Aliyev connects distant Asia to the Silk Road

President of the Lao People’s Democratic Republic Thongloun Sisoulith arrived in Azerbaijan on an official visit on October 12 and met with Azerbaijani President Ilham Aliyev on October 13. Cambodian Prime Minister Hun Manet arrived in Azerbaijan on an official visit on October 11. An official welcoming ceremony was held for him in Baku on October 12, and he is also participating in the CICA summit.

Laos and Cambodia are neighbouring countries that share a border in Southeast Asia, on the Indochinese Peninsula.

As part of the visits, a Framework Agreement on Trade and Economic Cooperation was concluded between the Government of the Republic of Azerbaijan and the Government of the Kingdom of Cambodia. The document was exchanged by Azerbaijan’s Minister of Economy Mikayil Jabbarov and Cambodia’s Minister of Commerce Cham Nimul. Azerbaijan and the Lao People’s Democratic Republic also adopted a Joint Statement and exchanged other cooperation documents.

What new trade opportunities could these partnerships bring to Azerbaijan?

Speaking to TodayPress TV on the subject, economist Vugar Bayramov said there was significant potential to expand economic cooperation with Cambodia and Laos.

He noted that Azerbaijani President Ilham Aliyev and Cambodian Prime Minister Hun Manet had expressed confidence in their statements to the media that bilateral trade would increase following the official visit, despite its currently low level.

“Although relations between Azerbaijan and Cambodia have a history spanning more than 30 years, notable changes in trade ties have been observed only in recent years. Nevertheless, there is considerable potential to expand economic relations with this distant Asian country.

“In 2025, trade turnover between Azerbaijan and Cambodia amounted to $12.7 million. The entire figure consisted of imports from Cambodia, with no Azerbaijani exports to the Cambodian market recorded last year. The same trend continued during the first eight months of 2026. Azerbaijan imported goods worth $7.2 million from Cambodia, while no exports of Azerbaijani products to that country’s market were recorded.

“Imports covered 201 product categories. A significant share consisted of light-industry goods, including women’s coats, three-quarter-length coats, jackets and raincoats made from synthetic yarns, trousers and overalls woven from cotton yarn, as well as various knitted products,” the expert emphasised.

According to the economist, one of Azerbaijan’s main priorities is to introduce non-oil and gas products to the Cambodian market. In this regard, the agreement on a framework deal providing for the establishment of a joint trade working group is also significant. The agreement is expected to facilitate access for Azerbaijani products to the Cambodian market.

He said a similar situation existed in economic relations with Laos.

“Strengthening economic cooperation was among the priority issues discussed during the meeting between the presidents of Azerbaijan and Laos.

“In 2025, trade turnover between Azerbaijan and Laos increased by 40% compared with the previous year, but the total amounted to just $329,000. Laos, with a population of approximately eight million and an area of 236,000 square kilometres, has a nominal gross domestic product estimated at $16.3 billion, rising to $78.8 billion in purchasing power parity terms.

“Agriculture plays an important role in the country’s economy. Although Laos imports oil and gas, it exports electricity.

“Azerbaijan trades with Laos in 30 product categories. Imports mainly consist of footwear and various technical equipment. Specifically, $96,000 was spent on footwear imports, $71,000 on rubber footwear and $48,000 on wooden-soled footwear. Imports of machinery used for receiving, converting, transmitting or reproducing sound, images and other information amounted to $49,000.

“Nevertheless, no Azerbaijani exports to the Lao market were recorded in 2025. During President Ilham Aliyev’s meeting with Lao President Thongloun Sisoulith, both sides expressed interest in more actively developing economic ties. The Lao president’s visit to Azerbaijan is expected to give fresh impetus to economic cooperation between the two countries.”

Bayramov concluded that one of the key tasks in expanding economic relations with distant Cambodia and Laos was to reduce the imbalance in bilateral trade and facilitate access for Azerbaijani products to those markets.

Promoting non-oil and gas exports, establishing joint business ties and supporting trade cooperation through institutional mechanisms could create new opportunities in this area.

Jala Rovshan