The Prime Minister's recent approval of a plan to implement the Vietnam – Israel Free Trade Agreement (VIFTA) is expected to create bright prospects for Vietnam’s exports to Israel this year, when the agreement enters a deeper and more wide-ranging implementation phase.

The application of Israeli technology in melon cultivation has delivered high economic efficiency.

Israel has a population of around 10.2 million but one of the world’s highest per-capita income levels. Owing to prolonged conflict and limited domestic production capacity, its import demand is consistently high.

The market has shown growing interest in Vietnam’s major export strengths such as aquatic products, textiles and garments, footwear, wooden products, tropical farm produce and processed foods.

Bilateral trade has recorded impressive growth since the VIFTA came into effect in November 2024.

Data from Israeli authorities show that two-way trade in 2025 was estimated at more than 3.7 billion USD, with Vietnam’s exports to Israel reaching nearly 900 million USD, up over 10% year-on-year.

This provides an important stepping stone for 2026, when tariff reductions will be further expanded, particularly for Vietnam’s key export commodities.

The greatest benefit generated by the VIFTA lies in the immediate removal or phased deep reduction of many tariffs, significantly improving the price competitiveness of Vietnamese goods.

At the same time, clearer provisions on rules of origin, customs procedures and trade remedies are helping foster long-term business partnerships.

However, Israel remains a demanding market, with technical standards, food safety, quarantine requirements and traceability rules comparable to those of the European Union and the Organisation for Economic Co-operation and Development (OECD).

For food and agricultural products, Kosher and Halal certification is essential for entry into major distribution systems. In practice, Vietnamese firms that invest seriously in quality, standards and packaging gain a clear advantage in approaching Israeli importers.

Talking to Vietnam News Agency correspondents in Tel Aviv, Vietnamese Trade Counsellor Le Thai Hoa said that improving quality and meeting Israel’s high standards will remain decisive factors in helping Vietnamese exporters maintain growth.

Israeli Ambassador to Vietnam Yaron Mayer noted that deep tariff-cutting schedules and the principle that “products meeting European standards will be accepted in Israel” are creating favourable conditions for Vietnam’s key export items to penetrate more deeply into this market, while also supporting access to other high-end destinations.

Beyond trade in goods, the VIFTA implementation is also opening up opportunities for stronger cooperation in investment and technology.

Israel is recognised as a global innovation hub, particularly in high-tech agriculture, food technology, water management, medical equipment and cybersecurity.

Stronger participation by Vietnamese enterprises in value chains involving Israeli partners is expected to help raise added value and competitiveness of Vietnamese goods.

Notably, the first direct air route between Vietnam and Israel, linking Tel Aviv and Hanoi, was officially launched on January 5, creating fresh momentum for economic and trade partnerships.

The route will not only boost tourism, people-to-people exchanges and education, but also facilitate the rapid transport of high-value goods such as fresh produce, seafood and technological products.

As Vietnam accelerates trade promotion and supports businesses in maximising the benefits of new-generation FTAs, 2026 is seen as a crucial year for Vietnamese goods to consolidate and expand their presence in the Israeli market.

With the current growth momentum and strong support policies from the Government, Israel is gradually emerging as one of Vietnam’s promising and stable export markets in the Middle East – Mediterranean region.

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