According to Counselor Le Thai Hoa, the first year of implementing VIFTA has brought about clear impacts, first of all reflected in the strong level of market opening on both sides. Israel eliminated more than 66% of tariff lines as soon as the agreement came into effect and will increase the liberalization rate to nearly 93%, while Vietnam also committed to opening up to nearly 86% of tariff lines, by the end of the roadmap. Thanks to that, many key Vietnamese product groups such as seafood, footwear, fashion , coffee, cashew nuts, processed agricultural products or construction materials have significantly expanded their market penetration.
Export turnover to Israel in the first 10 months of 2025 reached more than 700 million USD and is expected to reach about 880 million USD for the whole year, an increase of over 10% compared to 2024, if the market does not have unusual fluctuations. Seafood is still a strength, accounting for 12-13% of Israel's total seafood imports and in recent years, Israel has played the role of Vietnam's largest export market in the Middle East - Africa region. Items such as cashew nuts, instant coffee, fragrant rice or food products - canned goods also maintained stable growth thanks to their suitability to Israeli consumer tastes and technical standards.
According to Counselor Le Thai Hoa, the great advantage of the Israeli market lies in its consumption characteristics: high purchasing power, fast turnover of goods and a preference for processed and fully packaged products - very suitable for the production capacity of Vietnamese enterprises. However, the challenges are not small, besides the risk of war, there are requirements for Kosher or Halal certification for some food items, strict technical standards according to the European Union (EU) or the US and business practices that require direct transactions with manufacturers. Some technical problems, such as the difference in the scientific name of tilapia, have also caused difficulties for enterprises when applying for import permits.
Over the past year, the Vietnam Trade Office in Israel has actively played a bridging role, from mobilizing local authorities to complete approval procedures and agree on the effective date of VIFTA, to promptly handling the issue of issuing Certificates of Origin so that businesses can enjoy tax incentives right from the first shipments. The Trade Office has also compiled and published many sets of handbooks on import standards, TBT, SPS and regularly updated new regulations; at the same time, arranged for many Israeli business delegations to come to Vietnam to find alternative sources of supply in the context of regional supply chain disruption.
Regarding the future prospects, Counselor Le Thai Hoa assessed that VIFTA is an agreement of strategic significance, as this is the first FTA that Vietnam has signed with a Middle Eastern country and also the first FTA that Israel has signed with an ASEAN country. With this foundation, bilateral economic and trade cooperation is expected to make a strong breakthrough in the period 2025-2030. Sectors forecast to grow strongly include agricultural products - processed food, consumer goods, construction materials, and high-tech industries such as smart agriculture, water management, renewable energy, healthcare and innovation - which are Israel's strengths and also Vietnam's development needs.
Mr. Le Thai Hoa said that if businesses of the two countries proactively take advantage of incentives, actively survey the market, attend fairs, strengthen direct connections and meet the new technical standards of Israel according to the "EU/US principles", bilateral trade turnover can completely exceed the 4 billion USD mark in the near future. In addition, the Trade Office will continue to promote activities, provide information, organize seminars, connect trade as well as coordinate to remove technical bottlenecks such as certification, standards or product names to ensure that Vietnamese businesses can make the most effective use of the opportunities that VIFTA brings.
Source: https://baotintuc.vn/kinh-te/mot-nam-vifta-nhieu-cua-mo-rong-cho-hang-viet-nam-vao-israel-20251121215251839.htm
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