HCMC – Vietnamese traders are being advised to join a trade and investment forum next month in Cuba’s capital city La Habana, which a trade official said would be a good chance for them to explore new policy changes in the country.
The first-ever forum of its type between Vietnamese and Cuban traders would open up many opportunities for Vietnamese entrepreneurs in both investment and trade, said Nguyen Xuan Khien, head of the American Market Department under the Ministry of Industry and Trade.
He said that Cuba’s recent moves to call for investment into real estate, and give support to the private sector in business deals would be a good opportunity for local traders to push relations with Cuba’s state-owned enterprises.
Khien noted that one of the most liberal policies in the Central American country is that it allows for land leasing contracts with terms of up to 99 years for developers of golf courses, hotels and resorts. The American Market Department will increase researching to provide local traders with further information on preferential investment policies of Cuba, he added.
“Given good political relationship between Vietnam and Cuba, I think that our traders will have more advantages in entering the very new market,” Khien said.
Khien’s department will co-host the Vietnam-Cuba Trade and Investment Forum in La Habana, which is expected to appeal traders of rice, garment and textile, footwear, electronics, and pharmaceutics among others.
Cuba has set up trading relations with Vietnam for long, buying rice, electronics, processed foods, and textile products from Vietnam but mostly through government-to-government contracts. Now is the time for private traders to bolster trade relations.
However, Cuba with its closed-market policy for half a century also has caused difficulties for international traders. Dang Xuan Cuong, head of the import-export division of Vifon Co. specializing in processed foods, said his company began exporting to the country in 2008 and met many difficulties concerning the payment and transport.
Cuban importers, mostly state-owned enterprises, often ask for deferred payment from 300 to 500 days after delivery.
“This retard is seen as part of their trading habits” Cuong said.
The food processor and other enterprises mostly have to deliver goods via a third country to solve the matter.
Another difficulty, according to this salesman, is due to the trade embargo imposed by the U.S. on Cuba that makes sea transport to Cuba prolong up to three months. Despite the difficulties, according to Cuong, Vifon’s next move is to deploy market researching programs in order to grab the different taste and customer habits in this pretty new market.
“I find business opportunities in this market, and market research is the first step for deeper entrance into the market. This is very important since with the constant improvement on policy, I think Cuba in one or two years will be attracting a lot more investors from around the world,” Cuong added.
