UAE, Vietnam, Seek To Boost Bilateral Trade

Bilateral trade at US$8 billion with both parties committed to increasing this with a CEPA trade deal under negotiation

The UAE and Vietnam have held high-level talks as they look to build on last year’s US$8 billion non-oil trade ties. The Vietnamese Ministry of Industry and Trade hosted the fifth UAE-Vietnam Joint Committee in Hanoi.

Ahmed Al Zeyoudi said that the UAE considers Vietnam an important partner in the Asia-Pacific region, and wishes to strengthen cooperation with the country in all fields. He recommended both sides to continue coordinating closely in implementing measures to promote friendship and multifaceted cooperation in the coming time.

Nguyễn Hồng Diên (L) the Vietnamese Minister for Industry & Trade, with Dr Thani bin Ahmed Al Zeyoudi, the UAE Minister of Trade.

The two sides reviewed the outcomes of bilateral cooperation since the fourth meeting in 2019, and discussed issues of mutual concern as well as new solutions to promote the bilateral cooperation in all fields.

Regarding trade cooperation, Vietnam ranks in the top 10 largest import partners of the UAE and in return, the UAE become one of Vietnam’s largest trading partners in the Middle East region.

They agreed that the two countries still have a lot of potential to continue expanding and developing cooperation, especially in the context that both nations are actively promoting negotiations towards the signing of a Comprehensive Economic Partnership Agreement.

The two sides discussed and agreed to actively promote the exchange of delegations at all levels, especially high-level ones, and continue to strengthen coordination and mutual support at multilateral forums and international organisations.

The UAE and Vietnam Ministers also agreed to closely coordinate to review and strengthen the legal framework to create favourable conditions for cooperation such as the comprehensive economic agreement, the agreement on cooperation and mutual support in customs, the agreement on extradition, and the agreement on transfer of sentenced persons.

The two sides have agreed to start Closer Economic Partnership Agreement negotiations, which would have the effect of reducing trade tariffs on a wide variety of goods. They also have a Double Tax Treaty in place which can assist lower taxes on services. Professional assistance should be sought concerning applying treaty status to contracted services between the UAE and Vietnam.

In 2021, Vietnam exported goods worth US$5.47 billion to the UAE, including broadcasting equipment, computers, and footwear. The UAE exported mainly broadcasting equipment, petroleum gas, and ethylene polymers valued at about US$1.05 billion.

The UAE has also been an investor in Vietnam, with investments totalling AED 260 million (US$71 million). Leading UAE companies with investments in the Vietnamese market include DP World, Emirates Investment Authority, Mubadala, and Borouge.

There are opportunities on both sides for trade and development. Dezan Shira & Associates assists foreign investors throughout Asia and provides market intelligence, business advisory, legal establishment, tax advisory and trade compliance and facilitation services. We have three offices in Vietnam and one in Dubai. Please see our respective 2023 ‘Doing Business in Vietnam‘ and ‘Doing Business in Dubai’ guides below, or email us at asia@dezshira.com for assistance.

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• An Introduction to Doing Business in Dubai 2023
• An Introduction to Doing Business in Vietnam 2023

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