Israel and Vietnam Forge Stronger Ties with New Free Trade Agreement

Israel and Vietnam are set to strengthen their economic partnership through a new free trade agreement (FTA) that will come into effect in November, the Israeli government announced on Thursday. This landmark agreement, aimed at facilitating trade in sectors such as electronics, vehicles, medical devices, fresh produce, and food products, is expected to provide substantial economic benefits for both nations.

“The trade agreement with Vietnam represents a significant step forward for the Israeli economy, marking another milestone in Israel’s cooperation with leading global economies,” said Israeli Economy Minister Nir Barkat. The deal is anticipated to reduce tariffs gradually and remove export barriers, making it easier and more affordable for Israeli companies to expand their reach in the Vietnamese market.

In the past year, trade between Israel and Vietnam saw a notable 21% increase, reaching a total of $1.3 billion. With the new agreement in place, Israeli companies are expected to strengthen their presence in Vietnam, creating new jobs and contributing to economic growth in both countries.

Signed in July by Minister Barkat and Vietnamese Minister of Industry and Trade Nguyen Hong Dien, the FTA has received strong backing from both Israeli and Vietnamese leaders, including Prime Minister Benjamin Netanyahu and Vietnamese Deputy Prime Minister Luu Quang Tran.

The agreement is particularly advantageous for Israeli exporters in high-demand industries, such as medical devices and cosmetics, which now have a streamlined path to the Vietnamese market. Director of the Foreign Trade Administration, Roey Fisher, remarked, “This agreement reflects our commitment to expanding Israeli export options worldwide. Southeast Asian markets, particularly Vietnam, are stable, reliable, and growing destinations for Israel. We will continue creating competitive advantages for Israeli industry in these regions.”

With this agreement, Israel further expands its economic footprint in Southeast Asia, signaling the potential for future partnerships in the region. As both countries anticipate increased trade and collaboration, the FTA is set to enhance economic stability and mutual growth, fostering a new era of cooperation between Israel and Vietnam.

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