This chapter provides an assessment of the investment promotion and facilitation framework in the Lao People’s Democratic Republic (Lao PDR). It examines existing strategies and institutions governing investment promotion and facilitation with a particular focus on the Investment Promotion Department. It highlights key reforms and remaining challenges to improve the business environment and attract foreign investment to diversify the economy, including in special economic zones. It also provides recommendations on the investment incentives regime as well as on measures to encourage business linkages with small and medium-sized enterprises and other policies to maximise investment spillovers.