BAKU, Azerbaijan, October 14. Laos is working
to strengthen economic ties with Azerbaijan, including by
coordinating a bilateral investment agreement, Lao Deputy Minister
of Industry and Commerce Manothong Vongsay said at the
Azerbaijan-Laos Business Forum in Baku on Wednesday, Trend’s correspondent reports
from the event.
"Laos could serve as a gateway to Asian markets, particularly
Southeast Asia, for Azerbaijani companies. Developing transport and
logistics links between the two countries could create new
opportunities to facilitate trade and expand economic cooperation,"
he said.
He said the forum provides a valuable opportunity for business
communities from both countries to exchange information on economic
policies, investment opportunities, and potential areas of
cooperation, as well as to establish long-term business
partnerships.
“Existing friendly relations between Laos and Azerbaijan provide
a solid foundation for further developing economic cooperation.
Work is currently underway to strengthen economic ties, including
the coordination of a bilateral investment agreement. Signing such
an agreement could help strengthen the legal framework, boost
investor confidence, and accelerate investment flows between the
two countries,” he said.
Vongsay emphasized that one of Laos’ main economic objectives is
to transform the country from a landlocked nation into a regional
transport and logistics hub, strengthen connections between
markets, and facilitate the movement of goods and people.
“This strategy is aligned with regional connectivity projects,
including China’s Belt and Road Initiative. The Laos-China Railway
plays an important role in implementing this strategy. In addition
to providing passenger and freight services between Laos and China,
the railway strengthens links with neighboring countries and
regional markets,” he said.
The deputy minister noted that the Lao government is also
expanding domestic infrastructure and cross-border connectivity. In
this context, the government has decided to implement a railway
project linking the Lao capital, Vientiane, with Vietnam. The
Vientiane-Hanoi highway project is also intended to strengthen
Laos’ links with Vietnam’s port infrastructure.
“I believe Laos can serve as an important gateway for
Azerbaijani businesses seeking access to Asian markets. By
connecting the Port of Baku with Southeast Asian markets through
regional transport networks and the Laos-China Railway, we can
explore new opportunities to facilitate trade, improve logistics,
and strengthen economic cooperation,” he said.
Vongsay identified mining, agriculture, energy, transport, and
logistics as promising areas for cooperation between the two
countries. He also highlighted opportunities to promote investment
in green steel production projects with commercial potential and
viable project structures.
The deputy minister also outlined measures to improve Laos’
investment climate. He said the government amended the Law on
Investment Promotion in 2024 and is considering further
improvements to the legal framework in 2026, including the
introduction of additional incentives, to attract more foreign
direct investment.
According to Vongsay, in addition to the 22 special economic
zones already operating in Laos, two industrial parks have been
established to attract investment and support industrial
development.
“These areas offer investment opportunities and incentives in
manufacturing, digital technologies, research and development, data
centers, and agricultural processing. The government is expanding
digital public services to improve the business environment. Online
payment options for import duties and taxes, as well as foreign
currency services through the banking system, are being developed
to simplify business operations and reduce the administrative
burden,” he said.
The deputy minister noted that investment activity in Laos has
shown positive momentum despite complexities in the global and
regional economic environment. Approximately $16 billion in
investment was approved during the five years from 2021 through
2025.
He added that 24 investment projects worth approximately $8.5
billion were approved in the first seven months of 2026,
representing a 68% increase compared with the same period last
year.
According to Vongsay, investors from 53 countries have invested
in Laos to date. China, Vietnam, Thailand, the Republic of Korea,
and Malaysia are among the country’s main investment partners.
The deputy minister emphasized that trade and investment
cooperation between Laos and Azerbaijan remains at an early
stage.
“Nevertheless, there is significant potential for the two
countries to work together in several areas,” he said.
