In recent times, the Ministry of Industry and Trade (MOIT) has taken the lead in working closely with other ministries and sectors to actively advise the Government on negotiating and signing new FTAs, expanding export markets both in breadth and depth, helping businesses enhance competitiveness and strengthen their position in the global supply chain.
As the focal agency for international economic integration and FTA negotiations, the MOIT has chaired and coordinated with relevant ministries and sectors to proactively advise the Government on negotiating and signing new FTAs, as well as upgrading existing FTAs; spearheading the development, submission, and implementation of plans, programs, and projects to execute FTAs.
Speaking at the Ceremony to Announce the FTA Index assessing the implementation results of FTAs in localities in 2024, organized by the MOIT on April 8, 2025, Prime Minister Pham Minh Chinh emphasized: The effective implementation of FTAs is not only about fulfilling Vietnam’s international commitments but also serves as a driving force for domestic reform, market expansion for goods and services, and enhancing the competitiveness of the economy. (Photo: VGP)
According to the Political Report of the Party Committee of the MOIT at its 1st Congress (2025–2030 term), between 2020 and 2025, Vietnam signed four additional FTAs: the Regional Comprehensive Economic Partnership (RCEP), the Vietnam–Israel Free Trade Agreement (VIFTA), the UK–Vietnam Free Trade Agreement (UKVFTA), and the Vietnam–UAE Comprehensive Economic Partnership Agreement (CEPA). This brought the total number of FTAs in force to 17, expanding Vietnam’s network of FTA partners to 65 countries and territories. In addition, Vietnam signed the Second Protocol to amend the Agreement establishing the ASEAN–Australia–New Zealand Free Trade Area (AANZFTA), upgrading this agreement.
The signing and implementation of these new FTAs with new partners and regions help Vietnam broaden its export markets both in scale and depth, enabling enterprises to improve competitiveness and solidify their role in global supply chains.
VIFTA – the “Sweet Fruit” after 7 Years and 12 Rounds of Negotiations
On July 25, 2023, in Israel, Vietnam’s Minister of Industry and Trade Nguyen Hong Dien and Israel’s Minister of Economy and Industry Nir Barkat signed the Vietnam–Israel Free Trade Agreement (VIFTA). Israel is the first country in West Asia with which Vietnam has signed an FTA, and Vietnam is the first Southeast Asian country with which Israel has signed an FTA.
With agreements reached in all chapters of the VIFTA, both sides expect two-way trade to grow strongly, soon reaching and surpassing USD 3 billion.
The signing of the VIFTA marks the result of the two countries’ efforts over seven years and 12 negotiation rounds. Israel is currently one of Vietnam’s most important partners in trade, investment, and labor cooperation in West Asia. The economies of Vietnam and Israel complement each other, with export–import goods that do not directly compete but instead supplement one another.
The VIFTA comprises 15 chapters and several annexes covering key areas such as trade in goods, services–investment, rules of origin, technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), customs, trade remedies, government procurement, and legal–institutional matters.
Under the agreement, Israel committed to liberalize 92.7% of tariff lines by the end of its commitment schedule, while Vietnam committed to 85.8%. With such strong liberalization commitments, both sides expect bilateral trade to experience a breakthrough, soon reaching USD 3 billion and beyond.
The signing and implementation of the VIFTA create favorable conditions for Vietnam to boost exports of its key products not only to Israel but also to other markets in the Middle East, North Africa, and Southern Europe, while gaining access to Israel’s high-tech goods, helping reduce production and business costs and enhance competitiveness of Vietnamese products. Conversely, in addition to Vietnam’s market of over 100 million consumers, Israel’s goods and technology will gain access to ASEAN, Asia–Pacific markets, and major economies in FTAs that Vietnam participates in.
CEPA – Vietnam’s First FTA with an Arab Country
On October 28, 2024, in Dubai, in the presence of Prime Minister Pham Minh Chinh and UAE Vice President and Prime Minister Mohammed bin Rashid Al Maktoum, Minister of Industry and Trade Nguyen Hong Dien and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi signed the Vietnam–UAE Comprehensive Economic Partnership Agreement (CEPA).
The CEPA is Vietnam’s first FTA with an Arab nation and is also the fastest-negotiated FTA in Vietnam’s history, demonstrating the strong determination of leaders and relevant ministries from both countries.
The CEPA consists of 18 chapters, 15 annexes, and 2 bilateral letters, covering trade in goods, services–investment, rules of origin, technical barriers to trade (TBT), sanitary and phytosanitary measures (SPS), customs, trade remedies, government procurement, intellectual property, and legal–institutional provisions.
Notably, the UAE committed to eliminating tariffs on 99% of Vietnam’s export turnover to the UAE according to a set schedule, while Vietnam committed to eliminating tariffs on 98.5% of UAE’s export turnover to Vietnam.
The agreement also includes many provisions facilitating trade and investment, aligning with current trends in digital transformation and green development.
With comprehensive commitments, the CEPA is expected to create breakthroughs in economic, trade, and investment cooperation between the two countries, paving the way for Vietnam to enter deeper into Middle Eastern markets.
At the Conference between the Prime Minister and Heads of Vietnamese Overseas Missions on promoting economic diplomacy to achieve the economic growth target for the second half of 2025 and lay the foundation for double-digit growth in the next phase (July 22, 2025), Minister Nguyen Hong Dien proposed six key solution groups.
These include: making effective use of the 17 FTAs/agreements already in effect to drive growth; taking full advantage of market recovery trends to boost exports; effectively resolving trade and economic conflicts and obstacles; thereby stabilizing and expanding export markets, attracting foreign investment, and helping businesses diversify supply sources for export production while reducing dependency on any single source.
The Minister also stressed the need to continue expanding and diversifying export markets by exploring new and potential markets in the Middle East, Africa, and Latin America. This includes pursuing negotiations for new FTAs: in Europe with the European Free Trade Association (EFTA); in the Americas with the Mercosur bloc; in Asia with the Gulf Cooperation Council (GCC), India, and Pakistan; and in Africa with Egypt and the Southern African Customs Union (SACU). In parallel, Vietnam will negotiate and sign cooperation agreements in economic, trade, and industrial fields—particularly in areas where Vietnam holds competitive advantages.
With increasingly deep integration and a rapidly changing, complex, and unpredictable global context, promoting the negotiation and signing of new FTAs, as well as implementing international economic commitments, will create new opportunities for Vietnam’s industrial production and trade, strengthen its export competitiveness, and facilitate market penetration into partner economies with preferential treatment—thereby driving strong export growth in the future.
References:
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Party Committee of the Ministry of Industry and Trade, Political Report presented at the 1st Congress of the MOIT Party Committee (2025–2030 term), Hanoi, July 15–16, 2025.
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Conference between the Prime Minister and Heads of Vietnamese Overseas Missions on promoting economic diplomacy to achieve economic growth in the last six months of 2025 and laying the foundation for double-digit growth in the following period, Hanoi, July 22, 2025.
