The Vietnam – Israel Free Trade Agreement (VIFTA), which officially took effect in November 2024, has given a significant boost to bilateral trade, with the turnover estimated at over 3.7 billion USD in 2025, according to Vietnamese Trade Counsellor in Israel Le Thai Hoa.

In the very first year of implementation, Israel eliminated more than 66% of tariff lines and will gradually raise the liberalisation rate to nearly 93%, while Vietnam has committed to cutting nearly 86% of tariff lines by the end of the roadmap. These substantive tariff preferences have quickly encouraged businesses from both countries to expand transactions, which have been translated directly into tangible trade growth, Hoa told the Vietnam News Agency.

At the same time, he went on, the high level of complementarity between the two economies has enabled goods from each side to access the other’s market more easily, with little direct competition. Israel has strong demand for agricultural products, processed foods, and consumer goods which are Vietnam’s advantages, while Vietnam imports a large volume of high-tech products, machinery, and equipment from Israel.

In addition, proactive efforts by the business communities, together with the bridging role and active support of the Vietnam Trade Office in Israel, have helped enterprises effectively capitalise on the VIFTA preferences right from the very first shipments.

Hoa noted the office has worked closely with local authorities and relevant Vietnamese agencies to promptly solve technical barriers, support businesses in obtaining certificates of origin to benefit from preferential tariffs, and publish guidance on import standards, requirements, as well as new trade reforms and policies of the host country.

It has also strengthened B2B connections, organised specialised trade promotion events, arranged Israeli business delegations to Vietnam, verified partners, and helped Vietnamese enterprises access the right segments and meet required standards, thus minimising risks, reducing costs, and maximising VIFTA benefits.

Looking ahead, Hoa affirmed that Vietnam and Israel still boast significant trade growth potential despite global uncertainties. With the solid foundation of VIFTA and strong economic complementarity, bilateral trade is expected to soon surpass 4 billion USD and move toward 5 billion USD in the coming years.

Beyond traditional sectors such as agriculture, processed food, seafood, consumer goods, and building materials, cooperation in new areas are set to grow strongly, especially high technology and investment, he went on, adding Israel has strong advantages in smart agriculture, water management, renewable energy, medical devices, cybersecurity, the Internet of Things (IoT), and innovation, which are also the fields matching Vietnam's goal of sustainable development.

The Trade Office reaffirmed its commitment to supporting businesses through market information provision, partner connection, and technical facilitation. If enterprises proactively explore the market, improve quality, meet standards, and deepen direct cooperation, Vietnam – Israel trade relations are expected to enter a new phase of stronger and more sustainable growth./.
 
Source: en.vietnamplus.vn/official-describes-vifta-as-new-driving-force-for-vietnam-israel-trade-post334682.vnp