Growing vegetables under technology transferred from Israel in Vinh Phuc Province. — Photo thoibaokinhdoanh.vn

HA NOI (Biz Hub) – A seminar on finance opportunities for doing business with Israel was conducted on Tuesday in Ha Noi to enhance economic and trade cooperation between Viet Nam and Israel.

Speaking at the seminar, Duly Klein vice president, marketing and business development of the Israel Foreign Trade Risks Insurance Corporation Ltd, informed participants about the financial protocol aimed at promoting business cooperation between enterprises of the two countries and the way to approach finance sources in Israel.

Duly said the financial protocol was signed between Viet Nam and Israel in late April 2008. Under the protocol, the Israel government provided a guaranteed credit loan worth US$150 million to Viet Nam to help local small and medium-sized businesses and projects involved in technology transfer from Israel to Viet Nam enhance their business efficiency.

Duly Klein said the financial protocol with Viet Nam was then increased to $250 million in November 2011, targeted at developing economic relations between the two countries and promoting Israel's exports to Viet Nam using an efficient financial structure and broadening the financing possibilities for Israeli exporters to the country.

Duly also introduced Vietnamese businesses to ways to obtain Israeli preferential credit loans. He noted that the advantage of the protocol was a well-structured prepared process supported by financing facilities.

Additionally, the protocol also enabled Israeli exporters to offer long-term credit with favourable terms to Vietnamese buyers. It also allowed Vietnamese buyers to benefit from Israeli goods and technologies for agricultural development, education, water treatment, energy, etc.

Yaniv Tessel from Israel's Economic & Trade Mission said Israeli imports from Viet Nam included electronic components, footwear, textiles and food products. Exports from Israel to Viet Nam reached over $1.7 billion and imports from Viet Nam to Israel stood at $598 million in 2015.

Viet Nam imported technology, chemical products, and optical medical and other equipment from Israel. Some 59 per cent of imports of Israel from Viet Nam were mobile related products for Samsung smartphones manufactured in Viet Nam.

Israel imported footwear, prepared foodstuff, plant and vegetable products. Israel said it recognised Viet Nam as market economy. Nguyen Thi Lam director of the Vietnamese TH-Afimilk project, shared with participants her experiences of implementing a cooperative project, Vietnamese businesses needed to select Israeli eligible partners, both in technology and finance. Businesses were required to understand administrative regulations of the financial protocol from both sides (Israel and Viet Nam) properly.  

Viet Nam is the second country (after China) to enjoy such a preferential credit loan from the Israeli government. — VNS