Speaking at CEO Forum 2025 in Ho Chi Minh City on May 21, Pham Binh An, deputy director of Ho Chi Minh City Institute for Development Studies, believes the global market is becoming increasingly fragmented, signalling a shift from the formerly cohesive era of globalisation. "Vietnamese businesses have never faced as many simultaneous challenges as they do now," said An.

Garments and textiles firms are seeking opportunities to increase exports to the Middle East

In 2024 alone, the steel sector faced 32 trade defence investigations from 12 different markets, almost double the figure from the previous year.

Additionally, since October 2023, the European Union has implemented the Carbon Border Adjustment Mechanism, requiring exporters to disclose their CO2 emissions during production to access the EU market.

"In this context, expanding into new markets such as the Middle East, one that is largely immune to US tariffs, is becoming increasingly attractive to Vietnamese firms," said An.

Speaking to VIR, Vo Thi Lien Huong, CEO of Secoin, a company specialising in premium artistic tiles and roofing products, said that in the past, many local firms focused heavily on reaching the US market, sometimes overlooking other potential destinations.

"The US still accounts for over half of Secoin’s total trade volume, even though we export to more than 60 countries. However, it is no longer our top priority. We are restructuring and adopting a risk diversification strategy, and we are no longer putting all our eggs in one basket," Huong said.

"Middle East consumers are unique. They demand products that are distinctive, artistic, and highly personalised. That aligns perfectly with Secoin’s strengths," she added.

A significant development in boosting bilateral relations is the signing of the Vietnam-UAE Comprehensive Economic Partnership Agreement last October, which is expected to unlock further trade and investment opportunities between Vietnam and the broader Middle East region.

Secoin is not alone in its Middle East push. Dony Garment Co., Ltd., based in Ho Chi Minh City’s Binh Chanh district, has also maintained a strong presence in the region.

According to CEO Phạm Quang Anh, although there have been no significant trade incentives, the company has continued to receive orders from the Middle East in recent years, with export growth to the region averaging 15-20 per cent annually.

"We are becoming more aware that market diversification is vital for business survival in today’s volatile environment. That’s why Dony is proactively working with Middle East partners, offering new, competitively priced designs to expand market slice," said Anh.

However, despite its potential, the Middle East remains a complex market to navigate. One of the most significant challenges is the requirement to meet Halal standards – a strict certification system based on Islamic religious principles that governs everything from raw materials to production, packaging, and logistics.

Nguyen Ngoc Luan, director of Global Trading Link Co., Ltd., a company specialising in the production and export of agricultural coffee products, said his firm began preparations as early as 2021 but still faces major hurdles in complying with Halal requirements.

"These standards are far more stringent than others. From input materials to primary processing, every stage must meet Halal certification. And each country in the region may have its additional regulations – being certified in one doesn’t guarantee acceptance in another," said Luan.

The cost of Halal compliance is also significant. At Global Trading Link, investments in factory upgrades, new equipment, and restructuring of farming areas have increased operational costs by 20-30 per cent.

The company also had to upskill its workforce to meet these higher standards. Even so, Luan said that the company has only achieved around moderate success so far, due to the difficulties in predicting which products will truly resonate with Middle Eastern consumers.

Beyond technical requirements, geopolitical factors also pose considerable risks.

To improve export outcomes in the Middle East market, CEO Quang Anh from Dony Garment emphasised the need for thorough risk assessment and preparation.

"We hope the relevant ministries will enhance trade promotion efforts, provide more in-depth market information, and roll out tailored support policies to help Vietnamese businesses maintain and grow their presence in this market," he said.

Experts agree that the Middle East is a market with unique characteristics. Success here demands an in-depth understanding of culture, respect for religion, and strict adherence to Halal standards throughout the entire production process.

With careful preparation, the right strategies, and strong governmental support, the doors to Middle East markets could open wide. For Vietnamese firms, this region represents a promising destination full of untapped potential.