UAE–Vietnam comprehensive economic partnership takes effect

The Comprehensive Economic Partnership Agreement between the United Arab Emirates and Vietnam has officially entered into force, marking a major step forward in bilateral trade and investment relations, as reported by Emirates News Agency (WAM), a partner of TV BRICS.

The agreement is designed to remove trade barriers, significantly reduce customs duties and establish a robust framework for deeper economic cooperation across a wide range of sectors. Its implementation is expected to accelerate trade flows and create new opportunities for private-sector engagement in both countries.

Vietnam is the UAE’s largest trading partner within the Association of Southeast Asian Nations (ASEAN). Bilateral non-oil trade grew by 4 per cent in 2024 to reach US$12.6 billion, before surging further in 2025 to exceed US$16.05 billion – a year-on-year increase of 27.4 per cent.

With the agreement now in force, trade volumes are forecast to expand further as improved market access and streamlined procedures take effect. The agreement is expected to enhance cooperation not only in goods trade but also in investment and high-value economic activities.

Under the deal, more than 90 per cent of Emirati exports to Vietnam will see tariffs eliminated or sharply reduced, covering 99 per cent of their total export value. In parallel, Vietnam will benefit from reduced duties on 95 per cent of its product categories exported to the UAE, also accounting for 99 per cent of current import value, a move set to significantly boost two-way trade.

The partnership is aligned with the UAE’s broader strategy to expand global trade ties and diversify its external economic relations. Vietnam’s role as a key ASEAN economy makes the agreement a strategic pillar in the UAE’s ambition to raise non-oil foreign trade to around US$1.1 trillion by 2031.

Photo: Valerii Apetroaiei / iStock