During the period 2018-2022, the UAE ranked 16th in shrimp imports from Vietnam, accounting for about 0.5% of the total value of Vietnam's shrimp exports to markets. Each year, Vietnam exports about 20 million USD worth of shrimp to this market.

Although it is a small market, it is considered a potential market because the demand for seafood, including shrimp, is increasing day by day, especially when the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) has just been signed, opening up more opportunities for shrimp exports to this market.

In the first 9 months of this year, shrimp export turnover to this market reached 7.4 million USD, accounting for 0.3% and growing 34% over the same period in 2023.

The main shrimp products exported to this market include: fresh frozen black tiger shrimp, frozen steamed PDTO whiteleg shrimp, fresh frozen EZP shrimp, frozen whole black tiger shrimp, frozen steamed whiteleg shrimp, fresh frozen PD shrimp, frozen breaded whiteleg shrimp, fresh frozen whiteleg shrimp, fresh frozen Nobashi whiteleg shrimp, etc.

Enterprises exporting a lot of shrimp to the UAE include Ca Mau Seafood Processing and Service Joint Stock Company, Nanjing Seafood Company Limited, Minh Phu Seafood Group Joint Stock Company, Minh Phu - Hau Giang Seafood Joint Stock Company...

In the UAE market, Vietnamese shrimp must compete with shrimp from India, China, and Ecuador. India accounts for nearly 60%-70% of the market share, Ecuador has only penetrated the market in recent years with 15% market share, while Vietnamese shrimp market share only accounts for about 5%-7%. India seems to have taken advantage of the tariff advantage in this market to increase its shrimp export market share in recent years. It is expected that with the newly signed CEPA Agreement, Vietnamese shrimp will enjoy the highest and earliest tax incentives, in order to increase its market share in this market.

CEPA is the first free trade agreement that Vietnam has signed with an Arab country, opening a new period in the upgraded and increasingly substantive relationship between Vietnam and the UAE in particular and Arab countries in general.

Notably, the two sides have agreed to make a strong commitment to trade liberalization, with the UAE committing to phase out tariffs on 99% of Vietnam’s exports to the UAE. The agreement also includes many provisions to facilitate trade and investment, in line with current trends in digital transformation and green development.

With its strategic geographical location, logistics system, and modern seaport infrastructure, the UAE is an important gateway and can facilitate Vietnamese goods to access and expand to markets in the Middle East, Africa, and Europe.

Furthermore, with a growing population, high income, rapid urbanization, increasing disposable income, and a preference for seafood protein among young people, online searches for seafood products have increased in recent years, which is expected to boost seafood consumption in the region.

However, the UAE is also one of the fiercely competitive markets in terms of price and quality. Enterprises need to apply advanced science and technology in production, change management methods, and minimize intermediate costs to reduce product prices and increase the competitiveness of Vietnamese products. In addition, enterprises need to build a Halal certification system for shrimp products when exporting to this market.

Source: VASEP