Exports to Canada grow impressively

Thanks to the effective exploitation of the Comprehensive and Progressive Agreement for Trans- Pacific Partnership (CPTPP), Vietnam's exports to Canada will continue to increase significantly in 2024, with a total export turnover of nearly 6.4 billion USD, an increase of nearly 13.5%.

Thanks to the effective exploitation of the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP), Vietnam's exports to Canada will continue to increase significantly in 2024, with a total export turnover of nearly 6.4 billion USD, an increase of nearly 13.5%.

Footwear is a major export item to Canada, worth $550 million in 2024.

Vietnam's goods exports to Canada, a market in the North American region, continued to improve significantly in 2024, with a turnover of nearly 6.4 billion USD, an increase of about 13.5% over the previous year.

The growth in exports to Canada is thanks to businesses taking effective advantage of the CPTPP Agreement, the first FTA that Vietnam has with Canada.

In 2024, the item with the largest export turnover to the Canadian market was textiles and garments, with a value of 1.2 billion USD, an increase of 10.4%, accounting for 19% of the export proportion.

Some items with export turnover growth in 2024 compared to the same period last year: Machinery, equipment, tools and spare parts increased by 90%; computers, electronic products and components increased by 34.8%; pepper increased by 81.4%; glass and glass products increased by 209.3%; cameras, camcorders and components increased by 162.4%.

Vietnam is currently Canada's leading trading partner in ASEAN and Canada's 6th largest trading partner among the group of 40 Indo-Pacific countries.

Since the CPTPP took effect, Vietnam's export turnover to Canada has increased by nearly 60%, from 3.8 billion USD in 2018 to over 6.3 billion USD by the end of 2022. In 2023, it was affected by slowing global economic growth, high inflation, and people tightening spending, with export turnover decreasing by 11.2% compared to 2022.

In the peak year of 2022, Vietnam had a trade surplus with this market of about 5.6 billion USD.

Vietnam is considered the country that best exploits the CPTPP agreement to accelerate exports to the Canadian market.

Vietnamese exports to the Canadian market are still enjoying tariff preferences under GSP, MFN and CPTPP.

Canada is considered a potential market, an opportunity for Vietnamese businesses to boost exports and is also a "gateway" to access the North American market.

However, according to the Trade Counselor of the Vietnamese Trade Office in Canada, exports to Canada will still face many challenges in the future.

First of all, the tariff advantage that CPTPP brings to Vietnamese exports has gradually disappeared, as Canada is accelerating the signing of free trade agreements with a series of partners in South America and the Indo-Pacific region. These are all countries with a product structure quite similar to Vietnam. Meanwhile, Vietnamese exports face a big disadvantage in terms of transportation costs and delivery time compared to competitors.

In addition, high domestic logistics costs in Canada make Vietnam’s export prices less competitive than those of its South American neighbors. High transportation costs and slow loading and unloading at Canadian ports due to labor shortages are also reasons why Vietnamese goods are less competitive than South American exporters.

Currently, the structure of Vietnam's domestic industrial exports to Canada is mainly textiles, toys and wooden furniture (accounting for 40% of the turnover value).

Source: https://baodautu.vn/xuat-khau-sang-canada-tang-truong-an-tuong-d243421.html