Vietnam and Israel are set to accelerate the execution of their free trade agreement, aiming to deepen their collaboration across trade, industry, and innovation sectors. This decision was reached during a meeting in Jerusalem between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry. Both nations underscored the critical role of the Vietnam–Israel Free Trade Agreement (VIFTA) in unlocking new avenues for economic growth.
The economic relationship between the two countries has been on an upward trajectory, with bilateral trade hitting approximately $3.63 billion last year. Within the first five months of the current year alone, trade figures nearly reached $1.6 billion. This growth is largely attributed to a significant increase in Vietnam’s exports compared to the same period in the previous year. Should this momentum continue, Vietnam’s exports to Israel are projected to surpass the $1 billion mark for the first time, buoyed by robust demand and enhanced market access facilitated by the free trade agreement that took effect in late 2024.
Israel has emphasized its expertise in areas like artificial intelligence, cybersecurity, medical technology, and advanced agriculture. The country is keen on fostering greater business collaboration and investment exchanges with Vietnam, leveraging these strengths to mutual advantage. This strategic focus aims to harness the full potential of the sectors where Israel has established its prowess.
In a concerted effort to maximize the benefits of the trade agreement, both parties have agreed to ensure closer cooperation between their respective agencies and businesses. This collaboration is expected to further broaden economic ties and fully capitalize on the opportunities presented by the VIFTA. As the two nations continue to nurture this partnership, they remain committed to sustaining the strong momentum in their bilateral trade relations.