Boosting Vietnam - Israel Trade

The Vietnam - Israel Trade Board chaired by Mr Omri Horowitz is actively organising or participating in a series of trade promotion activities, closely coordinating with the Embassy of Vietnam in Israel, the Embassy of Israel in Vietnam as well as other relevant organisations. For the time being, the board does not have the official office in Vietnam and its operations are thus carried out in its headquarters in Israel. Its operations in Vietnam can be carried out through the coordination of relevant bodies in Vietnam like the Chamber of Commerce and Economy at the Embassy of Israel in Vietnam.

 

At the conference and meetings between Vietnamese and Israeli businesses, representatives of Israeli companies introduced their business operations in order to find partner in Vietnam. Israeli visiting companies are engaged in agricultural cultivation and processing, seafood farming, poultry farming, agricultural technology and general trade.

 

The event is expected to exert a positive effect on, and contribution to, economic and commercial cooperation between Vietnam and Israel in the coming time.

 

Dr Doan Duy Khuong, Vice President of Vietnam Chamber of Commerce and Industry (VCCI) said Vietnam - Israel trade relations have thrived in recent years. Since the two countries signed the Agreement on Economic and Commercial Cooperation in 2008, the two-way trade has been relatively balanced. Vietnam ran a trade deficit from 2009 to 2011 because its import growth outpaced the export growth with this market. In 2012, the trade balance changed markedly, with Vietnam enjoying a surplus. Vietnam earned US$279.3 million from exports to Israel, nearly doubling the value in 2011, while it spent US$126.1 million on imports from this market, down 32 percent year on year.

 

In 2013, despite slow global economic recovery, the bilateral trade turnover still rose 37.9 percent year on year to US$604.29 million, of which Vietnam earned US$401.29 million, up 43.7 percent and Israel raked in over US$200 million, up 28 percent.

 

Currently, Israel is emerging as one of the biggest trade partners of Vietnam in the Middle East. By trade revenue with Middle East partners, Israel is behind the UAE, Turkey, and Saudi Arabia.

 

Vietnam’s key exports to this market include agricultural commodities, apparels, textiles and electrical equipment while it imports fertilisers, machines and electronic goods from Israel. Israel now ranks 62^nd out of 101 countries and territories investing in Vietnam.

 

Dr Khuong said agricultural cooperation between the two nations is promising and Vietnam thus needs to take full advantage of advanced agriculture and science of Israel to bring more products to the world.

Vietnamese Deputy Minister of Agriculture and Rural Development, Le Quoc Doanh, said, Vietnam wants to attract foreign technologies to increase productivity and improve livelihoods of farmers.

 

He affirmed that although economic activities between the two sides have increased sharply in recent years, this development is below their potential and expectations. In the coming time, the Ministry of Agriculture and Rural Development of Vietnam will support Israeli investors to invest in the Vietnam market.

 

Israeli Ambassador to Vietnam Meirav Eilon Shahar said, in addition to traditional markets in Europe and the United States, Israeli companies are seeking new markets and Vietnam is a very attractive destination.

She asserted that Israel is also trying its best to assist its businesses to invest in Vietnam while streamlining procedures to facilitate their operations.

 

Reportedly, according to the Vietnam - Israel high-tech application cooperation in agricultural production, Vietnam expects to have 10 million hectares of food crops to be cultivated with advanced technologies from Israel by 2020. Equipment for the project will be manufactured in Vietnam to reduce transportation costs.