Vietnam-Israel trade likely to exceed 3 billion USD this year

Hanoi, November 15 (VNA) - Vietnam-Israel trade, propelled by the current growth momentum, is expected to surpass 3 billion USD in 2024, Vietnamese Trade Counsellor in the Middle Eastern nation Le Thai Hoa has said.

According to the diplomat, Vietnam’s export to and import from the partner are projected to reach about 850 million USD and more than 2.15 billion USD respectively.

In the first nine months, bilateral trade turnover hit 2.28 billion USD, including 614 million USD worth of Vietnamese exports.

With over 153 million USD in foreign direct investment, Israel is Vietnam's second-largest Middle East investor, following Turkey, and stands 44th among the 146 countries and territories investing in the Southeast Asian nation. Meanwhile, Vietnam’s investment in Israel has so far exceeded over 40 million USD.

Set to take effect in November, the Vietnam-Israel Free Trade Agreement (VIFTA) is expected to further enhance their bilateral trade and investment ties. Speaking at a meeting with Vietnamese Ambassador to Israel Ly Duc Trung on November 11, Israeli Minister of Economy and Industry Nir Barkat praised both sides for their seven-year efforts, which included 12 rounds of negotiations and a year of finalising legal procedures to bring the pact into force.

Barkat also highlighted the vast potential for cooperation in the Vietnamese market, which he considers a strategic gateway for Israel to access other Southeast Asian markets. Noting the prospect of establishing a direct flight route between the two countries, he pledged to support aviation businesses in realising this goal.

The “what’s good for Europe is good for Israel” bill, which will take effect in early 2025, will align Israeli import standards for consumer goods with European Union regulations. Vietnamese exports to the EU have already met these standards under the EU-Vietnam Free Trade Agreement (EVFTA), positioning them for smoother entry into Israel once the VIFTA comes into effect.

Currently, Israel is Vietnam's third largest trading partner, fourth biggest export market and second largest import market in the Middle East. Last year, bilateral trade stood at approximately 2.68 billion USD, with Vietnamese exports totaling 631 million USD./.