Vietnam’s economic model ‘informing’ Cuba’s market

06 July 2026 President Díaz-Canel has confirmed that the model that Cuba is now pursuing is informed by Vietnam’s successful approach to economic development. The ‘renovation’ or ‘innovation’ process known as Đổi Mới enabled the southeast Asian nation to develop from the 1980’s on, a successful and vibrant economy. Adopted by Vietnam’s Communist Party from 1986 onwards, it enabled the country to transition from a centrally planned command economy to a ‘socialist-oriented market economy,’ lifting the country out of poverty and opening it to foreign investment from the US and many other nations. In outline, the process gave farmers long-term land use rights, allowed the sale of their produce for personal profit, and rapidly turned Vietnam into a major rice exporter. It also legalised private ownership of small businesses and opened the country to global markets and foreign direct investment. As is the case of Cuba’s recently announced economic reforms (See Cuba Briefing 22 June 2026), it also introduced budget constraints on state-owned enterprises, removed state subsidies, and created a form of privatisation that encouraged efficiency and productivity. Whether Cuba’s belated decision to adopt in 2026 what is now a decades-old Vietnamese approach remains to be seen. If Cuba is to succeed it will have to achieve the rapid buy-in of a population struggling to overcome day-to-day hardships caused by past economic failures, abandon its long-outdated Soviet-era socialist economic model for a new one, and find fresh ways to address the almost daily intensification of US sanctions. Moreover, the US Administration as represented by the US Secretary of State, Marco Rubio, appears to have concluded that it sees no opportunity for as long as Cuba’s present leadership remains in place, while noting it will still be for President Trump to determine Washington’s way forward Comments made by Cuba’s leadership during a recent Council of Ministers meeting, interventions at the just ended 22nd Congress of the Communist Party affiliated Confederation of Cuban Workers (CTC), and media criticism of a territorial governments’ ability to break out of their ideological mindset, suggest as reported below, that achieving at this late stage, viable socially-oriented change in Cuba may be almost impossible to achieve in the ways Vietnam did in the 1980s let alone in a way that is attractive to US investors and the Trump Administration. Meeting with Vietnam’s Foreign Minister confirms approach Confirmation of the newfound significance of Vietnam’s Đổi Mới economic model to Cuba came on the Presidency website. It quoted President Díaz-Canel as having told Vietnam’s visiting Minister of Foreign Affairs, Le Hoai Trung, that discussions during their 22 June meeting “make it possible for the process of socialist construction in Vietnam to definitively become a reference for all the transformations we are carrying out in our country as part of updating our socio-economic model.” Le, was described as a special envoy of the General Secretary and President of Vietnam. The same report quoted Cuba’s Prime Minister, Manuel Marrero, as saying in relation to Cuba’s decision “to promote and accelerate a series of transformations that have been under study for a long time,” that Cuba has “studied Vietnam’s own experience extensively,” and that it is now considered “the opportune moment to take this step.” “We are not straying from the socialist path,” Marrero said, emphasising that Cuba is now “seeking new formulas” to sustain its achievements and “strengthen our socialism.” The official Vietnamese agency VNA separately reported that during his meetings in Havana Le Hoai Trung “presented the main theoretical and practical aspects of [Vietnam’s economic] renewal process (Đổi Mới) oriented towards socialism over the past 40 years,” detailing the “shared socio-economic achievements attained and the results of the implementation of the Resolution of the 13th Party Congress,” held in February 2021. VNA also noted that in his meetings in Havana, Vietnam’s Foreign Minister “outlined the objectives, [its latest] strategic guidelines and priority tasks approved by the recent fourteenth Congress to advance towards the development goals set for 2030 and 2045.” The news agency observed that during the exchanges, Cuba’s leadership “highlighted Vietnam’s economic and social progress” and its experiences accumulated during four decades of Đổi Mới as serving to provide “a valuable reference for Cuba’s economic and social modernisation process.” Discussions involved wide range of Cuban ministers, legislators, and officials Describing the visit by Le and an accompanying delegation as being of “enormous significance” and reflecting Vietnam’s “understanding, sensitivity and support for the Cuban people and our Revolution,” President Díaz-Canel said that the Vietnamese minister’s visit came at a time when “the Cuban Revolution is experiencing one of the most challenging moments in its history.” Among the topics also discussed, according to Cuban reporting, were defence preparedness, strengthening the economy, the role of mass political movements, and a communications strategy aimed at the international community, sister nations, sister governments like Vietnam’s, and for communist parties and leftist parties. During the official visit the Vietnamese delegation met with the President of the National Assembly, Esteban Lazo, the Prime Minister, Manuel Marrero, the Secretary of Organisation of the Central Committee of the Cuban Communist Party, Roberto Morales, the Minister of Foreign Affairs, Bruno Rodríguez and other leading Cuban Politburo members, ministers, and officials. The meetings were described as having taken place in a fraternal atmosphere, reflecting the mutual trust, solidarity and the special character that distinguishes the historical relations between the two nation’s peoples, parties, and Governments. During his time in Cuba, Vietnam’s Foreign Minister visited the Mariel Special Development Zone (ZEDM), Vietnamese manufacturing operations located there, and toured areas of Pinar del Río where Vietnam is involved in rice production. Yamilé Ramos, the First Secretary of the Provincial Party there was quoted by the province’s official media as saying that there are other areas in Pinar del Río that could be incorporated into the Vietnam-Cuba rice project. Vietnam is the largest investor from Asia in Cuba, with projects in agri-food, basic necessities, construction materials, and renewable energy. It is also involved in joint initiatives in rice, coffee, and corn production, and is both a supplier and humanitarian donor of rice. It also has close relations and regular exchanges with the Cuban military. 06 July 2026, Issue 1320 The Caribbean Council is able to provide further detail about all the stories in Cuba Briefing. If you would like a more detailed insight into any of the content of today’s issue, please get in touch