VCCI President Vu Tien Loc speaking at a seminar on Canada-Viet Nam trade relation held in Ha Noi on March 23. — VNS Photo Hoang Ha
Trade activities between Canada and Viet Nam have developed strongly thanks to opportunities brought by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), according to the Embassy of Canada to Viet Nam.
“The CPTPP has improved access for trade in goods and services between Canada and Viet Nam, reinforced a common set of rules, lowered the cost of trade and made investment more predictable," Deborah Paul, Ambassador of Canada to Viet Nam, said at a seminar on Canada-Viet Nam trade relations after two years of implementing the CPTPP.
"This helps improve the competitive advantages of products in our respective markets. Thanks to the CPTPP, bilateral merchandise trade between Canada and Viet Nam reached a record CA$8.9 billion (US$7.1 billion) in 2020, a year-on-year increase of 12 per cent and 37 per cent two years after the agreement came into force despite the adverse effects of the COVID pandemic on global trade,” Paul said.
Speaking at this seminar held by the Canadian Embassy to Viet Nam and the Viet Nam Chamber of Commerce and Industry (VCCI) in Ha Noi yesterday, Vu Tien Loc, VCCI president, said the Viet Nam-Canada trade ties were one of the most successful models brought by the CPTPP thanks to efforts made by businesses of both countries in market development.
The two nations had seen remarkable achievements in their import-export activities, and this trade pact played an important role, Loc said.
Canada has abolished 94 per cent of tax lines for Vietnamese exports, while Viet Nam has removed nearly 66 per cent of tax lines for imports from Canada. In addition, non-tariff barriers have been improved in a transparent manner, facilitating trade flows between the two nations.
Without the COVID-19 pandemic, the CPTPP could bring larger benefits to Viet Nam-Canada trade activities, Loc said.
“Maybe we have to live with COVID-19 in the near future, at least. We are lucky to have the CPTPP, which allows us to bolster trade with the world in this tough time,” he said.
Canada and Viet Nam are members of the CPTPP, a trading bloc that represents 495 million people with a combined gross domestic product of CA$13.5 trillion, which entered into force in both countries in January 2019, according to the Embassy of Canada to Viet Nam.
The CPTPP provides a rules-based trading environment and enhanced market access for exporters and investors, and establishes duty-free access for trade in goods between Canada and Viet Nam, eliminating tariffs for key Canadian exports.
The CPTPP provides improved market access in areas such as financial services, information and communications technologies and infrastructure.
The CPTPP allows Canadian and Vietnamese companies to invest in the others’ country with greater confidence, offering more predictability and transparency.
Canada’s service industry also benefits from more predictable access and greater transparency in Viet Nam, including in key sectors such as environmental services and business services.
Viet Nam has been Canada’s largest trading partner in the Association of Southeast Asian Nations (ASEAN) region since 2015.
This ASEAN country was the second largest destination for Canada’s agri-food and seafood exports in 2020. Top Canadian agriculture and agri-food exports to Viet Nam include grains, oilseeds, fish and crustaceans, fruits, beef and pork, and dairy products. The CPTPP makes high-quality Canadian products more affordable to Vietnamese consumers.
Viet Nam’s overall exports to Canada increased by almost 16 per cent in 2020, with a remarkable increase seen in mobile phones, footwear, furniture and garments. These benefits will continue to grow as the CPTPP expands through ratification and accession of new members, according to the Canadian Embassy.
For the first time, a CPTPP handbook produced by VCCI with the support of the Embassy of Canada was made available for Vietnamese and Canadian enterprises. The handbook provides key information on the main outcomes and benefits of the agreement and gives useful tips for businesses to leverage the trade deal to expand trade and investment. — VNS