Vietnamese goods make inroads into Canadian market

Vietnam’s exports to Canada reeled in 2.04 billion USD in the first fourth months of 2022, up 31.77 percent on-year.

Of the total, the export value of apparel, phones and components, and seafood hit 392.278 million USD, 314.862 million USD, and 139.5 million USD, growing 57.59, 22.97, and 73.56 percent annually, respectively.

In 2021, despite COVID-19, Vietnam shipped goods worth 5.3 billion USD to Canada, an annual increase of 20.8 percent.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), of which both nations are members, has been considered the leverage behind such growth. The pact came into force in late 2018. Vietnam also signed a free trade agreement with Canada, therefore enjoying tariff reduction or elimination. Notably, since January 1, 2021, Canada removed a total of 96.3 percent of the tax lines for goods originated from Vietnam.

According to the Vietnam Trade Office in Canada, Vietnam is the biggest partner in Southeast Asia of the North American nation. However, room for Vietnamese products to enter the Canadian market remains large, as their value now just accounts for 1.7 percent of Canada’s total imports.

In addition to these advantages, the access to this market is facing various challenges, particularly high transport and preservation costs, and strict safety and technical standards./.

VNA