Cuba's economic growth to be boosted by joint ventures with Vietnam

April 24, 2023 | 12:21
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Cuba's first Deputy Minister of Construction Angel Vilaragot Montes de Oca said Cuba and Vietnam would benefit from joint ventures, while visiting Sanvig JVC with Vietnamese Minister of Construction Nguyen Thanh Nghi in Santa Cruz on April 20.
Cuba's economic growth to be boosted by joint ventures with Vietnam

The Cuban deputy minister said that the cooperative venture between Sanvig and Vietnam would contribute to Cuba's economic growth.

Currently, Sanvig JVC, a Vietnamese company operating in Cuba, manufactures a variety of products including those that are exported to generate foreign currency for the government.

Sanvig is part of the backbone of the construction industry, significantly bolstering Cuba's construction industry.

Angel Vilaragot Montes de Oca emphasised that Cuba would establish all the conditions for the development of the plant, and he anticipated that in addition to this project, the Ministry of Construction and Vietnamese construction companies would invest in numerous other projects in Cuba.

In addition to reports on the company's production and business situation, Pham Ngoc San, president of Sanvig, also discussed the challenges that businesses are confronting during the meeting. In addition, he proposed solutions that would require the Cuban Ministry of Construction and associated agencies to concentrate on fostering better conditions.

Opening up financial flows between business partners and joint ventures, especially the joint venture's opening of foreign accounts, requires the support of the Central Bank of Cuba, and a unique mechanism is required for the joint venture to operate continuously.

Minister Nghi said that he would get together with Cuba's Minister of Foreign Trade and Foreign Investment and Cuba's Ministry of Construction to discuss removing difficulties, as well as finding additional development paths for the joint venture.

Concurrently, it is proposed that Sanvig continue to maintain production, ensuring the current capacity of 2.1 million square metres of brick production; guarantee secure factory operation and product quality; and give greater attention to worker welfare.

Sanvig was founded and began production in November 2019; the Vietnamese capital contributor is Viglacera Corporation.

The joint venture has supplied the Cuban market with 4.574 million sq.m of ceramic tiles and approximately 210,000 sanitary ware products, employing 330 people.

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