Vietnam and Israel are set to accelerate the execution of their existing free trade agreement, aiming to bolster cooperation in trade, industry, and innovation. This decision comes as the economic relationship between the two nations continues to flourish. The commitment was underscored during a meeting in Jerusalem between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry, where both parties emphasized the strategic value of the Vietnam–Israel Free Trade Agreement (VIFTA) in driving further economic expansion.
The bilateral trade between Vietnam and Israel has been on an upward trajectory, reaching approximately $3.63 billion last year. In the initial five months of the current year, trade figures neared $1.6 billion. This growth was marked by a notable increase in Vietnam’s exports compared to the same period in the previous year. Officials have suggested that Vietnam’s exports to Israel may surpass the $1 billion mark for the first time, provided the current growth momentum continues. This optimistic outlook is largely attributed to heightened demand and better market access facilitated by the free trade agreement, which took effect at the end of 2024.
Israel has highlighted its expertise in sectors such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture. The country is encouraging increased business collaboration and investment exchanges with Vietnam in these fields. Such cooperation is seen as mutually beneficial, leveraging Israel’s technological strengths and Vietnam’s growing economic capabilities.
Both nations have also agreed on the importance of maintaining close coordination between governmental agencies and businesses to further deepen their economic ties. This collaboration aims to fully capitalize on the opportunities presented by the trade agreement, ensuring that the benefits of the VIFTA are maximized for both countries.