Vietnam and the United Arab Emirates have signed a Comprehensive Economic Partnership Agreement with the aim of increasing bilateral trade to US$10 billion.

Vietnam Prime Minister Pham Minh Chinh (L) and United Arab Emirates Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum meet in Dubai, UAE on Oct. 28, 2024. Photo by Nhat Bac 

The agreement signed in Dubai on Oct. 28 in the presence of Vietnamese Prime Minister Pham Minh Chinh and UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum is Vietnam’s first free trade agreement with an Arab nation, and took more than a year of negotiations.

It is expected to benefit both countries and aligns with their goals of expanding cooperation across multiple sectors.

It is also expected to boost the export of Vietnamese goods and allow businesses to seize trade and investment opportunities in the Middle East.

Under CEPA the UAE is committed to gradually removing tariffs on 99% of Vietnamese products.

Minister of Industry and Trade Nguyen Hong Dien said key Vietnamese exports such as consumer goods (including textiles, footwear, and electronics), fisheries and wooden products would benefit.

Agricultural products such as cashew, pepper and honey are expected to gain greater access to the UAE and the broader Middle Eastern market, which has great demand for high-quality agricultural produce, especially clean and organic halal items.

The agreement could also attract UAE investments in Vietnam’s manufacturing sector, high-tech agriculture and infrastructure.

Vietnam in turn is committed to eliminating tariffs in a phased manner on 98.5% of the UAE’s exports.

The agreement also includes commitments to opening up the services markets, ensuring transparency in government procurement and promoting digital transformation and green development.

During discussions earlier, Chinh and Maktoum agreed to enhance exchanges at all levels, effectively implement the CEPA to boost trade, open up markets, and quickly increase bilateral trade to over $10 billion.

They also agreed to enhance cooperation in digital transformation, green transition, innovation, culture, and tourism and offer mutual support in multilateral forums.

Chinh is on a visit to the UAE from Oct. 27 to 29 as part of a trip to three Middle Eastern countries, where he will also attend the Future Investment Initiative conference to be held in Saudi Arabia from Oct. 27 to Nov. 1.

Vietnam and the UAE established diplomatic relations in 1993.

On Monday Chinh and UAE President Mohammed bin Zayed Al Nahyan agreed to upgrade the bilateral relationship to a Comprehensive Partnership.

The UAE is Vietnam’s largest export market and second-largest trade partner (after Kuwait) in West Asia.

Last year their bilateral trade was worth nearly $4.7 billion after rising by 6% from 2022.

In the first eight months of this year it is worth nearly $4.5 billion, a 45% increase, with Vietnamese exports accounting for $3.85 billion.

Ngoc Anh (Source: e.vnexpress.net)