CPTPP drives Vietnam-Canada bilateral trade to all-time high
CPTPP drives Vietnam-Canada bilateral trade to all-time high
Vietnam-Canada trade relations have reached US$9 billion, marking a fruitful result created by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Two years on since the CPTPP came into effect, Vietnam-Canada’s bilateral trade turnover reached US$8.9 billion in 2020, an all-time high, representing a surge of 37% compared to the pre-deal period.
Canadian Ambassador to Vietnam Deborah Paul. Photo: Bnews
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The figure also increased by 12% against 2019 amid the difficult economic environment caused by the Covid-19 pandemic, while Vietnam’s exports to Canada sharply rose by 16%, mainly from smart phones, footwear, furniture and garment.
Canadian Ambassador to Vietnam Deborah Paul revealed the figure at a conference on March 23, reviewing two countries’ trade relations after the CPTPP implementation in 2018.
According to the Ambassador, the fact that two countries share a trade deal helps reduce trade costs and boost investment activities, in turn improving competitiveness of products in each market.
Given the deal in place, Canadian high-quality products have become more affordable for Vietnamese customers, Paul stressed.
Paul said Vietnam remains Canada’s largest trade partner among the ASEAN since 2015, in which Vietnam was among the main destinations for Canadian agricultural and seafood products last year, including beef, pork, fish, fruits, cereal and milk products.
Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc said amid the Covid-19 pandemic, trade growth between the two countries nearly doubled Vietnam’s average growth figure last year.
“Vietnam-Canada trade relations have been one of the best examples of what the CPTPP can achieve,” stated Loc, adding this is thanks to the strong efforts from two business communities.
Vietnam's watermelon on display at a supermarket in Canada. Photo: dautudinhcucanada.com.vn
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Right after the CPTPP took effect in early 2019, 94% of import duty lines for Vietnamese goods into Canada were removed, in return, the deal also slashed 66% of tariffs for Canadian goods entering Vietnam’s market.
“There is no doubt that the deal would have yielded better accomplishments for bilateral trade if the pandemic did not happen,” said Loc.
“As Covid-19 may continue to persist in the near-term future, the CPTPP would further bring opportunities for Vietnam to boost its trade relations with the rest of the world,” Loc asserted.
