Vietnam and Israel are set to accelerate the implementation of their free trade agreement while broadening collaboration in trade, industry, and innovation. This decision comes amid a period of dynamic growth in their economic relationship. The Vietnam–Israel Free Trade Agreement (VIFTA) was a focal point during a recent meeting in Jerusalem between Vietnam’s ambassador and Israel’s Minister of Economy and Industry, highlighting its potential as a catalyst for further economic expansion.
The momentum in bilateral trade between the two nations is evident, with figures showing approximately $3.63 billion in trade last year. In the first five months of the current year, trade has already reached close to $1.6 billion. This impressive growth trajectory is largely driven by a significant increase in Vietnamese exports compared to the same time frame in the previous year. If this trend continues, Vietnam’s exports to Israel could surpass the $1 billion mark for the first time, bolstered by strong demand and enhanced market access under the trade agreement that took effect at the end of 2024.
Israel has expressed interest in leveraging its expertise in fields such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture to foster further business cooperation and investment exchanges with Vietnam. This strategic focus on sectors where Israel excels is seen as an opportunity to deepen the economic ties between the two countries.
To fully capitalize on the benefits of the trade agreement, both nations have committed to maintaining tighter coordination between their respective agencies and businesses. This collaborative approach aims to unlock the full spectrum of opportunities presented by VIFTA and further strengthen the economic bonds that have been developing robustly between Vietnam and Israel.