Jerusalem, 25 July, 2023 (TPS) — Israel and Vietnam signed a free trade agreement in Jerusalem on Tuesday, Minister of Economy and Industry Nir Barkat announced. It is Israel’s first free trade agreement with a member of the Association of Southeast Asian Nations (ASEAN).

The agreement was signed by Barkat and his Vietnamese counterpart, Nguyen Hong Dien in the presence of Israeli Prime Minister Benjamin Netanyahu and Vietnamese Deputy Prime Minister Tran Luu Quang.

“Vietnam is a vibrant and growing economy – and Israel is a vibrant and growing economy. The cooperation between us opens up new horizons through which we will be more successful in the future together,” Netanyahu said.

The agreement is expected to lead to mutual tariff reductions on imported and exported products, alongside the improvement and facilitation of trade in a variety of other areas such as services, investments and standardization.

The agreement will also provide a competitive advantage and facilitate the activity of Israeli exporters in the developing and growing Vietnamese market, thereby strengthening Israeli exports and increasing growth in the economy.

Among the main goods traded between the countries are: chemicals, chemical industry products, electronic equipment, optical and medical equipment, electrical and mechanical machinery and equipment, fresh agricultural produce and food products. Israel imports from Vietnam many consumer products such as clothing, footwear, coffee, cell phones and more. In recent years, electric vehicles manufactured in Vietnam have even begun to be sold in Israel.

“The agreement will give Israeli industry a competitive advantage, facilitate the activity of companies and exporters in the Vietnamese market and help reduce the cost of living in Israel, among other things by lowering the costs of imports from Vietnam,” said Barkat.

A free trade agreement between Israel South Korea went into effect in December 2022.