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 (VNA) – The Vietnam-Israel Free Trade Agreement,which was signed on July 26 after seven years of negotiations, would create aconducive atmosphere for the export of Vietnamese products to Israel, accordingto many experts.
Expert Dinh Trong Thinh said the deal presents stellaropportunities for Vietnamese producers to drive substantial cost savings andgain competitive advantages through access to Israeli high-techsectors.
Vietnamese tropical products will also have the prospect to serveas an essential link in Israeli supply chains.
"Israel needs imports from tropical countrieslike Vietnam to fuel its processing industry," said Thinh.
But Vietnamese producers still have a lot of work to do to getthere, given that merely 30% of them have managed to use FTAs to theiradvantage.
Trade authorities, he said, could use communication and educationtools to get more producers well-informed about VIFTA.
Expert Vu Vinh Phu said the deal would give a big push to Vietnam's exports toIsrael, making bilateral trade more balanced and equitable. Current bilateraltrade is skewed in favour of Israel.
He called on Vietnam's trade offices to assist producers inbusiness matching to help them avoid scams in trade.
According to expert Ngo Tri Long, Israel is notself-sufficient in consumer goods and depends highly on imports. Thecountry imports 35 billion USD worth of consumer goods annually, indicatinglarge potential demand for Vietnamese exports.
The deal will open up opportunities for Vietnam to turn thepotential demand into real revenue. With VIFTA, bilateral trade isexpected to rise to 3 billion USD soon, from 2.6 billion USD in 2022.
"Vietnam currently has around 70 exportable products toIsrael. Room for commercial growth is ample," said Long.
Long called on Vietnamese producers to read up on traderules in Israeli markets to fully exploit the deal. He said market research andtrade promotion would also serve producers well in that regard.
Truong Dinh Hoe, Secretary-General of the Vietnam Association ofSeafood Exporters and Producers, said the deal would bring Vietnam's exports tonew heights thanks to Israel's great demand for its seafood.
In fact, Israel has always been among the 30 largest importers ofVietnamese seafood, consuming 36.6 million USD worth of tuna, 23.2 million USDof squid, and 21 million USD of shrimp in 2022.
"Vietnamese seafood has won favour with Israeliconsumers over the years. The deal will push the advantage further by phasingout tariffs," said Hoe./.
