UAE - Largest Market for Vietnamese Exports in the Middle East

The United Arab Emirates (UAE) is Vietnam’s most important partner in the Middle East. Vietnam also can be a gateway for the UAE to Southeast Asia. The political relationship between Vietnam and the UAE has been developed well, providing a firm foundation for diversified cooperation and relations between the two countries. Vietnam Business Forum interviewed UAE Ambassador Ahmed Ali Almualla about the fine relations between UAE and Vietnam over the past time and prospects for cooperation between the two countries. Luong Tuan reports.

 

We are delighted at the fine relationship between UAE and Vietnam, further developed during the last period. The two countries have continued an effective cooperation in politics, trade, investment, culture, education, and labour, as well as reinforced high-ranking visits and friendly exchanges. Additionally, with the success of the first meeting of the UAE-Vietnam Joint Committee for Cooperation, many investment and trade promotion delegations have travelled between the two countries over the last time. As a result, a number of Agreements and Memorandum of Understanding have been signed. On the other hand, both UAE and Vietnam always stand to support and coordinate with each other in international forums.

 

It is our pleasure that bilateral trade volume has rapidly increased from US$730 million in 2010 (up 46 percent compared with 2009), and is estimated to reach over US$1.2 billion by the end 2011 (up 64 percent compared with 2010), making the UAE the largest market for Vietnamese exports in the Middle East. So far, the UAE has invested extensively in Vietnam with US$3 billion through many projects. UAE companies also accept a large number of employees of Vietnam who play a major role in the development of the UAE and look forward to increasing the number in the coming years.

 

The UAE is the second biggest economy in the Middle East. With its strategic location, comprehensive infrastructure, more than 30 state-of-the-art free zones through the country and open economy policies to attract foreign investment, the UAE plays an important role in the region’s business and economic affairs.

Besides Abu Dhabi, Dubai is not only a major consumption market, but also an important re-export centre for other countries in the region as well as the world’s third biggest re-export centre, just behind Hong Kong and Singapore. In 2010, Dubai’s re-export value increased 25 percent up to US$50 billion of the total non-oil trade turnover of US$205 billion.

 

Here's why: Dubai handles 75 per cent of total imports of the UAE; Dubai handles 82 per cent of non-oil exports of the UAE; and Dubai accounts for 78 per cent of total re-exports of the UAE to other Arab countries and the MENA markets.

 

Every year, a large number of international exhibitions and trade fairs are held in Dubai which are good opportunities and platforms for Vietnamese businesses to look for UAE partners. We look forward to the future participation of more Vietnamese companies and businesses in the fairs and exhibitions such as Gulfood, Index, Big 5, Dubai Seafood, Autumn Fairs, Garment & Textile Exhibition, Annual Festival for Global Village, Dubai Rice, etc. Some useful information can be found on Dubai's World Trade Centre website at www.dwtc.com

 

Well, as I mentioned above, Dubai has strategic location and favourable conditions. You know, the fact that more than 25 percent of the world’s top 500 companies currently base their regional headquarters and trade centres in the Emirates is a testament to the important role played by our country in the region’s business and economic affairs. I think a Vietnamese trade centre opened in Dubai would be in line with Vietnam’s export strategy to 2020 with a view to promote and distribute Vietnamese products.

 

Once the centre takes shape, it will be a venue to showcase Vietnamese products and organise workshops and seminars, through which Vietnamese companies can sign big export contracts. The centre is located near Dubai seaport where large volumes of goods shipped to the Middle East. As you know, the Middle East is a promising market, especially for agricultural products, since there is a population of more than 210 million and 60 percent of the food needs are imported.

 

In my opinion, the centre would showcase agro-forestry and fisheries products and furniture, textile and garments, products prevalent in Vietnam and for which the UAE has high demand. Also, the centre would create a network to link consumers just as Thailand’s and China’s centres have effectively done.

 

Besides official cooperation mechanisms such as activities of the joint committee and bilateral cooperation ties between governmental agencies, I think the activities of trade promotion agencies and private sectors of both sides should be strengthened with a view to activate the agreed minutes after the first session of the joint committee for cooperation between Vietnam-UAE. 

 

I am pleased to know that many companies from UAE come to participate in trade fairs and exhibitions held in Hanoi like Vietnam Expo 2011, as well as Vietnam companies attending international trade fairs in the UAE over the last time. After that, many business contracts and deals were signed between with the private companies of both sides.

 

Another channel to boost trade relations between the two countries may be useful such as seminars and forums held with the participation of businesses from Vietnam and UAE. I am pleased to let you know that, last year, the UAE Embassy in coordination with VCCI (Vietnam Chamber of Commerce and Industry) successfully organised seminars on UAE-Vietnam Trade and Investment Cooperation Opportunities in three big cities as Can Tho, Da Lat and Nha Trang. The numbers of delegates to the three seminars were estimated about 300 people from local governments, relevant governmental agencies and businesses from various sectors.

 

As a result, many delegates highly appreciated the initiative by the Embassy and VCCI in co-organising the meaningful event, in the context of Vietnam strengthening its cooperation with other countries in the Middle East. Hopefully, more seminars and forums like this will be held in both countries to boost trade and investment relations in the coming time.

 

During three years in Vietnam, I have had the great honour of being involved in UAE charity programs and projects that aid poor people and children in Vietnam. Over US$1 million was donated by the UAE through the Embassy of UAE in Hanoi for needy people in Vietnam's southern areas.

 

Notably, UAE charity organisations, such as the UAE Red Crescent Society, the Dar Al Ber Society, Sheikh Khalifah Bin Zayed Al Nahyan Foundation - Abu Dhabi, Borouge and individuals have funded the purchase of medical equipment and ambulances, the construction of clinics and houses, as well as electric pumps, schools, mosques and bridges for people in An Giang and Tay Ninh provinces as well as Ho Chi Minh City.

 

So far, all construction works have been finished and put into operation. It is strongly believed that the valuable donations from UAE charity organizations, investors and individuals have brought about many changes and much happiness to local residents.