Lease agreement between Cuban authorities and a Vietnamese corporation yields bountiful results
In the heart of Cuba's Pinar del Rio province, a small town named Los Palacios is witnessing a significant transformation in its agricultural landscape. Vietnamese company Agri VMA, with its own resources, technical experts, and seeds from hybrid rice varieties developed in Vietnam, is spearheading a rice production project that is showing promising results.
Agri VMA has been granted a three-year usufruct lease on 1,000 hectares of fertile paddy land in Los Palacios. As of mid-2025, around 871 hectares have been planted, with plans to reach 1,000 hectares by late May. The project began with a trial phase planting 16 hectares last fall, yielding about 6.5 to 6.75 tons per hectare - nearly four times the average Cuban rice yield.
The Cuban government, seeking to increase domestic rice output due to the ongoing crisis in the agricultural sector, has granted Agri VMA the right to cultivate farmland in Cuba. The Cuban-Vietnamese partnership venture is a strategic move, with Vietnam gaining access to land and a test case for its agricultural model in Latin America, while Cuba gains increased rice production and import substitution without losing state control.
The rice fields belong to Cubanacan farm, run by the state-owned enterprise Empresa Agroindustrial de Granos Los Palacios. Agri VMA has directly hired 40 Cuban workers for the rice cultivation project. Cubanacan farm provides services to Agri VMA, including land preparation, harvesting, drying, and milling of rice. The harvested rice belongs to Agri VMA and is purchased by the Cuban state at prices reportedly below current import costs, making the arrangement a low-risk, win-win strategy.
Despite the positive progress, challenges do exist. Fertilizer shortages require Agri VMA to import inputs, and there are concerns among Cuban agronomists about potential inequality between foreign-managed fertile lands and local cooperatives. Additionally, the Vietnamese company has faced difficulties accessing funds in Cuba, prompting diplomatic appeals for support from both sides.
Cuba, struggling with foreign currency reserves needed for investments due to ongoing US sanctions and the collapse of tourism during the COVID-19 pandemic, is hoping that this partnership will help boost its food production capacity and improve self-sufficiency. The project is aimed at replacing rice imports from Vietnam with locally produced rice, a significant step towards reducing the country's reliance on imports.
Looking ahead, Agri VMA is managing the lease in Los Palacios largely independently, with operations based on a business contract. The farmland in Los Palacios has been leased to Agri VMA for a three-year term, with potential for extension to other Cuban provinces. Vietnamese agricultural scientist Tran Trong Pai is one of six Vietnamese specialists involved in the project, working to optimize fertilizer use and adapt technology to local conditions.
This partnership is part of a broader expanding economic cooperation between Vietnam and Cuba, with Vietnam as a key investor in Cuba, especially in agriculture and Mariel Special Development Zone projects worth over $160 million, further strengthening ties and technology transfer. The Vietnamese-Cuban rice production project in Los Palacios is active and showing encouraging agricultural yields, navigating logistical and financial challenges within this broader expanding partnership.
- The Cuban government, acknowledging the ongoing crisis in the agricultural sector and seeking to increase domestic rice output, granted Vietnamese company Agri VMA the right to cultivate farmland in Cuba.
- Agri VMA, a strategic partner with Vietnam, is investing in the Cuban economy with a three-year usufruct lease on 1,000 hectares of fertile paddy land in Los Palacios for rice production.
- The rice fields in Los Palacios, managed by Agri VMA and operated under a business contract, are showcasing significantly higher yields compared to the average Cuban rice yield.
- The growing Vietnamese-Cuban partnership in agriculture, particularly the rice production project, is a pivotal part of a broader expanding economic cooperation between the two countries, with Vietnam investing over $160 million in Cuba's Mariel Special Development Zone projects.
