HCM City (VNA) – A seminar was held in Ho ChiMinh City on February 5, introducing Cuba as a potential market, in terms ofboth trade and investment, for Vietnamese businesses.

Pham Thiet Hoa, Director of the Ho Chi Minh CityInvestment and Trade Promotion Centre, said Vietnam and Cuba boast soundtraditional relations along with expanding economic and trade ties. Vietnam isnow one of the 10 biggest trade partners of Cuba and also the second largestAsian trade partner of the Latin American nation.

However, bilateral trade remains modest comparedto the two countries’ demand and potential, he noted, elaborating thatVietnam’s exports to Cuba are estimated at 240 million USD per year, accountingfor only 3.5 percent of Cuba’s total annual trade – nearly 7 billion USD.Hence, there remains much room for Vietnamese firms to invest in and trade withCuba.

Hoa noted Cuba has big demand for food, consumergoods, footwear, textile-garment, and computer devices, which are also thestrengths of Vietnam. Meanwhile, it is strong at pharmaceuticals, training,health care, and construction, which the Southeast Asian nation is interestedin.

Promoting investment in and trade with Cuba willalso help Vietnamese enterprises to access the vast market of the LatinAmerican and Caribbean region.

Indira Lopez Arguelles, Cuban Consul General toHCM City, said her country’s economy has improved in recent years with annualgrowth rate maintained at 4 – 5 percent. A stronger economy has also encouragedconsumption in Cuba while the country still has to import most of consumergoods. This is a good opportunity for Vietnamese businesses to enhance exportsto the country, especially rice, apparel, footwear, and computers.

The sound bilateral friendship is an advantagefor Vietnamese firms, she said, adding that the two countries are preparing tosign a bilateral free trade agreement to remove tariff barriers and bolstertrade.

However, there remain certain obstacles tobilateral trade.

Tran Ngoc Thuan, Deputy General Director of theThai Binh Investment – Trade Company, which has had investment and trade tieswith Cuba for 20 years, said the biggest barrier is the geographical distance,which will augment transportation costs. Due to financial difficulties, Cubaimporters’ payment also usually lasts for more than one year.

He said Cuba needs to shorten the paymentperiod. Meanwhile, Vietnamese companies should learn about their partners’transaction habits thoroughly while preparing appropriate capital and long-termstrategies for investment in Cuba.

Indira Lopez Arguelles said Cuba promotes importactivities, but in the long term, it will prioritise attracting investment todevelop domestic production. She suggested Vietnamese firms develop productionand distribution in her country so as to ensure long-term development in thismarket.-VNA