These changes show that the Cuban market is opening and presents new opportunities for Vietnamese and other foreign enterprises.
In March 2018, the Cuban Government issued a license to Viglacera, a construction material company of Vietnam, to invest in the Mariel Special Development Zone, through ViMariel SA, the first fully foreign-invested enterprise in Cuba. The Vietnamese enterprise will invest about USD 300 million to build a 160-ha industrial park in Mariel by 2024.
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An overview of ViMariel at the Mariel Special Development Zone |
It will have roads, telecommunications, electricity, and water supply infrastructure for industrial facilities and Vietnamese enterprises will have a 50-year license to exploit the park. It is expected that ViMariel SA's industrial park will attract investment by logistics, biotechnology, pharmaceutical, electronics, and manufacturing businesses.
ViMariel and three other companies, including Thai Binh, Hanel, and Tin Thanh, have become major investors in Cuba. The companies will have a strong influence on Cuba’s construction, tourism, and renewable energy sectors.
Bilateral trade between Vietnam and Cuba increased from USD 142 million in 2003 to USD 336 million last year. Vietnam’s main exports to Cuba are rice, consumer goods, iron, steel, paper, ceramics, chemicals, garments, textiles, and machinery. Vietnam is Cuba’s second largest investor from the Asia-Pacific region.
Vietnam and Cuba recently signed the New Trade Agreement and the Protocol on Disbursement and Financial Protocol on Implementing the Cooperation Project on Rice Production during the 2019-2023 Period. This is expected to boost bilateral trade to USD 500 million a year by 2022.
Foreign enterprises in Cuba are exempted from employer tax, personal income tax, and corporate income tax during the period of project development and investment.
Working enterprises are exempted from income tax for the first 8 years and from several other taxes which might reduce reinvestment. Cuba also offers special incentives for foreign investors in the Mariel Special Development Zone.
Source: VOV5