BANGKOK: 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.
Thailand’s Office of Commercial Affairs in Ho Chi Minh City, under the Commerce Ministry, 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.
Against this backdrop, the Middle East and South Asia have emerged as high-potential target markets due to their large populations, growing purchasing power and rising demand for imported goods, particularly agricultural products, food and consumer goods.
These conditions provide Vietnam with an opportunity to diversify its markets and trading partners while strengthening its role in the global trading system.
The Office of Commercial Affairs noted that a key driver of Vietnam’s trade expansion is the progress it has made in international economic cooperation frameworks and new-generation FTAs.
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 (UAE), which took effect on Feb 3, 2026.
The Cepa is Vietnam’s first free trade agreement with a country in the Gulf region and marks an important institutional step in linking the Vietnamese economy more directly with the Middle East.
Its importance goes beyond tariff reductions or exemptions.
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 gross domestic product of over US$4 trillion.
At the same time, Vietnam’s planned negotiations for an FTA with the Gulf Cooperation Council (GCC), together with the review of the Asean-India Trade in Goods Agreement, are expected to expand market access, reduce trade barriers and increase Vietnam’s economic reach.
The potential of the Middle East and South Asia is particularly clear from the structure of their economies.
GCC members still rely on imports for around 80% to 90% of their domestic food and agricultural demand due to natural resource and climate constraints. The office said this creates strong opportunities for Vietnamese agricultural and food products, including rice, seafood, coffee, cashew nuts, fruit, vegetables and processed food.
South Asia, especially India, is also seeing continued growth in its middle class and domestic purchasing power, supporting demand for imported goods and creating opportunities for Vietnamese exporters.
However, the Office of Commercial Affairs pointed out past experience with FTAs showed that tariff privileges are only an initial condition for entering a market.
Turning those benefits into long-term orders and market share depends on whether businesses can meet technical standards, quality requirements, food safety rules, traceability standards and the specific needs of consumers in each country. — The Nation/ANN
