On 3 June 2026, a new Decree on Fertilizer No. 123/GOV dated 20 May 2025 (“Fertilizer Decree“) was officially published in the Lao Official Gazette. It came into effect on 15 July 2026.
The Fertilizer Decree sets out two main groups of fertilizers: (i) organic fertilizers or biofertilizers and (ii) inorganic or chemical fertilizers. They are further categorised into three distinct types:
- Organic fertilizers: Fertilizers derived from organic residues of plants, animals, organic soil (peat or organic soil), agricultural waste, livestock manure, and sludge that have undergone fermentation, composting, or other methods following technical principles. They include bio-organic fertilizers;
- Biofertilizers: A type of organic fertilizer mixed with a specific strain or multiple strains of microorganisms or bacteria in accordance with user requirements, aimed at promoting or stimulating fertilizer efficacy for crops, increasing yields, and preventing plant root infections.
- Inorganic fertilizers or chemical fertilizers: Fertilizers obtained through chemical synthesis processes that primarily provide primary plant nutrients, namely nitrogen (N), phosphorus (P) and potassium (K).
Types of Fertilizer Businesses
These are the forms of fertilizer businesses:
- fertilizer production;
- fertilizer import;
- fertilizer export;
- fertilizer transit;
- fertilizer distribution;
- fertilizer consultancy services;
- fertilizer application services;
- Disposal of fertilizer and fertilizer residues;
- fertilizer testing and research; and
- other fertilizer businesses as prescribed by the Ministry of Agriculture and Forestry.
Licensing Application Process for Business Operators
Individuals, legal entities, and organizations intending to operate a fertilizer business must obtain an enterprise registration certificate in accordance with the Law on Enterprises, and register as taxpayers in accordance with the Law on Tax. After successfully obtaining an enterprise registration certificate, they must apply for a fertilizer business operation permit from the agriculture and forestry sector.
Requirements for Fertilizer Business Operators
To be eligible to operate a fertilizer business, interested individuals, legal entities and organizations must:
- hold an enterprise registration certificate;
- possess appropriate area, land/location, structures, equipment, tools, and vehicles for operation;
- have an economic-technical feasibility study and/or a business operation plan;
- employ researchers and personnel with specialized knowledge in agricultural chemistry, cultivation, plant protection, soil science, or biology at an intermediate level or higher, and who hold certificates verifying practical work experience related to fertilizer businesses;
- have no history of violating fertilizer regulations; and
- comply with other necessary requirements as required for each specific category of business.
If you have any queries on the above, please reach out to our Partner listed on this page.
For regional corporate and commercial matters, please see Rajah & Tann Asia’s Corporate & Commercial Practice for more information.
Disclaimer
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Please note also that whilst the information in this publication is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as legal advice or a substitute for specific professional advice for any particular course of action as such information may not suit your specific business and operational requirements. You should seek legal advice for your specific situation. In addition, the information in this publication does not create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on the information in this publication.
