VIFTA Opens New Export Opportunities for Phu Tho Businesses

As Vietnam continues to capitalize on next-generation free trade agreements (FTAs), Phu Tho Province is proactively implementing the Vietnam–Israel Free Trade Agreement (VIFTA), creating new opportunities for local businesses to access the Middle Eastern market. For the province’s key industries—including tea, processed agricultural products, wood products, textiles, and footwear—VIFTA not only expands export potential but also requires significant improvements in product quality, standards, and competitiveness.

Phu Tho Customs has implemented various measures to facilitate customs clearance for businesses.

Opening New Markets Through Concrete Actions

Following the Prime Minister’s issuance of Decision No. 16/QD-TTg on January 5, 2026, approving the implementation plan for VIFTA, Phu Tho Province promptly developed its own action plan and assigned specific responsibilities to provincial departments, agencies, and local authorities to help businesses seize opportunities arising from the agreement.

According to the provincial plan, the immediate priority is to improve awareness among government agencies and the business community of VIFTA’s commitments, opportunities, and challenges, while supporting enterprises in taking advantage of tariff preferences and expanding exports to Israel.

For Phu Tho, which is accelerating economic restructuring toward a greater share of manufacturing, exports, and services, effective implementation of VIFTA is expected to become a new driver of economic growth.

Israel represents a promising market for many Vietnamese products, including processed agricultural products, food, consumer goods, and light industrial products. At the same time, it is a highly demanding market with stringent requirements for quality, product traceability, and sustainability—criteria that are increasingly becoming essential for deeper participation in global supply chains.

For Phu Tho’s key export products, including tea, wood products, processed agricultural products, textiles, and footwear, VIFTA provides an opportunity to enter a new market with strong purchasing power and high payment capacity.

While the opportunities created by VIFTA are evident, converting preferential market access into actual export growth will require businesses to meet rigorous standards. The Israeli market demands substantial investment in technical standards, quality management systems, production processes, and internationally recognized certifications.

Recognising these challenges, the province has identified communication and specialised training as key components of its VIFTA implementation plan. Support programmes will focus on rules of origin, market access, technical standards, trade remedies, customs procedures, and other import-export requirements.

Beyond raising awareness, the province also aims to strengthen enterprises' capacity to comply with international standards, particularly for products with strong export potential. The plan includes training, consultancy services, and technical assistance to help businesses meet Israel’s specific market requirements, including Halal certification for relevant products.

Improving Product Quality for Sustainable Export Growth

Many local enterprises have already begun adjusting their business strategies. While some previously focused mainly on traditional export markets, the pursuit of more demanding markets is encouraging greater investment in raw material areas, processing technologies, and quality control systems.

According to Bui Thi Mao, Director of Hoai Trung Tea Co., Ltd. in Chi Tien Commune, entering new markets means meeting new requirements.

“To enter markets such as Israel, products must not only be of high quality but also demonstrate transparent production processes, clear traceability, and food safety,” she said.

To maximize the benefits of VIFTA, Phu Tho is focusing on strengthening business competitiveness and improving product quality.

In agriculture, the province is promoting the development of concentrated raw material areas, strengthening cooperation among cooperatives, farmers, and enterprises, while expanding planting area codes, geographical indications, product traceability systems, and food safety management.

These efforts represent an important shift, as developed markets increasingly value stable supply capacity, transparency, and compliance with technical standards rather than production volume alone.

Workers package tea products for export at Hoai Trung Tea Co., Ltd. in Chi Tien Commune.

Alongside agriculture, processed industrial products have also been identified as a promising export sector. Enterprises engaged in wood processing, garments, and footwear manufacturing can expand into new markets and integrate more deeply into international supply chains by fully utilizing the advantages offered by VIFTA.

The province is also helping businesses adopt advanced technologies, automation, innovation, and cleaner production methods to improve productivity, enhance product quality, and reduce production costs.

Trade promotion activities are also becoming more practical, with greater emphasis on direct connections between local exporters and overseas importers. Businesses are encouraged to make full use of Vietnam’s overseas trade offices, trade promotion programmes, international trade fairs, and digital platforms to bring their products closer to target markets.

VIFTA has opened another gateway for exports, but to successfully pass through it, Phu Tho enterprises must strengthen their internal capabilities through higher-quality products, modern management practices, and a long-term market-oriented mindset.

With strong support from provincial authorities and the growing readiness of the business community, VIFTA is expected to become a new driving force for expanding export markets, increasing the value of Phu Tho’s products, and integrating local businesses more deeply into global supply chains.

Ngoc Tuan