New-generation free trade agreements (FTAs) are opening up massive opportunities for Vietnamese goods to penetrate deeper into the Middle East and South Asia markets. However, to effectively capitalize on tariff preferences, enterprises not only need to meet rules of origin but also must overcome strict requirements regarding Halal certification and traceability, as well as adapt to fluctuations in regional supply chains.

Tariff liberalization on 94.9% of Vietnamese commodity tariff lines

On June 12, in Ho Chi Minh City, the Import-Export Department (Ministry of Industry and Trade) organized the workshop “Opportunities and solutions to promote the export of key commodities to the Middle East and South Asia markets in the context of new FTAs.”

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, stated that the Middle East and South Asia are markets with many distinct characteristics in consumer culture, distribution systems, and technical requirements. Among these, Halal certification is almost a mandatory condition for many food, agricultural product, and beverage groups wishing to penetrate deeply into Islamic countries.

“To utilize tariff preferences from CEPA or VIFTA, enterprises must properly meet rules of origin. This seems simple, but in reality, quite a few enterprises are still bewildered,” Mr. Hai emphasized.

Mr. Vu Minh Tam, Head of the Policy Synthesis Division under the Import-Export Department, stated that new-generation FTAs are creating favorable conditions for Vietnamese enterprises to expand their markets in the Middle East and South Asia.

The Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA) officially entered into force on February 3, 2026, under which the UAE committed to liberalizing tariffs on 94.9% of Vietnam's commodity tariff lines. This is not only an opportunity to access the UAE market but also a gateway for Vietnamese goods to penetrate deeper into the Gulf Cooperation Council (GCC), Africa, and Europe through the UAE's role as a re-export hub.

In addition, the Vietnam - Israel Free Trade Agreement (VIFTA) has been effective since November 17, 2024. Meanwhile, the Vietnam - GCC FTA is being prepared for the launch of negotiations, and the review and upgrade of the ASEAN - India Trade in Goods Agreement (AITIGA) are also expected to expand the room for accessing the South Asian market.

According to Mr. Tam, tariff preferences are merely a necessary condition. To effectively exploit CEPA, enterprises must meet rules of origin according to Circular No. 24/2026/TT-BCT. For non-originating goods, the general criterion is a change in tariff classification at the heading level or a regional value content reaching at least 35% of the ex-works price. Concurrently, enterprises must possess a valid Certificate of Origin Form UAE-VN.

A content of concern for many enterprises at the workshop was the requirement for Halal certification when exporting to Islamic markets.

According to experts, the Middle East and South Asia form the central region of the global Halal food market. In 2024, the scale of this market surpassed 2,700 billion USD and is growing at around 8-9% per year. Meanwhile, Vietnam's export turnover of Halal-certified agricultural and aquatic products to the Middle East has only reached around 700 million USD, showing that the room for development remains immense.

Ms. Tran Thi Thuy Trang from the Import-Export Department stated that for the UAE, Halal certification is not just a competitive advantage but a mandatory condition. Products without a valid Halal certificate recognized by the UAE Ministry of Industry and Advanced Technology will not be cleared through customs at this country's ports.

Similarly, markets like Saudi Arabia, Malaysia, or Indonesia all have their own requirements regarding recognized certification organizations such as SFDA, JAKIM, or BPJPH.

To support enterprises, Vietnam is step-by-step building a Halal ecosystem through the National Project on developing the Vietnam Halal industry until 2030, the National Halal Certification Center established since April 2024, and a system of 5 national standards on Halal which have been initially promulgated.

Vietnamese spices assert their position

Sharing about the export potential of the spice sector, Mr. Le Viet Anh, General Secretary of the Vietnam Pepper and Spice Association (VPSA), stated that in 2025, Vietnam's pepper and spice exports reached over 2.1 billion USD, the highest level ever recorded.

In that success, the Middle East and South Asia markets played a particularly vital role. Currently, Vietnam accounts for about 60% of the Middle East's imported pepper volume and supplies up to 90% of South Asia's cinnamon demand, primarily to India and Bangladesh.

In the first 5 months of 2026, the total export turnover of pepper and spices reached more than 982 million USD, up 9.5% compared to the same period in 2025.

“With over 111,000 hectares of pepper, 200,000 hectares of cinnamon, around 200 exporting enterprises, and 300,000 farming households participating in production, Vietnam is one of the leading spice supply centers in the world,” Mr. Le Viet Anh emphasized.

However, Mr. Le Viet Anh also argued that the spice industry still faces numerous challenges as the proportion of deeply processed products remains low, while requirements for Halal certification and traceability are becoming increasingly stringent.

Alongside opportunities from FTAs, enterprises were also advised to pay attention to fluctuations in the regional business environment.

Mr. Truong Xuan Trung, in charge of the Vietnam Trade Office in the UAE, shared that the UAE is currently Vietnam's largest trading partner in the Middle East. In 2025, the UAE's total non-oil import-export turnover reached a record level of 1,030 billion USD, up 24.6% compared to the previous year. In which, re-export activities reached 267 billion USD, reaffirming the UAE's role as a cargo transit hub to the GCC, Africa, and South Asia.

However, since the beginning of 2026, conflict developments in the region have significantly impacted logistics operations. War risk insurance costs have risen, shipping schedules have been adjusted, and delivery times have lengthened.

To mitigate risks, Mr. Truong Xuan Trung suggested that enterprises consider flexible transportation options such as using Fujairah port, Khor Fakkan port, or transiting through Oman. Simultaneously, enterprises need to note force majeure clauses in contracts, prioritize using irrevocable letters of credit (L/C) as a payment method, and step-by-step build warehouse systems and distributor networks in the UAE.

According to the representative of the Vietnam Trade Office in the UAE, enterprises need to regularly update information on maritime security and logistics; construct 2 to 3 alternative shipping options; increase cargo reserves in the UAE for items with stable demand; step up cooperation with major importers and distributors; invest in Halal certification, traceability, and branding; and regard the UAE as a regional distribution hub rather than just a single market.

Source: Tap chi Kinh te - Tai chinh