One of six agreements signed between Cuba and Vietnam in September 2015 will take effect next year with the opening of two factories, one for producing laundry soap and the other making disposable diapers, both working with one of the leading companies in the Vietnamese industrial sector: Thai Binh.
According to Thai Binh’s sales manager Nguyen Lam Dien, the two factories will be set up in the Mariel Special Development Zone, created to help boost the country’s economic development by taking advantage of the favorable conditions and facilities afforded by Law-Decree 313 of 2013.
The diaper factory is expected to commence operations by the first semester of 2017 and the second, jointly financed with Cuban capital, by the end of that same year.
The projects will further expand the large economic and commercial links between Cuba and Vietnam in sectors such as food, consumer goods, building materials, telecommunications, oil prospecting and tourism infrastructure.
With just over 11 million inhabitants and a considerable demand for imports, Cuba is a very attractive market for investors.
This is the basis for current bilateral relations and is what encourages Vietnamese business people to further expand their country’s foreign trade.
Vietnam collaborates with Cuba on its food production program by providing technological support for the production of rice.
The objective is to help enhance output through the efficient use of resources and techniques in order to reduce rice imports.
Nguyen, who considers Cuba a key element due to its strategic position in the Caribbean and Latin America, said that the diaper and laundry soap plants will help save time and transport costs.
The idea is to supply the home market first and then export to other countries in the region, he added.
The sales manager added that there is high demand in Cuba and other Latin American countries for foodstuffs, textile products and consumer goods, and Vietnam is in a favorable position in this regard.
Something that Vietnam has in favor in the case of Cuba is the close and fruitful political relations, he explained, referring to the island as Vietnam’s new market for investment and business.
According to Vietnamese authorities, many business opportunities still exist in Cuba. In 2014, trade between Hanoi and Havana reached $205.4 million, and Cuban exports accounted for only six million of that amount, according to official statistics.
Other projects like a potential furniture factory and investments in the real estate sector are already being discussed in the context of the prospects for sustained growth in the Cuban market.Share on FB Share on TT