Vietnamese goods hold firm in the UAE

On October 28, 2024, in Dubai, the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the UAE was signed, marking the first time Vietnam has established a free trade agreement with an Arab country. The event not only opened a new legal framework for bilateral cooperation but also laid the foundation for a substantive, long-term development phase between Vietnam and the UAE in particular, and the broader Middle East region in general.

The UAE has long been regarded as the “trade gateway” of the Middle East-North Africa region, serving as a leading logistics, financial and re-export hub. Through this market, Vietnamese goods can penetrate deeper into major economies such as Saudi Arabia, Qatar, Kuwait and many markets in North Africa and West Asia, even extending to Europe.

First Secretary and Head of the Vietnam Trade Office in the UAE Truong Xuan Trung facilitates UAE enterprises’ participation in exhibitions in Vietnam, creating opportunities for trade cooperation.

In remarks to the Newspaper of Industry and Trade, First Secretary and Head of the Vietnam Trade Office in the UAE Truong Xuan Trung noted that once implemented, CEPA will significantly facilitate import-export activities and investment flows between the two countries. Through CEPA, Vietnamese enterprises can step up cooperation with the UAE in renewable energy, sustainable agriculture and logistics, among other sectors.

“The UAE is a trade and logistics hub and can serve as a ‘launch pad’ for Vietnamese enterprises not only to enter the UAE but also to reach the Middle East, Africa and Europe via the UAE,” Truong Xuan Trung said.

Providing further insights into bilateral trade in recent years, a report from the Foreign Market Development Department under the Ministry of Industry and Trade shows that during 2018–2023, total two-way trade averaged about USD 5 billion per year. In 2024, before and after the signing of CEPA, bilateral trade rose to USD 6.4 billion, including USD 5.6 billion in exports and USD 850 million in imports. By the end of 2025, total turnover reached over USD 6 billion, with exports at USD 5.4 billion and imports at USD 576 million.

In absolute terms, 2025 recorded a decline of around 6.3% compared to 2024. However, against the broader backdrop of sluggish global trade growth, complex geopolitical developments, fluctuating logistics costs and energy prices, this adjustment reflects short-term factors rather than a structural downward trend.

In reality, CEPA was signed at the end of 2024, and commitments on tariff reductions, rules of origin and preferential customs procedures require time for domestic legal incorporation and implementation. Enterprises on both sides also need to prepare documentation, establish origin certification systems and meet technical standards, SPS and TBT requirements, and especially Halal standards - a key condition for deeper access to Muslim markets. Therefore, the absence of an immediate trade “surge” in the first year had been anticipated.

Notably, according to the Foreign Market Development Department, although export turnover in 2025 edged down slightly from 2024, it remained at a substantial and stable level of USD 5.4 billion. This demonstrates that Vietnamese goods have established a relatively solid position in the UAE.

The export structure continues to center on key product groups such as phones and components, machinery, equipment and spare parts, coffee, pepper, seafood and processed agricultural products. Among them, phones and components account for a large share and act as a “driving force” for export turnover, helping maintain a strong trade surplus in Vietnam’s favor.

On the import side, purchases from the UAE fell sharply by 32.2% in 2025, mainly due to fluctuations in oil and gas input prices and supply. Overall, the trade balance remained strongly in surplus for Vietnam, creating positive room for bilateral economic ties in the new phase.

Awaiting fresh momentum for acceleration

In 2026, bilateral trade is expected to see more positive prospects as CEPA takes effect and is put into full implementation, and as enterprises gain mastery of rules of origin, technical standards and Halal certification. The agreement is also anticipated to spur investment flows from the UAE into Vietnam in processing industries, logistics and clean energy - foundational sectors for sustainable growth.

However, opportunities always go hand in hand with challenges. Vietnamese enterprises need to shift from the mindset of merely “exporting goods” to “exporting in full compliance,” meeting technical regulations and Islamic consumer culture requirements. Volatility in global energy prices remains an unpredictable factor that may affect the trade balance in the short term.

“Although CEPA creates favorable conditions, there are still barriers related to technical standards, origin rules and licensing requirements. Enterprises need to thoroughly understand UAE and regional regulations. The UAE market demands higher quality, branding and services; relying solely on ‘low prices’ will not ensure sustainability. In addition, domestic enterprises will face competitive pressure from international suppliers and firms from countries with long-standing strengths in the UAE. The business environment and culture in the UAE also pose challenges for Vietnamese companies,” First Secretary Truong Xuan Trung stated.

After one year, CEPA has yet to generate an immediate “boost,” but it has formed an important strategic foundation. In that context, maintaining export turnover above USD 5 billion in a rising Middle Eastern market shows that Vietnamese goods are no longer in the “exploratory” phase but have secured a foothold in the UAE, awaiting the right conditions in terms of legal framework and market convergence to accelerate further.