Vietnam and Israel are set to accelerate the execution of their free trade agreement and broaden cooperation across trade, industry, and innovation. This decision was reached during a meeting in Jerusalem between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry. Both countries view the Vietnam–Israel Free Trade Agreement (VIFTA) as a crucial tool to fuel further economic growth between them.
The bilateral trade relationship has been gaining significant traction, with trade figures reaching approximately $3.63 billion last year. In the first five months of this year, trade has already neared $1.6 billion, marking a substantial increase in Vietnam’s exports over the same period last year. Officials are optimistic that Vietnam’s exports to Israel could surpass the $1 billion mark for the first time if the current growth trajectory continues, aided by enhanced market access afforded by the free trade agreement enacted in late 2024.
Israel has identified its strengths in areas such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture, urging a boost in business collaboration and investment exchanges with Vietnam. This focus highlights the potential for expanded economic interaction and innovation between the two nations, building on existing trade ties.
To maximize the opportunities presented by the trade agreement, both countries have agreed to enhance coordination between their respective agencies and businesses. This strategic alignment aims to further cement economic ties and fully leverage the benefits of the VIFTA, ensuring that the bilateral relationship continues to flourish.