The Vietnam–Israel Free Trade Agreement (VIFTA) provides a framework for Vietnamese and Israeli businesses to deepen cooperation with a focus on joint research, technology transfer, and the application of advanced Israeli technologies in Vietnam’s production, according to Le Thai Hoa, Vietnamese Trade Counsellor in Israel.

In an interview with the Vietnam News Agency's correspondents in Tel Aviv, Hoa said that turning these opportunities into tangible results requires Vietnamese businesses to move beyond technology imports towards joint research, development and mastery of technology.

Signed on July 25, 2023, and effective from November 17, 2024, VIFTA has supported continued growth in bilateral trade. In 2025, two-way trade reached 3.63 billion USD, up 11.8% year on year. In the first 10 months of 2026, it exceeded 3.5 billion USD, rising 14%. Bilateral trade is projected to reach around 4.4 billion USD this year, up more than 21%, with Vietnam’s exports to Israel estimated at 1.3 billion USD, an increase of 50.3% from 2025.
According to the trade counsellor, beyond trade, the two countries have significant potential for cooperation in high technology and innovation. Israel has strengths in artificial intelligence (AI), cybersecurity, semiconductors, medical technology and high-tech agriculture, while Vietnam is promoting processing and manufacturing, automation, smart manufacturing and digital transformation. Combining Israel’s technological expertise with Vietnam’s production capacity and market could open up new opportunities to improve productivity and increase product value.

Hoa proposed three priorities for advancing cooperation between the two nations: implementing VIFTA, promoting technological cooperation and innovation, and developing business networks supported by flexible financing models.

He stressed the need to maximise the agreement’s tariff preferences while improving logistics connectivity and transport routes between the two countries to reduce production, business and investment costs. He said the two sides should also expand cooperation in Israel’s areas of strength, including AI, cybersecurity, semiconductors, medical technology and high-tech agriculture.

Existing mechanisms, including the Vietnam–Israel Intergovernmental Committee and the Joint Committee under VIFTA, should be used to develop concrete cooperation programmes rather than limiting engagement to information exchanges and product introductions. Prioritising joint research, commercialising research outcomes, and providing technical training can help Vietnamese businesses slowly adopt, adapt to, and master new technologies.

Vietnamese businesses should shift from simply purchasing technology to developing it together with Israeli partners. Instead of acting solely as customers or distributors, they should establish joint ventures and research and development (R&D) partnerships to localise technologies for Vietnam’s production conditions, Hoa said.
He also called for practical application models in high-tech agriculture, automation and clean production, with successful initiatives expanded to other localities, saying that pilot projects will allow businesses to assess effectiveness, acquire technical expertise and determine whether technologies suit their specific production conditions.

Vietnam’s position as a manufacturing hub can also provide a gateway for Israeli technologies to enter ASEAN and other markets with which Vietnam has established free trade agreements, he said, noting that this approach can encourage long-term Israeli investment and enable Vietnamese businesses to participate more deeply in regional and global value chains.

Businesses should view Israel not merely as a source of technology to purchase, but also as a partner in joint innovation, production and integration into global value chains, he said.

By translating VIFTA’s commitments into concrete projects aligned with production needs and Vietnamese businesses’ capacity to master technology, the two countries can strengthen cooperation in trade, investment, joint research and technology transfer, helping bring advanced Israeli solutions into Vietnam’s production sector and enhance the country’s economic competitiveness.

Source: VNA

Original link