Exploiting Middle East and South Asia markets

Agricultural products are among Dong Nai's commodities with high export potential. Photo: Vuong The

Exploiting export potential in these regions through free trade agreements (FTAs), proactively enhancing capabilities, and meeting market requirements are key solutions for enterprises to increase exports.

Opportunities in trillion-dollar market

According to Tran Thanh Hai, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade, the 2024-2026 period marks an important shift in trade relations between Vietnam and these regions. The implementation of the Free Trade Agreement between Vietnam and Israel (VIFTA), together with the Vietnam–UAE Comprehensive Economic Partnership Agreement (VN–UAE CEPA), which took effect on February 3, 2026, creates more favorable conditions for Vietnamese products to expand their market presence in the Middle East. In addition, negotiations on the Vietnam-GCC FTA and the review to upgrade the ASEAN-India Trade in Goods Agreement (AITIGA) continue to advance.

With a population of more than 400 million and a combined GDP exceeding US$4 trillion, the Middle East, particularly the Gulf Co-operation Council (GCC), which comprises six countries – Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain – offers numerous opportunities for Vietnamese enterprises. This region has high income levels and substantial import demand, with around 80–90% of its food demand met through imports, creating opportunities for Vietnam’s key export products such as agricultural products, seafood, and processed foods. In addition, growing demand for Halal products presents another promising direction for Vietnamese enterprises.

Similarly, according to Vu Minh Tam, Head of the Policy Synthesis Department under the Import-Export Department, South Asia is also a highly promising market, with a population of about 2 billion. India is the world's fifth-largest economy and has become an export market worth more than US$10 billion for Vietnam. The upgrade of the AITIGA is expected to further facilitate bilateral trade.

Vu Minh Tam said the Middle East and South Asia have recorded rapid trade growth with Vietnam over the past five years, thanks to complementary economic structures and market demand. This period is also considered a favorable time for Vietnamese enterprises to strengthen market expansion as several factors are converging, including the implementation of FTAs, open-door policies adopted by countries in the regions, and the promotion of high-level cooperation.

Enterprises proactively seize opportunities

With large markets and substantial untapped potential, enterprises have opportunities to take the initiative. Viet Nam Co Co  Food Joint Stock Company (VN Co Co Food JSC), located in Ho Nai Industrial Park, has proactively invested in obtaining multiple export certifications, including Halal certification, to export its products to the Halal market. According to Le Tri Thong, the Executive Director of the VN Co Co Food JSC’s factory, the company exports about 500 tons of coconut jelly and 500 tons of aloe vera each month to Muslim-majority countries. It identifies this as one of its key markets and plans to continue strengthening investment in the near future.

According to assessments by management agencies, most domestic manufacturing enterprises are capable of meeting these requirements if they proactively study the regulations and prepare the necessary documentation. For processed industrial products, the criteria related to changes in tariff classification or regional value content are also designed to align with the production capacity of Vietnamese enterprises.

However, tariff preferences only create greater opportunities to access markets. Enterprises must proactively seek partners to secure orders. While price has traditionally been the primary competitive advantage, competition is now increasingly focused on product quality, technical standards, and the ability to meet the specific requirements of each market. Therefore, the greatest value of new-generation FTAs lies not only in tariff reductions but also in encouraging enterprises to enhance production capacity, improve management, and participate more deeply in global value chains.

According to Truong Xuan Trung, Head of the Vietnam Trade Office in the UAE, experience shows that successful enterprises in the UAE are often those with long-term development strategies, stable supply, consistent quality, and investment in brand building. Therefore, Vietnamese enterprises should gradually shift from a short-term sales approach to developing distribution systems, representative offices, warehouses, or strategic partnerships with major distributors in the region.

To translate opportunities into sustainable export turnover and market share, enterprises need long-term preparation, including market research, compliance with quality standards, product traceability, and brand development suited to the characteristics of each region.