FWC 2025: Expanding cooperation opportunities in the African and Middle Eastern markets

The export of goods and investment cooperation between Vietnam and the Middle East - Africa region are expanding more than ever, especially following the signing of the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) in late October 2024. This historic milestone marks a breakthrough in economic, trade and investment relations between the two countries, paving the way for Vietnam to further penetrate the Middle Eastern and African markets.

Accordingly, the Middle East region is estimated to have a market size of over $2 trillion. It is home to many dynamic economies with significant economic scale, yet it has not received much attention from Vietnamese businesses in the past.

By reducing tariffs and expanding cooperation and investment opportunities, CEPA will play a crucial role in effectively tapping into the potential of the Middle Eastern market. This also marks the initial step in the government's policy of multilateralization and diversification of relations, not only focusing on developing traditional markets but also prioritizing the establishment of new partnerships with other countries.

Through the CEPA agreement, Vietnam and the UAE have committed to strong trade liberalization, including a phased elimination of tariffs on 99% of Vietnam’s exports to the UAE and 98.5% of the UAE’s exports to Vietnam. CEPA also includes various provisions to facilitate trade and investment, aligning with current trends in digital transformation and green development.

In other words, through the UAE - an important trade gateway in the Middle East with strong connectivity to many countries in the region, Vietnamese products will have easier access to major markets such as Saudi Arabia, Qatar and Kuwait, as well as several countries in North Africa and West Asia.

Vietnam has also committed to opening its market to the UAE at a higher level than WTO and certain other FTAs in sectors of interest to this country, such as hotel and restaurant services; vessel leasing with crew; ship maintenance and repair services; maritime agency services, etc... These are areas where the UAE has strong expertise and is well-positioned to invest in Vietnam.

Notably, experts believe that CEPA also creates opportunities to attract investment from the UAE - a country with significant capital in sectors such as manufacturing, high-tech agriculture and infrastructure development in Vietnam.

Even before the agreement was signed, the UAE Minister had already led two delegations of the country's largest enterprises to Vietnam to explore investment opportunities, particularly in sectors such as energy, energy transition, infrastructure and logistics, and green transformation.

"In terms of logistics and supply chain development, the UAE is one of the world's largest logistics hubs. CEPA will strengthen cooperation in transportation, logistics and supply chain services, enabling Vietnamese goods to be transported more quickly and efficiently", affirmed Minister of Industry and Trade Nguyen Hong Dien.

To seize development opportunities in this high-potential market and enhance cooperation in key sectors between Vietnam and the Middle East - Africa region, including logistics, as emphasized by many leaders, the Vietnam Logistics Business Association (VLA) is actively promoting collaboration through the FIATA RAME 2025 meeting of the International Federation of Freight Forwarders Associations (FIATA) for the Africa & Middle East region.

This is also one of the follow-up activities in the promotional campaign for the FIATA World Congress 2025, which will be hosted by VLA in Vietnam this October after significant efforts.

Accordingly, Mr. Nguyen Duy Minh, Vice Chairman of FIATA Asia-Pacific (FIATA RAP) and Vice Chairman of VLA, will participate in the agenda and activities of FIATA RAME 2025, which will be held from April 30 to May 1 in Tanzania.

With the theme "Collaboration in the Green Economy: Transforming Logistics for Sustainability", the event is expected to bring together over 500 delegates, providing an opportunity to exchange knowledge and deepen understanding of sustainable logistics. At the same time, it aims to encourage cooperation and partnerships among key stakeholders, including the public sector, regulatory bodies, logistics companies, manufacturers, retailers, and technology firms.

"The future of technological innovation, digital transformation, and emerging trends is shaping the logistics industry by leveraging opportunities from the green economy. Additionally, the meetings will discuss innovative logistics solutions to minimize environmental impact and reduce carbon emissions. These topics align perfectly with the focus of the upcoming FIATA World Congress 2025 in Vietnam this October", noted Mr. Nguyen Duy Minh.

FIATA World Congress 2025 is the largest and most significant global event in the logistics industry. VLA has made great efforts to secure the hosting rights and has actively promoted the event, receiving strong support from the Vietnamese Government, ministries, and local authorities. The congress is expected to attract a record-breaking 1,200 delegates and feature an exhibition with over 150 booths from leading global enterprises.

FIATA World Congress 2025 is seen as a massive networking opportunity for multinational and cross-industry businesses, driving collaboration in green transformation and sustainable development within the global logistics sector.

Earlier, at the FIATA RAME 2024 regional meeting in Dubai, VLA leaders also met with representatives of national freight forwarding, transport, and logistics associations from the Middle East-Africa region. The discussions aimed to inform partner associations about FWC 2025, which Vietnam will host, while also introducing business development opportunities in Vietnam’s logistics sector.

The Middle East - Africa region is a high-potential import-export market for Vietnam, with key exports including coffee, tea, rice, seafood, cashews, and various spices. Therefore, VLA places great emphasis on promoting FWC 2025 to businesses and associations within the RAME network.