Trade agreements were signed earlier between the two countries to boost and protect investment and workforce co-operation.

Bilateral trade increased sharply last year, with 2008 figures doubling over those of 2007. In 2002, total trade amounted only to $67 million (Dh246 million), but in 2008, trade jumped to $550 million.

Vietnamese Prime Minister Nguyen Tan Dung said that there has been significant progress in the economic relationship, especially regarding investment, trade and labour.

The UAE is the 25th largest trade partner for Vietnam and the government aims to bring it up to tenth, according to the prime minister.

Majed Hamad Al Shamsi, First Vice Chairman of the Dubai Chamber of Commerce and Industry, said that Dubai's non-oil trade with Vietnam reached Dh1.43 billion in 2007 as the country ranked 55th on the list of Dubai's trading partners, up from 60th in 2006.

Mentioning the areas that are hampering trade, Al Shamsi said that Dubai needs to upgrade its facilities.

"There are no direct flights to Hanoi, but with the increase in trade between the two countries, this would be possible in the near future," he said.

After the global food shortage crisis in 2008, the UAE has been actively pursuing sources of food staples and has invested in agriculture in countries such as Sudan and Pakistan, to ensure a stable supply and keep prices from escalating.

Hamad Buamin, Director General of the Dubai Chamber of Commerce and Industry, said Dubai would play a larger role in being a transshipment port between Vietnam, Europe and Africa for commodities.

While enhancing its trade in commodities such as rice and coffee, it would also be a source for the UAE, said Buamin, mentioning food and labour supply.

"We expect more agreements to be signed to further enhance trade relationships between the two countries," said Buamin.

Meanwhile, the prime minister said, "The government is committed to creating the most favourable economic situation for Emirati investment."

Though foreigners are only allowed to buy or sell land within a 50 to 70 per cent lease according to the property law in Vietnam, Dung assures investors there is no regulation on repatriation of profits.

Vietnam has grown at seven to eight per cent for the past 10 years, and maintained it at 6.23 in 2008, even during the economic downturn. Last year, the country saw a 30 per cent jump in exports with registered foreign direct investment hitting $64 billion.

The country's trade value in 2008, with its 220 trade partner countries, reached $140 billion. It has seen a 20 per cent rise in the past 20 years in international trade.

By Nadia Saleem - Gulfnews.com - February 17, 2009