Vietnam and Israel are set to accelerate the implementation of their free trade agreement, aiming to bolster cooperation in trade, industry, and innovation as their economic relationship continues to thrive. This commitment emerged from a recent meeting in Jerusalem between Vietnam’s ambassador and Israel’s Minister of Economy and Industry, where the two parties underlined the potential of the Vietnam–Israel Free Trade Agreement (VIFTA) to drive further economic growth.
The economic partnership between Vietnam and Israel has been gaining significant momentum, with bilateral trade reaching approximately $3.63 billion last year. In just the first five months of this year, trade has already approached $1.6 billion, marking a notable increase in Vietnam’s exports compared to the same period in the previous year.
There is a strong possibility that Vietnam’s exports to Israel will surpass the $1 billion mark for the first time if the current growth trajectory continues. This optimistic outlook is largely attributed to the robust demand and enhanced market access facilitated by the free trade agreement, which became effective in late 2024.
Israel has expressed its interest in leveraging its expertise in fields such as artificial intelligence, cybersecurity, medical technology, and advanced agriculture to foster greater business collaboration and investment exchanges with Vietnam. Both nations are keen on maximizing the benefits of their trade agreement by encouraging stronger ties between their respective industries.
To further solidify their economic partnership, Vietnam and Israel have agreed to enhance coordination between their agencies and businesses. This strategic collaboration aims to fully exploit the opportunities presented by the trade agreement, paving the way for a deeper and more comprehensive economic relationship.