Currently, Israel is the 5th largest trading partner and the 3rd largest export market of Vietnam in the Middle East. (Photo: VNA)Tel Aviv (VNA) – The Vietnam - Israel Free Trade Agreement (VIFTA), which was signed last month, has opened up new opportunities for Vietnamese goods to enter an important market in the Middle East.
However, in the context of international trade with manypotential risks of fraud, businesses need to be fully equipped with thenecessary information and skills to be able to optimise business efficiency andtake advantage of the agreement, Vietnamese Trade Counselor in Israel LeThai Hoa has said.
Hoa said that in general, Israeli enterprises do businessdynamically, quickly adapt to market fluctuations, and transact quickly. They alwaysactively look for partners and customers through many different channels. They havediverse demands and stable purchasing power, and high solvency.
Israeli businesses are willing to deposit or pay in advance,prefer to meeting directly with their partners and see goods at the factory. Theyoften approach separate supply partners. They want to buy directly from manufacturers, not through intermediaries.
Hoa emphasised that Vietnamese businesses when transacting anddoing business with partners in the Israeli market need to carefully studythe markets and partners. In some cases, it is necessary to verify thelegal status of the partners, especially new ones.
He said businesses also need to master foreign tradetechniques, customs and practices in international trade; and sign contractswith strict content on payment terms, goods quality standards, packaging,delivery deadlines, and dispute resolution.
Hoa suggested that for export activities to Israel to achievehigh efficiency, businesses also need to focus on offering processed productswith high added value, competitive prices and appropriate quality.
He noted that Israel is a market with typical specific characteristicsrelating to people and religion. Jewish businesses often require exporters tohave Kosher certification, while Arab businesses require exporters to haveHalal certification for certain types of goods, especially food.
In addition, businesses also need to regularly follow developmentson the political and security situation in Israel, because this is a sensitive area for conflictsand instability affecting the entire region.
Hoa said to promote the implementation of VIFTA, in the comingtime, the Vietnam Trade Office in Israel plans to organise activities which providerelevant parties with information about the agreement and promote connections between the business communities of the two countries.
Currently, Israel is the 5th largest trading partner and the 3rdlargest export market of Vietnam in the Middle East, after the UAE and Turkey.The structure of import and export goods between Vietnam and Israel iscomplementary. The goods that Israel needs to import are also export productswith the strength of Vietnam and vice versa. Every year, about 70 Vietnamese items are exported to Israel.
Meanwhile, Israeli businesses are increasingly interested in theVietnamese market and partners, considering Vietnam as one of the importantstable suppliers in Asia, especially for mobile phones, agricultural products, seafood,processed foods, beverages, household goods, and electric machinery, and electronic products.
In addition, according to the negotiation content in VIFTA, someagricultural products such as eggs, meat, potatoes, carrots, cauliflower,mushroom, honey, and tuna are granted tariff quotas by Israel with an in-quotatax rate of 0%. Many fashion items, processed footwear and finished products willbe exempt from tariffs as soon as the agreement comes into effect.
According to Hoa, in recent years, Israel often faces a shortageof dairy products of all kinds, due to high demand of consumers and insufficientdomestic production.
Therefore, the Israeli Government must continuously adjusttrade policies on imports for this item, applying mainly the abolition ofimport duties and tariff quotas for dairy products to increase supply. That isan opportunity for Vietnamese businesses to boost dairy exports to Israel inthe near future, he said./.
