Economy and Tourism

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Written by Export Institute

Published: 03 November 2014

Twenty years ago, a peace agreement between Israel and Jordan was signed, which settled the relationship, boundaries and division of resources between Israel and Jordan. Following the peace agreement, the borders between the countries were opened, and factories under Israeli ownership were transferred to Jordan, where labor is cheaper.
In 1997, the QIZ Agreement was signed by Israel, Jordan and the US, in order to encourage business collaborations and thus promote the peace process. The agreement contributed to strengthening the political relationship and the trade relations between Israel and Jordan such that in 1998, Israeli exports to Jordan amounted to about USD 25 million, compared to USD 133 million in 2004, an aggregate increase exceeding 400%.

In 2005, free trade agreements were signed between Jordan and the United States. The Jordanian exporters moved from the QIZ framework to the framework of this agreement, while the Israeli exporters were required to face the Jordanian market with equal terms with local and foreign suppliers, without the advantage of the QIZ Agreement. As a result, exports from Israel to Jordan decreased by about 13% from USD 133 million in 2004 to about USD 116 million in 2005.

Based on the data of the Export Institute, the scope of trade (import and export) of Israel with Jordan in 2013 amounted to about USD 366 million, an increase of about 2% compared to the same period the previous year. That year, Jordan was ranked as Israel's 39th trade partner.

The export of goods from Israel to Jordan amounted in 2013 to about USD 99 million, a decrease of about 36% compared to the same period the previous year. The main decrease occurred in jewelry industry exports. In the first half of 2014, there was an increase of about 16% in the scope of exports, amounting to about USD 56 million. In 2013, Jordan was ranked as the 51st destination for the export of Israeli goods.

Changes in the export in prominent industries during the first half of 2014:
In the vehicle industry, aircraft and boating vessels experienced an increase of about 29%, and amounts to about USD 15 million, constituting about 27% of the export.
In the agricultural industry, a decrease of about 53% to about USD 6.5 million, constituting about 12% of the export.
In the machines and equipment industry, a decrease of about 4% to about USD 4.5 million, constituting about 8% of the export;
In the chemicals and refined petroleum industry, an increase of about 13% to about USD 4 million, constituting about 7% of the export.

Main Export Industries of Israel – Jordan ($M)

Description of Industry ($M)
H1/2013
H1/2014
Change rate 14/13
Weight in export 14

Transport tools
11.6
15.0
29%
27%
Agricultural export
13.9
6.5
-53%
12%
Machines and equipment
4.7
4.5
-4%
8%
Chemicals and refined petroleum
3.5
3.9
13%
7%
Non-imbedded source industry
0.6
3.7
526%
6%
Food, drink and tobacco products
1.9
3.3
76%
6%
Basic metal and metal products
2.4
3.0
25%
5%
Source: Export Institute

The import of goods from Israel to Jordan increased in 2013 by about 30% and amounted to about USD 267 million. Jordan constitutes the 30th overall source for the import of goods of Israel. In the first half of the year, the import amounted to about USD 200.3 million, an increase of about 53%.

Changes in the import in prominent industries during the first half of 2014:
In the plastic and rubber industry, an increase of about 243% to about USD 77 million and constituting about 38% of the import.
In the machines and mechanical devices industry, an increase of about 46% to about USD 47.5 million and constituting about 24% of the import.
In the animal and animal products industry, an increase of 430% to about USD 47 million and constituting about 24% of the import;

Main Import Industries of Israel – Jordan ($M)

Description of Industry ($M)
H1/2013
H1/2014
Change rate 14/13
Weight in import 14

Plastic and rubber
22.5
77.1
243%
38%
Machines and mechanical devices
32.5
47.5
46%
24%
Animal products
8.9
47.2
430%
24%
Chemical products
4.3
7.3
70%
4%
Textile products
2.5
4.4
77%
2%
Herbal products
0.4
3.2
782%
2%
Paper products
2.5
2.8
13%
1%
Source: Export Institute

Export from Israel to Jordan in 1988 – 2013, in USD millions

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Written by Economy Ministry

Published: 09 April 2014

The Economy Ministry, via its Investment Center, will invest NIS 33 million in subsidies of higher salaries for employees working for factories and companies located in national priority areas. An extra NIS 27 million will be invested in promoting high salary employment within the cyber industry. Total Economy Ministry in these two tracks: NIS 60 million.

Conditions for the financial assistance: at least 60% of new employees must reside in the national priority areas. The Economy Ministry expects that this financial aid will provide employment to graduates of academic institutions located throughout the priority areas (most of which are in the periphery), particularly in the fields of high tech, engineering, programming and other well-paid professions.

Economy Minister Naftali Bennett: " National priority areas in Israel represent one of the largest business opportunities in the Middle East today. There is great importance in government intervention, in order to create an appropriate ecosystem to attract leading international and Israeli companies that will set up the base of their operations in these areas."

Economy Ministry Director-General Amit Lang recently signed a directive that defines two additional tracks for assistance in employment in the national priority areas. The Director-General's directive, which aims to promote and develop the national priority areas and help recruit more employees into Israeli businesses (in accordance with government decisions 1272 and 546), will be published in the coming days as part of the Director-General's directive 4.18. The financial assistance will be distributed via the Ministry's Investment Center.

The track is aimed at companies and factories with an annual turnover higher than NIS 100 million (in the year prior to application), that are committed to establishing an initiative or business, expanding an existing factory in the national priority areas or relocating a factory to the national priority areas.

Within the cyber track, the company is also required to meet the definition "Cyber Company" and to establish or expand its activities in one or more "designated settlement" as described in the directive.

The conditions of this financial assistance: at least 60% of the new employees must reside in the national priority areas. Employers, who request salary subsidies within the tracks, are required to pay newly hired employees salaries that are 2.5 times higher than the average salary in Israel. Salary subsidies will decrease on a sliding scale each year - in the first year, up to 40% salary subsidy will be given within the cyber industry and up to 35% in the general track, whereas in the fourth year, salary subsidies will be reach 25% in the cyber program and 10% in the general track.

Economy Minister Naftali Bennett: "National priority areas across Israel – and particularly the Negev - represent one of the largest business opportunities in the Middle East today. I am not a big believer in government intervention although, in this regard, it is very important for the government to intervene so that an appropriate ecosystem can be created within these areas to attract leading international and Israeli companies. I believe that the factories and companies who will be attracted into these areas following government intervention will discover its huge potential."

Investment Center Director Nahum Itzkowitz: "The new tracks were created to assist in the recruitment of highly-paid employees while emphasizing on increasing the rate of growth and encouraging the creation of highly-paid positions within the national priority areas. We assist investors who are interested in establishing or expanding initiatives with highly paid employees in the national priority areas or in relocating a company or factory to these priority areas. The assistance is given via partial salary subsidies of highly-paid employees".

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Written by Ministry of Economy

Published: 03 October 2014

 *First visit by high-ranking Vietnamese official since relations established between the 2 countries * Minister to participate in joint session of the economy committees of both governments and visit technological incubators * Minister to meet with Israeli counterpart, Minister of Economy Naftali Bennett

JERUSALEM – 23rd September 2014. The Vietnamese Minister of Science and Technology, Nguyen Quan, will head a large delegation of high-ranking Vietnamese government officials slated to visit Israel at the end of the month (28.9-2.10) and will hold, for the first time since the establishment of diplomatic relations 20 years ago, a session of the joint economic committee with officials from both governments. The Minister will lead the committee discussion on the Vietnamese side while Israeli Minister of Economy, Naftali Bennett, will lead discussion on the Israeli side.

The session comes as part of a full state visit by the Vietnamese Minister, including a tour of the New Generation Technology project in Nazareth, the Bio-Jerusalem project, visits to Israeli technology companies and a gala dinner with representatives of Israeli companies active in Vietnam.

The visit marks a high point in the strengthening of economic relations between Israel and Vietnam. Bilateral trade has reached approximately USD $1 billion per annum in recent years, and consequently the Foreign Trade Administration at the Israeli Ministry of Economy and the parallel authority in Vietnam have begun discussions to advance a free trade agreement. The recently-published Global Competitiveness Report by the World Economic Forum ranked Vietnam 68th of 144 countries. The report states Vietnam is a developing market with a highly-educated population (over 90 million people) and high rate of participation in the workforce by women - factors that combine to define Vietnam as the "Asian Tiger" of growth (growth projected in 2014 was 5.5%). Nevertheless, on innovation, Vietnam was not marked for distinction.

Ministry of Economy Trade Attaché to Vietnam, Tzafrir Assaf: "Vietnam has become highly attractive for small and medium-sized technology companies. The Vietnamese avoid purchasing cheaply-made technology products and are willing to pay for reliable and innovative solutions made in Israel. Small and medium exporters, offering niche solutions tailored to the needs of the customer, succeed in penetrating the Vietnamese market, with the help of local distributors we locate for them. The Vietnamese economy provides Israeli companies with significant opportunities and the visit by the technology minister is aimed at leveraging these opportunities. Thus, for example, we try to connect Israeli and Vietnamese technology companies, with the help of funding by the World Bank. In addition, the Ministry of Science and Technology is responsible for granting a company recognition as being 'Hi-Tech' and this holds financial significance for Israeli companies choosing to invest in Vietnam and increase their presence in the country."

Minister of Economy Naftali Bennett: "Part of the Ministry of Economy's responsibility is strengthening Israel's economic relations with developing countries and new markets around the world and Vietnam holds many opportunities for Israeli exporters. This summit of economic officials from both countries will pave the road for additional Israeli exporters and leverage our economic ties with this country, gaining a stronger footing in Asia and in the whole world."

The Foreign Trade Administration at the Ministry of Economy said that exports to Vietnam during 2013 amounted to USD $702 million compared to USD $745 million in 2012. The data marks a drop of 6%, which can be attributed to the strengthening shekel and weakening dong which occurred in tandem with the effects of the global financial crisis which hit Vietnam relatively late and hurt market demand. The leading fields of export were electronics and mineral components (mainly by Intel), chemical products, fertilizer, paints and telecommunications products. Imports from Vietnam reached USD $413.2 million in 2013 and $318 million in 2012. The data reflects a 30% rise in imports, mainly comprised of telecommunications products, animals, agriculture, food, textile products and footwear. The most significant rise was in imports of textile products and footwear.

 The visit marks a high point in the strengthening of economic relations between Israel and Vietnam

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 Vietnam, Israel reach high-tech deal

Written by http://www.vietnambreakingnews.com/  

 Vietnam and Israel signed an agreement to boost economic cooperation, particularly on science and technology.

The deal was reached during Minister of Science and Technology Nguyen Quan's visit to Israel from September 28 – October 2 to attend the first meeting of the Inter-Governmental Committee for Economic and Technological Cooperation .

Quan, addressing the signing ceremony, said both sides would not only facilitate the exchange of scientists but also expand into human resources training and research.

Vietnam hoped to develop technology in the fields of agriculture and cyber security and safety with Israel, he said, and pledged maximum support to Israeli investors.

The country looked forward to launching talks on a free trade agreement with Israel as soon as possible, Quan added.

Israeli Economic Minister Naftali Bennett, for his part, expressed his hope for the value of bilateral trade to cross the threshold of 1 billion USD this year.

Agreeing with Bennett, the Ministry of the Economy's Trade Attaché Tzafrir Assaf said Vietnam was becoming increasingly attractive for small and medium-sized Israeli high-tech companies.

Last year, Israel exported goods worth 702 million USD to Vietnam and spent 413.2 million USD on imports, mostly garments and footwear.

Its major earners are electronics, chemicals, fertilisers, paint and telecommunication products.-VNA

 Israeli Economic Minister Naftali Bennett and Minister of Science and Technology Nguyen Quan (R) at the signing ceremony (Photo: VNA)

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Written by U.T.A.

Published: 28 March 2014

The opening day ceremony of the Stock Exchange took place on Wednesday, March 26, in Aviv University, in occasion of the National Science Day, with the presence of the Governor of the Central Bank of Israel, Dr. Karnit Flug, the Stock Exchange General Manager, Mr. Yossi Beinart, the Stock Exchange Chairman Substitute, Dr. Ron Malka, General Manager of the Science and Technology Ministry, lawyer Bina Bar-On, and Tel Aviv University President, Prof Joseph Klafter

The opening day ceremony of the Stock Exchange took place on Wednesday, March 26, in Aviv University, in occasion of the National Science Day, with the initiative of the Science and Technology Ministry

The event was opened by the Stock Exchange General Manager, Mr. Yossi Beinart, who said: "There is great importance in strengthening the connection between science, technology, industry and financial market. This connection contributes to the to the innovation processes that serve as important sources to advancement and economic growth. The encouragement of the connection between science, technology and industry enables developments that can serve as basis for implementable ideas in industry, for production that will improve the living conditions and to economic growth for the benefit of all. The financial and stock markets are significant factors in these processes".

The Tel Aviv University President, Prof Joseph Klafter, said: "The rising of awareness to science in this day can encourage youngsters to study different science disciplines. This science day will enable a glance to break-thru researches conducted in universities. The university is a huge start-up of creativity and innovative ideas". Prof Joseph Klafter also indicated that "science shapes all aspects of our lives, from security to medicine. We live in a fascinating period of accelerated scientific development, where technologies and scientific developments reach massive use with unprecedented speed".

The Governor of the Central Bank of Israel, Dr. Karnit Flug, surveyed the payment means in the market. She enumerated the layers that compose this "tubing" in the financial system, and explained the roles of the Central Bank in the regularization and protection of the payment and clearing systems. Then, she enumerated the different means of payment - the traditional ones, based on paper, and the new ones, based on technology - and described the advantages and disadvantages of each.

Dr. Flug then noted: "The Central Bank of Israel promoted reforms and steps intended to make the new means of payments easier and safer. Among these: development of a payment system for immediate clearing called Real Time Gross Settlement (RTGS), joining to the CLS international system, payment system law and improvement of the different clearing systems. In addition, the Locker committee, which is expected to publish her conclusions soon, will encourage the increase of the use of electronic payment means".