Israel and Vietnam reignite relations with new free trade agreement

Israel and Vietnam have agreed on a new free trade agreement that will come into effect in November, the government shared on Thursday. 

The deal aims to simplify trade for different products, including electronics, vehicles, medical devices, fresh produce, and food products.

Israeli Economy Minister Nir Barkat explained, “The trade agreement with Vietnam represents a significant step forward for the Israeli economy, marking another milestone in Israel’s cooperation with leading global economies.” 

Increase in profit

In 2023, trade between Israel and Vietnam grew by 21%, reaching a total of about $1.3 billion. The trade agreement is expected to open new opportunities and allow Israeli companies to establish a stronger presence in Vietnam, which could lead to new jobs and economic growth in both countries.

The agreement was signed in July by Economy Minister Barkat and Vietnamese Minister of Industry and Trade Nguyen Hong Dien and also received support from Prime Minister Benjamin Netanyahu and Vietnamese Deputy Prime Minister Luu Quang Tran. 

The deal not only reduces tariffs gradually but also removes barriers for Israeli exporters of different products, such as medical devices, cosmetics, produce, etc., making it easier and less expensive for them to expand into the Vietnamese market.

Roey Fisher, Director of the Foreign Trade Administration, said, “This agreement reflects our commitment to expanding Israeli export options worldwide. Southeast Asian markets, particularly Vietnam, are stable, reliable, and growing destinations for Israel. We will continue creating competitive advantages for Israeli industry in these regions.”