Vietnam-Israel Trade Set to Reach $4.4 Billion
Bilateral trade is climbing under the Vietnam-Israel Free Trade Agreement, with Vietnamese exports forecast to rise sharply in 2026.
Updated on Nov. 3, 2026 in International Trade
Live Poll
Do you think expanding trade deals with other countries benefits everyday Americans?
Vietnam-Israel bilateral trade is projected to reach US$4.4 billion in 2026, following the Vietnam-Israel Free Trade Agreement that took effect on November 17, 2024. Vietnamese exports to Israel are forecast to reach approximately US$1.3 billion by year-end.
Why it matters
The agreement's phased tariff reductions and Israel's tariff eliminations and preferential quotas have created a framework that lets businesses use rules of origin, overcome technical barriers, and expand exports. Growth in both directions signals how trade agreements can rapidly reshape bilateral commerce.
Two-way trade reached US$3.25 billion in 2024 and US$3.63 billion in 2025, with US$3.5 billion recorded in January-October 2026, a 21% year-on-year increase. Vietnamese exports to Israel rose from US$795 million in 2024 to US$865 million in 2025, and full-year 2026 export growth of 50.3% is projected, though these remain forecasts.
The details
Vietnamese exports to Israel exceeded US$1 billion in the January-October 2026 period, according to the reported figures. Phased tariff reductions and Israel's tariff eliminations and preferential quotas have been implemented under the agreement, which took effect on November 17, 2024.
Timeline
November 17, 2024: The Vietnam-Israel Free Trade Agreement took effect.
2024: Bilateral trade reached US$3.25 billion.
2025: Bilateral trade reached US$3.63 billion.
January-October 2026: Bilateral trade stood at US$3.5 billion.
End of 2026: Full-year trade is projected at US$4.4 billion.
Market Dynamics
The growth follows the Vietnam-Israel Free Trade Agreement, which took effect on November 17, 2024 and introduced phased tariff reductions that shape trade flows between the two countries. Its rules of origin and preferential quotas are now visible in rising bilateral turnover, which has climbed from US$3.25 billion in 2024 toward a projected US$4.4 billion in 2026.
Businesses exporting goods between Vietnam and Israel may benefit from tariff eliminations and preferential quotas under the agreement, which can lower costs for qualifying products. Companies should review rules of origin requirements to determine whether their goods qualify for the reduced tariffs.
The takeaway
Exporters seeking to benefit from the Vietnam-Israel agreement should confirm that their products meet the rules of origin and technical requirements before shipping. Tracking the phased tariff schedule can help businesses plan pricing and volume commitments.
Further reading
For broader context on how trade agreements reshape cross-border commerce, explore International Trade coverage.
Source note: This article includes information reported by VOV - VOV Online Newspaper.
Live Poll
Do you think expanding trade deals with other countries benefits everyday Americans?
