Well I think this answers some of the concerns previously raised by some of our colleagues here. Its good to know that at least the Lao govt is putting some limit to land sales, otherwise there will be no more land left for poor Lao in the nearest future.

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Source: Vientiane Times, 18 Sep 2009

Foreign investors will not be able to purchase land use rights
anywhere they wish, as this could have a major impact on the local
community, policy makers say.

Although the new Investment Promotion Law offers investors the right
to occupy residential land in Laos , the government would not grant
land use rights in all areas.

“Lao people should not panic about this news,” one of the drafters of
the law, Ms Bouatha Khattiya, told Vientiane Times on Wednesday. “We
are drawing up a Prime Minister's decree to implement the law, which
will clarify the location and size of land that foreign investors can
occupy.”

The National Assembly approved the new law in June, offering
foreigners who invest 2.5 billion kip in Laos residential land use
rights as an investment incentive.

Ms Bouatha, who is Deputy Director General of the Investment Promotion
Department, and other officials in the investment sector made the
statement this week amid wide speculation that if foreigners are
granted land use rights, they would purchase a large plot of land and
then resell it at a higher price to Lao people.

Many Lao people also fear that if foreigners occupy land in urban
areas it would force them to leave their birthplace for the
countryside as they would no longer be able to afford to own expensive
residential land in city centres and prime business areas.

Ms Bouatha said it had been decided to grant foreign investors land
use rights because the government wanted to promote investment in real
estate firms, which target foreign business people as customers.

She explained that the government would allocate specific areas of
land to local and foreign companies on which a house and other
facilities could be built. Foreign investors who do business in Laos
could buy this land and the houses on it.

Because foreigners are seen as having high purchasing power, Ms
Bouatha said she believed the real estate business in Laos would grow
rapidly in the coming years.

She said it was beneficial for foreign investors to buy property and
live in Laos , as they could use this asset as a guarantee for their
business.

Officials say it is gove rnment policy to encourage wealthy foreigners
to live in Laos , as they have high purchasing power and spend a lot
of money here, which helps to boost the economy.

The government is also drawing up a Prime Minister's decree on
honorary citizenship, hoping to encourage wealthy foreigners and
celebrities to take up residence in Laos .

Officials said one of the areas where the purchase of residential land
rights by foreigners would be permitted was the Savannakhet Special
Economic Zone, where the government wants to encourage foreign
investment to create jobs and income for the local community.