Although the language of the law is unclear, it seems that ―Lao citizens‖ should be interpreted as any Lao person (including legal persons/ companies) other than a State organization.
Therefore, approval of the lease agreement by the local land management authority (LMA) is required in order to create an enforceable contract.
Land ownership, and the rights of foreigners over land, is a complicated issue in Laos. Foreigners are not able to own land here, but they can have long term leases over land. Confusingly, foreigners can own buildings.