VIFTA implementation plan approved

The Viet Nam–Israel Free Trade Agreement took effect on November 17, 2024, becoming Israel's first FTA with a Southeast Asian country and Viet Nam's first trade pact with a partner in the Middle East.

The Government of Viet Nam has approved a plan to implement the Viet Nam–Israel Free Trade Agreement (VIFTA),  the Government News has reported.

VIFTA was signed on July 25, 2023 and took effect on November 17, 2024, becoming Israel's first FTA with a Southeast Asian country and Viet Nam's first trade pact with a partner in the Middle East.

Under the agreement, Israel eliminates 66.3 percent of tariff lines immediately, while the remaining duties are being phased out over the following years. Viet Nam has also committed to removing the majority of its tariff lines, enhancing competitiveness for traded goods.

Under the plan, the Government assigned the Ministry of Industry and Trade (MoIT) as the host of a dedicated VIFTA information focal point, tasked with guiding businesses, clarifying market access commitments, and addressing issues arising during the agreement's implementation.

To help Vietnamese enterprises adapt faster to the Israeli market, the Government targets to reinforce information networks, strengthen institutional capacity, and enhance market intelligence, forecasting, and regulatory updates. These efforts aim to keep exporters informed of technical requirements and import–export regulations applied in Israel.

The implementation roadmap also prioritizes boosting trade and investment promotion activities in Israel, promoting Viet Nam's investment climate and strategic advantages to Israeli firms. The initiatives are expected to expand bilateral trade, attract foreign investment into priority sectors, and bring Vietnamese goods closer to Israeli consumers and importers.

In parallel with market promotion, ministries and agencies will review and update the legal framework to ensure alignment with VIFTA commitments according to the agreed timeline.

A core pillar of the plan is industry and enterprise competitiveness support, with programs tailored to micro, small, and medium-sized enterprises (MSMEs), start-ups, and sectors directly affected by the FTA. The Government also calls for response measures for vulnerable industries, while encouraging stronger linkages between domestic firms and Israeli-invested enterprises to deepen integration into production networks and supply chains.

Source: VnEconomy