BAKU, Azerbaijan, October 14. Laos is exploring
opportunities to cooperate with Azerbaijan on oil trade and, in the
future, oil refining. The two countries also have potential for
joint projects in agriculture, mining, transport and logistics, and
tourism, Vanthana Nolintha, Permanent Secretary and member of the
Standing Committee of Laos’ Investment Promotion and Management
Committee (IPMC), said at the Azerbaijan-Laos Business Forum in
Baku on Wednesday, Trend’s correspondent reports from the event.
He noted that while Azerbaijan is one of the world’s major oil
exporters, Laos meets its entire oil demand through imports. In
this regard, oil trade could become a promising area of economic
cooperation between the two countries.
“Azerbaijan is one of the major oil exporters, while Laos
imports 100% of its oil. This creates significant opportunities for
oil trade in the future, as well as cooperation in oil refining at
a later stage,” he said.
Vanthana Nolintha also outlined other promising areas for
expanding cooperation between Azerbaijan and Laos. According to
him, discussions between the two countries’ economy ministers
identified agriculture, mining, transport and logistics, and
tourism as potential areas for cooperation.
The committee official said Laos has extensive areas of fertile
land suitable for agricultural production and processing.
Cooperation with Azerbaijani companies in this sector could help
meet domestic demand and support exports to foreign markets.
Speaking about mining, Vanthana Nolintha noted that restrictions
have been imposed on accepting investment applications for new
mining projects in Laos. However, opportunities remain for foreign
investors to cooperate with local companies holding existing
licenses, particularly in raw material processing and the
production of higher-value-added goods.
“We aim to move beyond raw material extraction toward processing
and refining activities that generate greater added value.
Azerbaijani companies can explore opportunities to cooperate with
local enterprises in Laos that hold the relevant licenses,” he
emphasized.
The committee official also said the two countries could benefit
from each other’s experience and capabilities in transport and
logistics.
“Azerbaijan has the potential to become a transport and
logistics hub in the region, while Laos has similar potential
within ASEAN. Combining the financial resources and capital of the
two countries could create new opportunities to expand ties and
implement joint projects in this sector,” Vanthana Nolintha
added.
According to him, tourism could also play an important role in
developing Azerbaijan-Laos relations. Expanding tourism cooperation
between the two countries could increase mutual tourist flows and
strengthen people-to-people ties.
Vanthana Nolintha also said Laos intends to diversify its
sources of imports. He noted that a significant share of the
country’s imports passes through Thailand, and exploring
alternative supply sources could create additional opportunities
for cooperation with Azerbaijan.
The committee official also highlighted several financial
incentives Laos offers to attract foreign investors.
According to him, these incentives include profit tax exemptions
for a specified period, reductions in land lease and licensing
fees, customs duty exemptions, and a flat personal income tax rate
of 5% for highly skilled foreign professionals.
He said investment incentives are directed toward priority
sectors such as agriculture and agro-processing, healthcare,
education, innovation, the digital economy, renewable energy,
tourism, infrastructure, special economic zones, industrial parks,
and transport and logistics.
Vanthana Nolintha noted that the level of incentives also
depends on the location of a project. Projects implemented in rural
and less-developed areas are eligible for longer tax exemption
periods.
He also said negotiations are underway between Azerbaijan and
Laos on a bilateral agreement on the promotion and protection of
investments.
“We have submitted the draft agreement to the Azerbaijani side.
We hope that formal negotiations can begin by the end of this year
or early next year. This could further strengthen investment
protection between the two countries,” he emphasized.
The committee official noted that Laos currently has 26
bilateral investment treaties, while negotiations on another three
or four agreements are ongoing.
He added that exploring existing opportunities to expand trade
and investment ties between Azerbaijan and Laos and strengthening
economic cooperation between the two countries are important.
