On October 28, 2024, in Dubai, witnessed by Prime Minister of the Socialist Republic of Vietnam Pham Minh Chinh and Vice President and Prime Minister of the United Arab Emirates (UAE) Mohammed bin Rashid Al Maktoum, Vietnamese Minister of Industry and Trade Nguyen Hong Dien and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi signed the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA).

CEPA marks Vietnam’s first free trade agreement with an Arab nation, ushering in a new era of deepened and upgraded relations between Vietnam and the UAE and, by extension, with Arab countries. Signed amidst a dynamic period of bilateral trade growth, the agreement is a testament to both nations’ commitment to enhancing trade and investment cooperation. It was achieved after just one year of negotiation with five official rounds, including three ministerial-level meetings.

The agreement comprises 18 chapters, 15 appendices, and 2 bilateral letters, covering a range of topics including trade in goods, services and investment, rules of origin, technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), customs, trade remedies, government procurement, intellectual property, and legal and institutional frameworks. Notably, the UAE has committed to the phased elimination of tariffs on 99% of Vietnam's exports, while Vietnam will eliminate tariffs on 98.5% of UAE exports. Additionally, the agreement includes provisions to facilitate trade and investment aligned with digital transformation and sustainable development trends.

The UAE is currently one of Vietnam's top trade and investment partners in the Middle East, serving as a gateway for Vietnam to access markets in the region as well as in West Asia and Africa. Given the complementary nature of both countries’ economies, CEPA provides a favorable foundation for Vietnam to boost exports of its key products to the UAE and other Middle Eastern, West Asian, and African countries. The agreement also opens doors for advanced technology, investment capital, and high-quality services from the UAE, helping Vietnam reduce production costs and enhance product competitiveness. In turn, UAE goods and services will gain market access in Vietnam and other ASEAN nations, leveraging Vietnam’s strategic positioning within the region.