Laos Updates INGO Regulatory Framework

On 25 May 2026, the Government of the Lao PDR has issued Decree No. 126 on International Non-Governmental Organizations (INGOs), replacing the previous 2010 INGO decree. The new decree updates the rules governing the establishment and operation of INGOs in Lao PDR, including operational permits, project approvals, project offices, and the administration of INGO activities.

While the overall regulatory framework remains largely the same, the new decree introduces several practical improvements and clarifies a number of procedures that were previously addressed only in the 2014 implementation guidelines.

Key changes

Faster approval for operational permits

• The Ministry of Foreign Affairs (“MOFA”) will now consider an application for an operational permit within 10 working days after receiving a complete application.
• Previously, the 2014 implementation guidelines provided that the approval process could take up to 60 working days.

Operational permits are now valid for two years

• The validity of an operational permit has been extended from one year to two years, reducing the frequency of renewals.
• To renew the permit, an INGO must submit its renewal application at least 30 days before the permit expires.

Operational permits can now be amended

• The new decree introduces a formal procedure allowing INGOs to apply to MOFA to amend an existing operational permit.
• Applications must be supported by the required documents, and MOFA will consider the application within 15 working days after receiving a complete submission.

Faster project approvals

• MOFA will now consider applications for project implementation within 15 working days after receiving complete documentation.
• Previously, the 2014 implementation guidelines allowed up to 60 working days consideration period for project approval.

Project funding allocation is now written into the decree

The new decree requires that at least 70% of the project budget must be allocated to project activities. Although this requirement already appeared in the 2014 implementation guidelines, it is now expressly included in the decree itself.

New approval requirement for cooperation with Lao associations and foundations

An INGO intending to provide assistance to or cooperate with Lao associations or foundations must now obtain prior approval from MOFA. The decree states that the detailed approval procedures will be provided under separate regulations.

Final project evaluation required for new project phases

• Where an INGO applies to implement a new phase of an existing project, it must now submit a final project evaluation report together with the application.
• This requirement was previously addressed in the 2014 implementation guidelines and is now incorporated into the decree.

Updated requirements for establishing project offices

To establish a project office, an INGO must:

• hold a valid project implementation permit; and
• have the legal right to use the proposed office premises.

The required supporting documents have also been updated under the new decree.

Changes to work permits

• Work permits for foreign staff remain valid for one year, but renewals are now capped at five renewals.
  • Project coordinator work permits have been shortened from one year to three months (renewable).
  • Country representative work permits are now valid for either one year or the duration of the employment agreement, whichever is applicable, whereas the previous decree only provided a one-year validity period.
  • Formal employment agreements are now required when applying for work permits.
  • The visa category for foreign staff and their family members has changed from B2 to E-B2.

Vehicle and equipment import

• The maximum engine capacity for tax-exempt imported vehicles has increased from 2,500 cc to 2,800 cc, while the permitted number of vehicles remains unchanged.
  • Equipment and vehicles may only be imported where necessary for operations and unavailable in Lao PDR, subject to MOFA approval.

Fundraising restriction

INGOs and their staff are expressly prohibited from soliciting funds from the public in Lao PDR.

Key takeaway

The new decree reflects the Government’s continued efforts to introduce additional compliance requirements for project implementation, staffing, and operational activities. INGOs currently operating or planning to establish a presence in Lao PDR should review their existing procedures and documentation to ensure compliance with the new requirements, which are effective from 15 July 2026.

Should you require assistance in assessing the impact of the new decree or support with operation permits, project approvals, work permits, or other regulatory matters relating to INGOs in Lao PDR, please contact the undersigned or your usual VDB Loi adviser.