Vietnam and the United Arab Emirates (UAE) are actively pursuing negotiations for a Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and investment ties. In July 2024, officials from Vietnam’s Ministry of Industry and Trade (MoIT) met with representatives from the UAE’s Ministry of Economy to finalize the remaining details of the agreement.
The MoIT has emphasized that securing an FTA with the UAE is a top priority, as demonstrated by the ministry’s collaboration with other government bodies. Ministerial-level terms have been agreed upon and will be submitted for approval, with an official signing expected soon.
The UAE’s Minister of State for Foreign Trade highlighted that several Vietnamese corporations are already benefiting from CEPA opportunities, while UAE investors are exploring significant projects in Vietnam.
In the first half of 2024, bilateral trade exceeded USD 3.2 billion, up 43% year-on-year. Vietnam’s exports rose 47% to over USD 2.8 billion, while imports increased 25% to more than USD 435 million. Vietnam’s diverse exports to the UAE include electronics, machinery, footwear, textiles, vehicles, and agricultural products like cashews and rice. The UAE exports petroleum products, liquefied gas, raw plastics, and chemicals to Vietnam.
In 2023, the UAE was Vietnam’s largest export market and second-largest trading partner in the Middle East, following Kuwait. From 2019 to 2023, average annual trade between the two nations stood at USD 4.8 billion, with Vietnam maintaining a trade surplus of over USD 3 billion annually.
The MoIT representative noted that the CEPA will open significant opportunities for Vietnam’s key export sectors, including agriculture, textiles, and footwear, by leveraging the UAE’s strategic role as a transit hub.
(Source: Vietnam Investment Review)
