In a significant development aimed at bolstering economic collaboration, Vietnam and Israel have resolved to expedite the execution of their free trade agreement and broaden cooperation across trade, industry, and innovation. This commitment was underlined during a recent meeting in Jerusalem between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry. Both parties acknowledged the vital role of the Vietnam-Israel Free Trade Agreement (VIFTA) in unlocking new avenues for growth.
The economic ties between the two nations have been on an upward trajectory, with bilateral trade reaching approximately $3.63 billion last year. This momentum has continued into the current year, with trade figures nearing $1.6 billion within the first five months. Notably, Vietnam’s exports have surged during this period, compared to last year’s figures, positioning them to potentially surpass the $1 billion mark in trade with Israel if this growth persists. The free trade agreement, which came into effect in late 2024, has significantly enhanced market access and driven demand.
Israel, known for its strengths in sectors such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture, has encouraged enhanced business cooperation and investment exchange with Vietnam. By leveraging these areas of expertise, Israel aims to foster deeper economic engagement with Vietnam, capitalizing on the opportunities presented by the free trade agreement.
Both countries have agreed on the necessity of maintaining close coordination between their respective agencies and businesses to further strengthen economic ties. The aim is to fully capitalize on the benefits offered by the trade agreement, ensuring that both nations can derive maximum advantage from this partnership.