A systematic strategy is needed for Vietnamese goods to have a great opportunity to break through in the UAE.

With a favorable investment environment and open policies, the United Arab Emirates (UAE) is becoming a “rendezvous” for Vietnamese businesses. When the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA) comes into effect, combined with preparations for product quality, international standards and a methodical strategy, Vietnamese goods will have a great opportunity to break through in the UAE.

Potential market, open policy

Trade and investment between Vietnam and the UAE are witnessing strong progress. In 2024, the total two-way import-export turnover will reach 6.5 billion USD, an increase of nearly 38% compared to 2023. Of which, Vietnam's exports to the UAE will reach 5.6 billion USD, an increase of 40%. By the end of the first quarter of 2025, the two-way trade turnover will have reached 1.6 billion USD, of which exports account for 1.5 billion USD.

At the workshop "Promoting trade and investment cooperation in the UAE - Middle East market" organized by the Trade Promotion Agency ( Ministry of Industry and Trade ), Mr. Truong Xuan Trung, First Secretary, in charge of the Vietnam Trade Office in the UAE, affirmed: UAE is a strategic market, both an export "gateway" to the Middle East, conveniently connected to Europe, Africa, South Asia and also a potential source of investment capital for Vietnam.

This country has invested heavily in infrastructure, owning the most modern seaports and airports in the world, helping to transport and distribute goods easily and effectively. The UAE is considered one of the countries with the most stable political and social environment in the region, creating solid confidence for foreign investors.

Speakers shared at the Workshop "Promoting trade and investment cooperation in the UAE - Middle East market"

In particular, the UAE government focuses on economic diversification, reducing dependence on oil, thereby expanding the areas of FDI attraction: technology, fintech, real estate, healthcare, renewable energy, logistics and e-commerce. Currently, the UAE has 55 free zones (47 commercial zones, 6 economic zones, 2 financial zones: DIFC and ADGM) with a high credit system, creating outstanding competitive advantages.

Mr. Elisa Alhammadi, Deputy Ambassador of the UAE to Vietnam, said that in 2024, the total foreign trade turnover of the UAE will reach 1,400 billion USD, of which bilateral trade with Vietnam will account for 12 billion USD, an increase of 50% compared to 2023. This figure promises to increase when the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) officially takes effect.

Quick procedures, outstanding incentives

Vietnamese Trade Counselor in the UAE Truong Xuan Trung particularly emphasized that the country's investment policies are also very open. If before 2023, foreign investors were only allowed to own 49% of capital, now this regulation has been abolished, such as investors are allowed to own 100% of foreign capital. At the same time, investors are allowed to transfer all profits and capital abroad without restrictions.

In particular, the Visa and Residence Program is also a plus point of this country. "More than 10 years ago, when I came to Dubai, I did not think I would stay here for 2 years, but now I have been back for 11 years," said Mr. Raymond Chin, Vice President of Business DAMAC Properties (Dubai) - a real estate investor from Singapore.

According to Mr. Raymond Chin: “What investors care about most is safety and health care. In the UAE, if you forget your wallet for an hour, it will still be there when you come back. In addition, real estate prices in Dubai are much cheaper than in Singapore. With the amount of money to buy an apartment in Singapore, you can buy three apartments in Dubai and the rental yield is also very high.”

UAE's investment policy is considered very open.

According to Mr. Trung, just establishing a business is enough to get a 1-year visa. The procedure is very simple, supported by many government programs: business incubation and acceleration, financial support, participation in public procurement bidding, and residency incentives.

Mr. Pham Minh Duc, Vice President of IMCE Global, recalled: “During a business trip in August, it only took a Vietnamese enterprise 20 minutes to complete the company establishment procedures. The registration fee is about 1,000 USD, and the virtual office rental fee is 1,500 USD. Meanwhile, the profits are almost tax-free.”

In fact, the UAE imposes only 5% import tax (goods imported into free trade zones and economic zones are also exempt), no personal income tax, no dividend tax. Corporate tax is as low as 9% for income over 102,000 USD. This is an outstanding competitive advantage for global investors.

Great opportunities from the CEPA Agreement

In terms of trade cooperation, the UAE is one of the countries that has signed the most free trade agreements (FTAs) in the region, including the GCC, FTA with Singapore, and 27 CEPA agreements with many countries, including Vietnam.

Mr. Truong Xuan Trung emphasized: UAE is an open market, with almost no protectionist policies and few trade barriers. Vietnamese enterprises only need to pay attention to technical requirements such as Halal certification, standards of the UAE Authority for Standardization and Metrology (ESMA) or UAE.S certification for some products.

Agricultural products, seafood, garments, electronics, and household appliances have golden opportunities to access the UAE market.

The Vietnam-UAE CEPA agreement is expected to eliminate tariffs on 99% of exports from Vietnam, while Vietnam will remove tariffs on 98.5% of goods from the UAE. According to Mr. Nguyen Tat Thinh, Director of the Asia-Pacific Economic Development Research Institute, this is a golden opportunity for Vietnamese goods, especially agricultural products, seafood, garments, electronics, and household appliances.

“In the current context, if Vietnamese enterprises take advantage of opportunities from CEPA and meet Halal standards, they can completely enhance their presence in the UAE and expand throughout the Middle East,” the Vietnamese Trade Counselor in the UAE emphasized.

With a favorable investment environment, quick procedures, attractive tax incentives and open policies, the UAE is becoming a "meeting place" for Vietnamese businesses. When CEPA comes into effect, combined with preparations for product quality, international standards and a methodical strategy, Vietnamese goods will have a great opportunity to break through in the UAE and spread to the entire Middle East region, one of the most dynamic markets in the world.

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Tags: trade promotion, CEPA agreement, trade cooperation

Source: https://moit.gov.vn/tin-tuc/xuc-tien-thuong-mai/nhieu-co-hoi-cho-doanh-nghiep-viet-dau-tu-tai-uae.html