Vietnamese wood processing firms have huge opportunities to ship their products to Canada under CPTPP. (Photo: VNA)Hanoi (VNA) – Preferential tariff treatment under the Comprehensiveand Progressive Agreement for Trans-Pacific Partnership (CPTPP) has brought in robustresults to the trade in goods between Vietnam and Canada, according toinsiders.
The trade pact was clinched in March 2018 by 11 countries: Australia, Brunei,Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore andVietnam. It came into effect in Canada in December 2018 and Vietnam in January2019.
With the deal, Vietnam and Canada have seen substantial growth in their tradein the past two years.
According to the General Department of Customs, Vietnam shipped more than 4.36 billionUSD worth of exports to Canada in 2020, up 11.47 percent from a year ago, and44.69 percent from 2018.
Despite formidable challenges brought by COVID-19, exports to Canada surged14.8 percent to 663.45 million USD during January-February of 2021. The figureeven rose 78.67 percent as compared to the same time in 2018.
Specifically, garment and textiles brought home over 98.82 million USD, up 33.9percent from two years ago; footwear nearly 56.35 million USD (up 57.73percent); transport vehicles and spare parts 53.47 million USD (up 46.47 percent);machines, equipment and other parts 40.89 million USD (up 319.8 percent); fruitand vegetables nearly 4.3 million USD (up 22.48 percent); and rubber 3.27million USD (up 227 percent).
Meanwhile, the nation splashed out 104.7 million USD on Canadian imports,including wood and wooden products, wheat, pharmaceutical products, animal feed,automobiles, computers, and electronic products, among others.
Insiders said that CPTPP left an imprint in the trade exchange between the twonations, and without COVID-19, the trade pact could have brought more benefitsto the bilateral trade ties.
Australian Ambassador to Vietnam Deborah Paulsaid at a recent conference that CPTPP has improved the accessibility for tradeand service activities between the two nations consolidated a common set ofrules, reduced costs for trade activities, and helped better competitive edgeof Vietnamese and Canadian products in both markets.
CPTPP establishes duty-free access for trade ingoods between the two countries, while helping Vietnamese consumers purchasehigh-quality products from Canada at reasonable prices.
President of the Vietnam Chamber of Commerceand Industry (VCCI) Vu Tien Loc described Vietnam-Canada trade ties as one ofthe most successful models brought by CPTPP thanks to sustained efforts made bybusinesses of both countries in setting up market development rules.
The two nations have seen remarkableachievements in their import-export activities, and the trade pact plays animportant role, Loc said.
Canada has abolished 94 percent of tax lines forVietnamese exports, while the Southeast Asian country has removed nearly 66percent of tax lines for imports from Canada. Additionally, non-tariff barriershave been improved in a transparent manner, facilitating trade flows betweenthe two nations.
Experts said that Vietnamese firms should capitalise on tax preferences underCPTPP to boost exports to the American country.
Vietnam has huge advantages to sell products in Canada, where an increasingnumber of Asians are residing. Besides, the Southeast Asian country’s keyproducts are favoured by Canadian consumers such as telephones, furniture,footwear, tea, coffee, and tropical fruits.
With CPTPP, Vietnamese products will gain price competitive edge; however,local firms need to pay due attention to improve product quality so as toestablish stable foothold in this potential market./.
The trade pact was clinched in March 2018 by 11 countries: Australia, Brunei,Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore andVietnam. It came into effect in Canada in December 2018 and Vietnam in January2019.
With the deal, Vietnam and Canada have seen substantial growth in their tradein the past two years.
According to the General Department of Customs, Vietnam shipped more than 4.36 billionUSD worth of exports to Canada in 2020, up 11.47 percent from a year ago, and44.69 percent from 2018.
Despite formidable challenges brought by COVID-19, exports to Canada surged14.8 percent to 663.45 million USD during January-February of 2021. The figureeven rose 78.67 percent as compared to the same time in 2018.
Specifically, garment and textiles brought home over 98.82 million USD, up 33.9percent from two years ago; footwear nearly 56.35 million USD (up 57.73percent); transport vehicles and spare parts 53.47 million USD (up 46.47 percent);machines, equipment and other parts 40.89 million USD (up 319.8 percent); fruitand vegetables nearly 4.3 million USD (up 22.48 percent); and rubber 3.27million USD (up 227 percent).
Meanwhile, the nation splashed out 104.7 million USD on Canadian imports,including wood and wooden products, wheat, pharmaceutical products, animal feed,automobiles, computers, and electronic products, among others.
Insiders said that CPTPP left an imprint in the trade exchange between the twonations, and without COVID-19, the trade pact could have brought more benefitsto the bilateral trade ties.
Australian Ambassador to Vietnam Deborah Paulsaid at a recent conference that CPTPP has improved the accessibility for tradeand service activities between the two nations consolidated a common set ofrules, reduced costs for trade activities, and helped better competitive edgeof Vietnamese and Canadian products in both markets.
CPTPP establishes duty-free access for trade ingoods between the two countries, while helping Vietnamese consumers purchasehigh-quality products from Canada at reasonable prices.
President of the Vietnam Chamber of Commerceand Industry (VCCI) Vu Tien Loc described Vietnam-Canada trade ties as one ofthe most successful models brought by CPTPP thanks to sustained efforts made bybusinesses of both countries in setting up market development rules.
The two nations have seen remarkableachievements in their import-export activities, and the trade pact plays animportant role, Loc said.
Canada has abolished 94 percent of tax lines forVietnamese exports, while the Southeast Asian country has removed nearly 66percent of tax lines for imports from Canada. Additionally, non-tariff barriershave been improved in a transparent manner, facilitating trade flows betweenthe two nations.
Experts said that Vietnamese firms should capitalise on tax preferences underCPTPP to boost exports to the American country.
Vietnam has huge advantages to sell products in Canada, where an increasingnumber of Asians are residing. Besides, the Southeast Asian country’s keyproducts are favoured by Canadian consumers such as telephones, furniture,footwear, tea, coffee, and tropical fruits.
With CPTPP, Vietnamese products will gain price competitive edge; however,local firms need to pay due attention to improve product quality so as toestablish stable foothold in this potential market./.
VNA
