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Is Cuba's Land Transfer to Vietnam for Rice Production a Strategic Move or a Sign of Systemic Failure?

Thursday, January 9, 2025 by Richard Morales

Is Cuba's Land Transfer to Vietnam for Rice Production a Strategic Move or a Sign of Systemic Failure?
Rice cultivation in Cuba - Image by © Granma / Ronald Suárez Rivas

The Cuban regime has recently revealed an unprecedented deal involving the allocation of agricultural land to a Vietnamese company for rice cultivation. According to a report published on Wednesday by Granma, the project initially covers 308 hectares in Los Palacios, Pinar del Río, with plans to expand to 5,000 hectares. This strategy, orchestrated by Miguel Díaz-Canel's continuity government, raises questions regarding national sovereignty and the utilization of state lands by foreign investors.

Publicized by the official newspaper of the Communist Party of Cuba (PCC) as a "solution" to the nation's agricultural unproductivity and a means to encourage foreign investment, the measure faces skepticism about its transparency and efficacy. However, Granma omitted crucial details about the agricultural collaboration contract, the Vietnamese company's identity, the agreement's terms, and whether this venture will alleviate Cuba's growing rice shortage or generate foreign currency needed for other scarce foodstuffs.

Foreign Dependency and Structural Decay

The reliance on a foreign nation to revitalize Cuban lands and secure a basic staple like rice underscores the structural deterioration of the Cuban economy. While Vietnam supplies necessary inputs and technology, Cuba contributes only neglected plots requiring intensive cleaning after years of neglect. This project highlights the regime's inability to ensure food sovereignty despite having extensive arable land.

Director Chamizo attributed poor current yields to a lack of inputs, referring to local production as "rice without a technological package." Yet, this explanation overlooks decades of mismanagement and failed agricultural policies that have stymied productivity in the sector.

Unanswered Questions Surrounding the Contract

The agreement, granting land to Vietnam for three years, raises several concerns. Granma mentions a Vietnamese company, though without specifics, noting it will bring specialists and directly hire Cuban labor, supplying necessary inputs like fertilizers and herbicides. This arrangement effectively relinquishes Cuba's control over its own land's production. Despite this, Jorge Félix Chamizo, deputy director of the Empresa Agroindustrial de Granos de Los Palacios, stated the project "must succeed, no matter what."

This statement reflects a nation grappling with poor agricultural returns, worsened by insufficient supplies and maintenance. While Vietnam anticipates yields of up to 8 tons of rice per hectare, local producers achieve only 1.7 tons due to a lack of technology and resources.

Historical Context of Previous Failures

This is not the first instance of the Cuban regime turning to foreign initiatives to mitigate their production inadequacies. In 2022, Argentina announced a grain production project in Cuba, though results or progress remain unknown. Similarly, in 2023, Cuba offered land to Russia on usufruct for 30 years, but no substantial updates have emerged. Both efforts seem forgotten, fueling skepticism about the success of this new Vietnamese agreement.

Historical experience suggests that Cuba's agricultural issues require profound reforms to boost productivity and remove bureaucratic barriers. Nevertheless, the regime persists with emergency policies that have proven ineffective.

A Temporary Fix or Long-term Solution?

While the project might boost rice production, it fails to address the underlying issues plaguing Cuban agriculture. Dependence on foreign inputs and technology leaves the country vulnerable to changes in relations with Vietnam. Additionally, the direct employment of Cuban workers by the Vietnamese company raises questions about labor conditions and the actual benefits for Cuban workers.

The official narrative frames this initiative as a step toward foreign investment, yet it seems more like a quick fix for a food crisis the government has struggled to manage. Meanwhile, the Cuban populace continues to endure shortages of essential foods and high prices, a testament to an economic model unable to ensure self-sufficiency.

Vietnam's Rice Donations to Cuba (2018-2024)

Since 2018, when Miguel Díaz-Canel took office, Vietnam has consistently shown solidarity with Cuba through substantial rice donations to help alleviate the island's food shortages. Between 2018 and 2024, Vietnam has donated a total of 67,940 tons of rice to Cuba, while the country consumes approximately 700,000 tons annually. Here are some key contributions reported by CiberCuba:

May 2018: Vietnam donated 5,000 tons of rice to assist Cuba with the damage caused by the subtropical storm Alberto.

July 2020: During the global health crisis, the Vietnamese government sent 5,000 tons of rice to support the Cuban people.

October 2020: Cuba received 30,000 tons of rice, bolstering the island's food security.

July 2021: Vietnam made a donation of 12,000 tons of rice to address Cuba's food crisis.

September 2021: During the official visit of Vietnamese President Nguyen Xuan Phuc, another 6,000 tons of rice were handed over to the Cuban government.

January 2022: ViMariel S.A., a subsidiary of the Vietnamese corporation Viglacera, donated 100 tons of rice to Cuba.

March 2023: It was announced that 5,000 tons of Vietnamese rice would arrive in May to alleviate Cuba's food shortages.

July 2023: Vietnam donated 2,000 tons of rice, distributed in Havana in September.

October 2023: A new donation of 1,200 metric tons of rice was reported amid Cuba's food crisis.

April 2024: Cuba anticipated receiving 1,640 tons of rice donated by Vietnam, intended for those affected by rice shortages.

Collaboration in Rice Production with Vietnamese Expertise

In addition to donations, Vietnam has provided technical support to enhance Cuba's rice production:

March 2018: A framework agreement was signed for Vietnam-Cuba cooperation in rice production from 2018 to 2022.

September 2024: An experimental hybrid rice planting model was announced for various Cuban regions, in partnership with Vietnam, set to begin in October.

Frustrated by being perpetual donors, Vietnamese authorities have decided to "cooperate" differently, thanks to the mediation of Cuba's new ambassador to Vietnam, the former head of the PCC's Ideological Department, Rogelio Polanco Fuentes. With the global price of a metric ton of rice averaging around $1,000 during this period (2018-2024), Cuba's ally has donated approximately $95 million over six years since Díaz-Canel assumed leadership.

In summary, transferring land to Vietnam for rice production highlights the deep structural crisis afflicting Cuba's economy. Without significant reforms, these efforts remain temporary solutions that fail to tackle underlying problems.

Key Questions about Cuba's Agricultural Strategy

Why did Cuba decide to transfer land to Vietnam for rice production?

Cuba opted to transfer land to Vietnam as part of a strategy to address its agricultural unproductivity and encourage foreign investment, hoping to alleviate its rice shortage.

What concerns have been raised about the Cuba-Vietnam rice production agreement?

Concerns include the lack of transparency in the agreement, the unknown identity of the Vietnamese company, and questions about Cuba's relinquished control over its own agricultural production.

How has Vietnam contributed to Cuba's rice supply in recent years?

Vietnam has shown solidarity with Cuba by donating significant amounts of rice, totaling 67,940 tons between 2018 and 2024, to help alleviate the island's food shortages.

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