Bilateral Cuban agreement inked

Party General Secretary, State President Nguyen Phu Trong and Cuban President Miguel Mario Diaz Canel Bermudez, Photo: VNA

At the invitation of Party General Secretary, State President Nguyen Phu Trong, and Prime Minister Nguyen Xuan Phuc, President of the Council of State and Council of Ministers of Cuba Miguel Mario Diaz Canel Bermudez paid an official visit last week.

The two nations signed a new bilateral trade ­agreement, which will help increase bilateral trade turnover to $500 million by 2022. 

Under the deal, Vietnam and Cuba committed to reduce import tariffs for many types of goods of each other, although as yet the specific content of the agreement remains under wraps.

Also on this occasion, both countries inked a protocol on financial disbursement and management of rice production project for 2019-2023.

Cuba has also committed to facilitate Vietnamese firms to invest in its territory. The Cuban leader met with CEOs of 14 major Vietnamese firms to listen to their financing plans to carry out business in Cuba.

Currently, PetroVietnam has almost completed negotiations of a contract to explore and exploit oil and gas with Cuba. The deadline for inking the contract remains unfixed.

Vietnam wishes to boost telecommunications giant Viettel’s investment in Cuba, but the Cuban government wants Viettel to first assist in an exchange of investment experience with the country before it can conduct specific co-operation activities.

Leaders of both countries strongly committed to facilitate the development of trade and investment ties, considering it one of their key co-operation pillars for the future.

During Party General Secretary Trong’s state visit to Cuba this past March, both countries reached many co-operation agreements. The deals include a co-operation agreement between the Communist Party of Vietnam and the Communist Party of Cuba between 2018 and 2023, and another agreement on judicial support in criminal affairs.

Also inked were a memorandum of understanding (MoU) on the enhancement of scientific and technological collaboration between Vietnam’s Ministry of Science and Technology and the Cuban Ministry of Science, Technology and Environment; an MoU between the Vietnamese Ministry of Natural Resources and Environment and Cuba’s Ministry of Science, Technology and Environment; and a further MoU between the country’s respective construction ministries.

An agreement between the governments which frees Cuba from any debts to Vietnam was also confirmed. Total debts were previously about $143.7 million.

Also on the occasion, Sovico Group of Vietnam’s budget carrier Vietjet signed the MoU with Cuban Civil Aviation Corporation, under which the two sides will seek co-operation for opportunities in the aviation market.

Currently Vietnam supports Cuba strongly in agricultural development, focusing on producing maize, soya beans and rice, as well as fishery products.

Both governments have adopted a project on co-operation in rice production for the 2018-2022 period.

Total bilateral trade turnover hit $300 million last year, while Cuba annually imports around 300,000-400,000 tonnes of rice from Vietnam.