Vietnam and Israel are moving to accelerate the implementation of their free trade agreement while expanding cooperation in various sectors such as trade, industry, and innovation. This development comes as economic ties between the two nations continue to strengthen. A meeting in Jerusalem between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry focused on leveraging the Vietnam–Israel Free Trade Agreement (VIFTA) to drive further economic growth.
The bilateral trade relationship has been thriving, with trade volumes reaching approximately $3.63 billion last year. In just the first five months of the current year, trade between the two countries approached $1.6 billion. Vietnam has seen a significant increase in its exports to Israel during this period, suggesting a positive trend that could see exports surpass $1 billion for the first time if the current growth trajectory is maintained.
The free trade agreement, which came into effect in late 2024, has provided improved market access that supports this upward trend. Both countries are keen to capitalize on the opportunities presented by the agreement, with Israeli officials highlighting the nation’s expertise in fields such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture. These sectors are viewed as areas ripe for increased business cooperation and investment exchange with Vietnam.
To fully harness the potential of their economic partnership, both sides have agreed to enhance coordination between their respective agencies and businesses. This approach aims to broaden economic ties and maximize the benefits offered by the trade agreement.