Desiring to create favorable condition for greater economic cooperation between them and in particular, for the investment of capital by nationals and companies of one state in the territory of the other state
Recognising that the reciprocal encouragement and protection of such investment of capital and the investment under international agreements will be conducive to the stimulation of individual business initiative and will increase prosperity in both states : have agreed as follows
INSTRUHENT OF RATIFICRTIOQ
WHEREAS the Agreement between the Government of the Kingdom of Thailand and the Government at the Lao People’: Democratic Republic for the Promotion and the Protection of Investments was sinned at Bangkok on 22 August B.E. 3533 by the duly authorized Representatives of the Government of the Kingdom of Thailand and the Government of the Lao People's Democratic Republic : and
WHEREAS Article 10 of the Agreement stipulates that this Agreement shall be subject to ratification and shall come into force thirty days after the date of the exchange of instruments of ratification :
THE GOVERNMENT OF THE KINGDOM OF THAILAND, having considered the aforesaid Agreement, hereby confirms and ratifies the same and undertakes to faithfully perform and carry out all the stipulations contained therein.
IN WITNESS WKEREOF, this Instrument of Ratification is signed and sealed by the Minister of Foreign Affaire of Thailand.
DONE at Bangkok, this hay of October in the Two thousand Five hundred and Thirty-third year of the Buddhist Bra, corresponding to the One thousand Nine hundred and Ninetieth year to the Christian Era.
ARTICLE 1
For the purposes of this Agreement:
1. the term "national" shall mean any person who possesses nationality under the law in force in each of the Contracting Parties.
2. the term "companies" shall mean juridical persons incorporated or constituted under the Law in force in the territory of either Contracting Party whether or not with limited liability and whether or not for pecuniary profit.
3. the term "investments" shall mean every kind of asset. including in particular. but not exclusively;
a) movable and immovable property and any other property rights such as mortgages. liens or pledaes :
b) shares. stock and debentures at companies wherever incorporated or interests in the property of such companies:
c) claims to money or to any performance under contract having a financial value;
d) patents, trade - merks. Trede - name and good will:
e) business concession conferred by law or under contract. includine concessions to search for. cultivate. extract or exploit natural resources.
4. the term "returns" shall mean the amounts yielded by an investment and in particular, though not exclusively, shall include profit. interest, capital gains, Dividends, royalties or fees:
5. the term "territory" shall mean territory over which Contracting Party has sovereignty and/or jurisdiction.
ARTICLE 2
(1) The benefits of this Agreement shall apply only in cases where the investment of capital by the nationals and companies of one Contracting Party in the territory of the other Contracting Party has been specifically approved in writing by the latter Contracting Party.
(2) Nationals and companies of either Contracting Party shall apply for such approval in respect of any investment of capital whether made before or after entry into force of this Agreement.
ARTICLE 3
(1) Each Contracting Party shall, having regard to its laws, plans and policies, encourage and facilitate the investment oi capital in its territory by the nationals and companies of the other Contracting Party.
(2) Investments or nationals or companies of one Contracting Party in the territory of the other Contracting Party shall enjoy the most constant protection and security under the laws of the latter Contracting Party.
ARTICLE 4
(1) (a) investments to nationals or companies to one Contracting Party in the territory oi the other Contracting Party, and also the returns therefrom, shall receive treatment which is fair and equitable and not less favorable than that accorded in respect oi the investments and returns of the nationals and companies of the latter contracting Party or of any third State:
(b) each Contracting Party shall in its territory accord to nationals or companies of the other Contracting Party as regards the management, use, enjoyment or disposal oi their investments treatment which is fair and equitable in conformity with the principle of international Law and not less favorable than that which it accords to its own nationals and companies or to the nationals and companies or any third State;
(c) all the provisions of this Agreement relative to the grant oi treatment not less favorable than that accorded to the nationals or companies of any third State shall be interpreted as meaning that such treatment shall he accorded immediately and unconditionally:
(d) wherever this Agreement makes alternative provision for the grant of national treatment or of treatment not less favorable than that accorded to the nationals or companies of any third State in respect of any matter, the option as between these alternatives shall rest with the Contracting Party beneficiary in each particular case.
(2) Each Contracting Party shall observe any obligation, additional to those specified in this agreement, into which it may have entered with regard to investments oi nationals or companies of other Contracting Party.
ARTICLE 5
The provisions of this Agreement relative to the grant of treatment not less favorable than that accorded to the nationals or companies of either Contracting Party or of any third State shall not be construed so as to oblige one Contracting Party to extend to the nationals or companies of the other Contracting Party the benefit of any treatment, preference or privilege which may be extended by the former Contracting Party by virtue of :
(a) the information or extension of a customs union or a free trade area or a common external tariff area or a monetary union or a regional association for economic cooperation; or
(b) the adoption of an agreement designed to lead to the formation or extension of such a union or area within a reasonable length of time; or
(c) any arrangement with a third country or countries in the same geographical region designed to promote regional cooperation in the economic, social, labour, industrial or monetary fields within the framework of specific projects: or
(d) the grant to a particular person or company of the status of a "promoted person" under the laws of Thailand or the Lao People's Democratic Republic on the promotion of investment; or
(e) any international agreement or arrangement, or any domestic legislation. relating wholly or mainly to taxation.