Other BriefingsIsrael, Vietnam Sign Free Trade Agreement
Israel and Vietnam signed a free trade agreement last week, with both sides predicting it would quickly boost annual bilateral trade by nearly 50 per cent. The agreement is expected to soon bring bilateral trade to $3 billion, the Ministry said, after trade between the countries rose 18 per cent last year to US$2.2 billion.
The agreement was signed in Israel between the two countries’ trade ministers after seven years of negotiations, Vietnam’s Ministry of Industry and Trade said in a statement.
The deal will “facilitate Vietnam’s exports of its products, not only to Israel, but also pave the way for Vietnamese products to access other Middle East, North African and southern European markets,” it said.
It is the second free trade deal Israel has signed with a country in Asia, following South Korea in 2021, and the first with a member of ASEAN. Foreign businesses based in ASEAN can access the complete ASEAN market, which also includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, and Thailand. ASEAN also has Free Trade Agreements with China and India.
Israel’s Economy Ministry said it would give “a competitive edge and facilitate activity” for Israeli exporters in the Vietnamese market. The agreement will ultimately remove duties on at least 86 per cent of Vietnamese products and 93 per cent of Israeli products, Vietnam’s Ministry of Industry and Trade said. Vietnam’s largest exports to Israel include smart phones, footwear and seafood, while it imports electronics and fertilisers.
Vietnam has signed 16 bilateral and multilateral free trade agreements since the early 1990s, as it seeks to attract more foreign investors to its manufacturing-driven economy.
Dezan Shira & Associates assists foreign investors into markets in Asia and has done since 1992. We have three offices in Vietnam and provide market intelligence, tax planning, legal and trade compliance services. Please contact us at vietnam@dezshira.com. Our 2023 ‘Doing Business in Vietnam’ guide is below.
Related Reading
- Vietnam Briefing
An Introduction to Doing Business in Vietnam 2023- Vietnam-Israel FTA Negotiations Complete, Trade Boost Expected
About Us
Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE), China, India, Vietnam, Singapore, Indonesia, Italy, Germany, and USA. We also have partner firms in Malaysia, Bangladesh, the Philippines, Thailand, and Australia.
For support with establishing a business in the Middle East, or for assistance in analyzing and entering markets elsewhere in Asia, please contact us at dubai@dezshira.com or visit us at www.dezshira.com. To subscribe for content products from the Middle East Briefing, please click here.
