Azerbaijan and Laos are working toward signing a bilateral investment treaty aimed at strengthening investor confidence and increasing investment flows between the two countries.

Laos Deputy Minister of Industry and Commerce Manothong Vongsay announced the initiative at the Azerbaijan-Laos Investment Business Forum, according to Caliber.Az.

“We are currently working to further develop our economic partnership, including through negotiations on the conclusion of a bilateral investment treaty. We believe these efforts will help create a stronger legal framework, strengthen investor confidence and promote increased investment flows between our two countries,” Vongsay said.

The official also highlighted Laos’ plans to improve regional connectivity by making greater use of the Laos-China Railway, which links the landlocked country with neighboring states and regional markets.

Laos also intends to continue developing the Laos-Vietnam railway project, designed to connect the capital, Vientiane, with Vietnam’s Vung Ang seaport.

Vongsay said these transport links could open up significant opportunities for cooperation with Azerbaijan, particularly in trade and logistics.

“Against this backdrop, I believe Laos can serve as an important gateway for Azerbaijani businesses seeking access to ASEAN markets. By connecting Baku’s ports to 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.

He added that the connectivity could encourage investment in commercially promising projects with reliable structures, identifying mining, agriculture, energy, transport and logistics as key areas for potential cooperation.

Although trade and investment ties between Azerbaijan and Laos remain modest and are still at an early stage, Vongsay said there was considerable potential for the two countries to expand their partnership.