Trade relations between Vietnam and Israel have entered a new era, marked by the recent implementation of the Vietnam-Israel Free Trade Agreement (VIFTA). Signed in July 2023 and coming into force in 2024, this landmark deal has opened the door for an unprecedented level of economic cooperation between the two nations. The agreement eliminates tariffs on at least 86% of Vietnamese products and 93% of Israeli products, setting the stage for bilateral trade to potentially reach $3 billion annually in the near future.
Vietnam has emerged as a vital sourcing hub for Israeli businesses, especially as global supply chains face disruptions due to regional conflicts and logistical challenges. Israeli importers are increasingly turning to Vietnam to meet domestic demand for a wide array of goods, including rice, seafood, processed foods, beverages, electronics, construction materials, and consumer products. The requirement for Kosher certification and adherence to high food safety standards ensures that Vietnamese exporters must maintain rigorous quality controls to access the Israeli market.
The VIFTA is not just about tariff reductions; it also facilitates deeper collaboration in technology transfer, human resource training, and industrial cooperation. Israel’s expertise in high-tech agriculture, electronics, and innovation aligns with Vietnam’s strengths in manufacturing and export, creating a complementary economic partnership. This synergy is expected to help Vietnamese producers integrate into Israeli supply chains and, in turn, allow Israeli technologies and products to reach Vietnam’s rapidly growing consumer market and its network of free trade partners.
Despite ongoing conflicts in the Middle East, trade between the two countries has shown remarkable resilience and growth. In the first half of 2025, bilateral trade surged by over 30% compared to the previous year, with projections suggesting a record $3.7 billion in total trade for the year. This momentum highlights the strategic importance of Vietnam as a sourcing destination for Israeli firms seeking to diversify and secure their supply chains in a volatile global environment.
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(Source: Vietnam Plus | Vietnamnet.vn)
