CEPA opens new doors for Vietnamese shrimp exports to the UAE

Although this is a relatively small market, the UAE is considered a potential one due to its growing demand for seafood, including shrimp, especially after the recent signing of the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA), which opens up new opportunities for shrimp exports to this market.

In the first nine months of this year, shrimp exports to this market reached US$7.4 million, accounting for 0.3% of the total and growing by 34% compared to the same period in 2023.

Key shrimp products exported to this market include frozen black tiger shrimp, frozen cooked PDTO whiteleg shrimp, frozen fresh EZP shrimp, frozen whole black tiger shrimp, frozen cooked whiteleg shrimp, frozen fresh PD shrimp, frozen breaded whiteleg shrimp, frozen fresh whiteleg shrimp, and frozen fresh Nobashi whiteleg shrimp.

Major shrimp exporters to the UAE include Ca Mau Seafood Processing and Service Joint Stock Company, Nam Kinh Seafood Company Limited, Minh Phu Seafood Corporation, and Minh Phu  Giang Seafood Joint Stock Company.

In the UAE market, Vietnamese shrimp face competition from India, China, and Ecuador. India dominates nearly 60-70% of the market share, while Ecuador has recently entered the market with a 15% share, whereas Vietnam's market share is only about 5-7%. India seems to have taken advantage of tariff preferences in this market to increase its shrimp export market share over the years. It is expected that with the newly signed CEPA, Vietnam is hopeful that its shrimp exports will soon enjoy the highest tariff incentives, facilitating an increased market share.

CEPA is Vietnam’s first free trade agreement with an Arab nation, opening a new era in upgraded and increasingly substantive relations between Vietnam and the UAE in particular and Arab countries in general.

Notably, both sides have made strong commitments to trade liberalization, with the UAE pledging to gradually eliminate tariffs on 99% of Vietnam's exports to the UAE. The agreement also includes many provisions to facilitate trade and investment, in line with current trends of digital transformation and green development.

With its strategic geographic location, advanced logistics system, and modern seaport infrastructure, the UAE serves as a vital gateway that can enable Vietnamese goods to access and expand into Middle Eastern, African, and European markets.

Moreover, the growing population, high income levels, rapid urbanization, increasing disposable income, and young people's preference for seafood, as well as the increasing online search for seafood products in recent years are expected to boost seafood consumption in the region.

However, the UAE remains a highly competitive market in terms of price and quality. Vietnamese enterprises need to adopt advanced science and technology in production, adjust management methods, minimize intermediate costs, in order to reduce product costs and enhance the competitiveness of their products. In addition, enterprises need to build a Halal certification system for shrimp products when exporting to this market.