According to the General Department of Customs, in May 2024, Vietnam's pangasius export turnover to the UAE reached more than 2 million USD, an increase of 40% over the same period.
According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the United Arab Emirates (UAE) is one of the largest consumers of Vietnamese pangasius. Vietnam is also the largest supplier of pangasius in this market, accounting for 40-50% of the market share in the UAE. Pangasius exports to this West Asian country continue to receive strong reception and growth, even though the CEPA trade agreement - the first free trade agreement that Vietnam has negotiated with a country in the Middle East and Africa - has not been signed.
VASEP cited data from General Department of Customs said, May 2024, turnover Pangasius export Vietnam's exports to the UAE reached over 2 million USD, up 40% over the same period last year. Cumulative exports of pangasius in the first 5 months of this year to this market reached over 11 million USD, up 47% over the same period last year.
The main product of the pangasius industry exported to the UAE is still frozen pangasius fillet products (HS code 03046200). By the end of May 2024, the export of this product to the UAE reached about 6,000 tons, worth about 14 million USD, up 22% in volume and 61% in value over the same period last year, accounting for 90% of the proportion. Following that is frozen and packaged pangasius products (HS code 03032400) with an export turnover of about 1.3 million USD in the first 5 months of this year, up 84% over the same period, accounting for 9% of the proportion.
VASEP assessed that the UAE has a series of suitable factors to become one of Vietnam's important trade partners such as: Being the leading economy among Arab countries and ranking 17th out of 61 highly competitive economies in the world.
In addition, the average seafood consumption per capita in the UAE is higher than the world average, the agricultural economic structure accounts for less than 1%. Therefore, up to 90% of the seafood consumed in this country comes from imports, young people love proteins from seafood in the context of the UAE's economy continuing to expand,...
By the end of 2023, Vietnam and the UAE have basically completed most of the negotiations on the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA), which is expected to be signed in 2024.
The CEPA Agreement not only helps to directly export goods to the UAE, but also helps Vietnamese goods penetrate the Middle East market through the "UAE gateway" - a key market in the Middle East, a hub for countries such as Africa, Latin America, Europe and Asia in general, thanks to good seaport infrastructure, along with developed aviation, easily connecting to markets.
The UAE is also one of the fiercely competitive markets in terms of both price and quality, and this is also the biggest challenge for Vietnamese businesses.
According to VASEP, Vietnam has to compete directly with some countries that have signed FTAs with the UAE such as India, Indonesia, Israel and Türkiye... because businesses of these countries have enjoyed incentives when exporting goods to the UAE, so they have a competitive advantage over Vietnamese export businesses.
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