Exports to Canada show impressive growth.

Thanks to the effective utilization of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement, Vietnam's exports to Canada continued their strong growth in 2024, with total export value reaching nearly US$6.4 billion, an increase of almost 13.5%.

Thanks to the effective utilization of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) agreement, Vietnam's exports to Canada continued their strong growth in 2024, with total export value reaching nearly US$6.4 billion, an increase of almost 13.5%.

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

Vietnam's exports to Canada, a North American market, continued to improve significantly in 2024, reaching nearly $6.4 billion, an increase of approximately 13.5% compared to the previous year.

The growth in exports to Canada is due to businesses effectively utilizing the CPTPP Agreement, the first FTA that Vietnam has with Canada.

In 2024, the largest export item to the Canadian market was textiles and garments, valued at US$1.2 billion, an increase of 10.4%, accounting for 19% of total exports.

Several product categories saw export growth in 2024 compared to the previous 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, video cameras and components increased by 162.4%.

Currently, Vietnam is Canada's leading trading partner in ASEAN and its sixth largest trading partner among the 40 Indo-Pacific nations.

Since the CPTPP came into effect, Vietnam's exports to Canada have increased by nearly 60%, from US$3.8 billion in 2018 to over US$6.3 billion at the end of 2022. However, in 2023, affected by slowing global economic growth, high inflation, and tighter consumer spending, exports decreased by 11.2% compared to 2022.

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

Vietnam is considered to be the country that has best utilized the CPTPP agreement to accelerate exports to the Canadian market.

Vietnamese exports to the Canadian market currently continue to benefit from preferential tariffs under GSP, MFN, and CPTPP agreements.

Canada is considered a market with great potential, offering opportunities for Vietnamese businesses to boost exports and serving as a "gateway" to the North American market.

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

Firstly, the tariff advantages that the CPTPP provided to Vietnamese exports have gradually diminished, as Canada is actively pursuing free trade agreements with a number of South American and Indo-Pacific partners. These countries all have product structures quite similar to Vietnam's. Meanwhile, Vietnamese exports face significant disadvantages in terms of transportation costs and delivery times compared to competitors.

Furthermore, high domestic logistics costs in Canada make Vietnamese exports less competitive compared to neighboring South American countries. High transportation costs and delays in cargo handling at Canadian ports due to labor shortages also contribute to the lower competitiveness of Vietnamese goods compared to South American exporters.

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

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