Orientation of exporting Vietnamese branded products to Canada

Exporting Vietnamese branded goods to Canada is a great opportunity, because the Canadian market has high and diverse consumer demand and a stable trade relationship with Vietnam. In particular, after 5 years, the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) has had a positive impact on Vietnam's exports to markets such as Canada. Since the agreement came into effect in 2019, Vietnam has taken advantage of many opportunities that the CPTPP brings to promote exports to member countries, including Canada.

In the first 6 months of 2024, the total import-export turnover between Vietnam and Canada reached more than 3.41 billion USD. Photo: Internet.

CPTPP helps reduce or eliminate many types of tariffs on export goods, thereby reducing costs for Vietnamese businesses when exporting to Canada. For example, export taxes on agricultural products, seafood, textiles, footwear, wooden products, etc. have all been significantly reduced, making these products more competitive in the Canadian market. Growth in key export industries: Vietnam's export industries such as textiles, seafood, footwear, electronics, machinery and wooden products have recorded strong growth thanks to CPTPP. In particular, Canada is a potential market with high demand for these products, and the agreement has made it easier for Vietnamese products to access this market. Expanding investment and cooperation opportunities: CPTPP not only promotes exports but also creates investment and cooperation opportunities between Vietnamese and Canadian businesses. Vietnamese businesses can participate in the global supply chain, while cooperating with Canadian partners to improve product quality and enhance competitiveness. Improve the trade environment: CPTPP not only reduces tariffs but also promotes reforms in intellectual property regulations, labor standards and environmental protection. This helps create a fairer, more transparent and more favorable trade environment for Vietnamese businesses when trading with Canadian partners. According to statistics, Vietnam's exports to Canada have grown strongly in recent years since the CPTPP came into effect. In 2021, Vietnam's export turnover to Canada reached a record high, with many export items experiencing strong growth such as textiles, footwear, electronics, processed foods, and seafood. Thus, CPTPP has created many new opportunities and promoted the growth of Vietnam's exports to Canada, contributing to economic development and enhancing Vietnam's position in the international market. According to statistics from the General Department of Vietnam Customs, Vietnam's exports to Canada in the first 7 months of 2024 reached over 3.6 billion USD, an increase of 12.2% over the same period in 2023.

CPTPP is a large market, in which the Canadian market still has a lot of potential for Vietnamese enterprises. When enterprises have penetrated the Canadian market with their own brands, the quality of exported products will also be increased, helping to enhance brand value and increase the competitiveness of enterprises.

According to the Vietnam Trade Office in Canada , there are currently three ways to bring Vietnamese goods into the Canadian market, including e-commerce.

Previously, Vietnamese textile and furniture enterprises had begun to implement cross-border e-commerce and were present in the Canadian market. However, in the processed food sector, very few enterprises were interested in this model.

E-commerce intermediaries not only help with licensing but also with logistics and supply. This model is quite suitable for small and medium enterprises in Vietnam.

Group of 10 markets with the largest import turnover of Canada in 2023   Unit: percent Source: Trademap

In the coming time, to position and build Vietnamese goods brands in the Canadian market, the Vietnam Trade Office in Canada believes that there is no common solution and that it is not advisable to find the same way to build brands for all businesses and industries when building brands in the Canadian market.

Because, many food manufacturing enterprises have succeeded in building their own industry brands, but many enterprises have also succeeded in manufacturing according to the requirements of Canadian enterprises. Many processed products with Vietnamese brands have appeared in the system of large supermarkets in this country such as: coconut water products, fried shrimp, fish sauce...

However, according to the Vietnam Trade Office in Canada , many export industries to foreign markets are required to have their own brands such as the service industry, textiles, footwear, etc. These are industries that need to boldly invest in building brands. We no longer do outsourcing in these industries, we are fully capable of producing unique Vietnamese products such as children's clothing, protective clothing, etc. for export.

Enterprises need to work together, work together with associations and industries, together build and develop export markets in accordance with the slogan "buy with friends, sell with partners", demonstrating the synchronization of production and export standards; information connection, coordination in warehousing, logistics services, and even more importantly, building an ecosystem of industries to promote exports.

In the coming time, to continue supporting industries in building and positioning their brands in the Canadian market in particular and the CPTPP market in particular, the functional units of the Ministry of Industry and Trade will also strengthen promotional activities, propaganda, and promotion of the Vietnamese national brand, products achieving national brands, and Vietnam's strong export products. Along with that, well implementing market research and consumer demand, understanding and complying with legal regulations

Building a Marketing Strategy and Branding. Building a strong brand to differentiate itself in the Canadian market, Vietnamese businesses need to focus on building a strong, reputable, and recognizable brand. It is necessary to convey cultural values, product quality, and brand stories clearly and attractively.

In particular, support associations, industries, and enterprises in building competitive strategies for industry brands, building and promoting industry geographical indications; encourage and support enterprises with products achieving national brands, enterprises with potential and aspirations to bring Vietnamese brands to conquer the world market.

Build a local distribution network. One of the key elements of exporting is finding reliable distribution partners in Canada. These can be retailers, large distributors or partnerships with logistics companies to ensure products reach consumers quickly and efficiently.

Exporting Vietnamese branded goods to Canada requires careful preparation, market research and a clear marketing strategy. By understanding market demand, complying with legal regulations and building a methodical branding strategy, Vietnamese businesses can expand their export markets and build strong brands in Canada./.

Thanh Tung