Vietnam and Israel are poised to enhance their economic collaboration through the acceleration of their free trade agreement, focusing on expanding cooperation in trade, industry, and innovation. This initiative was discussed in a meeting held in Jerusalem between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry. Both parties underscored the potential of the Vietnam–Israel Free Trade Agreement (VIFTA) to drive further economic growth between the two nations.
The economic partnership between Vietnam and Israel has been gaining significant traction, with bilateral trade reaching approximately $3.63 billion last year. In the first five months of the current year, trade figures approached $1.6 billion, demonstrating a notable increase in Vietnam’s exports compared to the same period in the previous year. This upward trend indicates that Vietnam’s exports to Israel could surpass the $1 billion mark for the first time, driven by the strong demand and improved market access facilitated by the free trade agreement, which was activated in late 2024.
Israel has identified key sectors such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture as areas of strength. It has encouraged increased business cooperation and investment exchange with Vietnam to harness these capabilities. The bilateral discussions highlighted the potential for leveraging these sectors to forge a more robust economic partnership.
To fully capitalize on the opportunities presented by the free trade agreement, both countries have agreed to enhance coordination between their respective agencies and businesses. This approach aims to further broaden economic ties and maximize the benefits derived from the trade pact. By fostering closer collaboration, Vietnam and Israel aim to sustain the momentum of their growing economic relationship.