(seafood.vasep.com.vn) The Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates (UAE) was signed after just over a year of negotiations. With high demand for premium seafood in the UAE, particularly for shrimp and tuna products, Vietnam’s tuna industry is expected to gain increased export opportunities and higher product value thanks to the preferential terms of the CEPA.
According to data from Vietnam Customs, the value of Vietnam's tuna exports to the UAE has steadily grown after a decline in 2020 due to the impact of the COVID-19 pandemic. Specifically, tuna export value to the UAE increased from $1.6 million in 2019 to nearly $4 million in 2023, reflecting a 139% rise over five years. Currently, Vietnam is one of the UAE’s top three tuna suppliers. However, in 2024, tuna exports to the UAE have shown a fluctuating trend, with periods of both increases and decreases. As of the end of September 2024, tuna exports to the UAE were nearly on par with the same period in 2023.
The UAE mainly imports frozen tuna meat/loins from Vietnam under HS code 0304, as well as a smaller quantity of canned tuna products. Currently, imported tuna products face a 5% import tariff. Vietnamese exporters are optimistic that once the Free Trade Agreement (FTA) between Vietnam and the UAE comes into effect, seafood import tariffs will drop to 0%, increasing the competitiveness of Vietnamese tuna products in the UAE market.
Beyond tariffs, one of the biggest challenges for exporters to the UAE is meeting the strict Halal certification requirements. Products must not contain any ingredients prohibited by Islamic law, must not come into contact with any materials or equipment that are forbidden in Islamic law during production, and must not be mixed with any ingredients that are not Halal-compliant. Vietnamese companies are actively working to address these concerns to ensure full compliance.
Currently, the UAE is an economic leader in the Arab world, ranking 17th out of 61 economies for competitiveness globally. The country’s per capita seafood consumption is higher than the global average, while agriculture accounts for less than 1% of its GDP. As a result, about 90% of the UAE’s seafood consumption is met through imports. Furthermore, the UAE’s economy is considered one of the most stable in the world.
The International Monetary Fund (IMF) forecasts that the UAE’s GDP will grow by 4% in 2024 and reach 5.1% in 2025. In contrast, the Middle East and Central Asia regions are projected to grow at only 2.4% and 3.9%, respectively, during these years. UAE stands out due to its strong non-oil economy and effective public policy.
Given these factors, the UAE is well-positioned to become a key trading partner for Vietnam’s tuna industry, offering significant growth potential in the coming years.