New FTas boost development of foreign markets for Vietnamese goods

Vietnamese Prime Minister Pham Minh Chinh (second left) and UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum (second right) witness the signing ceremony of the CEPA agreement - photo: VGP

Following policies of the Party and the State, the Ministry of Industry and Trade (MoIT) has effectively implemented international economic integration across bilateral and multilateral channels in 2024, achieving significant accomplishments.

Vietnam has so far established official relations with 189 out of 193 countries and territories worldwide, and the country has traded with 224 partners, and built cooperation relations with more than 300 international organizations. Vietnam has so far signed more than 90 bilateral trade agreements, nearly 60 agreements on investment promotion and protection, and negotiated, signed and implemented 19 bilateral and multilateral free trade agreements (FTAs) with most major global economies. Notably, 16 FTAs are already in effect with over 60 partners across continents, accounting for nearly 90 percent of the global gross domestic product (GDP). This has positioned Vietnam as a regional leader in participating in bilateral and multilateral economic cooperation frameworks.

The effective implementation of FTAs has expanded and diversified markets, supply chains and export products, enabling Vietnamese goods to participate more deeply in global production and supply chains, thereby increasing the export value of key commodities.

Moreover, international integration has provided opportunities for Vietnamese businesses to grow, enhance competitiveness, create jobs, and increase income for citizens. Participation in FTAs has also strengthened Vietnam’s diplomatic position, increased mutual benefits with key partners, and ensured a peaceful, stable environment for national development.

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The recently-signed Comprehensive Economic Partnership Agreement between Vietnam and the UAE is a significant highlight in Vietnam’s economic integration in 2024. This is the first FTA that Vietnam has signed with an Arab country, opening up a new era of upgraded and practical cooperation between Vietnam and the UAE in particular, and Arab countries in general. The CEPA agreement was signed amidst strong bilateral trade relations between Vietnam and the UAE. The agreement, concluded after over a year of negotiations with five official rounds, including three ministerial-level meetings, demonstrates a clear commitment to elevating trade and investment cooperation between the two sides.

Minister of Industry and Trade Nguyen Hong Dien emphasized that the agreement is a starting point for strengthening ties not only with the UAE, but also with the broader Middle East region. Therefore, CEPA is expected to create breakthroughs in economic and trade cooperation between Vietnam and the UAE, while also acting as a driver for UAE investments in Vietnam, particularly in energy, industry, high technology, and supply chain development.

In an interview with the UAE’s Emirates News Agency (WAM) following the signing, UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi stated that CEPA would solidify Vietnam’s position as the UAE’s largest trading partner in ASEAN (the Association of Southeast Asian Nations). The agreement will open doors to Vietnam’s rapidly growing economy, which has become one of the most attractive business environments in the region, offering new opportunities in sectors, such as food, apparel, textile, machinery and metal production.

According to domestic economists, CEPA is expected to be a significant lever for Vietnam to seize trade and investment opportunities in the Middle East - a region with large, dynamic economies.

This agreement also aligns with the Vietnamese Government’s policy of diversifying and expanding partnerships, prioritizing not only the development of traditional markets, but also fostering new relationships with countries that, for various reasons, had not been a focus in earlier stages.

The CEPA signing has garnered significant international attention, particularly in the Middle East-North Africa region. Following the agreement, leaders of several countries, including Saudi Arabia, expressed their desire to sign similar agreements with Vietnam soon.

It is expected that in 2025 and the coming years, Vietnam will successfully negotiate more FTAs with international partners, potentially at an even faster pace than CEPA, fostering a “marathon race” for FTAs. This will open development opportunities not only in breadth but also in depth, creating a vast and sustainable growth space for Vietnam’s economy./.