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.
