Abu Dhabi’s ADQ partners with Vietnam‘s SCIC to Bolster Economic Ties
Table of Contents
- Boosting Ties: Abu Dhabi’s ADQ and Vietnam’s SCIC forge a strategic partnership
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- Dr.Son, can you shed light on the significance of this partnership between ADQ and SCIC?
- How does this partnership align with Vietnam’s broader economic development goals?
- What specific sectors are likely to benefit moast from this collaboration?
- The recent comprehensive economic partnership agreement between Vietnam and the UAE further strengthens this bilateral framework.How does this agreement complement the ADQ-SCIC partnership?
- What are the broader implications of this partnership for regional economic cooperation?
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In a strategic move to strengthen economic ties, Abu Dhabi’s sovereign wealth fund, ADQ, has signed a memorandum of understanding (MoU) with Vietnam’s State Capital investment Corp. (SCIC). This partnership aims to explore and assess potential co-investments that will bolster Vietnam’s economy through strategic developmental goals.
The United Arab Emirates (UAE) is Vietnam’s largest export market and second-largest trading partner in Western Asia after Kuwait. This collaboration underscores the deepening bilateral ties between the two nations. Mohamed Hassan Alsuwaidi,managing director and group CEO of ADQ,emphasized the meaning of this partnership. “This partnership aims to deepen the strengthening bilateral ties between the UAE and Vietnam, while also highlighting ADQ’s commitment to investing in high-growth markets,” Alsuwaidi saeid in a statement.”Vietnam’s rapidly expanding economy presents a unique chance to drive impactful investments in key sectors of mutual interest.”
Vietnam’s economy, the 12th-largest in Asia, is forecast to grow by 6.5% in 2025 and 2026. This economic boom has attracted meaningful interest from global investors. The MoU between ADQ and SCIC comes on the heels of a comprehensive economic partnership agreement finalized between Vietnam and the UAE in October 2024. This agreement includes collaborating to invest in sectors such as oil and gas, renewable energy, and agriculture.
Under the agreement, the UAE agreed to phase out tariffs on 99% of Vietnamese exports, while Vietnam will eliminate tariffs on 98.5% of the UAE’s exports. This deal will provide Vietnam with market access to the UAE and other Middle Eastern countries, opening up nearly all Vietnamese export products, including agriculture, consumer goods, seafood, and wood products.
Both countries have also agreed to cooperate in sectors such as tourism, transportation, manufacturing, financial services, and energy development. Additionally, they will improve cooperation in foreign affairs, defense, security, legal and judicial matters, socio-cultural issues, labor, education, and people-to-people exchanges.
Key Points Summary
| Sector | Collaboration Details |
|———————————|——————————————————————————————|
| Economic Partnership | comprehensive economic partnership agreement between Vietnam and the UAE |
| Tariff Reduction | UAE to phase out tariffs on 99% of Vietnamese exports; Vietnam to eliminate tariffs on 98.5% of UAE’s exports |
| Investment Sectors | oil and gas, renewable energy, agriculture |
| Cooperation Sectors | Tourism, transportation, manufacturing, financial services, energy development |
| Other Cooperation Areas | Foreign affairs, defense, security, legal and judicial matters, socio-cultural issues, labor, education, people-to-people exchanges |
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Tags: Abu Dhabi, Abu Dhabi Developmental, ADQ, SCIC, Sovereign Wealth Fund, State Capital Investment Corporation, UAE, United Arab Emirates, Vietnam
Boosting Ties: Abu Dhabi’s ADQ and Vietnam’s SCIC forge a strategic partnership
Abu Dhabi’s sovereign wealth fund, ADQ, has joined forces with Vietnam’s State Capital Investment Corporation (SCIC) in a move poised to considerably bolster economic relations between the two nations. The memorandum of understanding (MoU) between these influential entities signals a commitment to exploring co-investment opportunities that will fuel Vietnam’s economic growth and development. This interview with Dr. Nguyen Minh Son, a leading expert on Vietnamese economics, delves into the meaning of this partnership, its potential impact on both countries, and the broader implications for regional economic cooperation.
Dr.Son, can you shed light on the significance of this partnership between ADQ and SCIC?
absolutely. This agreement marks a pivotal moment in the burgeoning relationship between the United arab Emirates (UAE) and Vietnam. Abu Dhabi’s ADQ, with its substantial financial resources and proven track record in identifying and capitalizing on high-growth markets, is a highly valued partner. vietnam, with its dynamic and rapidly expanding economy, presents a compelling case for investment. This collaboration leverages the strengths of both entities to foster mutually beneficial growth.
How does this partnership align with Vietnam’s broader economic development goals?
Vietnam has ambitious plans to become a leading economic powerhouse in Southeast Asia. The government is focused on diversifying its economy, attracting foreign investment, and developing key sectors such as manufacturing, agriculture, and renewable energy. This partnership with ADQ directly addresses these aspirations by providing access to new capital, expertise, and technology. It’s a strategic move that can accelerate Vietnam’s progress towards its vision.
What specific sectors are likely to benefit moast from this collaboration?
While the MoU mentions broad areas of cooperation, certain sectors stand out as ripe for investment. Agriculture, with its vast potential for growth and Vietnam’s strong productive capacity, is a prime candidate. Renewable energy, given vietnam’s commitment to sustainable development, also presents a compelling prospect. Beyond these,sectors like tourism,technology,and infrastructure are likely to see increased attention.
The recent comprehensive economic partnership agreement between Vietnam and the UAE further strengthens this bilateral framework.How does this agreement complement the ADQ-SCIC partnership?
The comprehensive economic partnership agreement provides a robust legal and institutional framework for increased trade and investment flows between Vietnam and the UAE. It significantly reduces trade barriers, creating a more favorable environment for businesses from both sides. This, in tandem with the ADQ-SCIC partnership, sends a strong signal to the global investment community of Vietnam’s commitment to open its markets and foster economic growth.
What are the broader implications of this partnership for regional economic cooperation?
This collaboration sets a positive precedent for other countries in the region seeking to strengthen economic ties. It demonstrates the potential for South-South cooperation to drive sustainable development and shared prosperity.As Vietnam and the UAE forge deeper partnerships, it can inspire similar initiatives across Asia and beyond, ultimately contributing to a more interconnected and prosperous global economy.
The partnership between Abu Dhabi’s ADQ and Vietnam’s SCIC signifies a strategic shift in regional economic dynamics. it represents a convergence of ambition and opportunity, with the potential to transform Vietnam’s economic landscape and reshape the investment landscape across Southeast Asia. The triumphant implementation of this collaboration will undoubtedly serve as a model for future partnerships, fostering economic growth and cooperation on a global scale.