Vietnam and the United Arab Emirates have entered into a comprehensive economic partnership agreement (CEPA), marking Vietnam's first free-trade agreement with a Middle Eastern nation, according to a statement from Vietnam’s trade ministry on Tuesday.

The agreement, signed by Vietnamese Prime Minister Pham Minh Chinh in Dubai on Monday, comes after a year of negotiations, the ministry stated.

The trade ministry highlighted that the agreement would create new opportunities for exporters and investors in sectors such as agriculture, energy, and technology, as Vietnam aims to expand trade with the Middle East, Reuters news agency reports.

As part of the CEPA, the UAE has agreed to gradually eliminate tariffs on 99% of Vietnamese exports, while Vietnam has committed to lifting tariffs on 98.5% of UAE exports.

Commenting on the milestone, Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai said: “Vietnam is among Asia’s fastest-growing economies, and we are their largest regional trade partner.”

"Our national companies, including DP World, Mubadala, and Borouge, have made substantial investments in Vietnam. Our non-oil trade with the country surpassed $12 billion in 2023,” he went on to say.

Furthermore, the ministry reported that trade turnover between Vietnam and the UAE reached approximately $4.7 billion last year, reflecting a 6% increase from 2022.

Whereas non-oil trade between Vietnam and the UAE reached $6.06 billion in the first half of this year, a 9% rise compared to the same time in 2023.

In addition, numerous agreements and memorandums of understanding were announced during the talks to boost cooperation in various fields, including the economy, investment, trade, government, education, scientific research and logistics.