Farmer in Vietnam
Photo: Reuters
Israeli business growing in Vietnam
Trade relations with Vietnam rapidly growing following country's joining WTO; 200 Israeli companies already operating in Southeast Asian country
Forty Israeli companies began operating in Vietnam during the last year alone, joining the 160 Israeli firms that already operate in the country, the Israel Export and International Cooperation Institute reported.
The growth in the scope of Israeli trade with Vietnam is partly due to the fact that Vietnam became part of the World Trade Organization this year.
In 2006, Israeli exports to Vietnam totaled $36.6 million, a growth of 3 percent compared to 2005. The main export fields to Vietnam are mining equipment, telecommunication equipment and chemical products.
Vietnam's economy is still mainly agricultural, and Vietnamese agriculture is growing at an annual rate of 6 percent.
Israeli agriculture innovations on demand
Vietnam's addition to the WTO will force the country to lower its subsidies to farmers, and upgrade the agricultural technologies it uses, a field Israel specializes in.Vietnam also needs Israeli water technology, as the country encounters severe problems in providing clean water to its populace, and the local government has initiated 170 projects aimed at improving water supply to residents by 2020.
Another area where Vietnam may enjoy Israel's knowledge and innovation is dairy farming. The country suffers from a shortage in milk due to climate problems and population growth. An Israeli demonstration dairy farm is scheduled to be built in Vietnam soon.
Agriculture Minister Shalom Simhon is set to leave for Vietnam next weekend with the representatives of 12 Israeli companies looking to do business there.
