ABU DHABI (WAM)

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Vietnam has officially come into force, representing a significant expansion and strengthening in trade and investment relations between the two nations.

The agreement will eliminate barriers to trade, reduce tariffs, and establish a robust framework for enhanced economic cooperation across multiple sectors.

Vietnam, an export-led economy, is the UAE’s largest trading partner in the ASEAN region with bilateral non-oil trade increasing 4 percent in 2024 to reach $12.6 billion.

In 2025, trade surpassed $16.05 billion, representing a significant 27.4 percent increase compared to 2024.

With the CEPA now officially in force, bilateral trade is projected to further increase, with the benefits of the agreement delivering improved market access and opportunities for increased private sector collaboration.

Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, commented, “The implementation of the UAE-Vietnam CEPA represents a significant step forward in our economic partnership, opening new avenues for collaboration and sustainable growth. This agreement is not only set to strengthen trade relations but also to unlock investment opportunities in vital sectors such as renewable energy, technology, and agriculture.”

The CEPA will eliminate or significantly reduce tariffs on over 90 percent of UAE exports to Vietnam, covering 99 percent of the total value of these exports.

Similarly, Vietnam, known for its dynamic high-growth economy, will benefit from reduced tariffs on 95 percent of its product categories, covering 99 percent of the total value of these imported to the UAE originated Vietnam, significantly enhancing trade flows and economic engagement.

As part of the UAE's broader foreign trade agenda and ongoing commitment to expanding its global trade network, the CEPA with Vietnam, a key player in the ASEAN region, is integral to achieving the UAE’s target of Dh4 trillion (approximately $1.1 trillion) in non-oil trade by 2031.

Since its launch in September 2021, the CEPA programme has successfully concluded agreements with over 30 countries in Asia, Africa, Europe and the Americas, with 15 now in force, enhancing trade relations and access for UAE businesses to markets that comprise nearly a quarter of the world’s population.