In a significant move to enhance their bilateral economic relations, Vietnam and Israel have agreed to expedite the implementation of their free trade agreement. This decision came during discussions between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry in Jerusalem. Both parties underlined the potential of the Vietnam–Israel Free Trade Agreement (VIFTA) as a catalyst for further economic growth between the two nations.
The economic ties between Vietnam and Israel have been strengthening, as evidenced by the impressive trade figures. Last year, bilateral trade reached approximately $3.63 billion. This trend continued into the current year with trade nearing $1.6 billion in just the first five months, marking a notable increase in Vietnam’s exports compared to the same period in the previous year. If this growth trajectory persists, Vietnam’s exports to Israel could surpass the $1 billion mark for the first time, aided by the enhanced market access provided by the free trade agreement that officially began in late 2024.
During the meeting, Israel showcased its expertise in sectors such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture. The Israeli side expressed a strong interest in fostering more robust business cooperation and facilitating investment exchanges with Vietnam. These sectors represent areas where both nations can collaborate and leverage each other’s strengths for mutual benefit.
The two countries also committed to fostering closer coordination between their respective agencies and businesses. This collaborative effort aims to not only expand economic ties but also to fully exploit the opportunities presented by the trade agreement. By doing so, both Vietnam and Israel hope to unlock new avenues for economic growth and partnership.