(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 export of goods. This is also the time when businesses need to carefully understand 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 sessions of negotiations, recently, the Ministry of Industry and Trade said that it has officially concluded negotiations with the Israeli Ministry of Economy and Industry to reach agreements in accordance 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 towards the signing of the Vietnam - Israel Free Trade Agreement, which is expected in 2, to celebrate the 2023th 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 said that, with a complementary economic structure and strong growth in two-way trade turnover, Vietnam and Israel will gain more benefits when the incentives and advantages from the Vietnam - Israel Free Trade Agreement are effectively utilized. The two sides will continue to strengthen coordination and exchange of delegations between ministries, branches, industry associations, businesses... 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, the fifth largest trading partner of Vietnam in West Asia and is considered a large and potential market in this region. In 3, the total import-export turnover of Vietnam with Israel will reach 5 billion USD, up 2022% compared to 2,2; In which, Vietnam's export turnover to Israel reached 17,9 million USD, and Vietnam's import turnover from Israel reached 2021 billion USD. Vietnam has always been a trade deficit country from Israel with products such as computers, electronic products and components, machinery and equipment and spare parts, fertilizers of all kinds, vegetables and fruits...
Besides, Vietnam mainly exports products such as: phones and components, seafood, cashew nuts, coffee, shoes, pepper, textiles, wood and wood products... Notably, the product structure of Israel and Vietnam does not compete directly but complement each other. This will create favorable conditions for Vietnam to promote the export of many strong products to Israel, and at the same time have the opportunity to access Israeli high-tech products, contributing to reducing production and business costs and improving the competitiveness of Vietnamese goods.
General Secretary of the Vietnam Association of Seafood Exporters and Producers Truong Dinh Hoe said that Israel is in the top 22 leading seafood export markets of Vietnam. When the Vietnam - Israel Free Trade Agreement is signed, it will create great advantages for seafood exporters, with a distinct advantage in tariffs compared to countries that have not had trade agreements with this country. This is also a "springboard" for Vietnamese enterprises to expand their exports to regional markets.
According to General Director of Vietnam Organic Nutritional Foods Joint Stock Company Nguyen Thi Diem Hang, with this agreement, Vietnamese agricultural products are open to penetrate 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, Vietnam Trade Counselor in Israel Le Thai Hoa said that Israel has diversified needs and stable purchasing power and high solvency. Israeli businesses in general are 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 US and implements quite strict inspection and control.
“Vietnamese enterprises need to focus on offering processed products with high added value, with competitive prices and appropriate quality; prompt response to transactions with Israeli customers; comply with the requirements of the newly issued Israeli import regulations and standards”, Mr. Le Thai Hoa added.
