The VIFTA was signed by Vietnamese Minister of Industry and Trade Nguyen Hong Dien (left) and Israeli Minister of Economy and Industry Nir Barkat on July 25. Photo: VGP

Vietnam and Israel signed the Vietnam - Israel Free Trade Agreement (VIFTA) in Tel Aviv on July 25 after seven years of negotiations. 

This is the first free trade agreement (FTA) between a Southeast Asian country and Israel, and Vietnam’s 16th with global partners.

The VIFTA covers many fields of interest to both countries, such as trade in goods, services - investment, rules of origin, technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), customs, trade remedies, and government procurement.

Two-way trade is expected to reach $3 billion soon.

The VIFTA will ultimately remove duties on at least 85.8 per cent of Vietnamese exports and 92.7 per cent of Israeli exports.

Apart from helping boost two-way trade, the agreement is also expected to contribute to boosting relations between the two countries in investment, services, digital transformation, and technology.

Source: VNECONOMY