Ho Chi Minh City (VNA) – The Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE) will boost Vietnamese exports to the UAE and help local businesses reach wider markets across the Middle East and Africa, experts said.
They made the remarks at a seminar on the CEPA and the potential for Vietnamese businesses' exports to the Middle East and Africa, held on October 23 by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) and the Ministry of Industry and Trade’s Agency of Foreign Trade.
Le Anh Hoang, ITPC Deputy Director, said the UAE is a promising market and a strategic hub for trade, logistics and transhipment in the Gulf Cooperation Council (GCC), the Middle East and Africa.
The CEPA took effect on February 3, 2026. Under the agreement, the UAE committed to eliminating tariffs on 74.2% of item lines, with the figure expected to rise to 89.2% after five years of implementation. These commitments give Vietnamese goods a significant competitive advantage, he said.
However, businesses must understand the agreement’s provisions and meet market requirements to turn tariff preferences into actual export orders. These include rules of origin, certificates of origin (C/O), quality standards and the development of professional distribution channels.
Pham Binh An, former Deputy Director of the Ho Chi Minh City Institute for Development Studies, said the UAE had a gross domestic product of 517.7 billion USD in 2025 and maintained real economic growth of 6.2%.
The country has successfully diversified its economy beyond oil, with non-oil sectors accounting for 77% of GDP, or about 398 billion USD. Finance, logistics, retail and high technology are among its key economic pillars.
With foreign nationals accounting for 88.5% of its population and agricultural land making up less than 1% of its territory, the UAE relies heavily on food imports, meeting an estimated 85-90% of its daily food demand through overseas supplies. This creates opportunities for Vietnamese exporters, particularly those supplying agricultural products and processed foods.
Although the CEPA only took effect in February 2026, bilateral trade had already expanded in previous years. Vietnam’s exports to the UAE rose steadily from 2021 to 2025, reaching 5.91 billion USD last year. Key export groups included iron and steel, cashew nuts, transport vehicles and fruit and vegetables.
An said the agreement established a comprehensive framework for bilateral economic cooperation and could also encourage investment from major UAE financial funds in Vietnam, particularly in infrastructure, clean energy and digital transformation.
However, he cautioned that lower tariffs did not automatically mean easier customs clearance. The UAE continues to apply strict technical barriers to trade (TBT), as well as sanitary and phytosanitary (SPS) measures and food safety requirements.
Halal certification is particularly important for products intended for Muslim consumers. Businesses must ensure compliance throughout the supply chain, from raw material sourcing to production processes designed to prevent cross-contamination in storage and transportation. To be eligible for market circulation, products must have certification officially recognised by the relevant UAE authorities under the National Halal Mark system.
Truong Xuan Trung, Head of the Vietnam Trade Office in the UAE, said businesses should view the UAE not only as a consumer market but also as a modern logistics and distribution centre serving neighbouring markets in the Middle East and Africa.
He recommended that Vietnamese companies first use the UAE market to test products, assess consumer demand and build brand recognition for key Vietnamese exports, including fresh agricultural produce, processed foods, textiles and garments, footwear and furniture.
Businesses could then expand into GCC countries by taking advantage of the bloc’s customs union and harmonised intra-regional customs arrangements. For the expanded Middle East and Africa, where markets differ considerably, companies should adopt targeted strategies based on geographical clusters and specific industries, working with reliable local partners rather than spreading resources too thinly.
Trung also urged exporters to diversify their distribution channels, including direct exports, partnerships with intermediaries in the UAE and the gradual development of local warehousing and logistics facilities. Instead of pursuing individual buyers, businesses should build long-term relationships with specialised importers, regional retail chains, warehouse operators in free trade zones and cross-border e-commerce platforms./.
VNA
