CEPA Facilitates UAE Service Providers’ Access to Various Sectors in Vietnam
In a significant move to enhance bilateral relations, the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and Vietnam is set to open new avenues for UAE service providers across multiple sectors in Vietnam, including business, finance, and tourism. This agreement comes on the heels of a high-profile meeting between His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, and Pham Minh Chinh, Prime Minister of Vietnam, during the latter’s official visit to the UAE.
Advancements in Bilateral Relations
During their meeting at Zabeel Palace in Dubai, H.H. Sheikh Mohammed warmly welcomed Prime Minister Chinh and his delegation, expressing gratitude for the remarkable advancements in UAE-Vietnam relations. He highlighted the shared commitment of both nations to enhance cooperation that aligns with their mutual development objectives. The UAE has recognized Vietnam as its largest trading partner among ASEAN countries, a testament to the longstanding ties established since 1993.
Signing of the Economic Partnership Agreement
A pivotal moment in the meeting was the signing of the Comprehensive Economic Partnership Agreement. H.H. Sheikh Mohammed noted Vietnam’s status as one of the fastest-growing economies in Asia and emphasized the UAE’s pride in being its largest regional trade partner. The non-oil trade between the two nations has seen a staggering thirty-eight percent increase between 2022 and 2023, with UAE companies such as DP World, Mubadala, and Borouge making significant investments in Vietnam. In 2023, non-oil trade exceeded $12 billion, underscoring the robust economic ties between the two countries.
Exploring New Avenues for Collaboration
The leaders discussed strategies to strengthen their bilateral partnership by exploring new avenues for collaboration in various sectors, including tourism, investment, industry, and technology. They emphasized the importance of enhancing trade and tourism exchanges, improving logistics capabilities, and fostering collaboration between the private sectors of both countries. This forward-thinking approach aims to create innovative investment opportunities that will benefit both nations.
Accelerating Economic Cooperation
To accelerate economic cooperation, the discussions focused on increasing mutual investments and expanding opportunities for the investment communities in both nations. This includes nurturing new business partnerships and bolstering investor support through flexible regulations and reliable infrastructure. The goal is to create an environment conducive to growth and innovation, ultimately benefiting both the UAE and Vietnam.
Commitment to Friendship and Cooperation
Prime Minister Chinh expressed pride in the flourishing friendship and cooperation between the two countries. He emphasized the immense potential for further collaboration and reiterated their mutual commitment to enhancing the positive impact of their relationship on the development pathways of both nations. Vietnam’s commitment to strengthening ties aligns with its broader efforts for international integration and cooperation with friendly nations.
Discussion of Regional Developments
The meeting also addressed regional and international developments, particularly recent events in the Middle East. Both leaders stressed the importance of collective international efforts to promote peace and foster a cooperative environment for development, recognizing that stability is crucial for economic growth.
Attendees of the Meeting
The meeting was attended by several dignitaries, including His Highness Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Second Deputy Ruler of Dubai; His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Airports and Chief Executive of Emirates Airline and Group; and His Highness Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum, Chairman of the Dubai Ports and Borders Security Council, along with various ministers and senior officials.
Signing of the Comprehensive Economic Partnership Agreement
The CEPA was signed by Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and His Excellency Nguyen Hong Dien, Minister of Industry and Trade, on behalf of Vietnam. This agreement is expected to usher in a new era of cooperation, enhancing access to global markets, simplifying customs procedures, and promoting fair trade competition.
Facilitating Access to Various Sectors
The CEPA aims to facilitate access for UAE service providers across various sectors in Vietnam, including business and communications, engineering, financial services, healthcare, tourism, and transportation. This initiative is designed to energize bilateral trade momentum, with Vietnam being the fastest-growing economy in the ASEAN region and the UAE’s largest trading partner there. Non-oil trade between the two countries surpassed $6.06 billion in the first half of 2024, marking a nine percent increase from the same period in 2023. The UAE’s economic strategy heavily relies on foreign trade, with non-oil trade reaching a record AED3.5 trillion in 2023. The comprehensive economic partnership with Vietnam will bolster the UAE’s efforts to achieve its 2031 non-oil trade target of AED4 trillion ($1.1 trillion).
Key MoUs and Agreements
During the meeting, several agreements and memorandums of understanding (MoUs) were announced to enhance cooperation in key sectors such as the economy, investment, trade, government, education, scientific research, and logistics. Notably, one MoU focused on investment cooperation in innovation and financial centers between the UAE Ministry of Investment and Vietnam’s Ministry of Investment and Planning, while another aimed at exchanging expertise in government excellence between the UAE Cabinet General Secretariat and Vietnam’s Ministry of Internal Affairs.
Further Agreements in Education and Trade
Additional agreements included cooperation in higher education and scientific research between the UAE Ministry of Higher Education and Scientific Research and Vietnam’s Ministry of Education and Training, an MoU between the Central Bank of the UAE and the State Bank of Vietnam, a partnership agreement between Abu Dhabi Ports and the General Department of Vietnam Customs, and a cooperation agreement between the Abu Dhabi Chamber of Commerce and Industry and the Vietnam Chamber of Commerce and Industry.
In conclusion, the CEPA marks a significant milestone in UAE-Vietnam relations, paving the way for enhanced cooperation across various sectors. As both nations continue to explore new avenues for collaboration, the potential for mutual growth and development remains immense, promising a bright future for their partnership.