State president aims to raise trade during Cuban visit

President Truong Tan Sang

The visit, which takes place in the lead up to the 55th anniversary of diplomatic relations between Vietnam and Cuba (December 2), is aimed at further cementing comprehensive relations across a wide range of sectors, with a special emphasis on economics, trade, and investment.

During his time in Cuba, Sang will hold bilateral talks with his counterpart Raul Castro, and both leaders will witness the signing of several co-operation agreements.

In addition to attending a Vietnam-Cuba business forum, Sang will meet with former President Fidel Castro and President of the National Assembly of People’s Power Esteban Lazo Hernández.

According to Vietnam’s Ministry of Foreign Affairs, the two countries’ comprehensive relations have steadily strengthened over the years through frequent visit exchanges, economic development initiatives, as well as in the fields of construction, transport, biotechnology, agriculture, and education.

During a recent working visit to Vietnam to expand business links, the President of Cuba’s Chamber of Commerce and Industry Hernandez Guillen said that the recent normalisation of bilateral relations between Cuba and the US would present huge opportunities for Cuban businesses to invest overseas, and would facilitate innovation in the country’s economy by luring foreign investment.

He highlighted opportunities for Vietnamese investors to invest in Cuba in projects relating to tourism, agriculture, telecommunications, footwear, garments and textiles, pharmaceuticals, education, and healthcare.

Each year, Vietnam exports about 200,000 tonnes of rice to Cuba. Currently, the two sides are deploying programmes in rice production, and developing aquatic and agricultural products in Cuba until 2020. Several more projects are currently under consideration by the two governments and may bear fruit in the coming years.

Last year, bilateral trade between Vietnam and Cuba reached $207.4 million, up 45 per cent on year. Vietnamese exports to Cuba represent the lion’s share of this figure at $206 million. The main products being exported include cereal, footwear, ceramic products, hygiene products, building materials, coal, chemicals, and garments and textiles. Crucially, rice accounts for 66 per cent of Vietnam’s exports to Cuba.

Last year, Vietnam and Cuba signed a number of co-operation documents, including a memorandum of understanding on industrial co-operation, and an agreement on a medium-term bilateral economic co-operation programme.

According to Vietnam’s Ministry of Planning and Investment, Cuba currently has one investment project in Vietnam with registered capital of $6.6 million. Meanwhile, Vietnam has two projects in Cuba in oil and gas exploration implemented by PetroVietnam.