The freshly-signed Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE) will not only mark a breakthrough in bilateral economic and trade cooperation but also serve as a strong impetus to attract substantial investment from the Middle Eastern nation in such sectors as energy, industry, high technology, and supply chain development.

Minister of Industry and Trade Nguyen Hong Dien was quoted by the Vietnam News Agency as making the statement in an interview granted to the press after he and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi signed the deal in Dubai on October 28 (local time) in the witness of visiting Prime Minister Pham Minh Chinh and UAE Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum.

With 18 chapters, 15 appendices, and two bilateral letters, CEPA covers such areas as trade in goods, services-investment, rules of origin, technical barriers to trade, sanitary and phytosanitary measures, customs, trade remedies, government procurement, intellectual property, and legal and institutional affairs.

Both sides strongly commit to trade liberalization, with the UAE pledging to phase out tariffs on 99% of imports from Vietnam, and Vietnam to remove tariffs on 98.5% of imports from the UAE. The deal also includes various provisions facilitating trade and investment, aligning with digital transformation and green development trends.

According to the minister, CEPA is a comprehensive document promising to balance interests for both countries. With its preferential commitments towards balanced benefits for both sides, it will be a crucial driver to further promote bilateral trade and investment in the coming time.

Within the framework of the agreement, the UAE commits to eliminating tariffs as soon as it takes effect for many key industries and potential exports from Vietnam, Minister Dien said, affirming that this will create favorable conditions to promote Vietnamese exports to this market and other Middle Eastern countries.

Notable agricultural products such as cashew nut, pepper, and honey will have greater opportunities to penetrate the UAE and Middle Eastern markets thanks to reduced tariffs. Moreover, this region has a high demand for quality agricultural products, particularly clean and organic items as well as those with Halal certification.

CEPA is the first free trade agreement (FTA) that Vietnam has negotiated with an Arab country in the Middle East and Africa, marking a significant step in enhancing relations not only with the UAE but also the broader region, according to Minister Dien.

As the UAE is one of Vietnam's key partners in trade, investment, and labor in the region, CEPA can bring more investment opportunities to Vietnam from companies looking to make the most of and benefit from the deal.

The agreement includes a chapter exclusively on economic cooperation, in which both parties agree to implement collaboration activities in such areas as tourism, transportation, manufacturing, financial services, and energy development through various formats, including organizing conferences and seminars, exchanging delegations, experts, technicians, and academics, and sharing experience between the private sectors, Minister Dien stated, adding that this will create an opportunity for domestic businesses and experts to learn from experiences and acquire advanced technologies from the Middle Eastern country.

According to the minister, the signing of CEPA with the UAE will be an important leverage for Vietnam to seize trade and investment opportunities in the Middle East, which is home to many dynamic economies with significant economic scales but have yet to received much attention from Vietnamese businesses.

In addition, the UAE is an important trade gateway in the Middle East, with a big potential to connect with many countries in the region. Therefore, through this nation, Vietnamese products will have easier access to other large markets in the region such as Saudi Arabia, Qatar, and Kuwait, as well as some countries in North Africa and Western Asia.

Minister Dien advised enterprises to take advantage of opportunities brought about by the agreement by actively learning from its commitments as well as business practices of the UAE market in particular and the Middle East in general.

To realize its commitments, the Ministry of Industry and Trade will build a specific plan on the implementation of CEPA and popularize its content to relevant organizations and individuals, the minister said.

Source: VnEconomy