Israeli Economic Minister's visit to Vietnam spurs investment fund proposal

In a significant development that underscores the growing economic ties between Vietnam and Israel, Minister Barkat embarked on a productive visit to Vietnam.

He underscored the robust and positive evolution of bilateral relations between Vietnam and Israel over the past three decades. In a testament to this trajectory, he pointed to the Vietnam-Israel Free Trade Agreement that was signed on July 25 in Tel Aviv.

“Of notable significance is the impending introduction of a direct flight route connecting Vietnam and Israel. This breakthrough holds immense potential to catalyse sectors such as tourism, trade, investment, and the realms of science and technology,” he told VIR.

To further bolster collaborative efforts between the two nations, nurture entrepreneurial ecosystems, and foster innovative breakthroughs, Barkat emphasised the importance of aligning with the private sector's evolving needs.

Israel's private sector is actively seeking expansion opportunities not only within Vietnam but across the broader ASEAN region.

Consequently, Vietnam can serve as a gateway for Israeli companies, showcasing itself not solely as a conduit to Vietnam's 100-million-strong domestic market but also as an entry point into ASEAN as a whole – representing a population of 700 million.

Furthermore, Barkat proposed the establishment of a cooperative fund aimed at facilitating financial support and links for enterprises seeking to invest in Vietnam.

“This proposition carries particular significance for Israeli businesses, necessitating close cooperation between the two countries to ensure the success of the first companies that enter the Vietnamese market,” he noted.

"As Israel's 10,000 startups contemplate the prospect of investing in Vietnam, the success of the pioneering enterprises will serve as the most compelling case study. It will, in turn, serve as motivation for other firms to venture into the nation," the minister highlighted.

FTA opens up opportunities in Israeli market: experts 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.

Israel and Vietnam on brink of substantial trade deal An upcoming free trade agreement between Israel and Vietnam is poised to unlock a new era of economic cooperation. Gal Saf, head of the Economic and Trade Mission under the Embassy of Israel in Vietnam, discussed with VIR’s Celine Luu the implications of the deal and how it could create a win-win scenario for businesses of the two countries.