CPTPP offers opportunities for Canadian enterprises in Việt Nam
Việt Nam presents significant business opportunities to Canadian enterprises within the framework of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Robert Cameron, Regional Manager, Asia, Export Development Canada (EDC), made the statement at a workshop on the CPTPP and opportunities in Viet Nam held in Toronto on Monday. He said that with favourable demographic conditions and a rising middle class, Viet Nam offered significant opportunities to Canadian businesses.
He urged Canadian companies to prepare resources when investing in Việt Nam to develop long-term business partnerships in the country.
He said that agencies like EDC and Canada’s Trade Commissioner Service were willing to provide support to Canadian firms to penetrate and expand business in Viet Nam.
Within the framework of the CPTPP, opportunities for Canadian firms in Viet Nam varied across a number of sectors, from aviation, information-telecommunications to agriculture and mining.
Significant opportunities also came from financial services as Viet Nam imported financial services worth US$523 million in 2018.
In addition, Viet Nam had high demand for investment in transport infrastructure, which is a strength for Canada. It was estimated that Việt Nam needs $11 billion worth of investment for transport infrastructure by 2020 and $17 billion by 2025.
Education continued to be the highlight in the cooperation between the two countries. Viet Nam topped Southeast Asia and was fifth in the world in terms of the number of students studying in Canada – estimated at more than 20,000.
Opportunities also arose from sectors like renewable energy and waste treatment as Việt Nam is striving to cope with the impact of climate change.
According to Julie Nguyen, Director of the Canada-Việt Nam Trade Council, the workshop attracted huge attention from Canadian businesses as they saw large opportunities in Việt Nam, which has a rapidly growing but stable economy.
She said that the council was developing plans to connect businesses from both sides.
The CPTPP so far took effect in seven countries, including Canada, Australia, Japan, Mexico, New Zealand, Singapore and Viet Nam. The CPTPP market with 11 member countries and 505 million consumers accounted for 13 per cent of the world’s gross domestic product.
Viet Nam was the biggest trade partner of Canada in Southeast Asia, with two-way trade estimated at $5.98 billion in 2019.
Before the CPTPP, there were no other trade deals between Viet Nam and Canada.
A year after the CPTPP took effect, Viet Nam’s exports to Canada rose by 28.2 per cent in 2019, compared to the average 18 per cent in the 2010-18 period.
According to Nguyen Thi Thu Trang, Director of the WTO and Integration Centre under the Viet Nam Chamber of Commerce and Industry, the trade deal opened large opportunities for its members and businesses must be active to take advantage of them. — VNS
