Vietnam and Israel are scheduled to sign a free trade agreement (FTA) in 2023 after completing seven-year-long negotiations on Sunday.
The news was announced at a working session between Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Israeli Minister of Economy and Industry Nir Barkat during the former’s ongoing visit to Israel.
The Vietnamese minister said that with growing two-way trade, the two countries would benefit much from the FTA. The two nations undertook 12 rounds of talks starting seven years ago.
Bilateral trade between the countries rose 17.9% last year to $2.2 billion, of which Vietnam exports was valued at $785.7 million and imports $1.4 billion, according to Vietnam's Ministry of Industry and Trade.
Israel is Vietnam’s third-biggest importer and fifth-largest trade partner in West Asia. Vietnam's largest exports to Israel include smartphones, footwear and seafood, while the Southeast Asian country buys electronics, fertilizer, and other products.
Vietnam, a regional manufacturing hub, has so far signed more than 15 bilateral and multilateral FTAs.
The British government announced Friday its conclusion of trade talks with member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a vast free trade area spanning the Indo-Pacific with Vietnam being a member, after 21 months of negotiations.
“It is particularly meaningful that Vietnam hosted the final round of negotiations on UK accession, as we celebrate 50 years of diplomatic ties between the U.K. and Vietnam in 2023,” Iain Frew, British Ambassador to Vietnam, said in the announcement.
“I am pleased that CPTPP will complement our bilateral FTA and further boost our growing trade relationship with Vietnam."
The current 11 CPTPP members are Japan, Australia, New Zealand, Vietnam, Canada, Singapore, Mexico, Peru, Brunei, Chile, and Malaysia. CPTPP provides opportunities to deepen trading links across the Asia-Pacific region. The U.K. and the CPTPP members now take the final steps required for the U.K. to formally sign in 2023.