VIFTA opens path for Israeli technology transfer to Vietnamese manufacturing
VOV.VN - The Vietnam-Israel Free Trade Agreement (VIFTA) is expanding bilateral trade while creating a framework for scientific cooperation, technology transfer, and high-value manufacturing between the two countries.
Bilateral trade has grown steadily since VIFTA took effect on November 17, 2024. Two-way trade reached US$3.63 billion in 2025, up 11.8% year-on-year. In the January-October period, trade exceeded US$3.5 billion, up 14%, with Vietnamese exports topping US$1 billion, a 42.4% increase.
Total two-way trade for 2026 is projected at US$4.4 billion, with Vietnamese exports expected to reach US$1.3 billion, up 50.3% from 2025.
Le Thai Hoa, Trade Counsellor at the Vietnamese Trade Office in Israel, stresses that to turn these opportunities into practical benefits, Vietnam must transition from importing technology to co-researching, developing, and mastering it, driven by proactive domestic enterprises.
"Vietnamese firms should not act only as buyers or distributors. They need to form joint ventures and R&D partnerships with Israeli counterparts to localize technologies for domestic production conditions," Hoa says, citing the collaboration between Vingroup’s VinES and an Israeli partner on fast-charging electric vehicle batteries as an effective model.
Key focus areas include artificial intelligence (AI), cybersecurity, semiconductors, medical technology, and high-tech agriculture.
To support this transition, trade agencies and business communities are prioritizing effective VIFTA implementation, improved logistics, and flexible financing models such as co-funding research or pay-per-use technology leases. Furthermore, Vietnam can serve as a manufacturing center and launchpad for Israeli technology to access the broader ASEAN market.
"Vietnamese businesses should view Israel not just as a place to purchase technology, but as a long-term partner to co-create, co-produce, and enter global value chains together," Hoa emphasized.
From trade expansion to joint research and technology transfer, VIFTA is laying the groundwork for deeper economic ties. Turning these commitments into concrete production projects will help integrate advanced Israeli solutions into local manufacturing, thereby enhancing the overall competitiveness of Vietnam's economy.
Official describes VIFTA as new driving force for Vietnam – Israel trade
The Vietnam – Israel Free Trade Agreement (VIFTA), which officially took effect in November 2024, has given a significant boost to bilateral trade, with the turnover estimated at over US$3.7 billion in 2025, according to Vietnamese Trade Counsellor in Israel Le Thai Hoa.
Vietnam and Israel to soon implement bilateral free trade agreement – VIFTA
VOV.VN - Vietnam and Israel will soon complete related procedures to kick-start the implementation of the recently signed free trade agreement (VIFTA) between the two countries.
