Vietnam opens up a $2 trillion market

Prime Minister Pham Minh Chinh's visit to the UAE is considered an important milestone, of decisive significance for the two sides to agree on concluding negotiations on the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) at the political level.

Prime Minister Pham Minh Chinh received the leader of the UAE Ministry of Foreign Trade (second from left) and leaders of major UAE businesses and investment funds on December 3 - Photo: NHAT BAC

Speaking to Tuoi Tre , Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, who directly participated in Prime Minister Pham Minh Chinh's delegation to attend the World Climate Action Summit (COP28) and bilateral activities in the UAE, said that CEPA is an agreement that the leaders of the two governments are very interested in. * Could you share about the prospects of concluding negotiations and moving towards signing CEPA after Prime Minister Pham Minh Chinh's working trip to the UAE?

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan

- Since the start of negotiations in June 2023, Vietnam and the UAE have gone through three negotiation sessions. The contents of the agreement include: trade in goods, trade in services, investment facilitation, rules of origin, intellectual property, digital trade, trade defense, sanitary and phytosanitary measures (SPS), technical barriers to trade, customs and trade facilitation, government procurement, legal and institutional issues, economic cooperation and small and medium enterprises. With these contents, CEPA is considered a comprehensive agreement and promises to ensure a balance of interests for both Vietnam and the UAE. To date, the two sides have made important progress, including signing the working minutes on the content package to conclude negotiations to report to superiors. The Vietnamese Prime Minister's attendance at COP28 in the UAE is considered by the UAE as an important milestone, of decisive significance for the two sides to agree to conclude negotiations at the political level. Along with reaching a common consensus, the leaders of the two sides will direct the technical level to quickly complete the remaining technical contents as well as promote domestic procedures towards signing, approving and implementing CEPA in accordance with the legal regulations of each side. * What boosts will CEPA create in trade and investment between the two countries? - CEPA is the first free trade agreement (FTA) that Vietnam has negotiated with a country in the Middle East and Africa. This is the first step in promoting relations not only with the UAE but also the region. UAE is a country with a strategic position at the gateway of trade between three continents: Asia - Europe - Africa and is one of the trade and financial centers of the world as well as the region. Thanks to its open policies and a transparent business environment, the UAE is becoming an important international transit market via sea and air routes. As a result, the UAE economy has always had a stable growth rate with a very high per capita income.

Over the years, Vietnam has always had a trade surplus with the UAE market with a value of over 4 billion USD/year. In the trade structure between the two countries, Vietnam's imports from the UAE account for about 8 - 10% of total import-export turnover, while exports from Vietnam to the UAE account for over 90%. In addition to its role as an important export market for Vietnam in the Middle East, the UAE also acts as a transit station for goods, helping to bring Vietnam's export products to other markets in the Middle East and Africa thanks to its strategic location as a leading re-export center in the region. Currently, 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, which have complementary strengths. * How do you evaluate the significance of CEPA in helping us open up the Middle East market, which has been "sleeping" and not yet opened? - CEPA is expected to be an important step in the roadmap to strengthen the comprehensive and profound political partnership between the two sides, especially trade and investment relations. Signing an FTA with a partner that is strongly developing in technology, services and finance like the UAE will also open up many opportunities to access modern technology sources, abundant capital, opportunities to learn management skills, service business, create more jobs for workers, and help stabilize social security for our country. The two sides also agreed to promote practical cooperation programs after CEPA, such as negotiating an investment protection and promotion agreement between the two countries, cooperating to have Vietnamese agricultural products certified Halal when entering the markets of Muslim countries... However, signing CEPA with the UAE will only be the first step in promoting deeper relations between Vietnam and the Gulf countries. This is a region with an economic scale of more than 2,000 billion USD and a very important strategic position, holding oil resources as well as huge investment capital. Prime Minister Pham Minh Chinh's participation in the ASEAN - Gulf Cooperation Council (GCC) Summit in Saudi Arabia at the end of October and this UAE trip has shown that Vietnam is ready to be a bridge, promoting cooperation between ASEAN and GCC countries. These are important countries in the region, a premise for Vietnam to promote relations for peace, cooperation and development, opening up opportunities in the Middle East region.

UAE wants direct flights to Vietnam

Deputy Minister of Culture, Sports and Tourism Trinh Thi Thuy said that the ministry has signed a memorandum of understanding on tourism cooperation with the UAE Ministry of Economy. The UAE side also proposed that the two sides increase direct flights, not only connecting major cities but also smaller cities in Vietnam and the UAE.

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