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Vietnam-UAE CEPA: Potential impact on India's textile industry

21 Aug '24
7 min read
Vietnam-UAE CEPA: Potential impact on India's textile industry
Vietnam-UAE CEPA: Potential impact on India's textile industry

Insights

  • Vietnam has emerged as a key trade partner for UAE since economic reforms began in 1986, with a diverse export profile, including textiles and agricultural products.
  • Both countries are negotiating a CEPA, expected in ****.
  • Meanwhile, India, a strong competitor in the UAE market, must remain vigilant as the potential CEPA could challenge India's dominance.

Vietnam’s exports to the UAE are notably diverse, encompassing a wide range of products including electronics such as mobile phones, machinery, equipment, computers, and components. Additionally, Vietnam exports footwear, textiles, vehicles and parts, as well as agricultural products like cashews, pepper, fruit, and rice. This diverse export profile illustrates Vietnam’s strategic positioning in supplying various sectors of the UAE’s economy.

In terms of trade balance, Vietnam has consistently enjoyed a significant surplus with the UAE, exceeding $* billion annually in ****. This trade surplus underscores the strong export performance of Vietnamese products and reflects the UAE’s substantial import demand from Vietnam.

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