Vietnam-Israel trade likely to exceed US$3 billion this year
Vietnam-Israel trade, propelled by the current growth momentum, is expected to surpass US$3 billion in 2024, Vietnamese Trade Counsellor in the Middle Eastern nation Le Thai Hoa has said.
According to the diplomat, Vietnam’s export to and import from the partner are projected to reach about US$850 million and more than US$2.15 billion respectively.
In the first nine months, bilateral trade turnover hit US$2.28 billion, including US$614 million worth of Vietnamese exports.
With over US$153 million in foreign direct investment, Israel is Vietnam's second-largest Middle East investor, following Turkey, and stands 44th among the 146 countries and territories investing in the Southeast Asian nation. Meanwhile, Vietnam’s investment in Israel has so far exceeded over US$40 million.
Set to take effect in November, the Vietnam-Israel Free Trade Agreement (VIFTA) is expected to further enhance their bilateral trade and investment ties. Speaking at a meeting with Vietnamese Ambassador to Israel Ly Duc Trung on November 11, Israeli Minister of Economy and Industry Nir Barkat praised both sides for their seven-year efforts, which included 12 rounds of negotiations and a year of finalising legal procedures to bring the pact into force.
Barkat also highlighted the vast potential for cooperation in the Vietnamese market, which he considers a strategic gateway for Israel to access other Southeast Asian markets. Noting the prospect of establishing a direct flight route between the two countries, he pledged to support aviation businesses in realising this goal.
The “what’s good for Europe is good for Israel” bill, which is due to take effect in early 2025, will align Israeli import standards for consumer goods with European Union regulations. Vietnamese exports to the EU have already met these standards under the EU-Vietnam Free Trade Agreement (EVFTA), positioning them for smoother entry into Israel once the VIFTA comes into effect.
Currently, Israel is Vietnam's third largest trading partner, fourth biggest export market and second largest import market in the Middle East. Last year, bilateral trade stood at approximately US$2.68 billion, with Vietnamese exports totaling US$631 million.
