VIFTA: Upcoming alternatives for companies

Mr. Gal Saf, Counselor, Head of the Economic and Trade Office, Israeli Embassy in Vietnam
Mr. Gal Saf, Counselor, Head of the Financial and Commerce Workplace, Israeli Embassy in Vietnam

How do you assess the present scenario of financial, commerce and funding cooperation between the 2 nations? What are the strengths, weaknesses and challenges that face each side?

I’m grateful for the chance to debate the financial relationship between Vietnam and Israel in the present day. Over the previous decade, this relationship has been steady and has proven constant development, with bilateral commerce reaching practically US$1.5 billion in 2022. Regardless of challenges posed by the COVID-19 pandemic, we have now noticed that the financial relationship between our two nations, in addition to the general bilateral relationship, are solely getting stronger.

Israel is famend for its improvements and know-how, whereas Vietnam has efficiently transitioned from agriculture to business and is rising as a middle for superior improvements and applied sciences. Each nations complement one another fairly than compete, with mutual benefits and distinctive financial alternatives in every market. Corporations from each side are more and more eager about tapping into the worth of one another’s market and creating synergies for mutual profit in sectors corresponding to agricultural know-how, cyber safety, water administration, power, medical gadgets, and extra. Some great benefits of each markets contribute to the expansion and success of corporations from each nations, and there’s a rising curiosity in studying extra and understanding the potential of one another’s market. As we commemorate the thirtieth anniversary of diplomatic relations between Israel and Vietnam, we’re optimistic concerning the continued development and collaboration in our financial relationship.

Vietnam exported more than US$3.92 billion worth of textiles and garments to Israel in the first quarter of 2023
Vietnam exported greater than US$3.92 billion price of textiles and clothes to Israel within the first quarter of 2023

Might you share your contributions to the 12 rounds of VIFTA negotiations inside seven years? What do you anticipate after the conclusion of negotiations?

As a part of the Israeli commerce mission to Vietnam, our group, beneath the management of the Israeli Minister of Financial system and Trade, has been actively engaged in facilitating and focusing the negotiations between our two nations. Though I’ve not been personally current throughout the previous seven years of negotiations, our devoted industrial workforce has obtained quite a few requests from Vietnamese and Israeli corporations on numerous enterprise points. We now have been dedicated to offering help and help, leveraging our experience in logistics and different related issues, to make sure the success of the negotiations and additional strengthen the financial relationship between Israel and Vietnam.

We’re proud to witness the progress made within the VIFTA and different enterprise phrases between our nations. The conclusion of the VIFTA negotiations comes at an ideal timing as we have a good time the thirtieth anniversary of diplomatic relations between Israel and Vietnam. It is a important accomplishment that won’t solely enhance bilateral commerce, but in addition strengthen our financial relationship and foster collaboration in numerous areas corresponding to data sharing and operational bases for corporations in each areas. I’m excited to witness the following steps in our heat and rising partnership.

What alternatives do you suppose the VIFTA will current companies of each side after it’s signed? What would be the main enterprise domains for deeper and additional cooperation between the 2 nations?

The signing of the VIFTA is predicted to open up important alternatives for companies in each nations, enhancing financial improvement and cooperation. Israeli corporations will discover it simpler to ascertain factories or collaborate with native factories in Vietnam, whereas Vietnamese corporations can set up R&D facilities or collaborate with R&D organizations in Israel. With streamlined funding processes and elevated market entry, Vietnam’s inhabitants of 101 million folks can function a gateway to the bigger ASEAN marketplace for Israeli companies.

The particular sectors for deeper cooperation between Israel and Vietnam embrace cellphones, textiles, agriculture, chemical compounds, gear, equipment, software program, companies, and medical gadgets. Whereas it’s troublesome to find out which sector will profit essentially the most, as it is going to depend upon market dynamics, the general affect of VIFTA is predicted to foster elevated bilateral commerce and funding. With simpler entry to different markets which have FTAs with Vietnam, Israeli corporations are anticipated to reinforce their competitiveness.

VIFTA: Upcoming opportunities for businesses
There are alternatives for Vietnamese farm produce to penetrate the Israeli market

What advices and messages do you’ve for companies in each nations to advertise financial cooperation? Might you share the anticipateed timing for signing the VIFTA?

Each Israel and Vietnam must be persistent and affected person to advertise financial cooperation. Each markets have their distinctive enterprise cultures, and it takes time to know and adapt to them. It is vital to understand that every nation’s market is completely different and can’t be in comparison with different markets, and native companions can add important worth at the start of the business trip. Being career-focused and chronic whereas being affected person with the educational course of can result in nice success in the long term. Taking the time to know the native market and using native companions as a lot as potential within the preliminary levels could be a precious technique for companies in each nations.

We’re working carefully with the Ministry of Financial system and Trade of Israel and the Ministry of Trade and Commerce of Vietnam. It is difficult to offer a precise timeline for the signing of the VIFTA. Nonetheless, our basic expectation is that the settlement will likely be signed in 2023 and are available into power in 2024, pending the mandatory steps and approvals. We’re dedicated to working diligently in the direction of the profitable signing and implementation of the FTA between our two nations.

Thanks very a lot!

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