FTA opens up opportunities in Israeli market: experts

Vietnamese Minister of Industry and Trade Nguyen Hong Dien (left) and Israeli Minister of Economy and Industry Nir Barkat on July 25 signed the Vietnam - Israel Free Trade Agreement (VIFTA) in Tel Aviv. (Photo: VNA)

Hanoi – The Vietnam-Israel Free Trade Agreement, which was signed on July 26 after seven years of negotiations, would create a conducive atmosphere for the export of Vietnamese products to Israel, according to many experts.

Expert Dinh Trong Thinh said the deal presents stellar opportunities for Vietnamese producers to drive substantial cost savings and gain competitive advantages through access to Israeli high-tech sectors.

Vietnamese tropical products will also have the prospect to serve as an essential link in Israeli supply chains.

"Israel needs imports from tropical countries like Vietnam to fuel its processing industry," said Thinh.

But Vietnamese producers still have a lot of work to do to get there, given that merely 30% of them have managed to use FTAs to their advantage.

Trade authorities, he said, could use communication and education tools to get more producers well-informed about VIFTA.

Expert Vu Vinh Phu said the deal would give a big push to Vietnam's exports to Israel, making bilateral trade more balanced and equitable. Current bilateral trade is skewed in favour of Israel.

He called on Vietnam's trade offices to assist producers in business matching to help them avoid scams in trade.

According to expert Ngo Tri Long, Israel is not self-sufficient in consumer goods and depends highly on imports. The country imports 35 billion USD worth of consumer goods annually, indicating large potential demand for Vietnamese exports.

The deal will open up opportunities for Vietnam to turn the potential demand into real revenue. With VIFTA, bilateral trade is expected to rise to 3 billion USD soon, from 2.6 billion USD in 2022.

"Vietnam currently has around 70 exportable products to Israel. Room for commercial growth is ample," said Long.

Long called on Vietnamese producers to read up on trade rules in Israeli markets to fully exploit the deal. He said market research and trade promotion would also serve producers well in that regard.

Truong Dinh Hoe, Secretary-General of the Vietnam Association of Seafood Exporters and Producers, said the deal would bring Vietnam's exports to new heights thanks to Israel's great demand for its seafood.

In fact, Israel has always been among the 30 largest importers of Vietnamese seafood, consuming 36.6 million USD worth of tuna, 23.2 million USD of squid, and 21 million USD of shrimp in 2022.

"Vietnamese seafood has won favour with Israeli consumers over the years. The deal will push the advantage further by phasing out tariffs," said Hoe.

Substantial Israel agreement nearing completion A bilateral free trade deal between Vietnam and Israel, slated for signing this week, is set to provide investment bonanzas for the two economies, which are seeking to amplify their foodstuff and agricultural ties.

Vietnam, Israel sign free trade agreement Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Israeli Minister of Economy and Industry Nir Barkat on July 25 signed the Vietnam - Israel Free Trade Agreement (VIFTA) in Tel Aviv in the presence of Vietnamese Deputy Prime Minister Tran Luu Quang and Israeli Prime Minister Benjamin Netanyahu.