Afət Ziyadqızı
President Ilham Aliyev’s high-level meetings in Baku with the prime minister of Cambodia and Thongloun Sisoulith, President of the Lao People’s Democratic Republic, are an important part of Azerbaijan’s strategic foreign policy toward Southeast Asia. Talks with the two countries are aimed at strengthening Azerbaijan’s position in the Association of Southeast Asian Nations (ASEAN), a bloc of nearly 700 million people with combined gross domestic product of more than $3.8 trillion.
Milli Majlis (National Assembly) member Sahib Aliyev told the Operative Information Center-OMM that Azerbaijan intends to obtain observer status in the major economic bloc, adding that Cambodia and Laos actively support the initiative:
“With Cambodia’s support, the Milli Majlis is already an observer in the ASEAN Inter-Parliamentary Assembly. Observer status gives our country the opportunity to take part in the bloc’s economic integration projects, business forums and investment programs. Cambodia and Laos are located at the heart of ASEAN, so by establishing agro-processing or industrial facilities there, Azerbaijan can gain duty-free access to a vast market of 700 million people.”
The MP highlighted the importance of diversifying Azerbaijan’s foreign currency reserves and investment strategy:
“We have foreign currency reserves of up to $90 billion, and the experience of some countries shows that holding them only in traditional markets carries significant risks. By investing these reserves in promising sectors on other continents — in this case, in the rapidly growing ASEAN region — we hedge against some risks, convert oil capital into non-oil revenues and increase our influence there. In the first half of 2026, Azerbaijan invested $5.36 billion directly in foreign economies, 3.7 times more than in the same period last year.”
Touching on logistics and possible synergies with the Belt and Road Initiative, Sahib Aliyev said the Middle Corridor was gaining new opportunities:
“In his statement, the head of state emphasized that Azerbaijan has already implemented all its major transport and logistics projects and is now focusing more on identifying and mobilizing cargo from new destinations. Our country plans to integrate its logistics capabilities along the Middle Corridor into ASEAN supply chains. Both states are among China’s closest partners in ASEAN, and a high-speed railway connects Laos and China. This creates close synergy with Beijing’s Belt and Road Initiative. By integrating this branch of ASEAN with Eurasian transport corridors via Central Asia, we strengthen our status as a global logistics hub and also counter attempts by the West to isolate China.”
The Milli Majlis member added that this geostrategic move was also a significant response to France’s sphere of influence and diplomatic maneuvering in the region:
“Southeast Asia is a region that the West, and France in particular, watches closely. Both Cambodia and Laos were once French colonies. Building direct ties with France’s former colonies not only in economic affairs, but also in defense and security, irritates Paris and constrains it. With this step, Baku shows that its diplomatic influence is not limited to the South Caucasus or Europe, but also extends to strategic regions viewed as sensitive by the West. Attempts to isolate our country will fail, because we are talking about a state that has already become a voice to be reckoned with on an intercontinental scale.”
Sahib Aliyev concluded by drawing attention to the role of “soft power” in humanitarian ties:
“The joint statement with Lao President Thongloun Sisoulith provides for scholarships for students from Laos to study at Azerbaijani universities. There are currently people in Laos’s leadership who studied in Baku. The greater their number, the more positively this will contribute to developing Azerbaijan’s soft-power potential in that country and the subregion.”
