Ho Chi Minh City, Vietnam’s southern economic hub, is encouraging Israeli businesses to invest in high-tech industries such as the digital economy, science-technology, high-tech agriculture, and renewable energy.
HCMC Vice Chairman Vo Van Hoan made the statement at the Vietnam-Israel Business Forum held in the megacity on Tuesday to boost trade and investment ties between the two countries, which signed their free trade agreement (VIFTA) on July 25.
Israeli Economy Minister Nir Barkat, who is on an official visit to Vietnam, accompanied by a delegation of 21 Israeli companies, attended the forum. His visit is anticipated to strengthen economic links between the two countries.
Addressing the business forum, HCMC Vice Chairman Hoan said that the VIFTA will open up new opportunities and deeper cooperation between Vietnam and Israel.
“The city is a major market with lots of potential for Israeli businesses to invest and do business,” he said.
The HCMC Chapter of the Vietnam Chamber of Commerce and Industry (VCCI) and the Embassy of Israel in Vietnam co-held the forum in the city as it is a pivotal commercial hub.
The Israeli Economy Minister briefed participants on his country’s strengths and potential, and affirmed that his government has adopted mechanisms and policies to encourage businesses to expand investment and cooperation abroad.
Barkat noted that the VIFTA will offer opportunities for the two sides to boost their trade and investment ties, and form a business ecosystem.
He pointed to limitations in transport connectivity and market information sharing, which have hindered their bilateral cooperation, and suggested the two countries soon launch direct flights between HCMC and Israel to foster the collaboration.
At present, to fly from Israel to Ho Chi Minh City, travelers must transit, so it costs a lot of time, he noted.
"If there is a direct service, it will only take about eight hours. This would create favorable conditions for businesses of the two countries."
Barkat said the areas where Israel has strengths in and gives priority to are high technology, healthcare, tourism, agriculture, and food processing.
As of July 20, Israel had 40 FDI projects worth more than $140 million in Vietnam, ranking 47th among the 148 countries and territories investing in the country, while Vietnam had invested in four projects valued at around $76 million in Israel, director of the VCCI’s HCMC Chapter Tran Ngoc Liem told the forum.
Israel is now Vietnam’s fifth biggest trade partner and third largest importer in the Middle East. It ranks 33rd among more than 200 countries and territories that have trade ties with the Southeast Asian nation, he added.
The two countries’ bilateral trade reached $2.2 billion last year, up 17.9% from 2021, of which Vietnam’s export value hit $785.7 million, Liem said. Made-in-Vietnam products that have gained a firm foothold in the Israeli market include mobile phones and electronic components, agro-aquatic products, footwear, and garment-textile items, he said.
The two countries are seeking to raise their two-way trade to $3 billion in the time to come, Liem added.
The VCCI executive reiterated that Vietnam always creates favorable conditions for Israeli enterprises to invest in the country in industrial production, high-tech agriculture, materials, information technology, green and clean production, and industrial infrastructure development, among others.