Trade relations between Cuba and Vietnam on the rise
Havana, April 22 (RHC) - Vietnam has established itself as Cuba’s main investor and second commercial partner in Asia, with economic and commercial ties that reinforce the historical relations of brotherhood between both peoples.
This is evidenced by the recently concluded Vietnam-Cuba Trade and Investment Promotion Forum held at the National Hotel in Havana, on April 21, a space in which four memorandums of understanding covering the sectors of aviation, construction, electricity and oil were signed.
These include those of Vietnam Airline and Cubana de Aviación for bilateral collaboration; the Unión Eléctrica de Cuba (UNE) and the Vietnamese company Power Engineering Consulting Join Stock Company 2; the Union Cuba Petróleo and Petro Vietnam Ltd; Dinvai Constructions S.A. and Hoa BINH S.A., regarding construction materials.
During the opening, Ricardo Cabrisas, Vice Prime Minister and Head of Foreign Trade and Investment (Mincex), recalled the long-established relations between the two nations. Cabrisas explained that the Forum was held in the context of the 40th intergovernmental session, which ratifies the purposes of establishing effective mechanisms to consolidate ties in the economic, commercial, and science and technology spheres with new actions from Havana and Hanoi.
The also co-chairman of the Cuba-Vietnam intergovernmental commission indicated that the agreements on health, biopharmaceuticals, agriculture and investments must constitute action guides whose compliance will allow to strengthen commercial exchange and promote new investments.
Cabrisas stressed that new business interests have already been identified with short-term possibilities with an impact on priority fields for Cuba such as agri-food, renewable energy, tourism, construction, and others of mutual benefit.
At the Forum, the business community discussed the potential for the production and marketing of rice, specialty coffees, grains, feed, chicken and pork meat; construction of photovoltaic parks; as well as joint venture projects for hotel renovation and marketing.
Criteria were exchanged about the construction materials industry in the training and increase of productive capacities in the state cement plants of Artemisa and Cienfuegos; the participation of Vietnamese companies in the Curacao cement company; and the administration of the new Nuevitas cement factory.
NEW PROJECTS
According to Cabrisas, Vietnam stands out for its active participation in the investment process in the Mariel Special Development Zone (ZEDM). A company from the Asian nation is the first concessionaire in said area where, in addition, new projects related to development will be arranged shortly.
He explained that Cuban economy is developing in a complex context as a consequence of the economic, commercial and financial blockade imposed by the United States, currently intensified; the impact of the Covid-19 pandemic, climate change and multiple global crises. This brings severe consequences in the increase in international prices of fuels, food and raw materials necessary to develop national productions.
The business meeting was also attended by Vuong Dinh Hue, president of the National Assembly of Vietnam, who is on an official visit to Cuba and stressed that the meeting was an opportunity for businessmen to communicate.
Regarding commercial cooperation, Vuong said that from 2015 to 2020 the volume of bilateral business amounted to about 350 million dollars annually, and highlighted the importance of the Vietnam-Cuba Trade Agreement signed in November 2018, which constitutes a legal basis for companies.
In previous days, Esteban Lazo, president of the Cuban National Assembly of People’s Power, highlighted the prospect of agreements for the technological transfer of corn seeds, which have a great impact on agriculture, and thanked Vietnam for the donation of five thousand tons of rice that will soon arrive on the island.
Vuong mentioned among the topics of common interest the organization of the theoretical conference between both Communist Parties, the coordination of multilateral forums and cooperation in areas such as security, internal order, defense, agriculture, biotechnology, consumer goods, tourism, materials construction and investment.
Both parties, he stressed, can seek solutions to the difficulties that hinder commercial relations. He proposed finding preferential mechanisms for Vietnamese businessmen in Cuba and studying payment alternatives.
Cooperation in health, science and exchange between peoples are other lines of action that can be strengthened, said Vuong Dinh Hue, who thanked the collaboration of specialists from the island and the donation of five million doses of vaccines against Covid-19.
OTHER COVENANTS
Previous September, during the Cuban Prime Minister's visit to Vietnam, 10 agreements were signed, including memorandums of understanding, letter of intent and supply and distribution contract.
On that occasion, the Vietnamese Vice Prime Minister, Le Minh Khai, said that commercial exchanges could reach about 500 million dollars a year, from the current 350 million dollars.
Among the documents signed on that occasion was the notification of an agreement of the Executive Committee of the Cuban Council of Ministers extending the validity of the Thai Binh Green Power branch in the ZEDM. It also included a new surface right to execute the expansion of the first 20 megawatts (MW) in photovoltaic solar parks, of the 150 MW committed for 2023, in addition to the Vietnamese proposal for an agricultural-livestock project in the enclave.
On the other hand, the business organization BioCubaFarma signed separate memorandums of understanding with the T&T Group for biopharmaceutical cooperation and biotechnology.
Meanwhile, the Center for Genetic Engineering and Biotechnology signed a supply and distribution contract with Almedic and a memorandum of understanding with Sao Kim Pharma for the production of Proctokinasa. (Source: Prensa Latina)
