The Vietnam-Israel Free Trade Agreement (VIFTA) was officially introduced in Hanoi at a workshop introducing the Vietnam-Israel Free Trade Agreement on December 11, marking an important milestone in promoting economic, trade and technological cooperation between the two countries, the Embassy of Israel in Vietnam informed on the same day.
The event was organized by the Embassy of Israel in Vietnam and the Israel Chamber of Commerce and Industry, in coordination with the Vietnam Federation of Commerce and Industry (VCCI).
The event was attended by Deputy Minister of Industry and Trade of Vietnam Nguyen Sinh Nhat Tan, Ms. Aliza Bin-Noun - Director General of Political and Multilateral Cooperation, Ministry of Foreign Affairs of Israel.
Signed in 2023 after seven years of negotiations, VIFTA is Israel’s first free trade agreement with a Southeast Asian country. The agreement commits to reducing tariffs on 85% of tariff lines from Vietnam and 92% from Israel, creating favorable conditions to promote two-way trade.
Vietnam-Israel trade turnover reached 2.68 billion USD (2023), with a diversified trade structure. Vietnam mainly exports textiles, footwear, seafood, electronics and agricultural products, reaching about 800 million USD, while Israel provides high technology, medical equipment, electronic components and modern agricultural solutions, with an import value of 1.88 billion USD.
Bilateral trade is expected to grow steadily by 15-20% per year during 2025-2030, thanks to tariff incentives and extensive cooperation initiatives.
In addition to trade, VIFTA also creates a great driving force for investment cooperation between the two countries. Simplifying legal procedures and reducing administrative barriers helps Vietnamese and Israeli businesses gain more confidence in expanding investment activities.
One of the prominent areas of cooperation is agriculture. Israel is committed to supporting Vietnam in applying smart irrigation solutions, efficient water management and precision agriculture technology. The agreement on the transfer of modern irrigation technology, signed at the event between the Embassy of Israel, the Ministry of Agriculture and Rural Development of Vietnam and the Thien Tam Foundation of Vingroup, will help improve agricultural productivity in 10 provinces, with a view to expanding nationwide.
According to the Embassy of Israel in Vietnam, VIFTA not only expands trade opportunities but also creates favorable conditions for businesses of the two countries to cooperate in the field of technology and innovation. Israel will support Vietnam in improving and implementing advanced technology solutions.
According to Mr. Le Hoang Thai - Director of the Multilateral Policy Department, Ministry of Industry and Trade - Vietnam is not only looking at the Israeli market through the VIFTA agreement, but also towards the region. Although Vietnam's export potential to Israel is not as large as many other countries, the agreement coming into effect will help balance the bilateral trade balance.
Water resource management is also a focus of cooperation. Israel’s desalination and water recycling technology, which has been successfully applied globally, has great potential to solve the water shortage problem in arid regions of Vietnam.
