BAKU, Azerbaijan, October 14. Azerbaijan invites Lao companies to invest in industrial parks and the Alat Free Economic Zone, Deputy Minister of Economy Anar Akhundov said at the Azerbaijan-Laos Business Forum held in Baku on Wednesday, Trend’s correspondent reports from the event.
According to him, Azerbaijan is interested in expanding economic and trade ties with Laos, promoting mutual investments, and fostering direct cooperation between business communities.
He noted that Southeast Asia is of growing importance to Azerbaijan and that developing relations with this region is one of the country's economic priorities.
"Several significant events regarding relations between Azerbaijan and Laos have taken place this week. A business forum was held in Azerbaijan earlier in October, and today we have had the opportunity to meet with partners from Laos. This reflects the increasing importance of Asia, and Southeast Asia in particular, to Azerbaijan," the deputy minister pointed out.
According to him, situated between Asia and Europe, Azerbaijan plays a vital role in strengthening ties between the continents. Expanding cooperation among countries and regions is of particular importance at a time when the global situation is becoming increasingly complex.
Akhundov emphasized that Azerbaijan's political and macroeconomic stability, as well as its standing as a reliable partner, sustain long-term interest from international investors. He noted that Azerbaijan places special importance on human capital development, the digitalization of the economy, and the implementation of artificial intelligence.
The deputy minister noted the growing international interest in the country's investment opportunities. According to him, representatives of companies with a combined asset volume exceeding $30 trillion have participated in the Azerbaijan International Investment Forum over the past month.
"Large-scale investment projects have been implemented with international partners across various sectors of Azerbaijan's economy, and this success is being continued through new projects. Companies from Laos are also invited to take advantage of these opportunities," he explained.
According to Akhundov, the development of a strong private sector is crucial for creating new jobs, adopting modern technologies, and fostering the economic development of the regions. He expressed confidence that a partnership between the business communities of the two countries would yield mutual benefits.
The deputy minister also noted that Azerbaijan's non-oil economy continues to grow, with private companies accounting for more than half of the investments in the non-oil sector. The state supports entrepreneurs through concessional financing, credit guarantees, tax and customs incentives, as well as regular dialogue.
He added that state compensation for up to 70% of exporters' transport and logistics costs, as well as a portion of customs clearance expenses, expands the opportunities for Azerbaijani companies to access foreign markets.
Akhundov further highlighted the conditions created for foreign investors. He noted that in the Alat free economic zone, foreign investors can benefit from advantages such as full foreign ownership, the free repatriation of profits, and the absence of any requirement to involve a local partner.
The deputy minister remarked that strengthening direct ties between the private sectors of the two countries is essential for identifying specific investment projects and realizing business initiatives. In this regard, establishing regular ties between chambers of commerce can help companies develop their projects.
He noted that the friendly relations and political dialogue between Azerbaijan and Laos, spanning over 30 years, have created a solid foundation for expanding economic cooperation.
According to Akhundov, there are vast opportunities for cooperation between the economies of both countries. Laos stands out for its hydropower potential, rich mineral resources, and opportunities in agriculture and tourism. Azerbaijan, meanwhile, can share its experience with partners regarding industrial potential, the energy sector, transport infrastructure, and the development of new economic fields.
The deputy minister emphasized that Azerbaijan attaches special importance to the development of the manufacturing industry and high value-added production sectors. In this context, the new mining and metallurgy program being implemented in the country represents a significant step toward expanding industrial potential.
"Our companies can cooperate on the processing of mineral and agricultural resources, as well as the development of production chains. Companies from Laos are invited to establish manufacturing facilities in Azerbaijan, including within industrial parks and the Alat Free Economic Zone," he mentioned.
Akhundov also noted the significant potential for cooperation in the energy sector. According to him, Laos's experience in hydropower and Azerbaijan's efforts to expand solar, wind, and hydropower generation create opportunities for the mutual exchange of expertise in this field.
He also mentioned that renewable energy and the management of electrical grids and joint initiatives could be implemented in the fields of energy efficiency. In the agricultural sector, cooperation on product processing, storage, packaging, and certification could facilitate access to new markets for producers from both countries.
Besides, the deputy minister identified transport and logistics as promising areas for cooperation. He noted that the Laos-China railway integrates Laos into China's transport network, while the Middle Corridor, passing through Azerbaijan, connects China and Central Asia with Europe.
According to him, Azerbaijan's transport and transit infrastructure could create additional opportunities for Lao companies to access markets in Central Asia, the South Caucasus, and Europe. At the same time, the fact that Laos is a member of the Association of Southeast Asian Nations (ASEAN) is significant for Azerbaijani companies looking to explore business opportunities in the region.
Akhundov added that existing political relations and mutual economic advantages should be effectively utilized to expand economic ties between the two countries. This could contribute to the implementation of new investment projects, the increase of trade turnover, and the establishment of long-term partnerships among business circles.