Vietnam and Israel are set to accelerate the execution of their free trade agreement, aiming to enhance 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, where both parties underscored the potential of the Vietnam–Israel Free Trade Agreement (VIFTA) to drive further economic growth.
Economic relations between Vietnam and Israel have been robust, with bilateral trade hitting approximately $3.63 billion last year. The positive trend continued into this year, as trade between the countries neared $1.6 billion in the first five months alone. Notably, Vietnam’s exports have surged significantly compared to the same timeframe in the previous year.
Projections suggest that Vietnam’s exports to Israel could surpass the $1 billion mark for the first time, driven by strong demand and enhanced market access facilitated by the free trade agreement, which took effect in late 2024. This development signals a promising trajectory for Vietnam’s economic engagements with Israel.
Israel is keen to leverage its expertise in sectors such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture to foster deeper business cooperation and investment exchanges with Vietnam. These areas of strength present ample opportunities for both nations to benefit from increased collaboration.
In pursuit of maximizing the benefits offered by the trade agreement, both countries have committed to maintaining close coordination among their agencies and businesses. This approach aims to further expand economic ties and fully exploit the opportunities presented by the agreement, ensuring sustained growth in their bilateral trade relationship.