The Vietnam - Israel FTA (VIFTA) was signed in 2023 and put into effect, marking an important milestone in promoting economic, trade and technological cooperation between Vietnam and Israel.
VIFTA Agreement, promoting economic and trade cooperation between Vietnam and Israel
The Vietnam - Israel FTA (VIFTA) was signed in 2023 and put into effect, marking an important milestone in promoting economic, trade and technological cooperation between Vietnam and Israel.
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| Director of the Multilateral Trade Policy Department, Mr. Luong Hoang Thai introduced the VIFTA Agreement. |
The Ministry of Industry and Trade recently held a workshop to introduce the Vietnam-Israel Free Trade Agreement (VIFTA). This FTA, which will be signed in 2023, marks an important milestone in promoting economic, trade and technological cooperation between Vietnam and Israel.
After 7 years and 12 negotiation sessions, on July 25, 2023, Vietnam - Israel signed the Free Trade Agreement (VIFTA), making VIFTA the 16th free trade agreement of Vietnam with global partners. 
VIFTA not only expands trade opportunities but also facilitates cooperation between businesses of the two countries in the fields of technology and innovation. Israel will support Vietnam in improving and implementing advanced technological solutions.
Signing and implementing VIFTA will create favorable conditions for Vietnam to promote the export of its key products not only to Israel but also to have the opportunity to access other markets in the Middle East, North Africa and Southern Europe.
On the other hand, besides Vietnam's market of over 100 million people, Israeli goods and technology have the opportunity to access markets in ASEAN countries, Asia- Pacific and major economies in the 17 FTAs that Vietnam has participated in.
Vietnam's Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that the trade structure of Vietnam and Israel is not competitive but complementary, which is considered an important premise for the two sides to expand trade exchanges in the coming time.
Vietnam and Israel went through a difficult negotiation process, but with much effort and determination, the two sides finally signed and put the agreement into effect.
Two-way trade turnover currently reaches approximately 3 billion USD but will increase rapidly in the coming period, when VIFTA is implemented for a while, reducing import and export taxes, facilitating two-way trade.
In addition to trade, VIFTA also creates a great driving force for investment cooperation between the two countries. Simplifying legal procedures and reducing administrative barriers helps Vietnamese and Israeli businesses gain more confidence in expanding investment activities.
Mr. Luong Hoang Thai, Director of the Multilateral Trade Policy Department, Ministry of Industry and Trade, said that although Vietnam's export potential to Israel is not as large as many other countries, the agreement coming into effect will help balance bilateral trade.
Israel is a very important partner of Vietnam in the Middle East, a channel for Vietnam to enter the region. Therefore, the implementation of VIFTA is not only reflected in the numbers, but also an opportunity for the industries that Vietnam is aiming for in the future.
According to the Commercial Counselor of the Vietnam Trade Office in Israel, the implementation of VIFTA is expected to be a "lever" to help strengthen cooperation between the two countries in investment, trade in services, digital transformation, technology, etc.
Currently, businesses of both countries are expressing active interest in the implementation of VIFTA, creating an important legal framework for market opening and business activities as well as favorable conditions for goods of each side to penetrate each other's markets.
“ Many Israeli businesses are interested in cooperating with the Vietnamese market and businesses, actively coming to Vietnam to seek sources of goods supply,” said Mr. Le Thai Hoa, Trade Counselor, Vietnam Trade Office in Israel . Accordingly, seafood, agricultural products, footwear, textiles, etc. will be potential industries for businesses of both sides to increase investment cooperation.
According to the latest statistics, in the first 10 months of 2024, two-way trade between Vietnam and Israel reached 2.578 billion USD, up 12.92%; of which, Vietnam's exports to Israel reached 676 million USD, up 23.4% and imports from this market reached 1.902 billion USD, up 9.6% over the same period in 2023.
It is expected that if the market situation does not have sudden fluctuations, bilateral trade in 2024 could reach over 3.1 billion USD, of which Vietnam's exports will reach over 850 million USD, an estimated increase of 34.71% compared to 2023, and imports from Israel will reach about 2.25 billion USD.
Source: https://baodautu.vn/hiep-dinh-vifta-thuc-day-hop-tac-kinh-te-thuong-mai-viet-nam---israel-d232294.html
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