Vietnam and Israel are set to accelerate the execution of their free trade agreement, aiming to broaden collaboration in trade, industry, and innovation as their economic relationship flourishes. This commitment emerged from discussions between Vietnam’s ambassador to Israel and the Israeli Minister of Economy and Industry during a meeting in Jerusalem. Both parties underscored the critical role of the Vietnam–Israel Free Trade Agreement (VIFTA) in driving further economic growth.
The economic partnership between Vietnam and Israel has been gaining momentum, with bilateral trade reaching approximately $3.63 billion in the previous year. In the first five months of the current year, this trade volume was nearing $1.6 billion, marking a notable increase in Vietnam’s exports compared to the same timeframe the year before. This trend suggests that Vietnam’s exports to Israel could surpass $1 billion for the first time if the current growth trajectory continues, spurred by robust demand and enhanced market access provided by the free trade agreement, which took effect in late 2024.
Israel put forth its expertise in fields such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture, inviting deeper business cooperation and investment exchanges with Vietnam. These sectors are seen as potential areas for growth and collaboration, fostering a mutually beneficial economic relationship. The two nations are keen to leverage these strengths to boost their economic ties.
Both countries agreed on the necessity of maintaining closer coordination between governmental agencies and businesses to maximize the opportunities presented by the trade agreement. This strategic alignment is expected to pave the way for expanded economic engagements, thereby strengthening the bilateral ties further.