Vietnamese canned tuna products on display at Hoz Mall supermarket, Lebanon (Photo: Ministry of Trade and Industry)

Trade and investment cooperation between Vietnam and the Middle East - Africa region is expanding. In late October 2024, Vietnam and the United Arab Emirates (UAE) signed the Comprehensive Economic Partnership Agreement (CEPA), marking a historic milestone in economic, trade, and investment relations between the two nations. This agreement paves the way for Vietnam to achieve deeper penetration into the Middle East - Africa market.

Under CEPA, both countries have committed to significant trade liberalization, eliminating tariffs on 99% of Vietnam’s exports to the UAE and 98.5% of UAE’s exports to Vietnam according to a phased schedule. The agreement also includes provisions to facilitate trade and investment in line with current trends in digital transformation and green development.

Strategically located at the crossroads of Asia, Europe, and Africa, the UAE is seen as a major global trade and financial hub. This makes it a vital gateway for Vietnamese products to reach key markets such as Saudi Arabia, Qatar, and Kuwait, as well as several North African and West Asian countries.

According to Truong Xuan Trung, in charge of the Vietnam Trade Office in the UAE, stated that the UAE is one of the the most open economies in the Gulf region, with a highly diversified demand for imports. Vietnam’s key export strengths, including mobile phones, electronics, consumer goods, and agro-forestry- fishery products, are well-positioned in this market.

“Although Vietnam enjoys a trade surplus with the UAE, this is a highly competitive market where importers constantly push for the lowest prices. Additionally, as an Islamic country, the UAE requires Halal certification for food, beverages, and many other products. To succeed in the UAE, Vietnamese businesses must understand Arab culture, language, and business etiquette, as well as consumer preferences and religious sensitivities. They must also meet specific packaging and advertising standards,” Trung stressed.

Halal-certified products appeal to the Middle Eastern market

Beyond the UAE, Lebanon is another promising market in the Middle East - Africa region, offering a wealth of opportunities for Vietnamese exporters. Lebanon’s economy is expected to recover soon following recent political turmoil, leading to increased demand for imports. Key Vietnamese exports to Lebanon currently include frozen and processed seafood, coffee, pepper, rice, footwear, garment accessories, and electrical machinery.

Nguyen Duy Hung from the Vietnam Trade Office in Egypt, concurrently overseeing Lebanon, highlighted that Vietnam and Lebanon have huge untapped potential for trade cooperation. The trade office is actively assisting Lebanese businesses in accessing the Vietnamese market by verifying company information, providing updates on import-export policies and investment regulations, and facilitating participation in Vietnam’s annual international trade fairs.

Wassim El Hoz, chairman of Hoz Mall supermarket chain in Tripoli, Lebanon, noted that several Vietnamese products, such as frozen pangasius fillets, shrimp dumplings, and canned tuna, are already available in his supermarket. He affirmed his willingness to import more Vietnamese products to introduce them to Lebanese consumers.

During a working session between the Vietnam Trade Office and UBSA Pharma Industries in Tripoli, the company’s CEO, Zakaria El Sayed, and Executive Director, Omar El Sayed, expressed interest in collaborating with Vietnamese pharmaceutical firms, particularly in importing vitamins and minerals for pharmaceutical production.

However, Lebanese importers also pointed out challenges in working with Vietnamese businesses, including language barriers, limited online information, and difficulties in obtaining visas to attend trade fairs in Vietnam.

According to the Ministry of Industry and Trade, Vietnam is working with relevant ministries and agencies to carry out various support programs aimed at enhancing the competitiveness of industries and businesses, particularly small and micro enterprises, in penetrating the Middle East market. Special attention is being given to ensuring that products meet Halal certification standards.

With a foundation of FTAs signed with Middle Eastern countries and regions, this will serve as a crucial catalyst for Vietnamese businesses to capitalize on trade and investment opportunities in a region with dynamic economies and large market scale, which had previously received little attention from Vietnamese enterprises.