Canada is a potential market for Vietnamese businesses to boost exports.

Canada has always been one of Vietnam's leading important partners, the second largest trading partner, after the United States, in the American continent. Vietnam wishes to maintain, comprehensively develop and further deepen the comprehensive partnership between the two countries established in 2017. Canada is considered a potential market, this is an opportunity for Vietnamese enterprises to boost exports to this country.

With Canada's strengths, such as a developed economy and high per capita income, this creates conditions for diverse and abundant consumption of goods. Participation in free trade agreements such as CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) brings advantages to Vietnamese goods when exporting to Canada. Tariff incentives help Vietnamese businesses access this market more easily. On the other hand, Canada has high demand for agricultural products, processed foods, seafood, textiles, footwear, electronics and technology. Vietnam owns many products that suit the tastes and needs of Canadian consumers. Along with that, the Vietnamese community in Canada is large and growing, which creates a bridge for Vietnamese products to enter the market. Canadian consumers increasingly prefer organic, sustainable and natural products, which opens up opportunities for Vietnamese export products, especially clean agricultural and food products. Vietnam is making efforts to improve product quality and apply technology in production. This will help Vietnamese enterprises provide higher quality products, meeting the requirements of the Canadian market. With these advantages, Vietnamese enterprises are promoting exports to Canada with many potentials and opportunities, including: Free Trade Agreement: The CPTPP Agreement opens up great opportunities for Vietnam to export goods to Canada with preferential tariffs. In addition, Canada is one of the large consumer markets with diverse needs for goods and services, from agricultural products, seafood, textiles to electronics and technology. Many Vietnamese products are of good quality and competitive prices compared to goods from other countries, making it easy to penetrate the Canadian market. Canada has a great demand for food and agricultural products, especially organic products, processed products and seafood. Vietnamese businesses can take advantage of their strengths in this field. The development of e-commerce can help Vietnamese businesses directly reach Canadian consumers, avoid intermediaries and increase consumption. Canadian consumers are increasingly interested in sustainable and environmentally friendly products, which is an opportunity for Vietnamese businesses to produce these products. Vietnamese businesses can seek local partners to cooperate, expand distribution networks and optimize market penetration. Trade promotion programs by the State and business support organizations can facilitate customer search and market development. According to the General Department of Customs, in the first 6 months of 2024, the total import-export turnover between Vietnam and Canada reached more than 3.41 billion USD, of which Vietnam's exports to Canada reached 3 billion USD. Major export items include textiles and garments (US$568 million), machinery and equipment (US$426 million), wood and wood products (US$113 million), seafood (US$117 million) and cashew nuts (US$44 million). Meanwhile, Vietnam mainly imports wheat (US$52 million) and soybeans (US$35 million) from Canada.

Textiles and garments are the leading export item of Vietnam to Canada in 2022 - Photo: Reuters

From a local perspective, Mr. Tran Phu Lu, Director of the Ho Chi Minh City Center for Trade and Investment Promotion, emphasized: Ho Chi Minh City always attaches importance to economic cooperation with Canada. Ho Chi Minh City's export turnover to Canada in the first 6 months of 2024 reached 215 million USD, an increase of 30% over the same period in 2023.

Promoting bilateral trade between Vietnam and Canada in the agricultural and food sector. Photo: Internet.

According to Mr. Tran Phu Lu, Canada is currently Vietnam's third largest trading partner in the Americas and Vietnam is Canada's largest trading partner in ASEAN. In 2023, despite being affected by the global economic recession, the two-way trade turnover between Vietnam and Canada still reached 14 billion USD. Mr. Zach Herbers - CEO of The Herbers Agency - also shared and guided how to approach the Canadian market to create opportunities for Vietnamese enterprises to participate more deeply in this market. Meanwhile, Ms. Dao Phuong Thuy - President of Vietnam - Canada Hub Solutions (VCHS); Mr. Nguyen Thanh Hien - CEO of ATIM Consulting Joint Stock Company proposed solutions to promote bilateral trade in the agricultural and food industry. At the same time, providing information on how Vietnamese food enterprises can meet quality standards when exporting to the Canadian market. It can be affirmed that the opportunity for Vietnamese enterprises to expand exports to the Canadian market has great potential. In the coming time, trade promotion agencies will continue to update information and research on the Canadian market, policies, business investment opportunities and economic information. From there, timely information will be provided to Vietnamese businesses./.

Thanh Tung