The UAE and Turkey are important partners of Vietnam in the Middle East, with great potential for cooperation.
Over the past 30 years, the friendship and cooperation between Vietnam and the UAE have increasingly developed in politics, diplomacy, trade, investment, labour and tourism. Political trust and mutual understanding between the two countries are constantly being strengthened. Economic cooperation is always an important pillar. The UAE is Vietnam's largest trade partner in the Middle East-North Africa region and also Vietnam's 7th largest export market.
In 2022, Vietnam's export turnover to the UAE will increase 27.5 times compared to 2006. Of the total trade turnover, Vietnam's trade surplus is 3.27 billion USD. Vietnam is also currently the UAE's largest trading partner in Southeast Asia. The economic relationship between the two sides still has much room for further development, thanks to the fact that the two economies have strengths that can complement each other.
Many areas of cooperation between Vietnam and the UAE have bright prospects, such as trade and investment, especially after the two countries started negotiations on the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA). The UAE side determined that CEPA will be one of three priority pillars from now until 2030 and the following period. The signed CEPA will be the largest, most comprehensive agreement of great significance and an important milestone in the cooperative relationship between Vietnam and the UAE, opening a new phase in joint strategic cooperation on trade and investment between the two countries.
This agreement promises to bring the two countries' relations and economic cooperation into substance, effectiveness and comprehensiveness. CEPA will help Vietnam expand its export market for goods and services to the UAE, creating an important premise to promote trade and service relations with countries in the Middle East-Africa region. At the same time, CEPA also promotes UAE investment in Vietnam and expands into other potential fields such as innovation, renewable energy, investment, logistics, technology, tourism and agriculture.
Energy cooperation between Vietnam and the UAE has a development foundation, as the UAE has strengths in new energy, renewable energy, oil and gas exploitation and processing. Promoting cooperation in the agricultural sector is also a priority. This is an area in which Vietnam has strengths and can help ensure food security for the UAE. Cooperation in infrastructure and logistics faces many opportunities, as this is an area where the UAE is strong, and Vietnam has great demand.
Vietnam and Turkey share many similarities in history, culture and national development. Turkey considers Vietnam to be the most important partner in ASEAN. Turkey is the gateway for Vietnam to export to the Middle East and Southern European markets (rice, rubber, tea, garments, shoes, electronics and handicrafts). Bilateral trade turnover in 2022 will reach more than 2 billion USD, which Vietnam exports 1.6 billion USD.
Regarding investment, cumulatively as of October 2023, Turkey has 36 valid investment projects, with a total registered capital of 974.3 million USD, ranking 26th out of 143 countries and territories investing in Vietnam. Outstanding projects that have been and are being implemented include: Hayat Kimya Company invested 250 million USD to build a factory producing detergents and toilet paper in Binh Phuoc Province; Bora Lastik Company bought shares of Da Nang Rubber Company. In August 2023, Turkey's IC Ictas Company (part of IC Holdings Group) led the Vietur Joint Venture to win the contract to build and install passenger terminal equipment worth 35,000 billion VND under the Long Thanh airport project.
To facilitate travel between the two countries, in June 2016, Turkish Airlines opened direct flights from Istanbul to Hanoi (transfer via Ho Chi Minh City), with seven flights a week. In June 2019, Turkish Airlines officially opened a representative office in Hanoi. In June 2023, Vietnam Airlines and Turkish Airlines signed a codeshare cooperation agreement.
With good political relations, Vietnam and Turkey support each other at multilateral forums. Turkey supports Vietnam as a non-permanent member of the United Nations Security Council for the 2020-2021 term and supports Vietnam as a member of the United Nations Human Rights Council for the 2023-2025 term. During the earthquake disaster in the southeast of Turkey (February 2023), the Vietnamese Government provided 100,000 USD in aid and sent two rescue teams to help Turkey overcome the consequences. Vietnam's support and solidarity are highly appreciated by both the Government and the people of Turkey.
Positive results in relations between Vietnam with Turkey and the UAE, along with a common awareness among leaders about the vision of the relationship, are important foundations for Vietnam and the two countries to continue to connect and cooperate more deeply. With complementary potentials and strengths, Vietnam's partnership with Turkey and the UAE will enter a new, more effective and substantive stage of development in all fields.
