Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade (MoIT), said Vietnam has enjoyed stable growth in its exports to Canada and Mexico since the CPTPP agreement took effect in January 2019, even during the COVID-19 pandemic or amidst geopolitical fluctuations in the world.
Additionally, Vietnam’s trade surplus with the two markets usually accounts for one-third to half of the combined trade surplus with countries, Khanh stressed.
Khanh pointed out ample room to promote exports to Canada, Mexico and Peru, but noting that the image of Vietnamese brands in these markets still remains modest.
According to Trade Counselor Tran Thu Quynh from the Vietnam Trade Office in Canada, the North American country is now one of Vietnam's 10 most important trading partners globally.
According to data from the Canadian government, including transshipment through the US, Vietnam's exports to Canada in 2022 increased by 26.4% in trade value compared to 2021.
Notably, five years after the implementation of the CPTPP, Vietnam's exports to Canada rose to 9.9 billion USD in 2022 from 4.1 billion USD in 2018.
The data from Vietnam Customs indicates that Vietnam's export value to Canada increased by a remarkable 110% over five years, meaning that Canada is one of the billion-USD markets with the highest export growth among the CPTPP member countries.
Quynh said CPTPP serves as a lever to encourage businesses from both countries to pay more attention to each other's product structures and markets. It also helps promote the further development of supply chains, and transportation and logistics services between Vietnam and Canada.
However, the utilisation of preferential tariffs under the CPTPP still remains low. Up to over 60% of Vietnam's exports to the country are products from foreign-invested firms with their own brands, while Vietnamese businesses primarily export raw materials or processed products.
Quynh advised domestic exporters to promote connection in production, investment and development of technology and brand with Canadian partners, towards effectively exploiting the CPTPP agreement.
According to Quynh, apart from supporting businesses in trade promotion activities, participating in trade fairs and exhibitions, and seeking orders, the Vietnam Trade Office in Canada always pays heed to raising awareness of how to utilise the CPTPP in Canada, and benefits and opportunities provided by the trade agreement.
It also collaborated with Canadian ministries and sectors to hold seminars, thus helping local firms understand more about opportunities to partner with Vietnamese companies, she added.
