Saturday, July 24, 2021

Vietnam, UAE diversify cooperation potential

(VEN) – The United Arab Emirates (UAE) is a leading Vietnamese trade partner in the Middle East and Africa. It offers a gateway for Vietnamese goods to access these markets, while Vietnam facilitates the entry of UAE products into the Southeast Asian market.

Trade opportunities

Cooperation between Vietnam and the UAE has been strengthened in a wide range of fields. The UAE has become the largest trading partner and the top export market of Vietnam in the Middle East and Africa. The UAE’s annual trade with Vietnam (including re-exports) accounts for about 30 percent of total value of imports and exports between the UAE and the 10-nation ASEAN bloc.

vietnam uae diversify cooperation potential
The UAE Ambassador to Vietnam (left, standing) attends the signing ceremony of a cooperation deal between the Vietnamese and UAE business communities

The UAE considers Vietnam an attractive investment destination, with its investments concentrated in logistics, seaports, aviation, tourism, hotels, oil and gas. Vietnam’s efforts to attract investment in infrastructure development, agriculture, support industries, mining and construction create opportunities for foreign businesses, including those from the UAE.

Investors and businesses of the two countries have contributed significantly to bilateral trade growth as well as the improved quality of socioeconomic development following sound reforms in both countries. There are opportunities for Vietnam and the UAE to further their trade, investment and cooperation.

Upgrading cooperation

The Ministry of Industry and Trade (MoIT) has coordinated with other ministries, localities and businesses to promote economic cooperation, trade and investment between the two countries, as well as to prepare for the fifth meeting of the Vietnam-UAE Intergovernmental Committee scheduled for the second half of 2021.

“Vietnam believes the UAE government will continue creating favorable conditions for businesses to promote investment and trade, especially trade in Vietnamese food and farm products. The MoIT hopes the two sides will work together to expand cooperation in new areas,” Deputy Minister of Industry and Trade Cao Quoc Hung said at his meeting with the UAE Ambassador to Vietnam.

UAE data show that bilateral trade reached US$10.3 billion in 2017, US$8.19 billion in 2018, and US$8.16 billion in 2019. Vietnam has recorded a trade surplus with the UAE (US$9.4 billion in 2017; US$7.3 billion in 2018, and US$6.9 billion in 2019).

In 2020, due to the impact of Covid-19, bilateral trade reached US$4.3 billion. Major Vietnamese exports to the UAE include farm products, seafood, fresh fruit, processed food, construction materials, mobile phones, machinery, equipment and spare parts, home appliances, textiles and garments, footwear, and wood products. With growing purchasing power of more than nine million consumers, the UAE is a potential market for Vietnamese exports.

The UAE offers a gateway for trade between Asia, Europe and Africa. It is also a financial and trade center of the region and serves as an entrepot facilitating Vietnamese goods’ access to other markets worldwide.

Tue Minh

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