Vietnam leads Canada’s merchandise trade with ASEAN

Vietnam-Canada merchandise trade has increased 159 percent since 2019.

During Vietnamese Party General Secretary and State President To Lam’s state visit to Canada, Emilie Carrier, commercial counsellor and senior trade commissioner at the Embassy of Canada in Vietnam, spoke to Tuoi Tre (Youth) online newspaper about business opportunities between the two countries and expressed optimism about the outlook for bilateral trade.

More room for Vietnamese goods in Canada

“I believe there is still significant room for Vietnam-Canada trade to grow further.”

According to official Canadian trade data, Vietnam is Canada’s eighth-largest merchandise trading partner globally.

Further opportunities could come from making better use of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) preferences, expanding into higher-value products, strengthening business-to-business ties, as well as expanding trade in services and investment, Carrier said.

“Vietnamese goods have established a presence in Canada, ranging from electronics, garments, footwear and furniture to seafood, coffee, fruit and nuts.

We see further potential in electronics and components, furniture, seafood, coffee and value-added processed foods.”

She added that much of Vietnam’s recent export growth to Canada and other markets has come from foreign-invested enterprises, particularly in electronics and export-oriented manufacturing.

At the same time, Vietnamese businesses are increasingly improving their capabilities and developing their own products and brands to compete in demanding markets.

Closer links between foreign-invested manufacturers and Vietnamese suppliers could help domestic companies participate more deeply in global supply chains and retain a larger share of the value generated by export growth.

In Canada, opportunities may emerge for differentiated and higher-value Vietnamese products, such as processed food and beverages, high-end furniture, consumer goods and specialized components.

“The CPTPP provides favorable market access, but to take advantage of these opportunities, businesses need competitive products, reliable delivery and a long-term commitment to the Canadian market.”

Canadian businesses see opportunities in Vietnam

Vietnam’s economic growth, expanding middle class and rising demand for high-quality goods, services and industrial inputs are creating additional opportunities for Canadian businesses.

“In the short term, we see opportunities in agriculture and food, seafood, fertilizers and agricultural inputs, aerospace and clean technology.

“Canada also has abundant oil and natural gas resources, along with expanding LNG and crude oil export capacity on the Pacific coast, which could support Vietnam in strengthening its energy security and diversifying its sources of supply.

With Vietnam’s aviation sector growing rapidly, Canadian companies can provide aircraft and components, maintenance and repair services, training, simulation and aviation technologies.

Opportunities are also emerging in advanced and clean technologies, infrastructure, information and communications technology, as well as defense and security-related products and services.

“We also see opportunities to support Vietnam in attracting high-quality foreign investment and developing international financial centers in Ho Chi Minh City and Da Nang. Canadian fintech companies, pension funds, financial institutions, insurers and professional services firms have expertise that could contribute to this process.”

Canada is promoting two-way trade through the CPTPP, the Trade Commissioner Service, trade missions, business delegations and cooperation with Vietnamese ministries, agencies and business associations.

The Canada-Vietnam Joint Economic Commission also serves as a forum for the two countries to promote trade and investment, address market-access issues and develop new business opportunities.