Vietnam, Israel sign free trade pact after 7 years of negotiations
Vietnam and Israel inked their free trade agreement (FTA) in Jerusalem on Tuesday, expecting two-way trade to reach $3 billion in 2024 or 2025.
Israeli Prime Minister Benjamin Netanyahu and Vietnamese Deputy Prime Minister Tran Luu Quang witnessed the Vietnam-Israel Free Trade Agreement (VIFTA) signing by Nir Barkat, Israeli Minister of Economy and Industry and Vietnamese Minister of Industry and Trade Nguyen Hong Dien.
(L-R) Vietnam’s trade minister Nguyen Hong Dien, Deputy PM Tran Luu Quang; Israel’s PM Benjamin Netanyahu and trade minister Nir Barkat at FTA signing ceremony in Jerusalem on July 25, 2023. Photo courtesy of Vietnam’s government portal.
The two nations completed seven years of negotiation this April. Now, Vietnam has become the first ASEAN country to sign an FTA with the Middle East nation. This is Vietnam’s 16th free trade pact with trade partners across the world.
The two countries’ trade reached $2.2 billion last year from $1.88 billion a year earlier, $1.6 billion in 2020, and $1.2 billion in 2019, according to the Vietnamese Ministry of Industry and Trade (MoIT).
Vietnam’s 2022 exports to Israel hit $785.7 million and imports from the Middle East country reached $1.4 billion. The country's largest exports to Israel include smartphones, footwear and seafood, while it imports primarily electronics and fertilizer.
The two countries this year celebrate 30 years of relations.
Prior to witnessing this signing in Jerusalem Tuesday, Vietnamese Deputy PM held talks with Israeli President Isaac Herzog. He conveyed Vietnamese President Vo Van Thuong’s invitation to Herzog to visit Vietnam soon, and the invitation was accepted with pleasure, according to an article on Vietnam’s government portal.
The two sides agreed upon boosting two-way trade, promoting investment and tourism cooperation, opening direct flights soon, and creating favorable conditions for the issuance of visas for citizens of the two countries to promote people-to-people exchanges and economic relations.
On July 16, the UK became the 12th signatory to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The signing kickstarted the UK’s membership of what has been called a modern and ambitious trade deal. It is also the first European country to be part of the pact that has 11 other members in the Asia-Pacific region, including Vietnam.
The 11 members are Japan, Australia, New Zealand, Vietnam, Canada, Singapore, Mexico, Peru, Brunei, Chile, and Malaysia.
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