Exports to Israel could increase by more than 10% by 2025

Overview of the discussion. *Photo: Nghiem Lan*

This comment was made by Mr. Le Thai Hoa, Trade Counselor - Trade Office of Vietnam in Israel at a seminar organized by Industry and Trade Magazine on December 4, with the theme: "Prospects from the VIFTA Agreement: Solutions for effective utilization".

Mr. Hoa said that the above results were achieved thanks to the positive impacts of the Vietnam - Israel Free Trade Agreement (VIFTA) after more than a year of implementation, since November 17, 2024. This is the first bilateral FTA that Vietnam has signed with a country in the Middle East - Africa region, and the first FTA that Israel has signed with a Southeast Asian country and the third free trade agreement of Israel with an Asian country, after South Korea and the UAE.

Despite the difficult global economic context, two-way trade turnover in 2024 will still reach about 3.25 billion USD, of which Vietnam's exports will reach nearly 800 million USD. Trade exchange in 2025 is forecast to reach over 3.75 billion USD, with Vietnam's exports alone estimated at 850-880 million USD, an increase of more than 10% over the previous year.

Cumulatively, Israel currently has 45 FDI projects in Vietnam, with a total registered capital of about 156 million USD. In return, Vietnam has invested in 4 projects in Israel, with a total capital of more than 78 million USD.

Ms. Do Thi Thuy Huong, Vice President of the Vietnam Association of Supporting Industries, assessed that the reduction of a series of tax lines under VIFTA has created clear advantages for import and export. In particular, Vietnamese electronics enterprises are having great opportunities to access technology and connect to the supply chain in Israel - an economy famous for high technology.

Mr. Le Thai Hoa, Trade Counselor - Vietnam Trade Office in Israel, had an online discussion at the seminar. *Photo: Nghiem Lan*

According to Mr. Le Thai Hoa, another important driving force is the direct flight route between Israel and Vietnam, scheduled to open on January 5, 2026, which is an important boost to help Vietnamese businesses access the Israeli market more deeply, where there is still much room for growth.

On the other hand, Israel’s consumption habits are in line with Vietnam’s advantages. Israeli enterprises tend to import finished, processed, high value-added products and fully packaged them to bring directly to distribution systems. This is a clear advantage for Vietnamese goods, especially the group of deeply processed products.

Source: https://hanoimoi.vn/nam-2025-xuat-khau-sang-israel-co-the-tang-hon-10-725659.html