CEPA Agreement opens the way to the Middle East - Africa market

VCN - CEPA is the first free trade agreement Vietnam has signed with an Arab country, opening a new era in the upgraded and increasingly substantive relationship between Vietnam and the UAE and Arab countries.
Middle East the fourth largest importer of Vietnamese tuna: Association Middle East the fourth largest importer of Vietnamese tuna: Association
Vegetable, fruit exports see large potential in Southeast Asia, Middle East: forum Vegetable, fruit exports see large potential in Southeast Asia, Middle East: forum
How to hunt for billion-dollar opportunities in the Middle East market? How to hunt for billion-dollar opportunities in the Middle East market?
Prime Minister Pham Minh Chinh and Vice President and Prime Minister of the United Arab Emirates (UAE) Mohammed bin Rashid Al Maktoum witnessed the handover ceremony of the CEPA Agreement document. Photo: Cong Thuong Newspaper
Prime Minister Pham Minh Chinh and Vice President and Prime Minister of the United Arab Emirates (UAE) Mohammed bin Rashid Al Maktoum witnessed the handover ceremony of the CEPA Agreement document. Photo: Cong Thuong Newspaper

First free trade agreement with an Arab country

On October 28, 2024 local time, in Dubai, Prime Minister Pham Minh Chinh and Vice President and Prime Minister of the United Arab Emirates (UAE) Mohammed bin Rashid Al Maktoum witnessed the handover ceremony of the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) signed by Vietnamese Minister of Industry and Trade Nguyen Hong Dien and UAE Minister of State for Economy Thani bin Ahmed Al Zeyoudi.

CEPA is the first free trade agreement that Vietnam has signed with an Arab country, opening a new era in the upgraded and increasingly substantive relationship between Vietnam and the UAE in particular and Arab countries in general.

The CEPA agreement was signed in the context of the strong development of bilateral trade relations between Vietnam and the UAE.

The signing of the Agreement after a record one-year negotiation period with five official negotiation sessions, including three direct sessions at the ministerial level, is a clear demonstration of the commitment to bringing trade and investment cooperation between the two sides to a new level.

The Agreement consists of 18 Chapters, 15 Annexes and 2 bilateral letters with contents including trade in goods, services - investment, rules of origin, technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), customs, trade defense, government procurement, intellectual property, legal - institutional.

Notably, the two sides agreed to make a strong commitment to trade liberalization with the UAE committing to phase out tariffs on 99% of Vietnam's exports to the UAE while Vietnam also committed to phase out tariffs on 98.5% of the UAE's exports to Vietnam.

The agreement also includes many provisions to facilitate trade and investment, in line with current trends in digital transformation and green development.

Currently, the UAE is one of Vietnam's leading trade and investment partners in the Middle East, an important gateway for Vietnam to access markets in this region as well as other markets in West Asia and Africa. In addition, the economic and trade structures of the two countries are complementary.

Therefore, CEPA is a favorable premise for Vietnam to promote the export of its strengths to the UAE and then to countries in the Middle East, West Asia and Africa; at the same time, it has the opportunity to access advanced technology, capital and quality services of the UAE, contributing to reducing production costs and enhancing the competitiveness of Vietnamese goods.

In return, UAE goods and services will have the opportunity to access the Vietnamese market as well as ASEAN countries through Vietnam's strategic location in the region.

Important trade gateway in the Middle East

Currently, the UAE is Vietnam's largest export market and second largest trading partner (after Kuwait) in West Asia.

Statistics from the General Department of Customs show that in the period 2018-2023, the total trade exchange between the two countries will average about USD 5 billion /year. In terms of trade balance, Vietnam always has a large trade surplus with the UAE market (from USD 3-4 billion /year).

In 2023, total two-way trade will reach nearly USD 4.7 billion, up 5.9% compared to 2022, of which Vietnam's exports will reach more than USD 4 billion, up 4.3% and imports will reach over USD 676 million, up 16%.

In the first 8 months of 2024, total two-way trade reached over USD 4.47 billion, up 45% over the same period in 2023, of which Vietnam's exports reached USD 3.85 billion, up 47.5% and imports reached USD 623.5 million, up 32.5%.

In terms of commodity structure, Vietnam's main export items to the UAE include mobile phones, computers and components, electrical products, household electronics, pepper, seafood, footwear, textiles, cereal products, plastic products, wooden furniture, etc.

Vietnam's main import items from the UAE include raw plastics, liquefied petroleum gas (LPG), petroleum products; animal feed ingredients, base metals, chemicals, etc.

Minister of Industry and Trade Nguyen Hong Dien assessed that the UAE is one of Vietnam's leading important trade, investment and labor cooperation partners in the region.

In the near future, CEPA may bring more investment opportunities to Vietnam from UAE businesses that want to take advantage of and benefit from this Agreement.

In addition, the signing of CEPA with the UAE is expected to be an important lever for Vietnam in taking advantage of trade and investment opportunities in the Middle East. This is a region with many dynamic economies, with large economic scale but has not been noticed by Vietnamese enterprises in the previous period.

The UAE is an important trade gateway in the Middle East, with the potential to connect with many countries in the region. Therefore, through the UAE, Vietnamese products will easily access other major markets in the region such as Saudi Arabia, Qatar and Kuwait as well as some countries in North Africa and West Asia.

Thus, through tariff reductions and expanding cooperation and investment opportunities, CEPA will play an important role in effectively exploiting the potential of the Middle East market.

This is also the first step in the Government's policy of multilateralizing and diversifying relations, not only focusing on developing traditional markets but also prioritizing the development of new relations with countries that, for many reasons, we did not have the conditions to develop in the previous period.

By Ngoc Linh /Bui Diep

Related News

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Highlights 1. According to trade statistics of Vietnam Customs, in September of 2024, a 8.0% downwards in total external merchandise turnover of Vietnam was recorded as compared to the result of August 2024. Exports went down 9.8 %, to USD 34.08 billion and imports decreased 5.9%, to USD 31.76 billion in terms of month-on-month basis. As a result, there was a USD 2.32 billion surplus in Vietnam’s trade balance in this month.
Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

The Vietnam Customs Statistics announced that in the second half of September, 2024 the total Vietnam’s exports of US dollars 19.71 billion and imports of nearly US dollars 16.74 billion resulted in a trade surplus of US dollars 2.97 billion.
Top 500 Largest Enterprises in Vietnam in 2024: Affirming the ability to overcome "headwinds"

Top 500 Largest Enterprises in Vietnam in 2024: Affirming the ability to overcome "headwinds"

VCN - On November 8, 2024, Vietnam Report in collaboration with VietNamNet Newspaper announced the VNR500 Ranking - Top 500 Largest Enterprises in Vietnam in 2024. The indicators under the VNR500 Ranking show that the business performance has been positive although there are still "headwinds".

Latest News

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.

More News

From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Developing supporting industries for the billion-dollar export commodity groups

Developing supporting industries for the billion-dollar export commodity groups

VCN - Electronic products and components are one of export commodity groups with turnover exceeding one billion USD, but the supporting industry for this group is still modest.
Village craft products conquer the world

Village craft products conquer the world

VCN - Vietnam's handicraft products have significant potential to captivate international customers, enhancing export value and revenue.
Enterprises urged to tap potential to expand exports to EU via official channels

Enterprises urged to tap potential to expand exports to EU via official channels

The Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT) on November 18 organised a seminar on promote trade in the European market, focusing on potential for expanding exports to the European market via official channels.
Read More

Your care

Latest Most read
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
Mobile Version