UAE, Vietnam seal comprehensive economic partnership agreement

The UAE and Vietnam have concluded talks on a bilateral trade deal known as a Comprehensive Economic Partnership Agreement (CEPA), underscoring the Gulf state’s broader strategy to forge strong global economic partnerships.

“The CEPA between the UAE and Vietnam aligns with the nation’s broader foreign trade strategy, aiming to increase non-oil trade to Dhs4tn and non-oil exports to over Dhs800bn by 2031. The agreement solidifies Vietnam’s status as the UAE’s largest non-oil trading partner within the ASEAN,” said Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

The bilateral trade pact is expected to unlock new avenues for cooperation in key sectors such as food production, apparel, textiles, machinery, and metals. Notably, non-oil bilateral trade between the two countries surged 8.7 per cent to $6.1bn in the first half of 2024, with non-oil exports soaring 58.4 per cent year-on-year.

Witnessed by @HHShkMohd and PM Phạm Minh Chính, the signing of a #UAEVietnamCEPA solidifies an alliance with our largest trading partner in #SoutheastAsia and marks another progressive step in our foreign trade agenda. 🇦🇪🇻🇳 https://t.co/EPz8ahYr4E

— د. ثاني أحمد الزيودي (@ThaniAlZeyoudi) October 28, 2024

Under the CEPA, the UAE has committed to phasing out tariffs on 99 per cent of Vietnam’s exports, and the ASEAN nation has pledged to remove tariffs on 98.5 per cent of the UAE’s exports.

“With the signing of the CEPA between the UAE and Vietnam, we are opening new paths for economic cooperation that will benefit both countries,” said Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs.

“By removing trade barriers and improving market access, this agreement will not only boost bilateral trade but also create new investment opportunities, supporting growth, diversification, and solidifying our position as a global hub for trade and investment.”

The UAE’s CEPA programme aims to increase the country’s non-oil foreign trade to Dhs4tn by expanding relations with strategically important markets around the world. It has seen the UAE strengthen ties with the ASEAN bloc, with CEPA with Indonesia and Cambodia now in operation, each helping to accelerate bilateral trade.

The UAE’s non-oil trade reached a record Dhs1.4tn in H1 2024, an 11.2 per cent increase in foreign trade compared to the corresponding period a year ago.

Earlier in October, the Gulf state signed CEPA agreements with Serbia, Malaysia and Jordan. It also signed bilateral trade agreements with Australia and New Zealand in September.

Since 2021, the UAE has initiated a raft of bilateral trade, investment, and cooperation deals to bolster efforts to diversify income sources and economic sectors. To date, it has ratified five CEPAs with India, Israel, Indonesia, Türkiye, Cambodia, and Georgia.

Read: UAE’s non-oil foreign trade tops Dhs1.4tn in H1 2024