Maintaining the Middle East agricultural market

21/07/2026

In the first 6 months of 2026, Vietnam's agricultural exports to the Middle East market slowed down due to the impacts of geopolitical conflicts elevating logistics costs and disrupting supply chains. However, with massive import demand, wide open consumer room alongside advantages from free trade agreements (FTAs), this region still serves as a strategic market against Vietnamese agricultural products.

According to Mr. Truong Xuan Trung, In Charge of the Vietnam Trade Office in the United Arab Emirates (UAE), in the first 6 months of 2026, Vietnam's commodity export turnover to the UAE decreased sharply compared to the same period of 2025.

Particularly, the fruit and vegetable group was estimated to reach nearly 35 million USD, down 41.88%; cashews reached over 25.1 million USD, down 70.71%; pepper reached nearly 6.2 million USD, down 50.16%; seafood reached around 16.1 million USD, down 33.88%.

However, this decline primarily carries a timing nature because the UAE merely self-produces around 10-15% of domestic food and foodstuff demand, largely depending on imports, therefore opportunities to elevate turnover for Vietnamese agricultural products still remain very massive.

Not merely the UAE, Israel is also evaluated as a market possessing plenty of room against Vietnamese agricultural products.

Mr. Le Thai Hoa, Trade Counselor, Vietnam Trade Office in Israel stated: Vietnam's strong agricultural commodity items currently are also products Israel possesses import demand for serving consumption and production, prominent being the food, foodstuff, and beverage group.

Vietnamese seafood currently occupies around 11-13% of Israel's total seafood import turnover and still possesses plenty of growth potential. This is also one of the few commodity items maintaining positive growth levels during the early months of 2026.

Alongside massive consumer demand, FTAs are creating additional competitive advantages for Vietnamese goods at the Middle East region.

Specifically, the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) entering into force from February 3, 2026 is a positive signal for Vietnamese agricultural enterprises to step up market access to the UAE.

Under commitments, the UAE opens 94.9% of tariff lines; within which, 74.2% of tariff lines are eliminated immediately upon the agreement's entry into force. Multiple core export commodity groups such as seafood, cashews, pepper, wood, and wooden products all enjoy tariff preferences immediately or under short roadmaps.

Besides, the Vietnam - Israel Free Trade Agreement (VIFTA) entering into force from November 17, 2024 has also expanded market access opportunities when in 2025, Vietnam's core export commodity items to Israel such as seafood, cashews, and coffee all recorded positive growth.

According to experts, to utilize tariff preferences well, enterprises must satisfy requirements regarding standards, certifications, and market organization.

Mr. Le Viet Anh, General Secretary of the Vietnam Pepper and Spice Association stated: The Middle East possesses spice consumption levels belonging to the highest group globally; within which, the UAE serves both as a potential market and as a large regional logistics center, connecting the Middle East with Africa, Central Asia, and South Asia, creating conditions for Vietnamese goods to penetrate deeply into the entire vast region.

Vietnam currently possesses advantages as the world's leading supply source of pepper, cinnamon, and star anise; particularly at the Middle East market, our country's pepper and cinnamon respectively occupy around 60% and 50% market share.

However, increasingly strict Halal certification, traceability, and sustainable development requirements are setting out multiple challenges for enterprises.

Besides, high-surging logistics costs alongside day by day fiercer competition from same-type products coming from Brazil, Indonesia, and China demand enterprises to elevate quality, increasing deep processing to construct sustainable brands.

Facing that reality, Mr. Vu Minh Tam, Head of the Policy Synthesis Division (Import-Export Department, Ministry of Industry and Trade) considered that enterprises need to proactively review commodity codes, satisfy rules of origin right from the product design stage, invest in quality in the direction of combining Halal standards and Kosher standards; while concurrently constructing access strategies for each individual market and utilizing trade promotion programs.

On the management agency side, there is a need to continue perfecting the national Halal legal framework, stepping up the dissemination of CEPA and VIFTA commitments, supporting logistics development; driving dialogues regarding issues related to bilateral sanitary and phytosanitary (SPS) measures…

Under conditions where geopolitical conflicts still harbor multiple risks, to maintain the Middle East market, enterprises need to elevate capacities to satisfy commodity standards combined with optimizing transportation costs and organizing appropriate distribution systems.

From there, constructing and expanding the presence of Vietnamese agricultural product brands at this potential-rich market region.

Source: Bao dien tu Nhan dan

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