With the successive implementation of several new free trade agreements, Vietnamese goods are ushering in valuable opportunities to further tap into the Middle East and South Asia markets. However, companies must still meet certification standards, manage logistics, and comply with rules of origin to fully seize the potential for market growth.
The Import-Export Department of Vietnam's Ministry of Industry and Trade recently held a seminar in Ho Chi Minh City titled “Opportunities and Solutions for Promoting the Export of Major Products to the Middle East and South Asia Markets under the New Free Trade Agreement Framework.” Participants generally agreed that this new round of trade agreements will bring fresh development opportunities for Vietnamese exports.
Deputy Director of the Import-Export Department, Tran Thanh Hai, stated that the period from 2024 to 2026 marks a critical stage for the development of Vietnam's economic and trade relations with the Middle East and South Asia.
He said that the “Vietnam-Israel Free Trade Agreement” came into effect in November 2024 and will be formally implemented at the beginning of 2026; the “Vietnam-United Arab Emirates Comprehensive Economic Partnership Agreement” (CEPA) will come into force in February 2026, becoming the first free trade agreement signed between Vietnam and a Gulf country.
In addition, negotiations for a free trade agreement between Vietnam and the Gulf Cooperation Council (GCC), as well as upgrading the ASEAN-India Trade in Goods Agreement (AITIGA), are also actively progressing.
Tran Thanh Hai pointed out that the new agreements will make it easier for Vietnamese products to enter the UAE market and further expand into the Middle East region, which covers over 400 million people. However, companies still face challenges such as differences in consumer culture, distribution systems, and technical standards. In particular, Halal certification has become an essential requirement for many food, agricultural, and beverage products to access local markets.
Nguyen Xuan Chung, head of the Vietnam Trade Office in the UAE, said the UAE is not only Vietnam's largest trading partner in the Middle East but also a key logistics and trans-shipment hub in the region.
He mentioned that about 40% to 50% of goods imported into the UAE are re-exported to Gulf countries, the Middle East, Africa, and South Asia, making the UAE an important gateway to a market of more than 2 billion consumers.
In view of the current regional security instability and supply chain disruption risks, the Vietnam Trade Office in the UAE advises companies to assess logistics risks in advance, devise more flexible transportation plans, and appropriately adjust production and inventory strategies to mitigate potential impacts.
For the spice industry, Le Viet Anh, Secretary General of the Vietnam Pepper and Spice Association, stated that in the first five months of this year, Vietnam's pepper exports to the Middle East exceeded 19,000 tons, a year-on-year increase of nearly 25%. South Asia continues to be the largest export market for Vietnamese cinnamon, accounting for nearly 47% of total exports.
He believes that for enterprises to further mine market potential, they should strengthen deep-processing capacity, develop high value-added products, build brand advantages, and establish stable raw material supply bases to meet the ever-rising demands of importing markets.