The Vietnam-Israel FTA (VIFTA) has concluded negotiations after a 7-year journey, is expected to be signed in 2023, soon to be put into effect, creating favorable conditions to promote investment and trade. between two countries.
Israel is currently the third largest export market, the fifth largest trading partner of Vietnam in West Asia (after the UAE and Turkey) and is considered a large and potential market for Vietnam's exports.
In 2022, Vietnam's total import-export turnover with Israel reached $2.2 billion, up 17.9% compared to 2021, of which Vietnam's exports reached $785.7 million and imports from Israel reached $1.4 billion.
Despite the population size of approximately 9.7 million people, Israel's economic and foreign trade activities are quite developed. In 2022, the country's foreign trade turnover will reach US$173 billion, of which exports will reach US$67 billion and imports will reach US$106 billion. According to the Vietnam Trade Office in Israel, items such as food, food, beverages, clothing, shoes, furniture, electronic goods, electrical appliances, household goods, pharmaceuticals, etc. of Vietnam will have the best room to exploit this market. Because of the group of consumer goods alone, each year Israel imports about 25 billion USD. Particularly in 2022, tuna exports to Israel reached 36.63 million USD, Israel ranked 4th among the 10 largest tuna import markets of Vietnam (after the US, Canada and Japan); frozen squid exports to this market reached USD 23.22 million, the 8th largest market; frozen shrimp exports to Israel reached about 21 million USD...
In addition, when the Vietnam - Israel FTA is signed, it will open opportunities for seafood businesses to increase cooperation with the Middle East through the gateway of the United Arab Emirates (UAE). Specifically, VIFTA, to further facilitate trade exchanges, investment cooperation, services, etc. between the business communities of the two countries, especially opening the market for goods of each side subject to certain conditions. conditions to penetrate more strongly into each other's markets. VIFTA is the first bilateral free trade agreement that Vietnam concludes negotiations with a country in West Asia (Middle East) and this is also a free trade agreement. Israel's first bilateral free trade agreement concluded negotiations with a country in Southeast Asia (ASEAN).
In terms of the entire Asian region, recently, Vietnam is the third partner with which Israel has concluded negotiations for a bilateral free trade agreement, after Israel signed FTAs with South Korea in May. 2021 and with the UAE in May 2022 (excluding previous generation agreements Israel signed with Jordan in 1995 and Turkey in 1996).
Source: www.congthuong.vn
