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Agreement Signed to Expand the Financial Protocol with Vietnam to 250 Mil

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Tuesday, December 13th, 2011

As reported in Port2port:

In light of the strong demand for Israeli products in Vietnam, it was decided to increase credit lines to East Asia

At a ceremony held today in the presence of the President of the State of Israel, Mr. Shimon Peres, the President of Vietnam, Mr. Truong Tan Sang, and the Deputy Finance Minister of Vietnam, Mr. Tran Xuan Ha, an agreement was signed to expand the financial protocol between the Israeli and Vietnamese Ministries of Finance. Both sides agreed to add 100 million dollars to the existing protocol, supplementing it to a total of 250 million dollars.

The financial protocol is an agreement between the Israeli and Vietnamese governments establishing a special credit line to finance Israeli trade and investment in Vietnam. It is an outcome of ongoing efforts led by the Accountant General’s Department in the Israeli Ministry of Finance and Ashra – The Israel Export Insurance Corp. Ltd. to create avenues for financing exports to developing countries in East Asia and Africa. The protocol provides for the insurance of long-term loans given to local exporters, with the aim of making them more competitive in comparison with exporters from other countries. In the past year, transactions in East Asia and Africa were approved through Ashra on a scope of billions of dollars.

The protocol with Vietnam has been expanded in light of the steadily increasing demand in the Vietnamese market for Israeli products, especially in the fields of agriculture and hi-tech. Numerous Israeli exporters are attempting to penetrate the Vietnamese market, and the existence of a financial protocol with Vietnam, on top of diplomatic ties with that country, has allowed some exporters to close giant deals with the Vietnamese government.

The Accountant General at the Ministry of Finance, Ms. Michal Abadi-Boiangiu, noted that “Exports are a significant component of the Israeli economy, and the Ministry of Finance is working to strengthen exporters. We are putting emphasis on identifying export opportunities in countries with the potential to become key export destinations. This is an opportunity for Israeli exporters to penetrate these markets, given that Israeli exports have a real added value in that they contribute to economic and social development. Our experience shows that the signing and implementation of the financial agreement with Vietnam has strengthened ties with the growing Vietnamese market, enabling Israeli exporters to increase their exposure to this market.”