UAE, Vietnam sign CEPA to strengthen long-standing economic ties

The UAE and Vietnam have entered into a new era of bilateral cooperation by signing a Comprehensive Economic Partnership Agreement (CEPA), marking a significant step forward in their relationship. The agreement comes as non-oil trade between the two nations saw a 38 per cent rise between 2022 and 2023.

Commenting on the milestone, Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, said, "Vietnam is among Asia’s fastest-growing economies, and we are their largest regional trade partner".

"Our national companies, including DP World, Mubadala, and Borouge, have made substantial investments in Vietnam. Our non-oil trade with the country surpassed $12 billion in 2023", he added.

On Monday, Sheikh Mohammed hosted Pham Minh Chinh, the Prime Minister of Vietnam, at Zabeel Palace in Dubai. During the meeting, both leaders underscored their commitment to fostering cooperation that aligns with their mutual development goals and the aspirations of their people.

Reflecting on the UAE-Vietnam relationship, Sheikh Mohammed said, "The visit reflects the deep-rooted UAE-Vietnam ties established in 1993," while also highlighting that "Vietnam is the UAE’s largest trading partner among ASEAN countries".

The Vietnamese Prime Minister expressed his satisfaction with the growing cooperation, stating his pride in the deepening ties and noting the vast potential for further expanding collaboration.

Non-oil trade between the UAE and Vietnam reached $6.06 billion in the first half of 2024, reflecting a 9 per cent increase compared to the same period in 2023.

The newly signed CEPA will play a vital role in the UAE’s efforts to achieve its 2031 non-oil trade target of Dh4 trillion ($1.1 trillion). It aims to boost trade and economic relations by improving market access for UAE service providers in Vietnam across multiple sectors, including business and communications, engineering, financial services, healthcare and social services, travel and tourism and transportation.

The discussions between the two leaders also explored ways to further strengthen the bilateral partnership by expanding cooperation in tourism, investment, industry, and technology. Both sides emphasized the importance of enhancing trade and tourism exchanges, developing logistics capabilities, creating new investment opportunities and encouraging collaboration between their private sectors.

Several agreements and memorandums of understanding (MoUs) were also announced during the meeting to promote cooperation in various fields, including the economy, investment, trade, government, education, scientific research and logistics.

This CEPA signing signals a new chapter in the UAE-Vietnam relationship, building on decades of trust and shared ambitions, while setting the foundation for future growth and prosperity.