Hanoi (VNA) – As global trade continues to face mounting uncertainty, the Middle East and South Asia are emerging as promising destinations for Vietnamese exports, according to insiders.
Strong import demand, rising consumer purchasing power and new-generation free trade agreements (FTAs) are creating fresh opportunities for domestic businesses to expand markets, diversify partnerships and strengthen their position in global trade.
Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the Ministry of Industry and Trade, pointed to several significant milestones, including the implementation of the Vietnam–Israel Free Trade Agreement (VIFTA) from early 2026 and the entry into force of the Vietnam– United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) in February.
He noted that the latter marks Vietnam’s first FTA with a Gulf nation, opening access to one of the world’s most dynamic commercial hubs. For the first time, Vietnamese products can enter the UAE under preferential tariff arrangements. More importantly, the UAE serves as a gateway to the wider Middle East, a market of over 400 million consumers with a combined GDP exceeding 4 trillion USD. Ongoing negotiations on a Vietnam–Gulf Cooperation Council (GCC) FTA and efforts to upgrade the ASEAN–India Trade in Goods Agreement (AITIGA) are expected to further broaden economic cooperation.
The region’s substantial import demand presents considerable opportunities for Vietnamese exporters. GCC countries currently rely on external sources for 80–90% of their food requirements, creating strong demand for Vietnamese products such as rice, aquatic products, coffee, cashew nuts, fruits, vegetables and processed foods.
In South Asia, particularly India - the world’s fifth-largest economy and a country projected to become the third largest in the coming years, growing consumer spending and an expanding middle class are creating favourable conditions for Vietnamese goods.
However, experts stress that tariff preferences alone do not guarantee commercial success. As competition increasingly focuses on product quality, technical standards and market-specific requirements, businesses are advised to enhance their production capacity, management systems and competitiveness. In this context, the greatest value of new-generation FTAs lies not only in tariff reductions but also in the impetus they provide for enterprises to upgrade their production capacity and governance, and move up global value chains.
One of the most critical requirements for entering Middle Eastern markets is compliance with Halal standards. According to the Agency of Foreign Trade, the global Halal economy is already worth trillions of dollars and continues to expand rapidly. While Vietnam possesses strong advantages in agricultural, food and seafood production, gaining market share requires strict adherence to Halal certification and quality management systems throughout the entire supply chain.
In fact, several Vietnamese industries have already established a notable presence in the Middle East and South Asia. Vietnam currently accounts for around 60% of the Middle East’s pepper market and 40% of South Asia’s, while cinnamon commands approximately 90% of the South Asian market. Many Vietnamese companies, however, continue to export their products in raw or semi-processed form, or rely on intermediary importers to reach end markets. As a result, the added value generated and the visibility of Vietnamese brands remain below the level commensurate with the sector’s strong market position.
At present, geopolitical tensions in the Middle East continue to pose challenges through rising transportation costs, war-risk insurance premiums and fuel surcharges. Nguyen Duy Minh, Vice President of the Vietnam Logistics Business Association, therefore recommended that businesses diversify transport routes, strengthen cargo insurance coverage and establish distribution or warehousing facilities in Dubai to improve market access and reduce costs.
Experts also believed the Middle East and South Asia could become major growth drivers for Vietnam’s exports in the years ahead. While FTAs provide a favourable institutional framework and expanding market access, success will ultimately depend on businesses’ ability to invest in market research, branding, logistics capabilities, and compliance with international standards. With a long-term market development strategy and effective utilisation of FTA benefits, Vietnamese enterprises will be well-positioned to deepen their integration into global value chains and distribution networks./.
VNA
