Vietnam and Israel are set to accelerate the implementation of their free trade agreement, aiming to bolster 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, where both parties underscored the Vietnam–Israel Free Trade Agreement (VIFTA) as a pivotal tool for fostering economic growth.
The economic ties between Vietnam and Israel have been strengthening, with bilateral trade hitting approximately $3.63 billion last year. In just the first five months of this year, trade has already approached $1.6 billion, showcasing significant growth in Vietnam’s exports compared to the same timeframe in the previous year. This upward trend positions Vietnam to potentially surpass $1 billion in exports to Israel for the first time, driven by robust demand and enhanced market access facilitated by the free trade agreement, which took effect in late 2024.
Israel has highlighted its expertise in several cutting-edge sectors, including artificial intelligence, cybersecurity, medical technology, and advanced agriculture. These areas offer substantial opportunities for increased business collaboration and investment exchange with Vietnam. The Israeli officials encouraged further engagement in these sectors to capitalize on mutual strengths and drive economic collaboration.
Commitment to deeper cooperation was echoed by both countries, as they agreed to enhance coordination between their respective agencies and businesses. This collaborative approach aims to maximize the benefits of the trade agreement and explore new avenues for economic partnership, ensuring that both nations can fully leverage the opportunities it presents.