Expanding opportunities to export many key commodity groups to Israel

VCN - The official conclusion of negotiations for the Vietnam-Israel Free Trade Agreement (FTA) is expected by enterprises to expand export opportunities for many industries.
Lang Son Customs implements quality policy in all operations Lang Son Customs implements quality policy in all operations
Rice export prices on the rise Rice export prices on the rise
Pepper exports to China hit new record Pepper exports to China hit new record
FTAs have helped Vietnamese agricultural products penetrate deeply into the markets. Photo: N.Hien
FTAs have helped Vietnamese agricultural products penetrate deeply into the markets. Photo: N.Hien

Agriculture and fisheries continue to be strengths

According to the Ministry of Industry and Trade, currently, Israel is the fifth-largest trading partner and the third-largest export market of Vietnam in the Middle East (after the UAE and Turkey). In contrast, Vietnam is one of Israel's largest trading partners in Southeast Asia (ASEAN). In 2022, Vietnam's total import-export turnover with Israel reached US$ 2.2 billion, up 17.9% over the same period in 2021, of which Vietnam's export turnover to Israel reached US$ 785.7 million, and Vietnam's import turnover from Israel reached US$ 1.4 billion.

Although the population size is only approximately 9.7 million, Israel's economic and foreign trade activities are quite developed. In 2022, foreign trade turnover reached US$ 173 billion, of which exports reached US$ 67 billion and imports reached US$ 106 billion.

On April 2, the Israeli Minister of Industry and Trade and the Israeli Minister of Economy and Industry issued a Statement on the conclusion of negotiations for the Vietnam - Israel Free Trade Agreement (FTA), after the efforts of two negotiating teams of Vietnam and Israel during 7 years with 12 sessions. With the official conclusion of the negotiations, the two countries will soon promote the final internal and legal work to prepare for the signing of the Vietnam - Israel FTA Agreement, which is expected this year.

According to Ms. Nguyen Thi Diem Hang, Vice Chairman of the Vietnam Agricultural Enterprise Council (VCAC) - Vice Chairman of the Board of Directors, General Director of Vietnam Organic Nutrition Food Joint Stock Company, this is the wish of many Vietnamese enterprises, because after the negotiation is over and the agreement is signed, it will open up great trade opportunities for enterprises of the two countries.

Notably, opportunities are open for Vietnamese agricultural products not only in the Israeli market, the Vietnam-Israel FTA is expected to be signed this year will open up opportunities for cooperation with the potential Middle East region through the gateway of the United Arab Emirates (UAE). Along with that, boost exports to a number of niche and potential markets such as Bangladesh and Pakistan. At the same time, it is a “springboard” to promote exports to the Indian market with a large purchasing power of more than 1.4 billion people.

According to Ms. Nguyen Thi Diem Hang, agricultural products have the strength to export to Israel and the Middle East, the first must be spices. Because these markets consume a large number of spices each year. More importantly, we have also previously exported spices such as cinnamon, anise and pepper to the Middle East market, but because we have not negotiated an FTA, we are subject to high export tax. The signing of the FTA will bring benefits in terms of tariffs and ease of trade in the flow of goods.

According to Mr. Pham Xuan Hong, Chairman of Ho Chi Minh City Textile, Embroidery and Knitting Association, the first 3 months of the year the textile and garment industry's exports were very difficult. Orders of enterprises fell sharply by 30-40%. Importers in most markets are very cautious when placing new orders.

In that context, the completion of the Vietnam-Israel Free Trade Agreement (FTA) negotiation is of special significance, helping textile enterprises to expand their exports. Although Israel is not a really big market, creating a breakthrough for the industry, will be very valuable in the long term.

Mr. Pham Xuan Hong said that despite the potential, the difficulties and challenges for Vietnamese enterprises to export to the Israeli market are not small. The market is small, and two-way information is not extensive, so the Ministry of Industry and Trade and the Trade Office of Vietnam in Israel need to promptly provide information on the market, trade policies and disseminate information soon about agreements for enterprises to research and approach.

Opportunities to export high-value-added goods

Mr. Le Thai Hoa, Vietnam's Trade Counsellor in Israel, said that although the market size was modest, the demand for this country's imports was quite large, and the consumption cycle was fast in the Israeli market, reflected in the import commodity value increased year by year.

According to Mr. Le Thai Hoa, the business practices and habits of Israeli enterprises were to want to buy finished, processed, high-value-added products that were packed with complete packaging, especially for groups of food, foodstuffs and consumer goods, including electronics and household goods, to be put into distribution channels or retail supermarket chains for immediate use by consumers. These are favourable factors for Vietnamese manufacturing and exporting enterprises to take advantage of opportunities to export high-value-added goods to the Israeli market.

For quality standards, Israel required imported goods to strictly comply with specific local standards. Besides, Israel also applied the standards of the EU and the US and implements quite strict inspection and control. In order to increase the supply of goods from outside and compete in the market, Israel implemented a number of import reforms and increased the application of internationally recognized standards of developed countries.

Vietnamese manufacturing and exporting enterprises should focus on offering high value-added processed products, with competitive prices and consistent quality, quickly respond to transactions with Israeli customers, and comply with the requirements of the newly issued Israeli import regulations and standards.

Besides, Vietnamese enterprises should actively pay attention to and invest in exploiting the Israeli market; Specifically, taking the initiative to survey, learn about the market, attend fairs, exhibitions, trade promotion events, trade connections held in Israel, directly meet partners and customers to find the cooperation demand of each other, thereby contributing to promoting exports to this market.

By Ngoc Linh/ Binh Minh

Related News

Exports in 2024 expects to reach US$370 billion

Exports in 2024 expects to reach US$370 billion

VCN – Motivated by recent development, exports in 20204 may reach US$ 370 billion, the General Department of Vietnam Customs said.
Lao Cai Customs processes procedures for over 26,000 declarations

Lao Cai Customs processes procedures for over 26,000 declarations

VCN – In the first half of May, the import and export turnover of goods processed at Lao Cai Customs Department surges year-on-year.
Agricultural and food businesses increased profits thanks to export recovery

Agricultural and food businesses increased profits thanks to export recovery

VCN - Many agricultural and food exporters have recorded positive business results thanks to the momentum from the recovery of major markets and solutions to enhance deep processing, helping to improve product value and business efficiency.
Transparent information protects consumer rights

Transparent information protects consumer rights

VCN - Mr. Vu Van Trung, Vice Chairman of the Vietnam Consumer Protection Association, talked about the issue of consumer protection when the Law on Consumer Rights Protection (amended) will take effect from July 1, 2019. 2024 is here.

Latest News

Vietnam posts over 100% growth in coffee exports to Spain

Vietnam posts over 100% growth in coffee exports to Spain

Vietnam's coffee export value to Spain have increased by more than 100%, according to the Agency of Foreign Trade under the Ministry of Industry and Trade.
China speeds up investment in Vietnam

China speeds up investment in Vietnam

An upward trend has been recorded in Chinese recent investments in Vietnam, which is hoped to help fuel the industries the country has demand for such as high technology, renewables, supporting industries, electronics, and green finance.
Imports and exports achieve more than US$270 billion

Imports and exports achieve more than US$270 billion

VCN - By mid-May, the country's total import-export turnover reached US$270.82 billion, according to the latest statistics from the General Department of Vietnam Customs.
Coffee output in 2023-2024 crop forecast to fall 20 per cent

Coffee output in 2023-2024 crop forecast to fall 20 per cent

Việt Nam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20 per cent compared to the previous crop year, to 1.47 million tonnes, the lowest in four years.

More News

Pharmaceutical industry sees slowing growth momentum

Pharmaceutical industry sees slowing growth momentum

After record profits and strong growth in 2023, the industry’s momentum faced limitations in 2024 due to rising raw material costs and increased market competition.
The auto industry does not shrink from many challenges

The auto industry does not shrink from many challenges

VCN - In the context of the import tax reduction roadmap being implemented when Vietnam participates in commitments in Free Trade Agreements, the pressure of competition on the Vietnamese automobile industry is also increasingly fierce. Therefore, in addition to tax and fee support, many breakthrough solutions and policies are needed to create a boost for the auto industry.
Traceability helps improve product value

Traceability helps improve product value

VCN - Traceability of origin has been and is a mandatory requirement for Vietnamese goods when exporting to several markets. The application of information technology and the use of QR codes is an effective solution in traceability, increasing value and promoting product consumption, especially agricultural products.
Vietnamese pepper prices see strong upward trend

Vietnamese pepper prices see strong upward trend

The Vietnam Pepper and Spice Association has expected pepper prices to continue rising every week.
E-commerce boosts exports of Vietnamese products

E-commerce boosts exports of Vietnamese products

Digital platforms have played a key role in helping Vietnamese firms take their high-quality products to the world, insiders have said.
Increasing the value of rice grains from the project of 1 million hectares of high quality rice

Increasing the value of rice grains from the project of 1 million hectares of high quality rice

VCN - The implementation of the project of 1 million hectares of high-quality rice will contribute to promoting the transition from traditional farming methods to synchronous mechanization, developing large-scale, stable and long-term concentrated raw material areas, ensuring sustainable and effective farming quality and minimizing environmental pollution. Vietnam is also the first country in the world to build a large-scale project on sustainable rice production and reduced emissions.
Hai Phong Port strengthen solutions to improve cargo handling capacity

Hai Phong Port strengthen solutions to improve cargo handling capacity

VCN - The flow of goods passing through Hai Phong port area has tended to improve recently.
Five trends in exporting through e-commerce

Five trends in exporting through e-commerce

VCN - On May 22, 2024, Amazon Global Selling announced the prominent cross-border e-commerce (CBEC) trends shaping Vietnam's online export economy. Concurrently, it launched phase two of the program "CBEC: The breakthrough era" in collaboration with the Vietnam e-Commerce and Digital Economy Agency (iDEA) under the Ministry of Industry and Trade.
Vietnamese firms urged to watch global trade policies

Vietnamese firms urged to watch global trade policies

Experts say Vietnamese firms should keep an eye on global trade moves by major economies to figure out how best to promote the consumption and export of products made in Việt Nam, in the context of a glut of cheap Chinese goods flooding the world market.
Read More

Your care

Latest Most read
Vietnam posts over 100% growth in coffee exports to Spain

Vietnam posts over 100% growth in coffee exports to Spain

Vietnam's coffee export value to Spain have increased by more than 100%, according to the Agency of Foreign Trade under the Ministry of Industry and Trade.
China speeds up investment in Vietnam

China speeds up investment in Vietnam

An upward trend has been recorded in Chinese recent investments in Vietnam, which is hoped to help fuel the industries the country has demand for such as high technology, renewables, supporting industries, electronics, and green finance.
Exports in 2024 expects to reach US$370 billion

Exports in 2024 expects to reach US$370 billion

VCN - However, as of May 15, exports still see positive growth.
Imports and exports achieve more than US$270 billion

Imports and exports achieve more than US$270 billion

By mid-May, the country's total import-export turnover reached US$270.82 billion, according to the latest statistics from the General Department of Vietnam Customs.
Coffee output in 2023-2024 crop forecast to fall 20 per cent

Coffee output in 2023-2024 crop forecast to fall 20 per cent

Việt Nam’s coffee output in the 2023–2024 crop year is estimated to decrease by 20 per cent compared to the previous crop year, to 1.47 million tonnes, the lowest in four years.
Mobile Version