Vietnam and Israel are set to accelerate the execution of their free trade agreement while broadening cooperation in trade, industry, and innovation. This decision comes amid a period of robust growth in their bilateral economic relations. The commitment was made during a meeting between Vietnam’s ambassador to Israel and Israel’s Minister of Economy and Industry in Jerusalem, where both parties underscored the potential of the Vietnam–Israel Free Trade Agreement (VIFTA) to foster additional economic expansion.
The trade relationship between the two nations has been gaining significant traction, with bilateral trade reaching approximately $3.63 billion last year. In the first five months of this year, trade approached $1.6 billion, marking a notable increase in Vietnamese exports compared to the same timeframe last year. This upward trend suggests that Vietnam’s exports to Israel could surpass the $1 billion mark for the first time, driven by strong demand and enhanced market access under the free trade agreement that came into effect in late 2024.
Israel highlighted its competitive advantages in sectors like artificial intelligence, cybersecurity, medical technology, and advanced agriculture, promoting increased business collaboration and investment exchanges with Vietnam. These areas are seen as pivotal for deepening economic ties and tapping into the opportunities presented by the trade agreement.
Both countries have agreed to ensure closer coordination among their respective agencies and businesses to fully capitalize on the benefits of the trade deal. By doing so, they aim to further cement their economic relationship and sustain the momentum of growth that has been achieved thus far.