Vietnam - UAE cooperation will enter a new phase of development, more effective and substantive

From May 3 to 8, VicePresident Vo Thi Anh Xuan attended the 2023 Global Summit of Women in the United Arab Emirates (UAE) and paid bilateral visits to the UAE and Qatar. On this occasion, VNA reporters in the Middle East - North Africa region interviewed Vietnamese Ambassador to the UAE Nguyen Manh Tuan about the current relations between the two countries as well as prospects for expanding cooperation in the coming time.

Vice President Vo Thi Anh Xuan will attend the 2023 Global Summit of Women in the United Arab Emirates (UAE) and pay bilateral visits to the UAE and Qatar from May 3-8. Photo: Van Diep/VNA

Dear Ambassador, the relationship between Vietnam and the UAE has been developing well and has achieved many positive cooperation results over the past 30 years. Could you share with us the outstanding cooperation results in the fields of politics , diplomacy, economics, trade and investment between the two countries over the past years? Over the past 30 years, the friendship and cooperation between Vietnam and the UAE has been developing positively in many fields of politics, diplomacy , trade, investment, labor and tourism. Political trust and mutual understanding between the two countries have been constantly strengthened. Economic cooperation has always been an important pillar and a bright spot in the overall picture of bilateral cooperation. The UAE is Vietnam's largest trading partner in the Middle East - North Africa region, but there is still much room to further promote the potential of the two economies with complementary strengths. The UAE is currently Vietnam's 7th largest export market, after the US, China, Hong Kong (China), Japan, South Korea and Germany. Vietnam is the UAE's largest partner in ASEAN. In 2022, Vietnam's export turnover to the UAE increased 27.5 times since 2006, of which Vietnam had a trade surplus of 3.27 billion USD. 2023 is a special year in the relationship between the two countries, marking 30 years since Vietnam and the UAE established diplomatic relations and officially launched negotiations on the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA). This agreement is of great significance, an important milestone in the cooperative relationship between the two countries, opening a new phase of strategic cooperation in many fields. This is truly an important foundation for bringing Vietnam - UAE relations to a new level of development, contributing to expanding the export market of goods and services to the UAE, creating an important premise for Vietnam to promote trade and service relations with Middle Eastern - African countries. At the same time, the agreement also promotes UAE investment in Vietnam and expands potential to other fields such as innovation, renewable energy, investment, logistics, technology, tourism, agriculture, etc. In addition, the UAE is one of the major investors from the Gulf region in Vietnam with projects such as Hiep Phuoc Port, Halong Star Hotel and a number of tourism projects in Da Nang, etc. with a total committed investment capital of approximately 4 billion USD. In addition, the community of citizens of the two countries in each other's country is playing a very good role as a bridge for the friendly relations between the two peoples. There are currently about 3,500 Vietnamese workers working legally in the UAE, mainly in the fields of construction, mechanics, shipbuilding, services... How does the Ambassador assess the prospects for cooperation between Vietnam and the UAE in various fields, especially in areas where both sides have strengths? Which areas will be the focus of cooperation between the two countries in the coming time, Ambassador? In the coming time, many areas of cooperation between Vietnam and the UAE have many prospects, such as cooperation in the fields of trade and investment. These are two areas with many prospects, especially after Vietnam and the UAE started negotiating the CEPA. This agreement, when signed, will be a legal framework to promote trade and investment development. Next is cooperation in the field of energy. This is also an area that the two countries are interested in and has prospects for cooperation, especially since the UAE has strengths in the fields of new energy, renewable energy, oil and gas exploitation and processing, etc. Therefore, this is a promising area of ​​cooperation. Cooperation in agriculture is also a priority. This is an area in which Vietnam has strengths and prospects for cooperation, and Vietnam can ensure food security for the UAE. Next is cooperation in the field of infrastructure and logistics, an area in which the UAE has strengths in finance and logistics and Vietnam has great demand. Both Vietnam and the UAE have prospects for promoting cooperation in the field of tourism. However, the tourism products of the two countries are different, so they can complement each other. Ambassador, what are the difficulties, challenges, advantages and opportunities for Vietnamese goods to reach UAE consumers?

Earlier this year, the UAE President announced five priorities for the country, including the priority of expanding international economic partnerships. That will open up many opportunities for exporting Vietnamese goods to the UAE. It is forecasted that this year, the number of tourists to the UAE will increase sharply, domestic consumption demand will also increase, and import and export and re-export are forecast to continue to increase. Therefore, the demand for food, beverages, agricultural products, processed seafood, textiles, footwear, phones, electronics, machinery and equipment, etc. is also forecast to increase sharply. In addition, the UAE is a special market, an open market, with almost no trade barriers because production cannot meet consumption. The UAE is almost entirely dependent on imports to serve domestic demand and re-export, which will open up opportunities for Vietnamese goods. However, difficulties and challenges also go hand in hand with advantages. First of all, the world economy is currently facing many challenges and difficulties, so the demand for exporting goods of Vietnam will be difficult, including the UAE. This country both imports for domestic consumption and re-exports to third countries. Although the UAE is an open market, completely dependent on imports of most products to serve domestic needs, it is also a very competitive market. Most exporters from countries around the world want to export goods to the UAE. Therefore, Vietnamese goods will face some difficulties and challenges such as: (1) Fierce competition in selling prices because Vietnamese goods must compete directly with goods from countries that enjoy import tax exemption policies because these countries have signed CEPA with the UAE, with the same range of Vietnamese export products such as fruits, food and foodstuffs; (2) The cost of transporting goods of Vietnam is higher than that of other countries due to geographical distance and freight rates; (3) Most Vietnamese food and beverage products do not have Halal certification; (4) Vietnamese export enterprises have not yet grasped the needs, culture and consumer tastes of Muslims and have not practiced doing business here (the retail system is mainly dominated by Indians and South Asians). I firmly believe that with the trust, consensus and efforts of both sides, along with potential and strengths that can complement each other, the Vietnam - UAE cooperation relationship will enter a new stage of development, more effective and substantive in all areas. Sincerely thank you, Ambassador!

Nguyen Truong (Vietnam News Agency)