AsemconnectVietnam - Since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect in January 1, 2019, trade between Vietnam and Canada has experienced a significant growth.

However, this growth remains incommensurate with the potential and the 50-year bilateral relationship.
Bilateral trade of US$6 billion
According to Canadian Ambassador to Vietnam, Shawn Steil, the Vietnamese-Canadian relationship has experienced comprehensive growth over the past 50 years, and since a comprehensive partnership was established in 2017, the two countries have held deep, multifaceted dialogues in the fields of politics, trade and development cooperation.
CPTPP is a new-generation free trade agreement (FTA) comprising 11 Pacific Rim states, including Vietnam and Canada. It is also the first FTA to help Vietnam navigate the American continent.
According to the General Department of Vietnam Customs, apparel was Vietnam’s biggest currency earner from Canada last year with a total turnover of US$1.3 billion, up 40.3 percent annually and equivalent to 20.7 percent of Vietnam’s total exports to the country.
The apparel exports benefitted from zero-percent tariff to which Canada committed after three years of CPTPP implementation, said head of the Ministry of Industry and Trade’s European-American Market Department, Bui Tuan Hoan.
Footwear came second with record revenue of US$604.6 million, up 64.3 percent; and computers, electronic products and spare parts US$521.3 million, up 27.7 percent.
Several types of goods recorded particularly high export revenues, such as handbag-suitcase-headwear (up 115.2 percent), plastics (up 224.5 percent) and fisheries (up 39.3 percent).
Vietnamese Commercial Counselor in Canada Tran Thu Quynh said as Vietnam’s ninth biggest currency earner, aquatic products hold potential of high growth in the coming years thanks to the CPTPP.
According to the CPTPP’s commitments, Canada eliminated import duties for 95 percent of tariff lines and 78 percent of Vietnam’s exports to the country. Tariffs on all Vietnamese aquatic and wood products have been removed since 2019. Taxes on other goods will continue falling in line with the roadmap, making it easier for firms that meet origin requirements in order to enjoy incentives.
According to the Ministry of Industry and Trade’s data, in the first 10 months of 2022, trade between Vietnam and CPTPP economies reached US$88.1 billion (up 19.2 percent from the same period in 2021), including Vietnam’s export value of US$45.1 billion (up 22.1 percent) and the country’s import value of US$43 billion (up 16.26 percent). Vietnamese-Canadian trade alone reached US$6 billion in the first 10 months of 2022, 24.1 percent higher than the same period in 2021.
Despite the COVID-19 pandemic, Vietnam’s exports to Canada surged 20.8 percent annually to US$5.3 billion, up 75 percent prior to CPTPP validity. Last year, the figure surpassed US$6.3 billion, up 19.8 percent year-on-year.
Making better use of CPTPP
Nonetheless, Canadian Ambassador to Vietnam, Shawn Steil believes that bilateral trade remains incommensurate with the potential and needs to be promoted.
Vietnam and Canada held the first meeting of the Joint Economic Committee in Vancouver on July 6, 2022 with a view to helping lift bilateral economic ties to a new level and intensify the two countries’ comprehensive partnership.
The two sides discussed challenges and opportunities for bilateral trade and investment amid economic and political uncertainties, the shift of global supply chains, and post-pandemic market diversification and economic recovery trends around the world.
Both sides agreed to make joint efforts in order to diversify and expand trade by facilitating the export of goods and services as well as investment flows. According to the Ambassador, the two countries will focus on facilitating trade in goods and discuss promotion of clean energy cooperation.
Source: Ven.vn