Manothong Vongsay: Laos interested in importing Azerbaijani oil – INTERVIEW

Expansion of economic ties between Azerbaijan and Laos offers opportunities for cooperation not only in trade but also in energy, logistics and investment. Although bilateral economic relations remain limited in scale, both countries are interested in exploring new areas of cooperation and establishing lasting business ties.

The geographical positions of the two countries are particularly significant. Laos is developing its transport infrastructure to strengthen connectivity between Southeast Asian countries and China, while Azerbaijan is expanding its role as a transit hub between Asia and Europe. Bringing these logistics networks closer together could create additional opportunities for the movement of goods between the regions. In the energy sector, diversifying oil supplies to Laos, which relies on imported hydrocarbons, could be a promising area of cooperation.

In an interview with Report on the sidelines of the Azerbaijan–Laos Business Forum, Manothong Vongsay, Deputy Minister of Industry and Commerce of Laos, spoke about practical steps to expand bilateral cooperation, Laos's interest in Azerbaijani products and prospects for investment partnerships.

The interview is presented below.

- How do you assess the current level of trade and economic relations between Laos and Azerbaijan? Which areas could become the main drivers of bilateral cooperation in the coming years?

- At present, trade between our countries is very limited, amounting to around $300,000. However, this low figure points to significant potential for expanding trade and developing mutually beneficial cooperation.

I believe we need to step up our joint efforts and work more closely together to identify concrete ways to increase bilateral trade. Our countries' leaders also discussed this issue recently. The current business and investment forum should serve as a platform for launching substantive dialogue, establishing business contacts and developing practical solutions to increase trade turnover.

- Is Laos considering importing oil, petroleum products, chemicals and mineral fertilizers from Azerbaijan?

- We are certainly interested in these products. We highly appreciate the quality of Azerbaijani goods, particularly oil and petroleum products.

Laos currently relies entirely on oil imports from neighbouring countries. We are therefore interested in finding alternative sources of supply and diversifying our import channels. If we can establish a mutually beneficial mechanism for supplying Azerbaijani oil, this would present a good opportunity for both sides.

More broadly, energy cooperation and the expansion of the geographical reach of hydrocarbon supplies could become a powerful driver of stronger bilateral economic ties as a whole.

- Laos is strengthening its position as a land-based transport hub in Southeast Asia, partly through the China–Laos Railway. Azerbaijan, meanwhile, is developing the Middle Corridor. How realistic is it to connect these transport routes to improve freight transport between Asia, the Caucasus and Europe?

- We have already heard relevant proposals from representatives of our ministries, including the Minister of Economy, as well as from other colleagues. Clearly, we need to examine the possibilities for connecting these routes.

It is important for us to facilitate the more efficient movement of goods between ASEAN (the Association of Southeast Asian Nations) member states by using Laos as a transport hub, while also developing logistics links through China and the Caspian transport region to other parts of the world.

We therefore believe that further work is needed to explore the potential integration of these routes and determine which practical solutions could help realise this potential.

Integrating the transport corridors of Southeast Asia and the Caspian region could indeed fundamentally reshape Eurasian logistics chains, turning Laos and Azerbaijan into key transit bridges.

- What business cooperation mechanisms could help entrepreneurs from the two countries find partners and launch joint projects? Is the establishment of a business council or the regular organisation of business forums being considered?

- As the vice-president of our Lao National Chamber of Commerce and Industry (LNCCI) noted at today's business forum in Baku, we need to give fresh impetus to business contacts between the two countries. An important step would be to expand exchanges of business delegations and organise visits by Azerbaijani entrepreneurs to Laos.

Such visits would allow business representatives to gain first-hand knowledge of our country's economic and investment opportunities, assess promising sectors and identify potential partners. We want entrepreneurs from both countries to explore each other's markets more actively and move from discussing opportunities to implementing concrete projects.

- What stage have negotiations on bilateral agreements between Laos and Azerbaijan reached? Can we expect an agreement on the mutual protection of investments to be signed soon?

- We are currently working actively on a bilateral investment agreement. A draft document has already been prepared, and the two sides are exchanging comments and proposals. I hope we will make further progress and sign the agreement in the near future.

Establishing a reliable legal framework, particularly through the conclusion of a bilateral investment agreement, will help strengthen investor confidence in both countries and create the conditions for a long-term economic partnership.