Cuba, Third Major Receiver of Vietnamese Investments

By Alberto Salazar Gutierrez

Hanoi, Jun 29 (Prensa Latina) Cuba has become the third country with more Vietnamese investments at the end of the first semester of 2018, the Foreign Investment Agency reported in this capital today.

Although media reports do not say how much capital Vietnam has invested in Cuba, they noted that the Caribbean island is only preceded by Laos and Cambodia, which share borders with the Indo-Chinese nation and have long-term economic relations.

Cuba is 15,701 kilometers away from Vietnam, which is its second major trading partner in Asia and Oceania, and the tenth worldwide, with a significant weight on investments.

Both investments and foreign trade received a special boost during the visit of the general secretary of the Communist Party of Vietnam, Nguyen Phu Trong, to Cuba in late March.

On that occasion, companies from the two countries closed deals in tourism and the development of an industrial park in western Cuba to promote direct foreign investments.

As a result, the hotel entrepreneurial group Gran Caribe and its Vietnamese counterpart, the Chao-Viglacera Association, signed a contract to administer and commercialize the New York Hotel in Havana.

For its part, the group Cubanacan and the Vietnamese firm Hanel penned a memorandum of understanding to design, build and run a five-star hotel in Havana.

The Cuban government informed the approval of the first administrative concession in the Mariel Special Development Zone (ZEDM), the country’s main window to attract foreign capital.

For 50 years and extendable, the concession was granted to the Vietnamese company Viglacera through its branch ViMariel, which will develop an industrial park of about 160 hectares after it is set up.

All these joint projects have contributed to turning Cuba into the third major destination for Vietnamese investments, despite the distance between the two countries.

At present, Vietnamese companies in Cuba exceed 100, mainly in construction, agriculture, renewable energies, industry, tourism and infrastructural development. Bilateral trade exceeds 230 million dollars.

Regarding Vietnamese investment abroad, the Foreign Investment Agency pointed out that they surpass 222 million dollars in 67 projects approved in the first six months of 2018.

The Vietnamese companies also invested 40.6 million dollars in 14 ongoing projects, thus increasing the capital allocated abroad in the first semester of the year to 263.08 million dollars, the agency said.

It noted that in addition to the traditional markets, local firms are expanding to other countries, including Australia, New Zealand, the United States, Canada, Haiti and Cameroon.

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