Vietnam and Israel sign free trade agreement

Vietnam and Israel signed a free trade agreement on Tuesday, predicting it would quickly boost annual bilateral trade by nearly 50%.

The agreement was signed in Israel between the two country's trade ministers after seven years of negotiations, Vietnam's Ministry of Industry and Trade said in a statement.

The agreement is expected to soon bring bilateral trade to $3 billion, the ministry said, after bilateral trade between the countries rose 18% last year to $2.2 billion.

The deal will "facilitate Vietnam's exports of its products not only to Israel but also pave the way for Vietnamese products to access other Middle East, north African and southern European markets," it said.

Importing Vietnamese goods into Israel

Vietnam's largest exports to Israel include smartphones, footwear and seafood, while it imports electronics and fertilizers.

The agreed will ultimately remove duties on at least 86% of Vietnamese products and 93% of Israeli products, Vietnam's Ministry of Industry and Trade said.

Vietnam has signed 16 bilateral and multilateral free trade agreements since the early 1990s, as it seeks to attract more foreign investors to its manufacturing-driven economy.