Cuban regime hands over land to Vietnam to produce rice: Solution or reflection of structural failure?

Cuba is conceding agricultural land to Vietnam for rice production, raising concerns about sovereignty and effectiveness. The project reflects the country's dependence on foreign investors and a structural crisis.

Cultivo de arroz en Cuba © Granma / Ronald Suárez Rivas
Rice cultivation in Cuba Photo © Granma / Ronald Suárez Rivas

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The Cuban regime announced an unprecedented agreement in which it is handing over agricultural land to a Vietnamese company for rice production.

According to the note published this Wednesday in Granma, the initiative covers 308 hectares in Los Palacios, Pinar del Río, with plans to expand to 5,000 hectares in the future.

The government of the so-called “continuity” led by Miguel Díaz-Canel has resorted to an unprecedented policy in the 66 years of the so-called “revolution,” raising questions about national sovereignty and the use of state lands by foreign investors.

The measure raises doubts about its transparency and effectiveness, and was publicized in the official organ of the Communist Party of Cuba (PCC) as a "solution" to national agricultural unproductiveness and the promotion of foreign investment.

What Granma did not reveal were the details of the agricultural collaboration contract between both countries, the name of the Vietnamese company, the contractual arrangement through which national territory is ceded to third countries, whether the venture will address the growing rice shortage in the country, or if it will generate foreign currency for the purchase of other deficient foods.

Beyond the paradox of achieving “food sovereignty” at the cost of losing national sovereignty, Díaz-Canel's government continues to deepen the economic abyss with policies and decisions that, rather than contributing to liberating productive forces and creating wealth, exacerbate the country's dependence on foreign powers and investors.

Lack of transparency and questions regarding the contract

The contract, which grants land for three years to Vietnam, raises several questions. According to Granma, the Vietnamese company (of which no details are provided) will not only bring specialists but will also be responsible for hiring Cuban labor directly and supplying the necessary inputs, such as fertilizers, herbicides, and pesticides.

This implies that Cuba is practically surrendering all capacity for control over production within its own territory. Despite this, engineer Jorge Félix Chamizo, the deputy director of the Agroindustrial Grain Company of Los Palacios, insisted that this project "must succeed, no matter what."

However, that statement reflects the desperation of a country facing poor agricultural yields, exacerbated by a lack of inputs and maintenance. While Vietnam expects to achieve yields of up to 8 tons of rice per hectare, local producers barely reach 1.7 tons due to the absence of technology and resources.

Context of previous failures

This is not the first time that the Cuban regime has turned to foreign initiatives to address its productive incapacity.

In 2022, Argentina announced a project to produce grains in Cuba, but little has been heard since then about its results or continuation.

Similarly, in 2023, the government offered land to Russia for usufruct for 30 years, but there have also been no substantial updates. Both initiatives seem to have been forgotten, which raises skepticism about the success of this new agreement with Vietnam.

Historical experience indicates that the problems of Cuban agriculture cannot be solved solely with inputs or foreign agreements, but rather with deep reforms that promote productivity and eliminate bureaucratic obstacles. However, the regime seems to insist on emergency policies that have proven to be ineffective.

Foreign dependency and structural deterioration

The fact that Cuba relies on a foreign country to rehabilitate its lands and ensure basic production, such as rice, reflects its structural deterioration.

While Vietnam provides inputs and technology, the Cuban side only offers abandoned land, which has required extensive cleanup due to years of neglect. The project highlights the regime's inability to ensure food sovereignty, despite having vast tracts of arable land.

Director Chamizo attributed the current low performance to a lack of inputs, describing local production as “rice without a technological package.” However, this justification overlooks decades of mismanagement and failed agricultural policies that have undermined productivity in the sector.

Success or temporary solution?

Although the project has the potential to increase rice production, it does not address the underlying issues affecting Cuban agriculture.

The dependence on foreign inputs and technology leaves the country vulnerable to any changes in its relations with Vietnam.

Moreover, the fact that Cuban workers are hired directly by the Vietnamese company raises concerns about the labor conditions and the benefits they will actually receive.

The official discourse describes this initiative as a bridge to foreign investment, but the reality suggests that it is just a band-aid for a food crisis that the government has failed to manage.

Meanwhile, the Cuban population continues to face shortages of basic food items and high prices, reflecting the failure of an economic model unable to ensure self-sufficiency.

Rice donations from Vietnam to Cuba (2018-2024)

Since 2018, the year Miguel Díaz-Canel took over the government, Vietnam has demonstrated consistent solidarity with Cuba through significant donations of rice to alleviate the food scarcity on the island.

Vietnam donated a total of 67,940 tons of rice to Cuba between 2018 and 2024 (it is estimated that the country consumes around 700,000 tons annually). Below are the main contributions that have been reported as news from CiberCuba:

  • May 2018: Vietnam donated 5,000 tons of rice to help Cuba mitigate the damage caused by the subtropical storm Alberto.
  • July 2020: Amid the global health crisis, the Vietnamese government sent 5,000 tons of rice to support the Cuban people.
  • October 2020: 30,000 tons of rice arrived in Cuba, strengthening food security on the island.
  • July 2021: Vietnam made a donation of 12,000 tons of rice to address the food crisis in Cuba.
  • September 2021: During the official visit of Vietnamese President Nguyen Xuan Phuc, an additional 6,000 tons of rice were delivered to the Cuban government.
  • January 2022: The company ViMariel S.A., a subsidiary of the Vietnamese corporation Viglacera, donated 100 tons of rice to Cuba.
  • March 2023: The arrival of 5,000 tons of Vietnamese rice was announced for May, intended to alleviate the food shortage on the island.
  • July 2023: Vietnam donated 2,000 tons of rice, which were distributed in Havana in September.
  • October 2023: A new donation of 1,200 metric tons of rice was reported, amid the food crisis in Cuba.
  • April 2024: Cuba was expecting to receive 1,640 tons of rice donated by Vietnam, intended for the population affected by the cereal shortage.

Collaboration in rice production in Cuba with Vietnamese expertise

In addition to donations, Vietnam has provided technical assistance to improve rice production in Cuba

  • March 2018: A framework agreement was signed on Vietnam-Cuba cooperation for rice production in the Caribbean country during the period 2018-2022.
  • September 2024: The implementation of an experimental model for hybrid rice planting in several regions of Cuba was announced, in collaboration with Vietnam, scheduled to begin in October.

Tired of being rice donors to the Cuban regime, the Vietnamese authorities have decided to "cooperate" in a different way, thanks to the mediation of the new Cuban ambassador in the Asian country, the former head of the Ideological Department of the Central Committee of the PCC, Rogelio Polanco Fuentes.

With the global price of a metric ton of rice averaging around 1,000 dollars during that period (2018-2024), Cuba's ally has donated approximately 95 million dollars over six years since Díaz-Canel took the helm of the Cuban government.

In summary, the allocation of land to Vietnam for rice production is not an achievement, but a symptom of the deep structural crisis facing the Cuban economy. Without significant reforms, these initiatives will remain temporary solutions that do not address the underlying issues.

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CiberCuba Editorial Team

A team of journalists dedicated to reporting on current events in Cuba and global issues of interest. At CiberCuba, we strive to provide accurate news and critical analysis.