Great opportunity for Vietnamese goods exported to Israel

(HNM) - The conclusion of negotiations and the signing of the Vietnam - Israel Free Trade Agreement has opened up new and potential opportunities for Vietnam's goods exports. This is also the time for businesses to carefully study the needs and tastes to promptly enter this new market.

Checking the quality of exported coffee at Ea Tan Cooperative ( Dak Lak province). Photo: Thao Huyen

After 7 years and 12 rounds of negotiations, the Ministry of Industry and Trade recently announced that it has officially concluded negotiations with the Israeli Ministry of Economy and Industry to reach agreements that are in line with the wishes and interests of both countries in the Vietnam - Israel Free Trade Agreement. Next, Vietnam and Israel will promote the final internal and legal work to sign the Vietnam - Israel Free Trade Agreement, expected in 2023, to celebrate the 30th anniversary of the establishment of diplomatic relations between the two countries.

Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade) Luong Hoang Thai informed that with a mutually complementary economic structure and a strong growth in two-way trade turnover, Vietnam and Israel will gain more benefits when incentives and advantages from the Vietnam - Israel Free Trade Agreement are effectively utilized. The two sides will continue to strengthen coordination and exchange delegations between ministries, branches, industry associations, enterprises, etc. to jointly seek and promote opportunities for trade and investment cooperation, build and promote brands at fairs and exhibitions held in Vietnam and Israel.

According to the Ministry of Industry and Trade, Israel is the third largest export market and the fifth largest trading partner of Vietnam in West Asia and is considered a large and potential market in this region. In 2022, Vietnam's total import-export turnover with Israel reached 2.2 billion USD, an increase of 17.9% compared to 2021; of which, Vietnam's export turnover to Israel reached 785.7 million USD, Vietnam's import turnover from Israel reached 1.4 billion USD. Vietnam has always had a trade deficit with Israel with products such as computers, electronic products and components, machinery, equipment and spare parts, fertilizers of all kinds, vegetables and fruits, etc.

In addition, Vietnam mainly exports products such as: Phones of all kinds and components, seafood, cashew nuts, coffee, footwear, pepper, textiles, wood and wood products... Notably, the commodity structure of Israel and Vietnam does not compete directly but complements each other. This will facilitate Vietnam to promote the export of many strong products to Israel, while having the opportunity to access high-tech products of Israel, contributing to reducing production and business costs, and enhancing the competitiveness of Vietnamese goods.

General Secretary of the Vietnam Association of Seafood Exporters and Producers Truong Dinh Hoe said that Israel is among the top 22 leading markets for Vietnamese seafood exports. When the Vietnam - Israel Free Trade Agreement is signed, it will create great advantages for seafood exporting enterprises, with a clear advantage in tariffs compared to countries that do not have trade agreements with this country. This is also a "springboard" for Vietnamese enterprises to expand exports to markets in the region.

According to General Director of Vietnam Organic Nutrition Food Joint Stock Company Nguyen Thi Diem Hang, with this agreement, Vietnamese agricultural products have wide access to the Israeli market and promote cooperation with the potential Middle East region as well as large markets in Bangladesh, Pakistan, and India.

Providing more information about this new market, Vietnamese Trade Counselor in Israel Le Thai Hoa said that Israel has diverse needs, stable purchasing power, and high payment capacity. Israeli businesses are generally very dynamic, doing business quite methodically and seriously. This market requires imported goods to strictly comply with specific local standards. In addition, Israel also applies the standards of the European Union and the United States and carries out quite strict inspection and control work.

“Vietnamese enterprises need to focus on offering processed products with high added value, competitive prices and suitable quality; promptly respond to transactions with Israeli customers; and comply with newly issued Israeli import standards and regulations,” Mr. Le Thai Hoa added.

Source