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

Canada - a gateway for Vietnamese businesses to access the North American market and increase market share.

Canada is currently a potential export market and also a gateway to the North American market. Alongside the advantages, the Canadian market also presents challenges for exporting businesses.

Opportunities and challenges for Binh Dinh

According to information presented 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 28th, Mr. Ngo Van Tong, Director of the Department of Industry and Trade of Binh Dinh province, stated that since the Comprehensive and Progressive Trans -Pacific Partnership Agreement (CPTPP) came into effect, the province's export turnover to Canada has increased fourfold, from US$4.1 million in 2018 to over US$17.2 million in 2023 (reaching US$23.9 million in 2022 alone).

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

The main export goods from Binh Dinh to the Canadian market are seafood, refined wood for interior and exterior furniture, garments, and plastic products. In 2023, among the key export items from Binh Dinh province to the Canadian market, seafood products achieved the highest export value with nearly 5.0 million USD; garments reached 4.6 million USD; refined wood products reached 4.6 million USD; and imitation rattan plastic products reached 2.5 million USD.

According to Mr. Tong, while there are great opportunities for the province's key export products to expand exports to the Canadian market (based on the potential and foundation already being exploited under the CPTPP Agreement), the locality also faces challenges.

Besides the challenges of meeting sustainable development standards and the increasingly fierce competition among exporting countries, geographical distance, high market penetration and marketing costs, and high transportation and logistics costs also make it difficult for businesses in Binh Dinh province to compete with neighboring countries in the Americas in terms of export prices.

Furthermore, for agricultural products, businesses in Binh Dinh province have small-scale production, which makes it difficult to improve quality and enhance competitiveness in a coordinated manner.

Mr. Pham Anh Tuan, Chairman of the People's Committee of Binh Dinh province, delivered a speech at the conference.

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

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

The Chairman of Binh Dinh province requested VCBA to act as a bridge to bring Canadian businesses and investors to Binh Dinh, Vietnam, to jointly achieve success.

Identifying the Canadian market

According to Dan On, Chairman of VCBA, Canada currently purchases a significant amount of goods from Vietnam, totaling $10 billion. He also noted that the Canadian government is focusing on small businesses, which are central to the country's economy and only pay 17% in taxes.

The VCBA chairman informed that a delegation of 100 Canadian businesses is currently visiting Vietnam, working in Hanoi and Ho Chi Minh City, and he will be collecting relevant documents from these businesses.

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

He also stated that he is ready to support Canadian businesses investing in Vietnam and, conversely, to support Vietnamese businesses exporting food products, seafood, and other goods to the Canadian market.

Regarding further information on connections between the two countries and two localities (Binh Dinh province and Vancouver state), Mr. Nguyen Hoai Bac, a member of the VCBA Executive Committee, suggested that agricultural, forestry, and fisheries processing businesses in Binh Dinh could connect with Mr. Chau Cuong, a large enterprise owner of the 88 Supermarkets chain in Vancouver. These supermarkets have the potential to support Vietnamese businesses in exporting agricultural, aquatic, and other goods 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 an agricultural product processing plant 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 benefits both. From Vietnam's side, goods "Made in Vietnam" will have easier access to the Canadian market; at the same time, from Canada's side, as also a CPTPP member, its goods will benefit from favorable import tariffs in Vietnam.

Currently, Canada has sent a Trade Mission, led by Minister Mary Ng, Minister of Export Promotion, International Trade and Economic Development, to explore business and investment opportunities in Vietnam. The mission will last three consecutive days in Ho Chi Minh City and includes representatives from 100 Canadian businesses.

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

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 believes this trend is very much in line with Binh Dinh's investment promotion and attraction plan, as the locality currently possesses 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 an agricultural product processing plant project in the Becamex Binh Dinh Industrial Park, covering an area of 4 hectares with a total investment of 10 million USD.

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