The Government of the Kingdom of Thailand and the Government of the Lao People's Democratic Republic, hereinafter called "Contracting Parties",

Recognizing that the good neighborly cooperation in the fields of economics and trade through investments will promote progressive development for the well being of the people of both States,

Desiring to create favorable conditions 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,

Recognizing that the reciprocal encouragement and protection of such investment of capital and the investment under international agreement will be conducive to the stimulation of individual business initiative and will increase prosperity in both States;

Have agreed as follows: