Vietnam-UAE Trade Agreement Cuts Tariffs on Goods
Exporters can now access reduced duty rates on 74.2% of tariff lines under the new bilateral agreement.
Updated on Oct. 26, 2026 in International Trade
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The Vietnam-UAE Comprehensive Economic Partnership Agreement took effect on February 3, 2026, launching a new trade framework between the nations. The deal immediately eliminated 74.2% of tariff lines on goods traded between the two markets.
Why it matters
The agreement aims to lower trade barriers and deepen economic ties, with the UAE committing to remove 89.2% of tariff lines within five years. This shift directly impacts operational costs for businesses exporting goods between Vietnam and the UAE.
The agreement covers bilateral trade that reached US$6.55 billion in 2025, including US$5.9 billion in Vietnamese exports. The UAE has implemented an initial 74.2% tariff line elimination, while bilateral trade reached US$3.157 billion in the first half of 2026, a 0.2% year-on-year increase.
The players
Ministry of Industry and Trade
The Vietnamese government agency responsible for managing international trade policy and the administration of origin rules.
The details
Companies operating under the pact must navigate Circular No. 24/2026/TT-BCT, which establishes the necessary rules of origin to qualify for preferential duties. Businesses must account for current logistical constraints, with container shipping costs ranging from US$2,000 to US$4,000 and transit times typically spanning one to two weeks. Compliance with these origin criteria is the primary requirement for importers and exporters to access the reduced tariff framework.
Timeline
February 3, 2026: The Vietnam-UAE CEPA took effect.
May 5, 2026: The Ministry of Industry and Trade issued Circular No. 24/2026/TT-BCT.
Market Landscape
The Vietnam-UAE CEPA establishes a new framework for bilateral commerce, mirroring broader regional efforts to diversify trade corridors. The agreement formally codifies duty-free access for a majority of goods, building on the existing US$6.55 billion trade relationship.
Exporters should verify their supply chains against the specific product categories covered by the initial 74.2% tariff reduction. Firms should also monitor the phased implementation schedule, as the UAE is set to eliminate 89.2% of tariff lines within five years.
The takeaway
The Vietnam-UAE CEPA offers significant tariff relief that alters cost structures for cross-border operations. Businesses should audit their goods against the rules of origin defined in Circular No. 24/2026/TT-BCT to ensure they capture the full benefit of the current tariff schedule.
Further reading
For broader context on global trade regulations, see International Trade.
Source note: This article includes information reported by VOV - VOV Online Newspaper.
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