The International Trade Council is thrilled to announce the successful signing of the Vietnam-Israel Free Trade Agreement (VIFTA) on July 25. This landmark agreement is projected to amplify bilateral trade by fifty percent within the next two years.
The fruit of a rigorous seven-year negotiation period, the agreement saw its formal endorsement by the trade ministers from both nations. Trade dynamics between Vietnam and Israel have showcased promising growth, with trade values surging to USD 2.2 billion (EUR 2 billion) in 2022, marking an eighteen percent increase from the previous year. With the solidification of this agreement, experts, including Reuters, anticipate that the trade values are poised to touch USD 3 billion (EUR 2.7 billion) in the forthcoming year.
Mr. Truong Dinh Hoe, the General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), shared his optimism regarding the deal. He highlighted that while the Israeli market comprises a relatively modest segment of Vietnam's seafood exports, it exudes significant potential due to its strong purchasing capabilities and financial solvency. Given Israel's limitations in terms of natural and domestic labor resources paired with its impressive consumption demands despite its smaller geographical size, Vietnamese seafood enterprises are presented with expansive opportunities.
One of the standout provisions of VIFTA ensures that duties on a minimum of eighty-six percent of Vietnamese exports to Israel, inclusive of seafood, will witness a gradual reduction, eventually leading to their complete elimination. Concurrently, tariffs on ninety-three percent of Israeli products destined for Vietnam will also be phased out, as confirmed by Vietnam's Ministry of Industry and Trade.
The Ministry further emphasized the broader implications of the agreement, stating, "[The deal] will not only bolster Vietnam's product exports to Israel but also lay down the foundation for Vietnamese commodities to penetrate and establish a presence in other territories across the Middle East, North Africa, and Southern Europe."
For more information and future updates on trade dynamics and agreements, stakeholders and interested parties are encouraged to refer to announcements from the International Trade Council.
