Vietnam and Israel are set to expedite the execution of their free trade agreement while enhancing collaboration in the fields of trade, industry, and innovation, reflecting robust growth in their economic relations. The commitment to accelerate the Vietnam–Israel Free Trade Agreement (VIFTA) was reinforced during a recent meeting in Jerusalem between Vietnam’s ambassador and Israel’s Minister of Economy and Industry. Both officials underscored the agreement’s pivotal role in unlocking additional economic growth.
The economic partnership between Vietnam and Israel has been thriving, as evidenced by last year’s bilateral trade reaching approximately $3.63 billion. In the first five months of the current year alone, trade figures have climbed to nearly $1.6 billion, with a significant increase in Vietnam’s exports over the same period last year. The ongoing expansion of trade suggests that Vietnam’s exports to Israel could surpass the $1 billion mark for the first time, driven by robust demand and enhanced market access facilitated by the free trade agreement that took effect in late 2024.
Israel, recognizing its strengths in areas such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture, is keen to bolster business cooperation and investment exchanges with Vietnam. By leveraging these sectors, Israel hopes to deepen its economic engagement with its Southeast Asian partner, aligning with the mutual benefits anticipated from the trade agreement.
To fully capitalize on the opportunities provided by VIFTA, both nations have pledged to maintain closer coordination between their respective agencies and businesses. This cooperative effort aims to further expand economic relations and optimize the advantages presented by the trade deal, ensuring both countries can achieve their economic growth objectives.