Gateway for Vietnamese businesses to access the North American market, increase market share

Canada - gateway for Vietnamese businesses to access the North American market, increase market share

Canada is currently a potential export market and also a gateway market to access the North American market. Besides the advantages, the Canadian market also has challenges for export enterprises.

Opportunities and challenges of Binh Dinh

At the Trade Promotion Conference with the Vietnam - Canada Business Association (VCBA) organized by the People's Committee of Binh Dinh province in coordination with VCBA in Quy Nhon city on March 28, Mr. Ngo Van Tong, Director of the Department of Industry and Trade of Binh Dinh province, said that since the Trans-Pacific Partnership Agreement (CPTPP Agreement) took effect, the province's export turnover to Canada has increased fourfold, from 4.1 million USD in 2018 to over 17.2 million USD in 2023 (2022 alone reached 23.9 million USD).

Conference scene Trade Promotion Conference with Vietnam - Canada Business Association

Scene of the Trade Promotion Conference with the Vietnam - Canada Business Association.

Binh Dinh's main exports to the Canadian market are mainly seafood, refined wood for interior and exterior decoration, garments, and plastic products. In 2023, among the main products of Binh Dinh province to the Canadian market, seafood products achieved the highest export value with nearly 5.0 million USD; garments 4.6 million USD; refined wood products 4.6 million USD; and rattan products 2.5 million USD.

According to Mr. Tong, along with the great opportunities for the province's key export products to expand exports to the Canadian market (based on the potential and foundation of having and being well-exploiting the CPTPP Agreement), the locality also faces challenges.

In addition to the challenges of sustainable development standards, competition among countries exporting goods is becoming increasingly fierce, geographical distance, high market penetration promotion costs, high transportation and logistics costs also make export prices of enterprises in Binh Dinh province difficult to compete with neighboring countries in the Americas region.

In addition, for agricultural products, enterprises in Binh Dinh province have small production scale, so they face many difficulties in improving quality and enhancing competitiveness in a synchronous manner.

Mr. Pham Anh Tuan, Chairman of Binh Dinh Provincial People's Committee spoke at the conference.

Speaking at the conference, Mr. Pham Anh Tuan, Chairman of Binh Dinh Provincial People's Committee, hopes to work with VCBA to open markets for local products that can be exported to Canada and North America, initially considering wood products, seafood (shrimp, tuna, etc.), deeply processed agricultural products, etc.

At the same time, the province continues to focus on inviting Canadian investors to invest in five main pillars, including industry; tourism; high-tech agriculture; port services and logistics; and urban economy associated with the urbanization process.

The Chairman of Binh Dinh province proposed that VCBA act as a bridge to bring Canadian businesses and investors to Binh Dinh, Vietnam to reap mutual success.

Identify the Canadian market

Mr. Dan On, Chairman of VCBA, said that Canada currently buys a lot of goods from Vietnam with 10 billion USD and the Canadian Government is currently focusing on small businesses, which are the core of the country's economy and only pay 17% tax.

The Chairman of VCBA informed that Canada currently has a delegation of 100 businesses coming to Vietnam, working in Hanoi and Ho Chi Minh City and he will collect documents related to these businesses.

Mr. Dan On, Chairman of the Vietnam - Canada Business Association, said he is ready to support connecting businesses between the two countries and two localities.

He also said that he is ready to support Canadian businesses to invest in Vietnam and vice versa, support Vietnamese businesses to export food and seafood products to the Canadian market.

For more information on the connection between the two countries and the two localities (Binh Dinh province and Vancouver state), Mr. Nguyen Hoai Bac, Executive Committee Member of VCBA, suggested that agricultural, forestry and fishery processing enterprises in Binh Dinh can connect with Mr. Chau Cuong, a large enterprise, owner of the 88 Supermarkets chain in Vancouver. These supermarkets are capable of supporting Vietnamese enterprises in exporting agricultural, aquatic and other products to the Canadian and US markets.

Becamex Binh Dinh Joint Stock Company and Dan On Food Joint Stock Company signed a memorandum of understanding to invest in the Agricultural Products Processing Factory Project.

Regarding investment opportunities in Canada, Mr. Nguyen Quang Trung, former Consul General of Vietnam in Vancouver, Canada, informed that both countries (Vietnam and Canada) are currently members of the CPTPP Agreement, which is beneficial for both. From Vietnam's side, Made in Vietnam goods will penetrate the Canadian market more easily; at the same time, from Canada's side, as a member of CPTPP, goods from this country will enjoy favorable import taxes from Vietnam.

Currently, Canada has sent a Canadian Trade Mission (Team Canada Trade Mission) led by Ms. Mary Ng, Minister of Export Promotion, International Trade and Economic Development to learn about business and investment opportunities in Vietnam, working for 3 consecutive days in Ho Chi Minh City and bringing 100 Canadian businesses.

This delegation will focus on key areas with great opportunities for cooperation with Vietnam such as agriculture, processed food, clean energy, clean technology, information and communication technology, creative industries, aviation, etc.

And recently, the British Columbia (BC) provincial government, Sakeschewan, opened a Trade and Investment Office in Ho Chi Minh City and a British Columbia Forestry Innovation Investment Office in Binh Duong province...

Mr. Trung said that this trend is very suitable for Binh Dinh's investment promotion and calling plan when the locality is converging many favorable infrastructure conditions.

At the conference, Becamex Binh Dinh Joint Stock Company and Dan On Food Joint Stock Company signed a memorandum of understanding to invest in the Agricultural Products Processing Factory Project in Becamex Binh Dinh Industrial Park with an area of 4 hectares and a total investment of 10 million USD.

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