Five Months into the UAE–Vietnam CEPA: Early Results, and How UAE Companies Actually Enter Vietnam

Five months into the UAE–Vietnam CEPA, discover the sectors driving early opportunities and how UAE companies are entering Vietnam through investment, partnerships, and strategic market entry.

The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and Vietnam entered into force on February 3, 2026, strengthening economic links between the Gulf and Southeast Asia. The deal represents Vietnam’s first free trade agreement with an Arab country and the UAE’s first CEPA with an ASEAN member. The agreement builds on strong bilateral trade momentum. UAE official data shows that non-oil trade increased from US$12.6 billion in 2024 to US$16.05 billion in 2025, representing 27.4 percent year-on-year growth.

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Much of the early activity has centered on companies positioning themselves for future expansion rather than announcing large scale investment commitments. The following sectors illustrate where this momentum is beginning to emerge. The institutional framework has largely been put in place, supported by Vietnam’s issuance of Decree No. 143/2026/ND-CP and Circular No. 24/2026/TT-BCT.

For businesses operating across this corridor, attention has moved from high-level trade diplomacy to commercial execution. Companies are increasingly using the agreement to optimize regional supply chains and identify new investment opportunities.

Infrastructure and logistics are driving bilateral trade

Infrastructure and logistics stand among the earliest sectors expected to benefit from the CEPA. Lower trade barriers and more efficient customs procedures increase demand for ports, logistics facilities, and regional distribution networks. Vietnam’s extensive coastline and export-oriented economy create strong opportunities for UAE infrastructure operators.

DP World maintains an active footprint in Vietnam through its SPCT port in Ho Chi Minh City and multiple logistics offices across the country. Following the CEPA’s entry into force, the company has continued exploring opportunities related to the Can Tho port system, reflecting its broader strategy to strengthen logistics connectivity in the Mekong Delta and support agricultural and manufacturing supply chains.

Concurrently, AD Ports Group entered into strategic memoranda of understanding (MoU) with Vietnamese conglomerate Vingroup. This collaboration focuses on developing local shipyard building capabilities, strengthening port connectivity and supply chain infrastructure, and modernizing seaport operations across key coastal zones.

These initiatives directly align with the CEPA trade facilitation commitments. By standardizing customs documentation and reducing selected administrative barriers, the agreement is expected to streamline border clearance and lower administrative friction for large-scale port operators and supply chain companies.

Retail agribusiness and halal sectors offer access to 100 million consumers

The reduction of tariffs and improved market access offers immediate advantages to consumer-facing businesses. Vietnam provides a market of 100 million consumers, while the UAE serves as a critical distribution gateway to the Middle East and Africa. Under the CEPA, the UAE eliminates tariffs on 99 percent of Vietnamese originating exports, and Vietnam removes tariffs on 98.5 percent of UAE originating goods.

Abu Dhabi-based retail conglomerate LuLu Group International has expanded its procurement and supply network within Vietnam. Operating through a specialized representative office in Ho Chi Minh City, the group has targeted fresh sourcing channels in the central highlands. In June 2026, LuLu Group delegations initiated direct facility tours in Dak Lak province to establish supply agreements for coffee, seafood, and processed agricultural goods. To support growing exports to the Gulf, LuLu Group organized dedicated charter cargo flights from Tan Son Nhat International Airport directly to the UAE, moving 98 tonnes of farm produce in a single operation to meet Gulf consumer demand.

Middle Eastern investment groups, such as the JMM Group, are executing parallel strategies by directing capital into high-tech Vietnamese farming operations and food production units. These investments satisfy strict Halal certification requirements and benefit from preferential tariff treatment.

Technology AI and the digital economy create new investment opportunities

The scope of the agreement extends beyond standard commodities, featuring a dedicated digital trade chapter that establishes a legal framework for electronic commerce, cross-border data management, and intellectual property protection. This framework encourages greater collaboration in next generation technology projects.

In the artificial intelligence space, Viettel AI has partnered with Abu Dhabi-based data analytics and generative AI specialist Presight. The two companies are co-developing localized generative AI models, smart city software applications, and enterprise big data analytics solutions. This partnership leverages Viettel’s domestic digital infrastructure alongside Presight’s specialized algorithmic technology.

In digital infrastructure, Vingroup signed a memorandum of understanding with Benya Technologies to assess the feasibility of developing a hyper-scale data center project in Vietnam. If implemented, the project is estimated at US$3.5 billion and would be developed in three phases with a planned capacity of 300 megawatts. This facility will provide the foundational computing infrastructure required to support expanding cloud networks and localized digital applications across Southeast Asia. Beyond traditional merchandise trade, both governments have identified digital transformation and AI as priority areas for future cooperation. Vietnam’s rapidly expanding digital economy and the UAE’s investment ambitions create opportunities that extend beyond tariff reductions.

How UAE companies are entering the Vietnam market

UAE enterprises entering the Vietnamese market use distinct regulatory pathways based on capital commitment, sector restrictions, and operational scale. The choice of entry method determines the level of investment, approval requirements, and speed of market entry.

For entities pursuing greenfield corporate integration, the dual IRC and ERC track remains mandatory. The IRC validates the legality of the foreign capital deployment, while the ERC functions as the formal company registration and tax incorporation identifier. Authorities continue expanding electronic business registration services to shorten incorporation timelines.

Key compliance considerations before entering Vietnam

The CEPA creates significant trade opportunities, but market access and preferential tariff benefits are not granted automatically. UAE companies should meet compliance requirements to avoid delays, additional duties, or penalties.

• Verify rules of origin: Exporters must strictly adhere to the operational guidelines set by Circular No. 24/2026/TT-BCT. To claim preferential tariffs, products must satisfy specific regional value content thresholds or undergo substantial transformation requirements within the exporting nation.
• Confirm product classification: Companies must ensure precise product harmonization under Decree No. 143/2026/ND-CP. Discrepancies between UAE export documentation and Vietnamese customs classifications will cause tariff preference forfeitures and customs clearance delays.
• Review sector specific approvals: The CEPA does not override national security or sector specific licensing requirements. Foreign investments in sensitive sectors like energy infrastructure, mining, or specialized banking require secondary operational permits from corresponding ministries.
• Cross-border tax structure planning: Businesses must account for local corporate regulations, including transfer pricing reporting rules, value-added tax assessments, and permanent establishment risks.

Outlook: Vietnam as the UAE’s ASEAN launchpad

Five months after entering into force, the UAE–Vietnam CEPA is beginning to influence how businesses evaluate investment opportunities, organize regional supply chains, and expand across Southeast Asia. For UAE companies, Vietnam is emerging not only as an export destination but also as a strategic base for serving the broader ASEAN market.

While it remains too early to measure its long-term economic impact, the initial signs suggest that businesses are already repositioning supply chains, expanding commercial partnerships, and exploring new investment opportunities across priority sectors. For UAE companies, the agreement offers more than preferential tariffs. It provides a platform for building a long-term presence in one of Southeast Asia’s fastest-growing economies and using Vietnam as a gateway to the broader ASEAN market.

Additionally, the Vietnamese government is actively seeking capital participation from prominent UAE investment funds to develop the Vietnam International Financial Centre in Ho Chi Minh City. Vietnam aims to leverage Abu Dhabi and Dubai’s experience in financial free-zone administration to build its own sovereign financial hub. As regulatory frameworks align over the coming months, the corridor will expand beyond simple import-export trade, evolving into a broader investment corridor covering advanced technology, manufacturing, logistics, and financial services.

How Dezan Shira & Associates can help

The UAE–Vietnam CEPA creates new opportunities across logistics, agribusiness, technology, and consumer markets, but companies must still navigate market-entry structures, rules of origin, licensing requirements, and local tax obligations. Dezan Shira & Associates can support UAE investors with market intelligence, investment structuring, company registration, tax planning, and ongoing compliance in Vietnam. Contact our advisors to assess how your business can use Vietnam as a gateway to the wider ASEAN market.

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