Cuba's leading experts in the field of biotechnology, pharmaceuticals, as well as Vietnamese enterprises interested in the Cuban market had a direct talk at the seminar "Introduction to potential of cooperation with Cuba in the field of biotechnology and pharmaceuticals” recently held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Cuban Embassy in Vietnam.
According to Dr Doan Duy Khuong, VCCI Vice President, since the establishment of diplomatic relations in 1960, over more than 50 years of cooperation and mutual support, Vietnam and Cuba have always been loyal brothers and faithful partners of each other. During the war, Cuba was a leader in the movement of people in the world to support the fight for the independence, freedom, and construction of Vietnam. Cuba has been promoting all aspects of relations with Vietnam, especially in the economic field with the strengths of Cuba such as construction, transportation, biotechnology, education, health, sports and agriculture.
The two sides also signed many economic and trade agreements to facilitate trade activities between the two countries such as the Agreement on trade and other forms of economic cooperation (1996), Investment Promotion and Protection Agreement (1995); Agreement on cooperation in tourism (1999), Agreement on cooperation in quarantine and plant protection (1999); and the Agreement on avoidance of double taxation and prevention of fiscal evasion for income taxes (2002).
However, according to Dr Khuong, the bilateral trade and investment is still incommensurate with the potential. Annual trade turnover between the two countries is limited; trade turnover was about US$490 million in 2008, then decreased to US$175 million in 2012, of which Cuba’s exports to Vietnam reached only about US$ 6 million. Vietnam exports to Cuba include mostly rice, chemicals, plastics, coal and textile.
In direct investment, by the end of 2012, Cuba had only one project in Vietnam with a total registered capital of US$6.6 million, ranking 68th in nearly 100 countries and territories investing directly in Vietnam. In addition to a number of companies having representative offices in Cuba, Vietnam also has two oil and gas exploration projects of the PetrolVietnam Exploration Production Corporation (PVEP) in Cuba.
"The boost of economic cooperation between the two countries is not only the responsibility of the two governments, but also depends heavily on the dynamics of the business communities," Dr Khuong said. In terms of industry structure, the two countries can complement goods for each other. Cuba has a great demand for textile goods, shoes and electronic products from Vietnam. By contrast, Cuba has much strength in pharmaceuticals, training, health care, construction capable of good cooperation with Vietnam.
In particular, according to Dr Khuong, the Congress Resolution 6 of the Communist Party of Cuba updating the economic model in the new era has set the goal of developing biotechnology and pharmaceutical industry into one of the leading export industries of the economy. The vaccines and treatments for meningitis, hepatitis B, esophageal cancer and cervical cancer produced by Cuba are appreciated by the world's medical experts. Famous Cuban pharmaceutical use advanced bio-technology, environmentally friendly, especially at reasonable prices, which is suitable for the Vietnamese market. In fact, the Cuban pharmaceutical exports to Vietnam reach US$3 million / year so the potential of cooperation between the two sides is very big.
Cuban Ambassador Fredesman Turro Gonzalez said Cuba invented new and unique drugs and vaccines; some of these products are sold in Vietnam or are in the registration of Vietnamese and Cuban enterprises used on display at the seminar. Cuba is also developing joint projects to produce a number of products in Vietnam in the form of technology transfer, or some other methods mutually agreed by two parties.
"It’s sure that the health sector in general is one of the most promising areas in trade and economic relations between the two countries. However, the road ahead is long. Therefore, and in response to the call of leadership of the two countries on the boost of trade and economic relations as high as political relations and Party relations, I call all efforts to achieve the above objectives, especially in this area, with the slogan: ‘For better health and quality of life of our people’,” said Ambassador Fredesman Turro Gonzalez.
However, according to VCCI, the geographic distance increased transport costs between the two sides. Besides, generally, in relation to Vietnam, Cuba applied the slow payment from 360 days to 540 days. In some cases, after the expiration of the time limit, the Cuba continues rescheduling. Capital limitations and slow payments would be difficult for small and medium enterprises in Vietnam. So, VCCI said that, through the Intergovernmental Committee, the two countries should explore new mechanisms and flexibly address this payment issue (such as barter trading methods, open joint-venture banks or Vietnam’s branches in Cuba) to promote bilateral trade.
Quynh Chi
Vietnamese
