Vietnam sought investment windfalls in Cuba

During his official visit to Cuba on November 15-17, Vietnam’s State President Tran Dai Quang met with Cuban leaders about further increasing the two countries’ co-operative ties. Specific possibilities for Vietnamese firms to expand their investment and business activities in Cuba were mentioned.

This visit saw the inking of investment and business agreements between many Vietnamese enterprises with Cuban partners, in the sectors of cement, consumer goods, instant noodles, coffee, and rice.

While PetroVietnam, Vinafood 2 and Viettel sought partners in Cuba, Vietnam’s construction material maker Viglacera and Cuba’s Geicon Group inked a deal to set up a joint venture. Viglacera also signed an agreement on the import and export of construction materials with Cuba’s IMECO company. Viglacera is already active in Cuba, on several projects.

In September 2016, a delegation of 20 Vietnamese enterprises travelled to Cuba in search of investment opportunities in the tourism, transportation, logistics services, telecommunications, and trade sectors.

In 2017, Vietnam’s Thai Binh Investment Trading Corporation will begin making disposable diapers and powdered detergent from its two Cuban factories in two joint ventures with two firms in Cuba’s Mariel Special Development Zone, with a total registered investment capital of $23 million.

Some Vietnamese firms have already invested in Cuba, including oil company PetroVietnam Exploration Production Corporation and electronics producer Hanel Co., Ltd.

According to Vietnam’s Ministry of Foreign Affairs, Cuba is open to international trade and calling for foreign direct investment in various sectors, such as the agro-forestry, sugar, tourism, energy, mining, and biotechnology industries.

In order to raise bilateral investment and trade ties, the two countries last week inked two deals, including a co-operation agreement in the animal health sector and a memorandum of understanding (MoU) on bilateral co-operation between Vietnam’s Ministry of Industry and Trade and Cuba's Foreign Trade and Investment Ministry. This MoU outlines actions that will increase trade and investment levels, which aim to surpass those achieved during the 2012-2016 period.

During Quang’s stay in Cuba, the two countries agreed they had great potential to co-operate in the fields of investment, science and technology, agro-fisheries and processing, consumer goods, energy, pharmaceuticals, education and training, radio and television, and tourism.

Both sides’ leaders said the two countries would accelerate negotiations towards the signing of a new generation of trade agreements, ousting the previous agreement signed in 1996 and making it easier for bilateral trade and investment activities. They also agreed to launch joint projects on tourism infrastructure, construction materials, and consumer goods.

Vietnam and Cuba will consider the possibility of establishing appropriate mechanisms to enhance co-operation in the research, testing, and manufacture of pharmaceuticals.

Bilateral trade reached $218.2 million last year, up 4.65 per cent year-on-year. Vietnam’s export turnover from Cuba was $214.6 million, with exports to Cuba mostly made up of rice, coffee, chemicals, ceramics, machinery, and spare parts. Goods imported to Vietnam include vaccines and pharmaceutical products.