TEL AVIV — Việt Nam and Israel have agreed to step up the effective rollout of the Việt Nam–Israel Free Trade Agreement (VIFTA) and foster cooperation in trade, industry and innovation.

The consensus was reached during a working session between Vietnamese Ambassador to Israel Nguyễn Kỳ Sơn and Israeli Minister of Economy and Industry Nir Barkat in Jerusalem on Monday.

Barkat hailed Việt Nam as one of the world's key manufacturing hubs, supported by a population of more than 100 million, a diligent and disciplined workforce, and an increasingly attractive investment climate. These attributes offer Israeli firms more opportunities to widen partnerships, investment and commercial deals in Việt Nam.

Việt Nam-Israel relations are flourishing across a wide range of areas, from economy and trade to people-to-people exchanges, he said, adding that with VIFTA now in force, the two countries should make better use of their complementary economic strengths to raise two-way trade to new heights.

He proposed that the two sides convene the next meeting of the Inter-Governmental Committee at an early date to review cooperation, clear obstacles and set new directions for future collaboration.

Turning to investment prospects, Barkat said Israel is one of the world’s leading innovation hubs, with strengths in artificial intelligence, cybersecurity, medical technology and high-tech agriculture. Around 80 per cent of Israeli firms operate in cutting-edge sectors and are well practised at commercialising novel products in global markets.

Israel stands ready to host Việt Namese business delegations scouting for market opportunities, and is weighing its own trade missions to Việt Nam to pinpoint new investment and cooperation prospects, he added.

Son reiterated that Việt Nam consistently values its friendship and broad-based cooperation with Israel, especially in economy, trade, sci-tech and innovation.

According to him, VIFTA, which entered into force in November 2024, has given bilateral trade a powerful boost, pushing flows near the $4 billion mark and cementing Việt Nam’s status as one of Israel’s key trade partners in Asia and globally, he said.

As there remains ample untapped potential, particularly in sectors where Israel’s technological edges meet Việt Nam’s strong development needs, he called on both sides to make fuller use of VIFTA's preferential terms to scale up investment, technology transfer and business connectivity.

He also suggested Israel continue widening market access for Vietnamese products while bolstering sci-tech cooperation by combining Israeli tech expertise with Việt Nam's resources and market potential.

Host and guest promised to keep agencies and business communities in regular contact to effectively deliver on the agreed areas, thus driving economic, trade and investment ties.

Data released at the meeting showed that two-way trade hit $3.63 billion last year, an 11.8 per cent annual gain. Of which, Việt Nam's exports totalled $865 million, up 8.9 per cent.

During January-May, bilateral trade neared $1.6 billion. Việt Nam's exports to Israel jumped 30.6 per cent year-on-year to $462 million. If the current growth momentum holds, full-year trade is on track to reach around $3.9 billion, with Việt Nam's exports set to surpass $1 billion for the first time.

On the investment side, Israel now has 45 active projects worth some $156 million in Việt Nam, while Vietnamese companies have poured roughly $78 million into Israel. —VNA/VNS