The Vietnam-Israel Free Trade Agreement (VIFTA) was signed on 25 July, with predictions it will boost bilateral trade by 50 percent within two years.
The agreement was signed by each nation’s trade minister after seven years of negotiations. Trade between the two countries was valued at USD 2.2 billion (EUR 2 billion) in 2022, up 18 percent year over year, and is expected to reach USD 3 billion (EUR 2.7 billion) next year thanks to the deal, Reuters reported.
General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) Truong Dinh Hoe said although the Israeli market accounts for a small proportion of Vietnam’s seafood exports, it is a very high-potential market because of its high purchasing power and solvency. Besides, Israel has limited natural resources and domestic labour resources. Although it is a small country, its consumption demand is quite large, meaning the market still has a lot of room for Vietnamese seafood enterprises to operate effectively.
The agreement will scale down duties on at least 86 percent of Vietnamese products sent to Israel, including seafood, eventually zeroing them out. Tariffs will also be eliminated on 93 percent of Israeli products exported to Vietnam, according to Vietnam's Ministry of Industry and Trade.
“[The deal will] facilitate Vietnam's exports of its products not only to Israel but also pave the way for Vietnamese products to access other Middle East, North African, and Southern European markets," the ministry said in a statement.
Israel was Vietnam’s …
Photo courtesy of Vietnam's Ministry of Industry and Trade
