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CPTPP a driving force for Vietnam - Canada trade

Released at: 15:22, 27/04/2019

CPTPP a driving force for Vietnam - Canada trade

Photo: Ngoc Lan

Hanoi conference hears of benefits CPTPP provides for bilateral trade between the two countries.

by Ngoc Lan

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and its strong commitments to tariff reductions and improvements in investment and business environments will be a driving force for the development of bilateral trade between Vietnam and Canada, in particular opening up opportunities for Vietnamese exports.

This was the main topic of discussion at the “CPTPP Agreement: Expanding the Vietnam - Canada Business Horizon” conference held by the European-American Market Department at the Ministry of Industry and Trade (MoIT) on April 25 in Hanoi.

Mr. Ta Hoang Linh, Department Director, said Canada is recording high import growth of Vietnamese products. According to figures from Canadian Customs, bilateral trade increased more than four-fold in the decade from 2008 to 2018 and 23-fold since 2000. It is forecast that the average trade growth in the years to come may reach more than 20 per cent.

“However, Vietnam’s exports account for less than 1 per cent of Canada’s total imports,” Mr. Linh said. “This represents substantial potential.”

A representative of the Canadian Embassy in Vietnam, Mr. Jared Brading, said that when the CPTPP came into effect, Canada committed to abolish import duties on 95 per cent of tariff lines immediately, which covered 78 per cent of export turnover in Vietnam.

Ms. Do Thi Thu Huong, Vietnam Trade Counselor in Canada, said the Canadian market is providing opportunities for Vietnamese businesses to boost their export activities. “Potential fields including seafood, wooden furniture, textiles and footwear, and agricultural products can be developed,” she noted. In particular, seafood is a strong export product of Vietnam in Canada, with many categories securing high market shares, such as basa fish, which accounts for all of Canada’s catfish market, and shrimp, including frozen shrimp and processed shrimp, with Vietnam ranking first among shrimp exporters and accounting for one-third of the import market share.

The conference organizer also announced that Canada’s Ministry of Foreign Affairs approved a technical assistance project on “Promoting inclusive and sustainable economic growth - Supporting small and medium enterprises in implementing the CPTPP”.

The project will be funded by the Canadian Government and focus on intensive training and consulting activities, with the aim of supporting government organizations, associations, and businesses, especially small and medium-sized enterprises and female-led enterprises with solutions to take advantage of the opportunities and incentives in the CPTPP. The European-American Market Department will be the lead agency, coordinating with localities, associations, and enterprises to implement the project.

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