UAE, Vietnam sign comprehensive economic partnership agreement

The United Arab Emirates and Vietnam have signed a comprehensive economic partnership agreement (CEPA), marking the first free-trade agreement Vietnam has established with a Middle East country.

Under the CEPA, the UAE has committed to phasing out tariffs on 99% of Vietnam's exports, and Hanoi has pledged to remove tariffs on 98.5% of the UAE's exports .

The agreement was signed during an official visit by Pham Minh Chinh, Prime Minister of Vietnam to the UAE, where he also met with UAE President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi, according to WAM. Following a year of negotiations, the agreement reflects a substantial step in the UAE's strategy to strengthen its global economic partnerships, the ministry said in a statement.

UAE ministers, officials, and top executives from local entities highlighted the importance of the CEPA with Vietnam, recognizing Vietnam as a strategic partner and one of Asia's leading economic powers.

According to Reuters, the deal would open the way for exporters and investors in agriculture, energy, technology and logistics as the country looked to boost trade with the Middle East.

Trade turnover between the UAE and Vietnam reached approximately $4.7 billion in 2023, marking a 6% increase over the previous year, according to WAM.