Vietnamese firms advised to capitalise on exports to Canada

 

Canada wants to diversify supply sources to avoid disruption in supply chains, and is interested in supply sources in Vietnam amidst complicated developments in the world situation, according to the Vietnamese Trade Office in Canada. 

The trade office advised Vietnamese businesses to optimise their advantages to boost their exports to Canada.  

According to the trade office, Vietnamese and Canadian firms have  great potential for production connection and cooperation in original equipment manufacturing (OEM) for Canadian brands, which use raw materials from and made in Vietnam serving Canada’s export to a third country market.

In particular, as a result of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the upcoming free trade agreement (FTA) between Canada and ASEAN, Canadian businesses have begun to pay attention to production cooperation with their Vietnamese peers to take advantage of related tax benefits.

Vietnamese enterprises should capitalise on those trends, said the office.

According to official statistics, Vietnam-Canada export turnover in the first seven months reached 3.87 billion USD, up 32.2% year-on-year. The figure is expected to surpass 6 billion USD this year, growing at least 15% compared to 2021.

Trade experts said Vietnam is Canada's largest trading partner in Southeast Asia, but the room for Vietnamese goods exported to the market remains extensive because their market share in Canada is still quite modest.

Vo Hong Anh, Deputy Director of the Ministry of Industry and Trade’s European - American Market Department, said since the CPTPP took effect for Vietnam in January 2019, local goods shipped to member countries, especially those in Americas, including Canada, have grown dramatically.

In 2021, Vietnam exported 5.3 billion USD worth of products to Canada, up 20.8% from 2020 and 75% from the pre-CPTPP period. Vietnam is also a leading shrimp supplier of Canada and one of the five largest exporters of wooden furniture in this market.

Anh recommended Vietnamese companies improve their product quality and apply advanced technology in production toward sustainability./.