Vietnam and Israel are set to accelerate the implementation of their free trade agreement, aiming to enhance cooperation in trade, industry, and innovation. This decision came to light following a meeting in Jerusalem between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry. During this meeting, both parties underscored the significance of the Vietnam–Israel Free Trade Agreement (VIFTA) as a catalyst for future economic growth.
The economic relationship between Vietnam and Israel has been on a robust upward trajectory, with bilateral trade reaching approximately $3.63 billion last year. The first five months of the current year have seen trade figures approaching $1.6 billion, with a notable increase in Vietnam’s exports compared to the same period in the previous year. There is optimism that Vietnam’s exports to Israel could surpass the $1 billion mark for the first time, driven by strong demand and improved market accessibility following the free trade agreement’s activation in late 2024.
Israel, known for its expertise in sectors such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture, has encouraged more business collaborations and investment exchanges with Vietnam. The Israeli government has highlighted these industries as areas where both nations could significantly benefit from enhanced cooperation.
Officials from both countries have agreed to foster closer coordination between relevant agencies and businesses. This strategic cooperation aims to maximize the opportunities presented by the VIFTA, thereby fostering a more dynamic economic partnership.