India · United Arab Emirates · Nation Thailand
Vietnam FTA push raises pressure on Thai exporters in Gulf markets
Compiled by KHAO Editorial — aggregated from 1 outlet. See llms.txt for citation guidance.
◌ Single Source
Vietnam is moving aggressively to expand its global trade reach through a new generation of free trade agreements (FTAs) targeting the Middle East and South Asia, a strategy that could increase competitive pressure on Thai exporters in markets where both countries sell similar goods.
Key facts
- Thailand’s Office of Commercial Affairs in Ho Chi Minh City, under the Ministry of Commerce, has urged Thai businesses to closely monitor developments in Vietnam’s trade policy and new regulatory requirements under its latest FTAs.
- The UAE is a major global trade and logistics hub connecting the Middle East, Africa and South Asia, giving Vietnamese businesses access to markets with a combined population of more than 400 million and combined GDP of over US$4 trillion.
- GCC members still rely on imports for around 80–90% of their domestic food and agricultural demand due to natural resource and climate constraints.
- It currently accounts for about 60% of pepper imports in the Middle East and 40% in South Asia, while cinnamon holds a market share of up to 90% in South Asia.
- These include the Vietnam-Israel Free Trade Agreement (VIFTA), which came fully into force in 2026, and the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the United Arab Emirates, which took effect on February 3
Summary
Thailand’s Office of Commercial Affairs in Ho Chi Minh City, under the Ministry of Commerce, has urged Thai businesses to closely monitor developments in Vietnam’s trade policy and new regulatory requirements under its latest FTAs.
According to the office’s analysis, many countries, including Vietnam, are seeking new markets to strengthen economic security and improve trade resilience amid global economic volatility, geopolitical tensions and the growing use of protectionist trade measures.