Vietnam and Israel have inked a free trade agreement (FTA), and enterprises from the two countries should rush to leverage the deal and boost multifaceted cooperation, according to Israeli Minister of Economy and Industry Nir Barkat.

Barkat’s comments were made during a press conference in Hanoi on Wednesday within the framework of the Vietnam - Israel business forum co-hosted by the Vietnamese Ministry of Industry and Trade and the Israeli Embassy in Vietnam.

Just three months after concluding negotiations, the governments of Vietnam and Israel signed the Vietnam-Israel FTA (VIFTA), Minister Barkat said, adding that the deal was made at unprecedented speed and lauding it as a landmark in bilateral relations.

Barkat, a former entrepreneur, said businesses generally move quicker than authorities in realizing new deals, but in the case of the VIFTA, enterprises from both sides seem to be acting slower than expected.

He urged businesses from both countries to hasten to leverage opportunities opened up by the VIFTA.

Barkat revealed that a direct flight route between Hanoi and Tel Aviv will be launched in late September or early October in a move designed to promote ties in trade, investment, tourism, and several other fields.

Vietnam is an important gateway for Israel to expand its markets in Southeast Asia and South Asia, the Israeli minister told the forum.

Regarding investment cooperation, Barkat said Israel now hopes to focus on several groups of industries in which it has strengths, including high technology, homeland security, 4.0 technology application, healthcare, agricultural and food technology, and hi-tech tourism.

In the fields of cooperation, Israel will provide technology while Vietnam will be charged with marketing and sales, Barkat said, expressing his expectations that a cooperative fund will be set up using resources provided by the two governments.

Before attending the business forum, Minister Barket hosted a talk with Vietnamese Minister of Industry and Trade Nguyen Hong Dien, who invited the Israeli official to visit Vietnam for five days starting August 13.

The two ministers focused on steps to further promote economic and trade ties, as well as accelerate procedures to effectively implement the FTA they signed in Israel on July 25.

The deal, which came while the two countries are celebrating 30 years of their diplomatic ties, is the 16th FTA Vietnam has inked with its trade partners around the world.

By signing the accord, Vietnam has become the first country in Southeast Asia to sign an FTA with Israel while the latter is the first nation in West Asia to sign such a pact with Vietnam.

With the free trade deal, the two countries expect to raise their two-way trade to US$3-4 billion, much higher than 2022 when both sides saw an 18 percent year-on-year trade growth rate to $2.2 billion.

Under the agreement, import taxes will be reduced in steps, with Israel ultimately removing duties on 85.8 percent of Vietnamese products while Vietnam will do the same for 92.7 percent of Israeli goods.

Currently, Israel is the third-largest buyer of Vietnamese products as well as the fifth-largest trade partner of Vietnam in West Asia.

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