UAE-Vietnam Comprehensive Economic Partnership Agreement Enhances Trade And Investment Opportunities

The UAE's Comprehensive Economic Partnership Agreement (CEPA) with Vietnam is a significant step in strengthening global economic ties. This agreement is part of the UAE's strategy to enhance its international partnerships, with Vietnam being a key player in Asia. The collaboration aims to boost trade and investment opportunities between the two nations.

Mohamed Hassan Al Suwaidi, Minister of Investment, highlighted that CEPA marks a new phase in UAE-Vietnam investment relations. Vietnam's rapid economic growth and strategic location make it an attractive destination for UAE investments. The focus will be on sectors like infrastructure, industry, and logistics to expand the UAE's global investment portfolio.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, noted that CEPA aligns with the UAE's foreign trade strategy. The goal is to increase non-oil trade to AED4 trillion by 2031. Vietnam is now the UAE's largest non-oil trading partner within ASEAN. Non-oil bilateral trade rose 8.7% to US$6.1 billion in early 2024.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, stated that CEPA supports the UAE’s vision of expanding global partnerships. It enhances access for UAE industrial exports to Vietnam and ASEAN countries, aiding economic diversification and growth. This aligns with the National Strategy for Industry and Advanced Technology.

Suhail bin Mohammed Faraj Al Mazrouei, Minister of Energy and Infrastructure, emphasized CEPA’s role in energy sector cooperation. Vietnam’s renewable energy sector presents opportunities for UAE expertise and investments. In 2023, Vietnam produced 69% of ASEAN's solar and wind energy, highlighting its regional importance.

Climate Change and Food Security

Dr. Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, pointed out that CEPA offers collaboration opportunities on climate change and food security. With Vietnam's strong agricultural sector and the UAE's trade network, both countries can address global food security challenges effectively.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), remarked on CEPA’s role in enhancing economic diversification and competitiveness. The agreement aims to boost bilateral trade and investments, contributing to economic growth and financial stability in future years.

Strategic Partnerships

Ahmed bin Ali Al-Sayegh, Minister of State, mentioned that CEPA highlights the UAE's approach to international relations based on mutual interest. Strengthening ties with Vietnam enhances connections with ASEAN, offering numerous opportunities for private sectors in both countries.

Abdulla Bin Touq Al Marri, Minister of Economy, stressed shared interests between the UAE and Southeast Asia through CEPA. The agreement strengthens economic alignment in priority industries like food security and logistics as Vietnam’s GDP reaches $470 billion this year.

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

With inputs from WAM