Vietnam-Israel Trade Heads Toward US$4.4 Billion
Vietnamese exporters gain a structured tariff pathway into Israel as the Free Trade Agreement drives volumes higher.
Updated on Nov. 3, 2026 in International Trade
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Vietnam-Israel bilateral trade is projected to reach about US$4.4 billion in 2026, according to the extraction, with Vietnamese exports to Israel forecast near US$1.3 billion by year-end. The growth follows the Vietnam-Israel Free Trade Agreement, which took effect on November 17, 2024, and is relevant to exporters and importers operating between the two markets.
Why it matters
Two-way trade was US$3.25 billion in 2024 and US$3.63 billion in 2025, and January-October 2026 volume already reached US$3.5 billion, indicating sustained momentum under the agreement. For operators, the framework's rules of origin and phased tariff reductions create a structured pathway to expand exports into Israel.
Bilateral trade rose from US$3.25 billion in 2024 to US$3.63 billion in 2025 and is projected at US$4.4 billion for 2026, a 21% year-on-year increase. Vietnamese exports to Israel grew from US$795 million to US$865 million and are forecast to reach about US$1.3 billion, up 50.3% from the prior year.
The players
Vietnam
Southeast Asian manufacturing and export economy and a party to the Vietnam-Israel Free Trade Agreement.
Israel
Advanced technology and trade economy that has implemented tariff eliminations and preferential quotas under the agreement.
The details
Under the agreement, Israel has implemented tariff eliminations and preferential quotas, while phased tariff reductions have been applied on the Vietnamese side. Exporters can use the agreement's rules of origin to qualify products for preferential treatment and can address technical barriers that previously constrained shipments. The framework is designed to give businesses a predictable basis for planning export volumes into the Israeli market.
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 Landscape
The growth sits within the framework of the Vietnam-Israel Free Trade Agreement, which took effect on November 17, 2024, and created the rules-of-origin and tariff-reduction structure now shaping bilateral flows. The trend tracks the agreement's first two years, with trade volumes rising from US$3.25 billion in 2024 to a projected US$4.4 billion in 2026.
Exporters in manufacturing and agricultural categories should evaluate whether their products qualify under the agreement's rules of origin to access preferential tariff treatment in Israel. Operators should monitor the 2026 year-end trade results against the US$4.4 billion projection to gauge whether the phased tariff reductions are sustaining export growth.
The takeaway
Trade volumes under the agreement have grown steadily from 2024 through October 2026, and the full-year figure will show whether that momentum holds. Businesses considering Israeli markets should review rules-of-origin eligibility for their products and track the year-end trade data as a planning benchmark.
Further reading
For broader context on how trade agreements reshape cross-border sales, explore our International Trade coverage.
Source note: This article includes information reported by VOV - VOV Online Newspaper.
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