At the invitation of Israel Economy and Industry Minister Nir Barkat, Industry and Trade Minister Nguyen Hong Dien led the delegation to visit and work in Israel to agree on the content and officially announce the end of the Vietnam-Vietnam Free Trade Agreement negotiations to enter Israel (VIFTA) and discuss bilateral trade issues.

At the meeting on April 2, 2023, Minister Nguyen Hong Dien expected that Vietnam and Israel, with a complementary economic structure and strong growth in mutual trade, will reap more benefits by effectively utilizing the incentives and benefits of VIFTA.

Minister Nguyen Hong Dien suggested that the two sides should strengthen coordination and delegation exchanges between ministries, branches, industry associations, enterprises… to jointly seek and promote opportunities for trade and investment cooperation, building and the Promote the brand at trade fairs and exhibitions both in Vietnam and Israel.

Minister Nguyen Hong Dien particularly encouraged Israeli companies to invest in Vietnam in the fields of industrial production, agriculture with high-tech applications, materials industry, information technology, green production, etc., clean production…, investment in industrial infrastructure development. In addition, the minister called on Israel to share experiences and technologies in the field of digital economy, digital transformation, energy transition, etc.

For his part, Minister Nir Barkat said he would continue to conduct cooperation and exchange activities between the two ministries, as well as promote trade facilitation programs to create favorable conditions for Israeli and Vietnamese companies to take advantage of business and investment obligations of the Vietnam-Israel Free Trade Agreement as soon as the Agreement is signed and enters into force.

Afterward, both sides agreed on a statement concluding negotiations on the Vietnam-Israel Free Trade Agreement. 2 The Minister recognized the efforts of the two negotiating teams Vietnam and Israel over the past 7 years (end of 2015, the two countries announced the start of FTA negotiations) with 12 negotiating sessions, overcoming difficulties and challenges during the Covid-19 pandemic to finally reach an agreement that corresponds to the wishes and interests of both countries.

With the negotiations officially concluded, the next two countries will soon move forward with the final internal and legal work in preparation for the signing of the Vietnam-Israel Free Trade Agreement, which is expected to celebrate in 2023 its 30th anniversary of the establishment of diplomatic relations between the two countries.

2023 marks the 30th anniversary of Vietnam and Israel establishing official diplomatic relations. This will also be a good opportunity for the two to step up economic diplomacy activities to become deeper, more substantial and more effective.

In the past 30 years since the official establishment of diplomatic relations, the multifaceted cooperation between the two countries has developed greatly, especially trade and high-tech ties serving agriculture and health, as well as cooperation in fighting pandemics. The prospects for relations between the two countries are very good, especially given that Vietnam is driving digital transformation and Israel has many strengths in high-tech solutions.

Israel is one of Vietnam’s leading trade, investment and labor cooperation partners in the region. Israel is currently Vietnam’s third largest export market, fifth largest trading partner in West Asia, and is considered a large and potential market in West Asia.

In 2022, Vietnam’s total import-export turnover with Israel will reach USD 2.2 billion, an increase of 17.9% over the same period in 2021, of which Vietnam’s export turnover to Israel will reach USD 785.7 million and Vietnam’s import turnover will reach USD 1.4 billion.