Dubai offers fresh opportunities for Vietnamese firms

Mohammad Ali Rashed Lootah (centre), president and CEO of Dubai Chambers

The emirate of 3.5 million inhabitants launched the Dubai Economic Agenda, dubbed D33, earlier this year, with the aim of doubling the size of its economy by 2033, the year marking the 200th anniversary of the emirate's foundation.

Since its launch, D33 has become part of the daily jargon and is a shared vision not only among Dubai’s elites, politicians or businessmen, but also among the ordinary people of the city.

Dubai was in the headlines again early in November when the city hosted the Dubai Business Forum (DBF) that attracted renowned guests, speakers and some 2,000 businessmen from all parts of the world, including Vietnam.

Organised by Dubai Chambers, the state agency in charge of supporting domestic businesses, attracting foreign investment, and developing the emirate's digital economy, the two-day forum tabled some 30 speeches and dialogues.

These talks discussed pressing issues that are imperative to economic growth in Dubai and around the world, such as foreign investment (FDI), the role of small- and medium-sized enterprises, climate change and sustainability, the impact of technology on business operations and human resources, digital transformation, the digital economy, and AI.

The Dubai Business Forum attracted more than 2,000 guests

D33 identifies ten priority themes, or strategic economic sectors, in which Dubai will strive to outperform comparable cities around the world, such as logistics, finance, foreign trade, tourism, manufacturing, education, talent attraction, technology, and innovation.

To become a global trading centre, Dubai will need to promote foreign trade, increasing the import-export turnover of goods and services from AED 14,200 billion (US$ 3,867 billion) in the past ten years to AED 25,600 billion ($6,970 billion) over the next decade, according to the agenda.

At the same time, the establishment of the Dubai Future Economic Corridor 2033, with more than 400 cities worldwide becoming key trading partners of Dubai, will turn it into a global trade gateway and a hub for re-exporting goods, especially to neighbouring regions such as the Middle East, Africa, and South Asia.

The corridor will encompass important geographical areas around the globe, especially those that are developing potentially huge economies, including in Africa, South America, and Asia.

China, India, Indonesia, and Vietnam are the countries Dubai is particularly interested in Asia.

In a dialogue with international journalists on the eve of the DBF, president and CEO of Dubai Chambers, Mohammad Ali Rashed Lootah, said, "Vietnam is a significant economy for us in Southeast Asia. We opened an office in Ho Chi Minh City in July to promote trade and investment between our two economies.”

According to Dubai Chambers’ 2022 figures, Vietnam's exports to Dubai were valued at $7.37 billion. Of which, electronics and accessories were $5.15 billion, footwear $564 million, machinery $375 million, and the rest were from furniture, garments, and agricultural products.

In the past few years, Vietnamese food products have begun to appear in Dubai, or were imported into Dubai and re-exported to neighbouring countries.

"Coffee, cashew nuts, and processed fruits are products Vietnam has shown strong export potential in," said Mohammed Lootah.

The Ministry of Agriculture and Rural Development, as well as Vietnamese businessmen operating in Dubai, have also confirmed that Dubai is a potential new market, especially for agricultural and food products. The most essential requirement of the Dubai market for these products is a 'Halal' certificate, which ensures the product’s 'purity', according to Islamic standards.

Another potential demand for Vietnamese talents from Dubai is digital transformation solutions and services.

"The D33 Agenda identifies digital transformation as one of the ten priority areas vital to improving the economy’s productivity," said Hadi Badri, CEO of Dubai Economic Development Corporation, under Dubai's Ministry of Economy and Tourism and in charge of implementing the D33.

"Dubai will be among four global financial centres with over AED 650 billion ($177 billion) in FDI within the next decade, of which digital transformation will contribute AED 100 billion ($27.2 billion)," Badri said.

As Vietnam is now recognised worldwide as one of the main suppliers for IT services with an abundance of young and skilled software developers, Dubai may offer interesting opportunities, according to several tech-savvy business people present at the forum.

In January next year, a Vietnamese business delegation, including several large IT companies, are expected to come to Dubai to explore opportunities under a scheme co-organized by the Dubai International Chamber and Vietnamese interests.

Nguyen Thanh Tuan, managing director of FPT Middle East based in Dubai said, “FPT came to Dubai at the end of 2019 but was delayed by two years by the pandemic. However, since then, FPT has developed quite well here. From four people initially, we now have 15 people here in Dubai and four in Saudi Arabia, including a foreigner as manager of the Riyadh office.”

Nguyen Thanh Tuan (left), managing director, FPT Middle East,

Asked about FPT‘s position in the market, Tuan said, “The competition here is strong, not like in Vietnam where FPT is the big name. All the big players of the world’s IT sector, especially those from India, are here. Competing with them is a big challenge.”

However, the young CEO, who had earlier been with FPT Software in Singapore and London, shared a positive outlook for his company in Dubai with several projects already under their belts and more in the pipeline.

“Saudi Arabia, which shares the border with Dubai, has even more potential in the years to come as the country is following Dubai’s development path, offering many opportunities in the IT field,” said Tuan.

Dubai to set up chamber of commerce in Vietnam The wealthy and populous emirate of the United Arab Emirates (UAE) will soon open an office in Ho Chi Minh City to boost bilateral trade and investment, CEO of Dubai Chambers Mohammad Ali Rashed Lootah told Thuc Minh during an exclusive interview in Switzerland.