Other BriefingsUAE – Vietnam CEPA Trade Deal Expected By The Year End
The UAE and Vietnam are preparing to finalise their proposed CEPA agreement
The Vietnamese Ambassador to the United Arab Emirates, Nguyen Manh Tuan, has said that the two countries should conclude their Comprehensive Economic Partnership Agreement (CEPA) this year, which will add new emphasis to the 30th anniversary of their diplomatic relations.
The statement comes as non-oil trade between the countries reached AED29.4 billion (US$8 billion) in 2022. The UAE is Vietnam’s largest Arab trade partner, accounting for 39% of its total trade with the Arab countries.
Manh Tuan said: “During the past 30 years, the friendship and cooperation between Vietnam and the UAE have been actively developing in all areas, especially politics, diplomacy, trade, investment, labour and travel. Vietnam and the UAE are accelerating the negotiation of CEPA, which shall give great impetus to two-way trade between the two countries.”
The ambassador said Vietnam and the UAE are accelerating the negotiation process to sign the “crucial” CEPA within this year, and that increased interactions between top officials of both countries have further strengthened the bilateral relations.
This process began back in 2007, with a State visit to Vietnam by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE. That set a mutual precedence, with the latest in a series of visits being Vietnamese Vice President Thi Anh Xuan’s visit to the UAE and Vietnam visit of Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs, this year, the ambassador pointed out.
Another milestone was a series of Memorandums of Understanding (MoUs) for cooperation signed between both countries in almost all major sectors, he said.
The bilateral economic cooperation has witnessed tremendous growth since 1993 with constant official and business-to-business interactions between both sides to boost trade and investment, Manh Tuan noted.
Regarding investments, he expressed hope that as both Vietnam and the UAE have committed to achieving Net Zero by 2050, renewable and clean energy such as solar power, wind power and hydrogen would be the keys to unlock investment potential of the two countries.
Most Vietnamese businesses in the UAE deal with logistics, fruits and vegetable, foodstuff and non-food items.
In terms of Vietnam’s MNC’s Vietnam Oil and Petroleum Corporation (PTSC- PetroVietnam), and Financing and Promoting Technology Corporation (FPT) have also set up their offices in Abu Dhabi and Dubai, with Manh Tuan saying “We are expecting more of them to come as soon as the CEPA negotiation is signed.”
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said: “The UAE is Vietnam’s number one Arab trade partner, accounting for 39% of its total trade with the Arab countries. The volume of non-oil trade between the two sides reached AED29.4 billion (US$8 billion) in 2022. The trade in goods other than mobile phones and their accessories, has grown to 46% (in 2022) from 36% in 2019, is also promising. It totalled AED13.5bn (US$3.5 billion) last year, up 9% from 2021, and with 34% and 26% growth from 2020 and 2019 respectively.”
The increased interactions through trade, aviation and tourism have helped Vietnamese and Emiratis know each other well, Manh Tuan pointed out.
The UAE’s tourist attractions, especially in Dubai and Abu Dhabi, are drawing thousands of Vietnamese tourists every year, he said.
With more halal restaurants and other attractions for Arabs in Vietnam, the tourist traffic from the UAE is expected to increase in the coming days, the envoy added.
About 3,500 Vietnamese people are working in the UAE, mainly in construction, mechanical works, shipbuilding, and service industries.
Dezan Shira & Associates assist foreign investors in Asia, providing market intelligence, legal, tax planning, and related business and trade investment services. The firm has three offices in Vietnam and one in Dubai. For assistance please email asia@dezshira.com and see our respective Doing Business guides below.
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