Strengthening business ties between Vietnam and Israel, leveraging opportunities from the Vietnam-Israel Free Trade Agreement (VIFTA).

On the Vietnamese side, more than 70 businesses and representatives from agencies and associations participated in person in Hanoi , along with over 50 businesses from the southern provinces and the Central Highlands region participating online. The Israeli side included Mr. Le Thai Hoa, Vietnam's Commercial Counselor in Israel and President of the Vietnam-Israel E-commerce Association, along with representatives from several Israeli agencies and businesses interested in and having cooperative relationships with the Vietnamese market.

Ms. Nguyen Minh Phuong – Head of West Asia – Africa Department, Foreign Market Development Division

Israel is currently one of Vietnam's important trading partners in West Asia, ranking as Vietnam's fourth largest export market and third largest trading partner in the region. In recent years, bilateral economic and trade relations have continued to expand and strengthen, creating a favorable foundation for business cooperation between the two countries.

The Vietnam-Israel Free Trade Agreement (VIFTA), signed on July 25, 2023, and officially effective from November 17, 2024, marks a significant milestone in Vietnam's economic integration with the West Asia-Africa region. This is Israel's first FTA with a Southeast Asian country, and Vietnam's first FTA with the West Asia-Africa region, opening up numerous opportunities for bilateral economic, trade, and investment cooperation, particularly in the fields of agriculture, forestry, fisheries, processing industries, and technology.

Two-way trade between Vietnam and Israel is expected to reach US$3.2 billion in 2024, with Vietnam's exports to Israel totaling US$794.5 million and imports from Israel to Vietnam accounting for the majority at US$2.5 billion. This represents a significant increase compared to previous years, reflecting the rapid growth since the VIFTA came into effect and trade promotion activities have been intensified.

In 2025, with the current momentum and advantages from the Agreement, it is estimated that bilateral trade turnover could reach over 3.7–3.8 billion USD, of which Vietnam's exports to Israel could increase by more than 10% compared to 2024, to approximately 850–880 million USD, provided there are no major disruptions to the supply chain or international trade policies.

According to the VIFTA agreement, Israel eliminated tariffs immediately upon the agreement's entry into force for 66.3% of tariff lines and gradually eliminated the remaining tariffs over a period of 3–5–7–10 years; Vietnam also committed to eliminating most tariff lines according to the schedule, thereby facilitating the circulation of goods between the two sides, increasing exports of Vietnam's key products such as seafood, cashew nuts, textiles, coffee, pepper, etc., and simultaneously opening the door for high-tech goods, machinery, and equipment from Israel to enter Vietnam.

Besides trade in goods, VIFTA also includes commitments on trade in services and investment, creating favorable conditions for businesses in both countries to expand cooperation, invest, and participate more deeply in each other's value chains. The Vietnamese and Israeli economies are highly complementary, with non-competitive commodity structures, creating significant room to boost exports of each side's strengths.

The VIFTA agreement not only brings direct tariff benefits but also creates a stable and transparent legal framework, helping businesses in both countries strengthen connections, expand markets, and cooperate in investment. Proactively grasping market information, taking advantage of tariff preferences, and promoting business linkages, especially in the fields of agricultural processing, fisheries, and high technology, will be key factors in maximizing cooperation potential and contributing to sustainable growth in bilateral trade in the future. Therefore, it can be affirmed that VIFTA will play a crucial role as a foundation for further strengthening bilateral trade and investment and cooperation in all areas covered by the Agreement.

Source: Department of Overseas Market Development

Tags: Vietnam - Israel, VIFTA Agreement

Source: https://moit.gov.vn/tin-tuc/tang-cuong-gan-ket-doanh-nghiep-viet-nam-israel-tan-dung-co-hoi-tu-hiep-dinh-thuong-mai-tu-do-viet-nam-israel-vifta-.html