Cuba new investment destination for Vietnamese firms

Friday, May 18, 2018 14:17

At Mariel Special Economic Development Zone. — Photo AFP

Cuba has emerged as the third-largest investment destination for Vietnamese enterprises after Laos and Cambodia.

According to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment, Vietnamese firms registered to invest US$19.9 million in Cuba in the first four months of 2018 despite geographical distance.

This is expected to open numerous business opportunities for the two countries.

FIA revealed some investment projects of Viet Nam in the new market, including an oil and gas exploration project of PetroVietnam Exploration Production Corporation and diaper and washing powder production projects at Mariel Special Economic Development Zone of Thai Binh Company.

Several years ago, Cuba was predicted to emerge as a promising market for Viet Nam after Laos, Cambodia and Myanmar. There is plenty of room in this market, and the Cuban government has repeatedly called on Vietnamese enterprises to invest in the country.

The opportunities have become more obvious after the visit of Secretary General of the Communist Party of Viet Nam Central Committee Nguyen Phu Trong to Cuba in March 2018, where he signed a number of cooperation agreements.

Viet Nam’s Ministry of Industry and Trade and Cuba’s Ministry of Foreign Trade and Investment signed a deal concluding the official negotiation between the two countries on a new bilateral free trade agreement (FTA).

The two sides committed to conduct legal revisions to bring the FTA into force as soon as possible to support trade growth and attract investment.

Trade experts said these moves were important to boost Viet Nam-Cuba trade and investment relations.

According to FIA, Vietnamese firms invested $153.6 million abroad in the first four months of 2018. This included nearly $129 million in newly registered capital and $24.6 million in existing project expansion.

Viet Nam invested $80.12 million in Laos, making up 52.2 per cent of the total investment capital, and $25.9 million in Cambodia from January to April this year. — VNS

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