Vietnam and Israel are set to accelerate the implementation of their free trade agreement, aiming to broaden their collaboration in trade, industry, and innovation. This decision comes as economic relations between the two nations continue to strengthen. Discussions on this initiative took place during a meeting in Jerusalem, where Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry underscored the significance of the Vietnam–Israel Free Trade Agreement (VIFTA) in driving further economic growth.
The bilateral trade relationship between Vietnam and Israel has been gaining momentum, with trade figures reaching approximately $3.63 billion last year. In the first five months of the current year alone, the trade volume approached $1.6 billion, showcasing a notable rise in Vietnam’s exports compared to the same period in the previous year. Officials are optimistic that Vietnam’s exports to Israel might surpass the $1 billion mark for the first time, a milestone supported by robust demand and improved market accessibility following the free trade agreement’s implementation in late 2024.
Israel is keen to leverage its expertise in sectors like artificial intelligence, cybersecurity, medical technology, and advanced agriculture to foster enhanced business cooperation and investment exchanges with Vietnam. This focus highlights Israel’s desire to integrate its technological strengths into the partnership, aiming to create mutual economic benefits through strategic collaboration.
Both nations have expressed a commitment to maintaining close coordination between their respective agencies and businesses. This coordinated effort is pivotal to expanding economic ties and fully capitalizing on the opportunities introduced by their trade agreement. The ongoing collaboration is expected to facilitate a more dynamic economic relationship, building on the strong foundation already established.