Vietnamese Ambassador to Israel Lý Đức Trung meets with Israeli Minister of Economy and Industry Nir Barkaton in Tel Aviv earlier this week. — VNA/VNS Photo

TEL AVIV — Việt Nam-Israel trade, propelled by the current growth momentum, is expected to surpass US$3 billion this year, Vietnamese Trade Counsellor in the Middle Eastern nation Lê Thái Hòa has said.

According to the diplomat, the values of Việt Nam's exports and imports with the partner are projected to reach about $850 million and more than $2.15 billion, respectively.

In the first nine months, bilateral trade turnover hit $2.28 billion, including $614 million worth of Vietnamese exports.

With over $153 million in foreign direct investment, Israel is Việt Nam's second-largest Middle East investor, following Turkey, and stands 44th among the 146 countries and territories investing in the Southeast Asian nation. Meanwhile, Vietnam’s investment in Israel has so far exceeded over $40 million.

Set to take effect in November, the Việt Nam-Israel Free Trade Agreement (VIFTA) is expected to enhance their bilateral trade and investment ties.

Speaking at a meeting with Vietnamese Ambassador to Israel Lý Đức Trung on Monday, Israeli Minister of Economy and Industry Nir Barkat praised both sides for their seven-year efforts, which included 12 rounds of negotiations and a year of finalising legal procedures to bring the pact into force.

Barkat also highlighted the vast potential for cooperation in the Vietnamese market, which he considers a strategic gateway for Israel to access other Southeast Asian markets. Noting the prospect of establishing a direct flight route between the two countries, he pledged to support aviation businesses in realising this goal.

The “what’s good for Europe is good for Israel” bill, which will take effect in early 2025, will align Israeli import standards for consumer goods with European Union regulations. Vietnamese exports to the EU have already met these standards under the EU-Việt Nam Free Trade Agreement (EVFTA), positioning them for smoother entry into Israel once the VIFTA comes into effect.

Currently, Israel is Việt Nam's third-largest trading partner, fourth-biggest export market, and second-largest import market in the Middle East. Last year, bilateral trade stood at approximately $2.68 billion, with Vietnamese exports totaling $631 million. — VNS