Malmierca highlighted that the event, to be held from November 14 to 18 at the Expocuba fairgrounds, will be attended by top-level delegations chaired by ministers and high-ranking government officials.

Similarly, the headline highlighted the presence of representatives of some 30 chambers of commerce of nations with which Cuba has commercial ties, as well as hundreds of companies from the five continents.

The minister explained that together with usual nations such as Spain, Italy, Russia, China, France, Mexico, Brazil and Venezuela, a high-level delegation from the United Arab Emirates will arrive at the event for the first time.

This confirms that despite the blockade of the United States, the economic difficulties that our country is facing and the situation of international economic crisis derived from the Covid-19 pandemic, the world trusts the Cuban market, Malmierca emphasized.

Likewise, as part of the official program of the event, the minister highlighted the materialization of the V Business Forum dedicated to foreign investment issues.

We are going to announce the updating of the portfolio of business opportunities with foreign capital, he stressed.

Fihav 2022 will also develop panels aimed at offering details about the Mariel Special Development Zone and the benefits of the single window for foreign investment, he said.
The minister explained that the event’s agenda will host exchanges with business production centers and agencies and will place special emphasis on foreign investment opportunities for Cubans residing abroad.

Our expectations are that FIHAV 2022 contributes to the insertion of the national economy in the international context, and promotes direct business between Cuban and foreign companies, Malmierca said.

For his part, the president of the Cuban Chamber of Commerce, Antonio Luis Carricarte, said that the island has 189 participants registered for the event with the presence, for the first time, of micro, small and medium-sized companies and cooperatives linked in some way. way to external activity.

Priority sectors of economic activity will be present, such as food, agriculture, light industry, health linked to the pharmaceutical and biotechnology industry, education, transportation and renewable energy, Carricarte emphasized.

Meanwhile, the general director of the Palco Business Group, Eduardo Correa, pointed out that since last July the preparation phase for Fihav 2022 began at the Expocuba fairgrounds.

(With information from PL)

The idea -which arose in the midst of covid-19- was promoted by the Union of Informatics of Cuba and developed by the Eureka Scientific Group of the “José Antonio Echeverría” Technological University of Havana (Cujae), led by Professor Joaquín Pina Amargos.

The pilot test began in Playa and Marianao, and based on the positive results, it was generalized to the rest of the municipalities of the capital.

In what context does Cola.CU arise?

Due to the shortage of essential products in Cuban chain stores, caused by the global crisis due to the pandemic and the tightening of the United States blockade, hoarders, coleros and resellers increased in the country; figures whom the government set out to eliminate.

“Foreign and Cuban software that allows queue management does not have the ability to specify the products offered and to alert the organizer if a customer has recently registered in any other queue according to the number of days declared by the local government. ”, Joaquín Pina Amargós, also president of the Union of Computer Scientists of Cuba in Havana, explains to Cubadebate.

Precisely, these two functionalities are the main advantages of Cola.CU, software that consists of two versions, mobile and desktop, to achieve integrated queue management in a given region.

According to data offered by the development team, Cola.CU has worked daily without interruption since September 1, 2020, with more than 1.25 million different people registered and more than 250,000 beneficiaries who have been able to buy thanks to the detection of recent buyers.

How does Cola.CU work?

In this software system you can specify the products that are offered and alert the organizer of the queue if a customer has recently registered in any other queue. It consists of two computer applications that work offline (in this first version) but are synchronized daily by exchanging files.

For its part, the version for Android mobiles, Cola.CU Apk, allows the daily management of the queue for a given store. On the other hand, the desktop version Cola.CU App, allows unifying all the information of the stores where it is established that the same person buys only once during a certain period.

Thanks to its flexibility, it is possible to establish specific work rules that are dynamically approved by the Defense Councils of each municipality, for example, the frequency of the purchase of a certain electronic product or those with a high consumption cycle such as chicken or detergent.

The parameters are configured from the desktop version so that all mobile applications synchronized with the first one have the same information.

In a second version that is developed from a Computer Engineering diploma thesis, the possibility of connecting to the cloud is incorporated to achieve the exchange of information without the need for physical files.

A hundred students, professors and volunteers from the Joven Club of all the municipalities of Havana and other entities of the Fight Against Coleros (LCC) operation groups have joined this task.

This application can be applied in the future in any region where several establishments are concentrated and people are free to buy from them.

Economic, social and environmental benefits

“The main novelty of Cola.CU is that it preventatively limits, in situ and without the need for a connection to the mobile data network, coleros, hoarders, resellers and illicit commercialization that may be carried out”, explains Professor Pina Amargós.

Based on the products that a person has bought, based on his purchase history, the queue organizer can reject this customer, informing him of his situation. In this way, it allows access to other people who until now had not been able to acquire them.

Likewise, Cola.CU allows realistic queue management as the organizer can mark those who buy, abandon, rejoin, go through a certain priority, or are rejected for having registered or bought in other recent queues. “This enables real-time operational work,” I added.

Also, the software guarantees the registration of all people because the primary key is the number of any of the existing identity documents: Identity card, military card or passport. “The identity is verified by means of the date of birth and the control digit, providing greater reliability of the identities.”

Optionally, the municipality of residence of each client can be added to be able to carry out a demographic analysis of mobility, says the professor.

Among the main functionalities is that of exporting, importing and adding data from other queues, including the possibility of integrating data from nearby queues to achieve better control on the same day.

In addition, taking into account the rules established by the Municipal Defense Council, the apk allows the entry of the same person to be limited to a set of stores during the time that is set. Control of the movement of people and the demand for products is also achieved, allowing CDMs to make decisions about distribution adjustments.

In Cola.CU there is a scanner system created, but it is not yet deployed in all stores (only half are reported).

According to Fermín Rivas Sotomayor, one of the developers, there are interesting data but they are not yet used by the authorities to direct the distribution, take measures with the hoarders that are detected and unite with the data of the oficodas.

Among the plans of the application development group is the deployment of a dashboard on the web that includes the main reports and helps managers in decision making. Also, develop a version of the application for iOS devices.

Main figures of Cola.CU

More than 2 years of exploitation in all the municipalities of Havana,

+540 thousand people benefited from the detection of others who have made recent purchases,
700 stores,
+130 thousand queues,
+20 million records,
+1.5 million different people

(By: Thalia Fuentes Puebla/ cU)

A 1,500 ml bottle of Tukola soda produced by Los Portales costs 1.50 CUC in stores that operate in that currency. When this price is calculated according to the current exchange rate (1 CUC = 25.00 CUP), it becomes 37.50 CUP. However, this same product costs 25.00 CUP in some retail stores affiliated with the Ministry of Domestic Commerce. The same applies to this product in can format and to other merchandise that would make up an endless list.

These differences, which have been a constant source of concern within the population, reflect the profound distortions with which the economy has operated for several years. Distortions that derived, in good measure, from the dual currency and, especially, different exchange rates.

For this reason, unification, although definitely no magic wand in appearance or behavior, should contribute to homogenizing current methods of price formation and eliminating distortions that affect both internal and external commerce, and the enterprise system.

According to Margarita de la Caridad Acosta Rodríguez MSc, price policy director at the Ministry of Finance and Prices (MFP), Cuba has traveled a long route before reaching today’s distortions, dating back to the 1990s, when it became necessary to establish the monetary duality and adopt financial reorganization measures including price increases for nonessential products and an end to the provision of some goods and services free of charge.

It was not until 2003 that the Cuban convertible peso (CUC) was introduced in the relations between organizations and in the formation of wholesale prices, as a way of recognizing the imported component of productions and services, she recalls.

In 2004, stores designed to capture hard currency, began to charge in CUC and, one year later, retail prices in CUC of high demand products were frozen, she adds.

Since then, many measures have been implemented to attempt to correct the deformations emerging in the economic price category, one of the most complex and controversial because it has special links to wage, fiscal and trade policies.

In the opinion of Acosta Rodríguez, of special importance were measures taken in 2016 to increase the purchasing power of the Cuban peso, which included the reduction of prices for an important number of food, personal hygiene and cleaning items sold in CUC.

The prices of certain agricultural products were capped as well and, in June of 2019, it was established that there would be no increase in wholesale and retail prices, to avoid counteracting the positive impact of salary raises in the budgeted sector and increased pensions.

In summary, the economy has operated in an environment of a dual currency with a different exchange rate for two different arenas:

In relations between enterprises and in the wholesale market, used is the exchange rate of 1 USD = 1 CUC = 1 CUP.

In relations within the population and retail commerce, used is the exchange rate of 1 CUC = 25 CUP.

At the same time, the U.S. economic blockade has been aggressively escalated and the severe material and financial restrictions it causes remain in place. In addition, reducing the country’s dependence on imports has not been possible, despite attempts made. Cuba has not been able to escape the effects of the economic crisis and consequent price increases in foreign markets.

We must also take into consideration the mandates included in key documents approved at the Sixth and Seventh Congresses of the Communist Party of Cuba (PCC), to review and comprehensively overhaul the price system, Acosta Rodríguez adds.

These documents provide the foundation for the diagnosis conducted, including factors that influence the system’s performance, aspects linked to accounting and supervision, as well as the identification of economic distortions that are expressed in prices.

Today, in general terms, the specialist explains, prices do not reflect the behavior of the market, due to the disconnection between wholesale and retail prices, which responds to the existence of subsidies and the intention of capturing hard currency via pricing of various products.

Perhaps the most “costly” distortion, economically speaking, is associated with the current exchange rate for relations between enterprises (1 USD = 1 CUC = 1 CUP). According to the MFP directive, “This prevents prices from serving as an objective measure of economic facts and discourages exports and the replacement of purchases abroad, based on distortions in the calculation of costs and expenses.”

In other words, with the 1 x 1 exchange rate for relations between enterprises, in general, the price of the imported product is lower than the price of a domestic one, which is totally contradictory and accentuates the tendency to import, undermining competitiveness and creativity.

In the words of Acosta Rodríguez, “Most of the productions, whether substitutes for imports or destined for export, receive significant subsidies or have implicit subsidies which are covered by the prices of other goods and services. However, there are wholesale prices that contain other converters, which are not at the 1 x 1 exchange rate.”

Evidently, the expert goes on, the context of monetary and exchange duality has limited the flexibility of price and tariff formation, which, for the most part, has been isolated from foreign market prices.

Such procedures, she adds, have been based on methods of expenditure, which have led to the concealment of inefficiency and their cost transferred to the economy, made invisible by both structural and technological issues, difficulties in accounting records, the non-implementation of cost systems and other irregularities.

Another notable distortion is the sale of the same products at different wholesale prices, mainly due to the existence of a market in CUC and another in CUP. The same product is usually sold:

1. To state entities, at a price that contains components in both CUP and CUC.

2. To joint ventures, at a price that considers the total amount in CUC.

3. To retail chains and the tourism industry, at a price that includes the CUC component in most national products, while financing the industry for the difference in CUP.

Taking into account these deformations, the MFP directive recognizes that prices do not always cover all expenses incurred. To this should be added the approval of incentives paid in CUC to workers in various sectors.

Likewise, conversion rates other than 1 x 1 have been applied on an experimental basis to support the wages of workers in priority areas, as mechanisms to stimulate the workforce, an expense which is not considered in setting prices. Such is the case in:

-Foreign investment projects

-The Mariel Special Development Zone

-Construction of prioritized works

In all these cases, the formation of prices at the 1 x 1 rate is recognized; although this unquestionably implies an added burden for the state budget, which finances the difference at the approved conversion rate, she emphasizes.

The specialist also refers to the different approaches in the formation of prices for the state sector and the non-state sector and, in turn, emphasizes the disconnection between wholesale prices and those the population pays. Today, producers do not receive the majority of the final price, she adds.

Similarly, not to be overlooked is the high level of subsidy reflected in the retail prices of products that make up the regulated family basket of foodstuffs, including rice, beans, sugar, chicken and other regulated meat products, as well as basic services such as electricity, gas, water and basic telephone services.

The provision of subsidies to specific persons is still very limited, and issues identified in programmatic documents that support the updating of the economic model have not been addressed.

Acosta Rodríguez believes that other structural problems also affect price setting, such as the existence of many levels of circulation of goods prior to their final destination.

Although the approval of wholesale prices has been decentralized, the authority granted enterprises remains insufficient, in her opinion.

Meanwhile, many retail prices are still established centrally and little power has been granted to municipal authorities to adjust these.

All of this also contributes to shortcomings in complying with the constitutional principle of local autonomy.

The lack of qualified personnel in the area of prices, insufficient control and inspection work, gaps in training, and the lack of systemic public information work on the setting and approval of prices are all aggravating factors, which are equally relevant when analyzing any deviation.

Prices currently express the behavior of the economy with all its irregularities, the head of price policy at the MFP reiterates.

In her opinion, the lack of flexibility in both methods of price setting and the authority to approve prices at different levels of the enterprise structure, has limited autonomy in establishing prices. The consequences have become Gordian knots for the economy and translate into delays and low levels of efficiency and competiveness of national products and services.

Furthermore, through July of 2019, when regulations limiting price increases were established, there was a strong tendency among enterprises to raise the category of their products to gain more earnings and increase pay-for-performance bonuses, which introduced a new distortion.

To assess the impact of retail price distortions on domestic commerce, it is essential to take into account the way the market is segmented: one regulated in CUP, one in CUP and CUC and, recently, one in freely convertible currency (MLC).

As for the regulated market, Yosvany Pupo Otero, general director of Services at the Ministry of Domestic Trade (MINCIN), recalls that in 1962, Law no. 1015 established the system of rationed supply of everyday consumer goods, the “libreta” that continues to live on.

He likewise noted the level to which the determination of prices in Cuba is concentrated, considering that among the substantive elements in this economic category involves who approves them and how they are set.

Today, Pupo Otero states, the approval of retail prices for products and services essential to the population is the responsibility of the Council of Ministers’ Executive Committee and the Ministry of Finance and Prices, with a view toward supporting social policies and basic needs.

Meanwhile, the determination of the value of another group of products and services is the responsibility of the Ministry of Domestic Commerce; the Wholesale Food and Consumer Goods Enterprise Group; the Industrial Products and Services Distribution Group; as well as the administration board in all provinces and the Isle of Youth special municipality.

As is known, the regulated market includes, basically, the family basket of foodstuffs, through which a group of products is made available to all at subsidized prices. In other words, for these products the population pays a price that is far below the real cost, and the difference is assumed by the state budget.

Similarly, other products sold at subsidized prices include items in special diets for some 11,817 children, and those for some 1,360,332 adults with health problems, Pupo Otero adds.

Subsidies are also reflected in retail process via programs to distribute non-food products to meet specific needs such as:

-Layette for newborns: textile module, mattress and cradle.

-A module for bed-ridden and incontinent patients composed of antiseptic fabric, towel, sanitary rubber and soaps. In this program, the payment is assumed by the state.

-School uniforms for students in primary, secondary, pre-university and poly-technical vocational schools. An annual average of 3.8 million uniforms are sold at subsidized prices, ranging from 2.00 to 9.80 CUP.

-Prophylactic footwear: sold by prescription, according to the distribution policy.

According to the Pupo Otero, these programs function on the basis of a few fundamental principles:

-Consumers can acquire these products only in assigned establishments.

-The purchase is noted in the ration book (in the case of the regulated family food basket) and according to established procedures for other programs.

-Sales are made on a fixed per capita basis, according to the distribution policy approved each year.

-The distribution is cyclical (monthly, twice-yearly, annual).

Regarding the setting of prices in the unregulated CUP market, Yosvany Pupo explains that a component in CUC is recognized as a rule for raw materials and imported materials, and a component in CUP.

To support understanding of these technicalities, he takes as a reference the construction materials program, in which several methods of price setting coexist.

On the one hand, products are sold at unsubsidized prices in some cases, in which the CUC component is considered at the 1 CUC = 25 CUP exchange rate and the CUP component of the wholesale price is recognized.

In the case of products that contribute to water saving and housing programs, the price setting algorithm is different and lower conversion rates are used, which affects enterprise earnings.

And, finally, this same program annually guarantees the requirements for basic housing units, in other words, subsidies for constructive work, reflecting the direction that the economy must take sooner rather than later: subsidizing people rather than products.

Pupo Otero cited a few other examples to illustrate the multiple existing distortions.

These include the most economical and subsidized prices applied in Attention to the Family (SAF) and school snack programs, both activities run by municipal food service enterprises.

In the first, meals with established nutritional requirements are sold at a price of 1.00 CUP, to benefit more than 76,000 individuals, more than 11,000 of whom receive social assistance. However, once again, the real cost of the product is higher, which affects the financial performance of these companies.

Regarding the school lunch program, the distortions are even more acute, since students and teachers’ lunches are provided free of charge, in a network of more than 774 schools, with 138,851 students and 30,984 workers.

In Havana, nonetheless, the experience of including the price of the snack in the teachers’ salaries has been favorably received since this allows them to make their own choices and pay with their earnings. More than the exception, this practice should be the rule in a future scenario of monetary and exchange rate unification.

As Margarita de la Caridad Acosta Rodríguez, director of Price Policy at the MFP, has already noted, undoubtedly, “The transformations foreseen regarding prices must be accompanied by other changes in strategic sectors, in commerce, wage and fiscal policies that, in a gradual, comprehensive manner, allow for important advances in the economic and social life of our nation.”

BASIC CONCEPTS:

PRICE: Monetary expression of the value of goods and products. In practice, prices are associated with the value of products and fees for services. When we talk about prices, service fees are also included.

PRICE SYSTEM: The interlinked set of different types of prices, including legal frameworks, regulations, entities and other actors involved in the setting, approval and application of prices, as well as the population, who as consumers, are a very important and dynamic part of the system.

PRICES CAN BE:

Wholesale: Paid by legal persons.

Agricultural: Paid by wholesalers to agricultural producers.

Retail: Paid by the population, including fees for services.

MONETARY REORDERING WILL INCLUDE:

-The minimum salary will be based on the cost of a basket of essential goods and services, respecting the principle of covering the needs of the worker and his/her family.

-Subsidies will be for persons, not articles or services. Insolvency requests will be addressed within 48 hours.

-In the first stages of monetary and exchange unification, the total subsidies for specific products for children from 0 to 6 years of age in Cuba will be maintained.

-Medicines for the treatment of chronic diseases will be subsidized.

-Some of the 42 products with centralized prices include yogurt, processed cheese, mortadella, pasta, sausage, fuel, electricity, water, cement, sugar, coffee, ground meat, compotes and milk.

-Enterprises will set other prices, but within limits.

-A salary increase has been designed to allow workers to pay the new prices when that day comes.

-A strategy has been planned to invest in companies with losses, to avoid closures, unemployment, and the deterioration of services to the population.

(Taken from Granma)

U.S. Secretary of State Mike Pompeo said in a statement Monday that Cuba’s military controls American International Services and uses parent company FINCIMEX and other entities to “charge fees and manipulate the remittance and foreign currency market…The profits earned from these operations disproportionately benefit the Cuban military, furthering repression of the Cuban people and funding Cuba’s meddling in Venezuela.

(Taken of ABC News)

Banco Metropolitano. Photo: Abel Padrón Padilla / Cubadebate

Banco Metropolitano reported today on the offer of a service to open current accounts in freely convertible currency (MLC) for non-state forms of management.

Through a press release, the institution explained about the implementation of the necessary mechanisms to guarantee the process of opening current accounts in MLC for Cuban natural and legal persons who carry out foreign trade activity.

This service will be offered in correspondence with Resolution No. 112/2020 of the Central Bank of Cuba, and to date, a total of 187 accounts have been enabled.

For this opening, the identity document is required, in the first instance, and an official document that authorizes self-employment or other form of non-state management, issued by the competent authority or certified copy of the document that accredits the constitution. of the legal person, as appropriate.

Similarly, registration in the Taxpayers Registry is required, in accordance with the provisions of the special legislation in force, and an initial deposit of no less than the equivalent of one hundred US dollars, only for natural persons.

Non-state management forms that have current accounts at Banco Metropolitano should go to the branch , where they have their accounts open, and proceed to draw up the opening application form.

Current accounts in freely convertible currency become operational when non-state management forms present to the bank the contract signed with the entity authorized to carry out foreign trade activities.

In order to clarify doubts and concerns, the Department of Institutional Communication and Marketing of Banco Metropolitano SA, has enabled the email: tcp@banmet.cu.

(With information from ACN)

During the exchange, Díaz-Canel highlighted the Fair’s role in strengthening economic relations and particularly recognized the difficult context in which this event is being held, given the intensification of the economic, commercial, and financial blockade by the United States government, a situation that did not prevent representatives from more than 60 countries from attending the event, in an environment of optimism and confidence in the potential of our country.

The meeting also served as an opportunity to discuss Cuba’s development plans, and our intention to maintain them, no matter how difficult the conditions may be.

(Granma)

Malmierca reported that, November 3-8, more than 50 countries will be represented at this edition of the Havana International Fair (Fihav-2019) and for the first time, companies from all the provinces of the country will have exhibits in the Cuban Pavilion – a reflection of the nation’s efforts to promote exports.

As is customary, an Investment Forum will be held and the new Foreign Investment Opportunities Portfolio presented. Additionally, three events organized by Germany, Mexico, and the European Union will take place, “demonstrating the interest of the international market in investing in Cuba, despite the activation of Title III of the Helms Burton Act,” Malmierca noted.

During the Fair, the “single window” plan for international commerce will be introduced, an initiative to computerize and simplify procedures related to the country’s import-export process. Likewise, the 2019-2020 Business Directory will be presented, and other events to be held in the coming months announced.“We are expecting visits by 14 official delegations headed by Ministers and other high-ranking authorities; and we will hold 15 national days to highlight specific delegations joining us.”The efforts of the United States government to isolate us and create problems for our economy will fail, and the Fair will once again demonstrate the confidence of international business in the Cuban market,” the Minister insisted.Orlando Hernández Guillén, president of the Chamber of Commerce of Cuba, reported that some 152 national exhibitors will participate on the Cuban side, representing more than 360 companies on the island. This time, he added, the Mariel Special Development Zone will move to its own pavilion, since more than 30 companies based in this area are participating.“We will have all provinces and all sectors of the economy present. For the first time, two non-agricultural cooperatives will promote their products through the export channels provided by the country’s state enterprises dedicated to carrying out this process,” Hernández added.More than 40 business delegations and promotional organizations from around the world will flood the ExpoCuba fairgrounds during Fihav 2019. Some seven special interest forums are being organized, as well as meetings of the Enterprise Committee.For his part, Abraham Maciques, general director of the Palco Group and member of the organizing committee, explained that 23 of the fairground’s 25 pavilions will be used. To date 15 official pavilions are planned, and the accreditation of more than 2,000 international business reps, including several from the United States.Comparing the event with previous years, he stated, “With respect to 2018, we will have the same level of participation and expect this to be a good fair, during which cooperative commercial agreements are established.”This year’s Fair will be dedicated to the 500th anniversary of Havana, and all international visitors will have the oppportunity to get to know the city through a well-planned cultural and business program, said Luis Carlos Góngora Domínguez, vice president of the directorate.“Celebrations for Havana’s anniversary will take place Tuesday, November 5. That day, the city’s Busness Forum will be held, a space to find business opportunities and present the industrial potential of Havana.”There will also be presentations of audiovisuals, books, and a whole series of collateral activities, intended to invite Fihav 2019 attendees to celebrate the city’s 500 years in the month of November,” he concluded.

(Granma)

Legislators learned that the portfolio of business opportunities promoted by the Ministry of Foreign Trade and Investment includes more than 500 projects in different sectors, among which tourism stands out.
The introduction of foreign capital in our economy is today an essential part of our development strategy, which is why this is one of the main lines of attack pursued by the United States government, he said. But despite the pressures on international investors and companies in our country, all have maintained a firm position in rejecting the extraterritorial nature of U.S. laws, mainly the Helms-Burton.
“No one has pulled out; some have submitted new projects and have said that they are willing to close businesses elsewhere to stay here, because of the potential to start new projects and security in Cuba,” Diaz-Canel said, explaining that business people know how much we are affected by the tightening of the criminal blockade and financial persecution, but they have confidence in the commitment of the Revolution’s leadership to fulfill obligations.
The President emphasized the need to attract capital, technology, and knowledge to advance economic growth. “We will not invest in just anything, but in key, prioritized sectors, very well defined in Cuban law, always defending our sovereignty and independence.”

Prior to the President, Ministers Eduardo Rodríguez Dávila (Transportation), Betsy Díaz Velázquez (Domestic Commerce), Manuel Marrero Cruz (Tourism) and Deputy Minister of Communications Ernesto Rodríguez reported on joint ventures in their sectors, currently providing mutual benefit, while difficulties were also recognized, such as delays in responding to international investors, in processing and documentation, and insufficient experience in contracting the purchase raw materials.

Nonetheless, investors continue to show interest in Cuba, given citizen security here; our highly qualified workforce; and the population’s human values ​​, including commitment and dedication to professional activity.

(Granma)

The project, with a precedent at the Mariel Special Development Zone, “will eliminate bureaucracy and delays that exist when granting the required permits, licenses, and authorizations, to facilitate foreign investment in Cuba,” stated Deborah Rivas, deputy minister of Foreign Trade and Investment (Mincex).

Among the services that this one-stop office will provide are consultancy, information, and advice to facilitate businesses set up, and the processing of registrations and licenses, as well as following company operations, she added.

New legal regulations are being drafted toward this end, which, in addition to containing the rules governing this entity, will include deadlines and unique procedures to be carried out, as well as necessary information to accompany investors at every stage.

This new legislation will be accompanied by a computer system that will connect the country and the world, and allow interested parties to follow procedural processing progress.

The one-stop services offices with be linked to this virtual space. The entity will have a director general subordinate to Mincex general management; and will also employ specialists in foreign investment, promotion, procedures, and document management technicians.

This working group will also be permanently accompanied by officials of the Institute of Physical Planning, the ministries of Construction; Science, Technology and Environment; the Interior; and Justice; as well as the national offices of Tax Administration and Statistics.

The corporation Viglacera, from the Socialist Republic of Vietnam, with extensive experience in the development and management of industrial parks, responded immediately to the invitation. After intensive talks and productive negotiations, February 28, 2018, the company was authorized to become the Zone’s first concessionaire via Decree 340.

ViMariel S.A. was officially inaugurated this past November 28, within the context of the 36th session of the Cuba-Vietnam inter-governmental group for economic and scientific-technical collaboration.

“The objective of this affiliate is to project, invest, construct, administer, and utilize the infrastructure of an industrial park in Zone 10 of the Special Development Zone’s Sector A,” explained Rodrigo Malmierca Díaz, Cuban minister of Foreign Trade and Investment.

It will attract not only Vietnamese companies interested in establishing operations in the area, but also potential investors from other nations, he added.

VIMARIEL S.A. – THE ZONE’S FIRST CONCESSIONAIRE

Creating a concessionaire in Mariel is not only an important step for the Zone as a project, but also for Cuba’s objectives regarding foreign investment in general.

Located on an area of 156 hectares, ViMariel S.A. is a subsidiary of the Vietnamese corporation Viglacera. The firm will undertake a program of investments to extend the work of the Office and Cuban entities charged with developing infrastructure in Mariel, and the attraction of direct foreign investment in production and services.

“The presence of ViMariel will add high standards in construction, technology, and management, essential to Cuba’s economic and social development. This industry will be focused on construction materials, heavy industry, packaging and wrapping, the production of articles for personal and domestic use, the bio-pharmaceutical industry, and logistics activity,” commented Ana Teresa Igarza, general director of the Special Development Zone, in previous statements to Granma International.

ViMariel is just beginning construction of its facilities, and has already signed a contract with EnPromoulds, a company that manufactures plastic molds and a future investor in the industrial park.

The new concession, awarded for a 50-year term, involves a scheduled series of projects funded with Vietnamese capital that will begin in 2019 and continue over the next five years, to build roads and communications networks, as well as water and electrical distribution systems.

Pham Hong Ha, Vietnamese minister of Construction, emphasized during the inauguration that the first portion of the project should be ready by the final months of 2019.

CUBA & VIETNAM

Vietnam is today among the countries with the greatest presence in the Mariel Special Development Zone.

“The creation of this first concessionaire will open a new stage in the development of the Special Zone and is a milestone for the opportunities it offers Vietnamese and other investors. In addition, it is an example of the intention of both governments to work to strengthen bilateral relations in the economic sphere,” Igarza stated.

Minister Malmierca said that the company will provide a successful example of construction projects undertaken with Vietnamese capital and a clear demonstration of the special nature of bilateral relations shared by the two countries.

He thanked the government and important Vietnamese companies for their interest in investing in Cuba, not only in Mariel, but in other parts of the country, as well. He added that these firms will have a significant impact on the country’s economic development and allow Cuban professionals to acquire experience from the Vietnamese in a priority sector like construction.

The establishment of ViMariel S.A. further strengthens relations between the two countries, united for years by ties of cooperation, solidarity, and brotherhood. The friendship between the two peoples, parties, and governments was initiated by

Comandante en Jefe Fidel Castro and Comrade Ho Chi Minh, and is today reflected in economic, commercial, and scientific cooperation that the two countries intend to expand.

(Granma)