The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates and Vietnam has officially come into force, marking a major milestone in strengthening bilateral trade and investment relations between the two countries.

The agreement aims to eliminate trade barriers, reduce tariffs, and establish a comprehensive framework to enhance economic cooperation across key sectors, including renewable energy, technology, and agriculture.

Vietnam, an export-driven economy, is currently the UAE’s largest trading partner in the ASEAN region. Bilateral non-oil trade between the two nations rose by 4 percent in 2024 to reach US$12.6 billion. In 2025, trade volumes surged to over US$16.05 billion, reflecting a strong year-on-year growth of 27.4 percent.

With the CEPA now in effect, bilateral trade is expected to expand further, driven by improved market access, reduced customs duties, and increased opportunities for private sector collaboration.

Commenting on the development, Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, said the agreement represents a significant step forward in strengthening the economic partnership between the two countries. He noted that the CEPA is set to open new avenues for collaboration and sustainable growth, while unlocking investment opportunities in strategic sectors such as renewable energy, advanced technology, and agriculture.

Under the agreement, tariffs will be eliminated or substantially reduced on more than 90 percent of UAE exports to Vietnam, accounting for 99 percent of the total export value. In return, Vietnam will benefit from reduced tariffs on 95 percent of its product categories exported to the UAE, covering 99 percent of the total value of Vietnamese imports.

The UAE–Vietnam CEPA forms a key pillar of the UAE’s broader foreign trade strategy, supporting its objective of achieving AED 4 trillion (approximately US$1.1 trillion) in non-oil trade by 2031. Vietnam’s strategic position within the ASEAN region further enhances the agreement’s significance.

Since the launch of the CEPA programme in September 2021, the UAE has concluded trade agreements with more than 30 countries across Asia, Africa, Europe, and the Americas. Of these, 15 agreements are currently in force, strengthening trade ties and providing UAE businesses with enhanced access to markets representing nearly one-quarter of the global population.