Promoting
agricultural exports to Israel
The Middle
Eastern nation of Israel,
though small in size, is a highly lucrative market for Vietnamese
agricultural exports with tremendous potential for growth.
Two-way trade turnover between Vietnam and Israel has steadily been
accelerating over the past years.
According to the Vietnam Trade Office (VTO) in Israel, the country principally exports
agricultural products, garments and electronic equipment while it imports
fertiliser, machinery, equipment and electronic parts from Israel.
In the first six months of the year, Vietnam’s agricultural exports to Israel dipped 6% compared to the same period
last year to US$45.7 million and accounted for 13% of the Vietnam’s
total export revenues.
Key market in Middle East
The VTO in Israel
said the decline in agricultural exports is largely attributable to the
protracted and complicated political situation between Israel and Palestine.
Vietnam Customs’ statistics reflect that agricultural
exports to Israel for last
year were US$100 million, comprising 27% of the country’s total exports to Israel.
Major agricultural export products included seafood
(US$42.4 million), coffee (US$25.9 million), cashew nuts (US$23.8 million),
peppers (US$7.5 million), rice (US$5.9 million), rubber (US$3.2 million) and
other products like vegetables and fruit, tea, cassava and sweet fennel (US$1
million).
With a population of more than 8 million people, Israel is the most important consumer of
Vietnamese coffee in the Middle East as it has many coffee processing
enterprises to ship their products to regional markets as well as Europe and America.
Last year, Vietnam’s
coffee exports to the market accounted for 56% of total export value to Middle East.
Israel is also an
important market for Vietnamese cashew nuts with its value making up 30% of
total export revenues to the Middle East.
The country is also the third largest importer of
seafood (around 20%), rice (16%) and rubber (7%) and the fourth largest
importer of pepper (8%).
The VTO in Israel reported that the country
has high demand for importing agricultural products not only for domestic use
but also for processing instant food for exports to the third countries.
Prospects for agricultural
cooperation
Israel cannot grow
the farm produce that Vietnam
exports to it even though it has high demand for them, leading market
analysts report.
Once the political unrest and conflict in the region is
dealt with effectively, Vietnam’s
agricultural exports to the country will jump significantly.
The key to the prospects for enhanced cooperation with Israel lies
in the fact that it possesses advanced technologies, especially in agricultural
production and due to restricted land and labour forces, the country cannot
fully utilise the technology.
This provides a great opportunity for the two nations
to cooperate in agriculture, and Vietnam should encourage Israeli
businesses to transfer technology and find outlet markets for agricultural
products.
Experts are optimistic that Vietnam
and Israel
have the potential for long-term sustainable agriculture cooperation to make
full advantage of the opportunities and strategies, which stimulates stronger
development. The Ministry of Industry and Trade has devised measures on
market development with Israel,
including agricultural and seafood demand at markets and export mechanisms
and export facilitation policies.
In addition, the ministry has actively worked to expand
export markets with Israel for agricultural and seafood products by reducing
tax, opening market and removing trade barriers through negotiations on
Trans-Pacific Partnership (TPP) agreement and the Vietnam-EU Free Trade Agreement
(VEFTA).
It has also enhanced opportunities for finding
potential partners and markets for businesses and updating them with
protectionism, trade barriers and trade lawsuits of import markets.
VOV
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