Trade outlook between Vietnam, Canada remains bright
Trade outlook between Vietnam, Canada remains bright
Despite unprecedented challenges from the Covid-19 pandemic, bilateral trade turnover in 2020 rose by 6.6% year-on-year to US$5.1 billion.
The export between Vietnam and Canada will not face direct competition in their respective markets but enjoy favorable conditions, making the bilateral trade outlook bright in the future.
Vice Minister of Industry and Trade Do Thang Hai at the online conference.
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Vice Minister of Industry and Trade Do Thang Hai made the statement at an online conference discussing the Vietnam – Canada economic relations on January 21.
“With the signing of major free trade agreements (FTAs) recently, including the CPTPP, EVFTA and RCEP, Vietnam hopes to become a bridge to further economic cooperation in the region and of the world,” stated Mr. Hai.
This is also applied for the Vietnam – Canada economic relations, added Mr. Hai, referring to the comprehensive partnership and the fact that for the first time the two countries have a FTA in place by being members in the CPTPP, he noted.
Canada is currently Vietnam’s second largest trade partner in the Americas, while Vietnam is Canada's largest trading partner in ASEAN. However, two-way trade turnover stays modest at around 0.7% of Canada’s trade revenue, Mr. Thang suggested.
Canada’s Deputy Minister of International Trade for Global Affairs John F.G Hannaford highlighted Vietnam’s efforts in containing the Covid-19 pandemic, while maintaining the trade flow and supply chains between Canada and the Southeast Asian region.
Mr. Hannaford shared the view of his Vietnamese counterpart that the two countries should continue to boost trade and investment cooperation on the back of a solid bilateral relations and untapped potential between the two.
According to Mr. Hannaford, despite the severe impacts of Covid-19 on global trade, there have been significant improvements in trade and investment between Vietnam and Canada two years since the signing of the CPTPP.
Canadian enterprises see huge investment opportunities in agriculture, education, information, infrastructure, technology, aviation and green energy in Vietnam, noted Mr. Hannaford, while encouraging more investment from Vietnamese firms to the country.
In 2019, one year since the CPTPP became effective, trade turnover between Vietnam and Canada rose by 23.3% year-on-year to US$4.8 billion. One year later, the figure further expanded by 6.6% to US$5.1 billion amid unprecedented challenges from the Covid-19 pandemic.
Textile, footwear, electronic products, seafood, and wood are Vietnam’s key export staples to Canada. In return, Vietnam mainly imports machinery, chemicals and soybeans from the North American country.
As of November 2020, Canada was Vietnam’s 14th largest investor with 212 projects worth US$5.05 billion, mainly in fields of hospitality, insurance, and renewable energy.
