Opportunities to participate in supply chains and adopt advanced technologies.
According to Ms. Do Thi Thuy Huong, Vice President of the Vietnam Supporting Industries Association and a member of the Executive Board of the Vietnam Electronics Industry Association (VEIA), Israel is a high-tech economy with outstanding strengths in semiconductors, medical devices, cybersecurity, telecommunications, and IoT solutions. These are all highly complementary fields to Vietnam's electronics industry.
Conversely, Israel has a large demand for components, accessories, assembly modules, as well as OEM and ODM products – segments where Vietnamese businesses have a competitive advantage. This creates opportunities for Vietnamese businesses to participate in the supply chain, become suppliers of components and accessories, and gradually receive technology transfer.
Furthermore, VIFTA offers significant tariff advantages, with approximately 92.7% of tariff lines reduced according to the schedule, and many items moving towards the complete elimination of import duties. This is considered a crucial boost to help Vietnamese goods increase their competitiveness in the Israeli market.
Beyond just trade, Ms. Huong believes that VIFTA also opens up opportunities for cooperation in research and development (R&D), technology transfer, and two-way investment between businesses of the two countries, especially in the fields of electronics, semiconductors, and high technology.
To effectively leverage the VIFTA Agreement, the Vietnam Electronics Business Association has put forward five key recommendations for businesses:
Firstly, raise product quality and certification standards to meet international standards such as ISO, CE, RoHS, and EMC for electrical and electronic goods, while strengthening quality control.
Secondly, it is essential to thoroughly understand the rules of origin (ROO), build complete and compliant origin documentation to benefit from preferential tariffs; and strengthen coordination with customs authorities and certification bodies.
Third, focus on the segment where you have a competitive advantage, prioritizing simple components, accessories, and circuit boards, and assembling devices before expanding into more specialized technologies.
Fourth, strengthen connections with Israeli partners, proactively participate in trade fairs, trade promotion programs, B2B networking activities, and trade delegations.
Fifth, prepare your financial and trade insurance documents carefully when working with the Israeli market to minimize risks and ensure transaction security.
Ms. Do Thi Thuy Huong stated that the Association will strengthen the updating of market information, legal regulations, tariffs, rules of origin, and technical requirements of Israel for businesses. At the same time, the Association hopes to establish a rapid information channel between industry associations and the Vietnamese Trade Office in Israel to promptly share market information, partner needs, and cooperation opportunities.
In addition, the Association regularly organizes workshops and in-depth training courses on standards, certifications, and origin documentation; implements one-on-one consulting programs for businesses seeking to access the Israeli market; coordinates B2B business networking events; and builds a database of Vietnamese electronics industry business capabilities to introduce to Israeli partners.
One of the major desires of the business community is to receive support in accessing export finance and credit, through preferential loan packages from banks and investment funds, to finance investments in machinery, technology, and certification upgrades.
Mr. Le Thai Hoa, Commercial Counselor of the Vietnam Trade Office in Israel, said that the Trade Office has actively disseminated the content of the VIFTA Agreement to local businesses in Israel; supported trade connections, verified legal status, and introduced partners to Vietnamese businesses.
Many Vietnamese businesses have successfully signed export contracts to Israel for items such as seafood, agricultural products, processed foods, beverages, and construction materials, while also exploring investment opportunities in this market.
In the coming period, the Trade Office will continue to promote trade, organize seminars, connect Israeli buyers and importers with Vietnamese manufacturers; encourage Israeli businesses to visit Vietnam to explore cooperation opportunities; and provide market information, import needs, and updates on local policies to domestic businesses.
In particular, the Trade Office is committed to closely coordinating with Vietnamese industry associations and businesses within its functions to support effective access to the Israeli market and maximize the opportunities offered by the VIFTA Agreement.
Source: https://baophapluat.vn/hiep-dinh-thuong-mai-tu-do-viet-nam-israel-thuong-vu-viet-nam-tai-israel-tang-cuong-ket-noi.html
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