated, comprise modern technical equipment, have safety and fire prevention systems, be hygienic, have environmental protection measures and provide facilities to consumers and business units;
3. Wholesale and retail areas, restaurants and service premises, such as market, trade and trade shows, conference halls, and financial services premises, banks, insurance, post offices, telecoms and communications services, etc.;
4. Shops may be established in shopping centers or department stores or be established independently;
5. Shall have car parks in accordance with the laws and regulations determined by the relevant sectors (in cases where established independently);
6.Have passed environmental and social impacts assessment studies in accordance with the standards of the relevant sectors; and
7. Have shopping center and department store administration offices.
Establishment of Shopping Centers and Department Stores
Article 8.Investment in the Establishment of Shopping Centers and Department Stores
Investment in the establishment of shopping centers and department stores is the investment in the construction of premises that distribute goods and provide services in accordance with the standards and conditions of each category of shopping center and department store as provided in this Decision and relevant laws and regulations.
Domestic and foreign individuals and legal entities may invest in the establishment of shopping centers and department stores consistent with the relevant laws and regulations of the Lao PDR.
Article 9.Investment in the Establishment of Shopping Centers and Department Stores by Foreign Investors
Foreign investors may invest in the establishment of shopping centers and department stores in accordance with the following conditions:
Construction projects with a value of less than 08 Billion Kip, including shops, and sundry shops established independently and various forms of wholesale-retail outlets are reserved for Lao citizens.
Article 10.Joint Venture Establishment Investments between Foreign and Domestic Investors
Joint venture investments for the establishment of shopping centers and department store establishment between foreign and domestic investors shall be performed in accordance with this Decision and relevant laws and regulations.
Where it is discovered the capital in the establishment and operations is a collusion between Lao and foreign investors and the relevant parties have not contributed the capital at the rates determined or own such businesses it shall be deemed that the authorization is void and the establishment license shall be immediately withdrawn. Furthermore, [violators] shall be dealt with in accordance with laws and regulations as follows:
Article 11.Applications for the Establishment of Shopping Centers and Department Stores
Any person who wishes to establish a shopping center or department store shall submit the following application documents to the Shopping Center and Department Store Management Authority:
Article 12.Consideration of Shopping Centers and Department Store Establishment [Applications]
Upon receipt of the documents provided in Article 11 of this Decision, the Shopping Center and Department Store Management Authority in coordination with the relevant authorities, such as: the Natural Resources and Environment Sector, the Public Works and Transport Sector, other relevant authorities and local authorities for consideration under the following management levels:
Sale and Lease of Sales Booths and Service Premises in Shopping Centers
and Department Stores
Article 13.Sale and Lease of Sales Booths and Service Premises
Investors in the establishment of shopping centers and department stores or other individuals who have been assigned rights by the investors, shall, prior to the sale, lease of sales booths and service premises within shopping centers and department stores, register the enterprise in accordance with the Law on Enterprises in order to undertake hire-purchase, use rights of sales booths and service premises.
Article 14.Conditions for the Sale of Sales Booths and Service Premises
The sale of sales booths and service premises in shopping centers and department stores may be undertaken after 70% of the construction is completed in accordance with plans and certified by the relevant authorities and establish a special committee to monitor finances [generated] through the sale of sales booths and service premises. Establishment investors shall use 80% of such finances to complete the construction.
The initial and subsequent sale and lease of sales booths and service premises shall be subject to income tax in accordance with relevant laws and regulations.
Individuals or legal entities that purchase or rent booths shall perform in accordance with the Decision On Wholes and Retail Trade Businesses, No. 1005/IC.ITD, dated 22 May 2015.
The specific committees so established shall comprise of representatives of the public sector, such as the Industry and Commerce Sector, the Finance Sector, the Public Works and Transport Sector and representatives of establishment investors or investors in the sale and lease of sales booths and service premises, appointed by the Shopping Center and Department Stores Management Authority. The specific committee shall be dissolved upon completion of construction.
Article 15.Registration of Sales Booths, Rented Booths and Service Premises
Upon signing sales booths and service premises sales or lease agreements, such agreements shall be submitted to the Shopping Center and Department Store Management Board to consider registration of sales booths, leased booths and service premises to be certified as evidence.
The registration shall record the date of the sale, the value of the sale or lease, details of the sales booth and service premises so sold or leased, such as: the area, size, location and details of the purchaser and seller.
Rights and Duties of Investors and Service [Operators] within Shopping Centers
and Department Stores
Article 16.Rights and Duties of Investors in the Establishment of Shopping Centers and Department Stores
Upon completion of 70% of construction of shopping centers and department stores, investors in the establishment of shopping centers and department stores may transfer or sell [such] to other individuals that meet all or any of the conditions consistent with this Decision, to sell and lease sales booths and service premises themselves, but the enterprise shall be registered as provided in Article 13 of this Decision.
Investors in the establishment of shopping centers and department stores may operate goods import businesses for wholesale to retailers and may also sell at retail at the rate of not exceeding 30% of the sales area of shopping centers or department stores, but the enterprise shall be registered as a wholesale retail business enterprise.
Article 17.Rights and Duties of Service Providers in Shopping Centers and Department Stores
Service providers in shopping centers and department stores have the following rights and duties:
Operation of Wholesale and Retail Businesses, Provision of Services in Shopping Centers and Department Stores
Article 18.Operation of Wholesale and Retail Businesses, Provision of Services in Shopping Centers and Department Stores
Wholesale and retail business operators and the providers of services in shopping centers and department stores shall register their enterprises in accordance with the Law on Enterprises, implement the Decision on Wholesale and Retail Businesses, and other relevant laws and regulations.
Business operators shall undertake their businesses as provided in the Enterprise Registration Certificate and operate their business in accordance with management regulations determined by shopping center and department store and other relevant laws and regulations.
Article 19.Rights of Wholesale and Retail Business Operators, Service Providers in Shopping Centers and Department Stores
Wholesale and retail business operators and service providers in shopping centers and department stores have the following rights:
Article 20.Duties of Wholesale and Retail Business Operators, Service Providers in Shopping Centers and Department Stores
Wholesale and retail business operators and service providers in shopping centers and department stores have the following duties:
The Shopping Center and Department Store Management Board
Article 21.The Shopping Center and Department Store Management Board
The Shopping center and Department Store Management Board is an organization and secretariat of the Shopping Center and Department Store Management Authority in the management and operations of shopping centers and department stores and appointed by the Minister of Industry and Commerce at the proposal of the Internal Commerce Department for the ministerial level and appointed by the Director of the Provincial and City Industry and Trade Divisions at the proposal of the Internal Commerce Sector for the provincial, city and district levels.
Article 22.Personnel Structure of the Shopping Center and Department Store Management Board
The Shopping Center and Department Store Management Board comprises a chairman, deputy chairman and a number of members depending on the size of the shopping center and department store, comprising representatives of the Industry and Commerce Sector and necessary relevant sectors and representatives of service operators of the shopping center and department store.
Article 23.Rights and Duties of the Shopping Center and Department Store Management Board
The Shopping Center and Department Store Management Board has the following rights and duties:
Prohibitions
Article 24.Prohibitions on Investors in the Establishment of Shopping Centers and Department Stores
Investors in the establishment of shopping centers and department stores are prohibited from the following:
Article 25.Prohibitions on Service Operators
Service operators are prohibited from the following:
Article 26.Prohibitions on Wholesale and Retail Business Operators, Service Providers in Shopping Centers and Department Stores
Wholesale and retail business operators, service providers in shopping centers and department stores are prohibited from the following:
Article 27.Prohibitions on Officers and Employees of the State
Officers and employees of the State are prohibited from the following:
Shopping Center and Department Store Management Authorities
Article 28.Shopping Center and Department Store Management Authorities
The Ministry of Industry and Commerce is responsible for the management of shopping centers and department stores in a unified manner in coordination with relevant sectors and local authorities in accordance with their rights and roles.
Shopping center and department store management authorities are divided into three levels as follows:
Article 29.Rights and Duties of the Internal Commerce Division
The Internal Commerce Division has the following rights and duties:
Article 30.Rights and Duties of Provincial and City Industry and Commerce Sectors
Provincial and City Industry and Commerce Divisions have the following rights and duties:
Article 31.Rights and Duties of District Industry and Commerce Offices
District Industry and Commerce Offices have the following rights and duties:
Incentives for Good Performance and Measures Against Violators
Article 32.Incentives for Good Performance
Individuals, legal entities and organizations that implement this Decision well, will be commended or receive other incentives in accordance with laws and regulations.
Article 33.Measures Against Violators
Domestic and foreign individuals, legal entities and organizations that violate this Decision shall be subject to attitude adjustment, disciplined, fined, civil or criminal procedures depending on the severity of the case.
Final Provisions
The Internal Commerce Department, Provincial and City Industry and Commerce Divisions and District Industry and Commerce Offices in coordination with relevant sectors are strictly responsible for the implementation of this Decision.
All shopping centers and department stores already established and operating prior to this Decision shall continue their operations, but shall fall into compliance in accordance with each Category of shopping center and department store.
New projects or constructions shall meet the conditions provided in this Decision prior to undertaking sales or leases.
This Decision is effective from the date of signature and 15 days after publication in the Government Gazette.
Minister of Industry and Commerce
[signature and seal]
Khaenmanee PHONSAMA
Name | Description | Status |
---|---|---|
70% construction completion for sale of sales booths and services premises in shopping centers | Sale of sales booths and service premises in shopping centers and department stores may be undertaken after 70% of the construction is completed in accordance with plans and certified by the relevant authorities | Active |
Allocation of areas to maintain order | Service providers in shopping centers and department stores must allocate areas within shopping centers or department stores to preserve order, have safety and fire prevention systems and environment and hygiene protection measures, etc. | Active |
Applications for the Establishment of Shopping Centers and Department Stores | Persons desirous of establishing a shopping center or department store shall apply to do so submitting the following application documents to the Shopping Center and Department Store Management Authority; Standard application form determined by the Shopping Center and Department Store Management Authority; Project proposal certified by the local authorities at the location where the shopping center or department store is to be located; Land use rights certification, such as land title deeds, State Land Use Rights Certificate, lease agreements, concession agreements; Building construction license; and Environmental-social impacts assessment certificate. | Active |
Displaying of Goods by Wholesale and Retail Business Operators, Service Providers in Shopping Centers and Department Store in accordance with allocation plans | Wholesale and Retail Business Operators, Service Providers in Shopping Centers and Department Stores must display goods in accordance with allocation plans | Active |
Displaying of Prices in Kip by Wholesale and Retail Business Operators, Service Providers in Shopping Centers and Department Stores | Wholesale and Retail Business Operators, Service Providers in Shopping Centers and Department Stores must display prices in Kip; | Active |
Enterprise Registration for Sale and Lease of Sales Booths and Service Premises | Investors in the establishment of shopping centers and department stores or other individuals who have been assigned rights by the investors, shall, prior to the sale, lease of sales booths and service premises within shopping centers and department stores, register the enterprise in accordance with the Law on Enterprises in order to undertake hire-purchase, use rights of sales booths and service premises. | Active |
Joint Venture Establishment Investments between Foreign and Domestic Investors | Joint venture investments for the establishment of shopping centers and department store establishment between foreign and domestic investors shall be performed in accordance with this Decision and relevant laws and regulations | Active |
Lease or Purchase of Booths in accordance with Decision On Wholes and Retail Trade Businesses, No. 1005/IC.ITD | Individuals or legal entities that purchase or rent booths shall comply with the Decision On Wholes and Retail Trade Businesses, No. 1005/IC.ITD, dated 22 May 2015. | Active |
Obligation to issue certified Regulations by Service providers in shopping centers and department stores | Service providers in shopping centers and department stores must issue regulations certified by the Shopping Center and Department Stores Management Authority, in order to maintain order within shopping centers and department stores | Active |
obliglation to apply to the Shopping Center and Department Stores Management Authority for store and department refurbishment | Service providers in shopping centers and department stores must apply to the Shopping Center and Department Stores Management Authority and relevant sectors in order to make improvements or repairs, restoration and raise the level of shopping centers and department stores | Active |
Operating a Goods Import Business for wholesalers to retailers | Investors establishing shopping centers and department stores may operate a goods import businesses for wholesalers to retailersbut can sell at retail at a rate not exceeding 30% of the sales area of shopping centers or department stores. | Active |
Operation of Business in accordance with Enterprise Registration Certificate | Wholesale and retail business operators and service providers in shopping centers and department stores must undertake their Businesses in accordance with the Enterprise Registration Certificate | Active |
Operation of Business in accordance with Management Regulations | Wholesale and retail business operators and service providers in shopping centers and department stores must undertake their businesses in accordance with the management regulations determined by shopping center and department store | Active |
Prohibition on Investors regarding delayed commencement of construction in excess of 2 years from receiving authorization | Investors are prohibited from delaying commencement of constructions activities for 2 years from the moment of receiving authorization to commence construction | Active |
Prohibition on Investors regarding leasing and/or sales services with unregistered businesses | Investors are prohibited from providing sales booth and service premises leasing or sales services to unregistered businesses | Active |
Prohibition on Investors regarding transferring ownership without authorization of the Shopping Center and Department Store Management Authority | Investors are prohibited from transferring ownership to other individuals without the authorization of the Shopping Center and Department Store Management Authority; | Active |
Prohibition on Service Providers regarding extending buildings and premises without authorization | Service Providers are prohibited from making extensions to buildings and premises without the authorization of the Shopping Center and Department Store Management Authority | Active |
Prohibition on Service Providers regarding facilitating, recommending or enticing business operators | Service Providers are prohibited from facilitating recommending or enticing business operators within the shopping center or department store | Active |
Prohibition on Service Providers regarding the use of shopping centres and department stores for entertainment and gambling | Service Providers are prohibited from using shopping centers and department stores for entertainment or all types of gambling; | Active |
Prohibition on Service Providers regarding use of Enterprise Registration Certificate by other parties | Service Providers are prohibited from permitting other parties from using their Enterprise Registration Certificate | Active |