Jerusalem, Jul 26 (IANS): Israel and Vietnam have signed a free trade agreement, said a statement from the Israeli Ministry of Economy and Industry.

The agreement was signed in Jerusalem on Tuesday by Israeli Economy Minister Nir Barkat and Vietnamese Minister of Industry and Trade Nguyen Hong Dien, in the presence of Israel's Prime Minister Benjamin Netanyahu and Vietnam's Deputy Prime Minister Tran Luu Quang, Xinhua news agency reported.

The agreement will facilitate the activity of Israeli exporters in the growing Vietnamese market, thereby contributing to the Israeli economy's growth, the statement noted, adding that it will also help reduce the costs of imports from Vietnam.

Vietnam thus became the first country in the Association of Southeast Asian Nations to have a free trade agreement with Israel.

In 2022, the trade volume between Israel and Vietnam was $1.46 billion, including trade in goods and services, according to the ministry.

The volume of bilateral trade in goods stood at $168.9 million in the first six months of 2023, according to a report issued by Israel's Central Bureau of Statistics on Monday.

Israel exports to Vietnam mainly chemicals, machinery, medical and optical equipment, rubber, and plastics, and imports from Vietnam machinery, fresh agricultural produce, and food products, among others, according to the report.