Trade with Canada to bloom

Trade with Canada to bloom

Vietnam is emerging as a strategic supply chain partner and lucrative consumption market for Canadian companies. Zach Herbers, president of the Canadian Chamber of Commerce in Vietnam, told VIR’s Thanh Van about the interest of Canadian companies in Vietnam’s fast-growing market.

How do Canadian companies evaluate Vietnam’s leading role in enhancing connectivity for trade and investment opportunities within the region?

Zach Herbers, president of the Canadian Chamber of Commerce in Vietnam

The Canadian Chamber of Commerce in Vietnam has seen its membership grow by nearly 300 per cent over the past three years. Our membership base includes Canadian companies in Vietnam, Vietnamese companies doing business with Canada, and Canadian businesses looking to do business with Vietnam.

Canadian companies are increasingly looking to Vietnam as a potential strategic supply chain partner, as well as a potential new market for high-quality Canadian products, with key drivers being tariff-free trade, a mix of cost-competitive and high-quality manufacturing, and a strong and growing domestic market.

What is the trend of small- and medium-sized enterprises (SMEs) from Canada expanding into the Vietnamese market?

More than 70 per cent of Canada’s international trade is conducted with the United States. For many businesses, including SMEs, there is growing interest to diversify both supply chains, as well new customer markets.

Recent trade missions from Canada, including the Team Canada Trade Mission to Vietnam, which included roughly 200 Canadian companies, and dozens of smaller missions over recent years, are a testament to this trend.

Canadian SMEs are looking to learn about the Vietnamese market, understand fundamentals of the business environment, and connect with potential partners such as distributors or manufacturers to evaluate feasibility. We help to support these efforts through its many events, networking opportunities, and service support offerings.

What are some potential business areas with similar values and resonance between the two nations?

Traditionally, Canada’s exports to Vietnam consist largely of agriculture and raw material products, such as lumber. Additionally, there are developing opportunities for Canadian businesses to be partners in growth in Vietnam’s evolving economy, by providing value-added solutions such as technology products and services that complement Vietnam’s business-to-business and consumer markets.

Vietnamese companies seeking innovative products and services should look to Canada, and Vietnamese manufacturers who can offer flexible, high-quality solutions may find new customers in Canada. Overall, it is expected that bilateral trade between the two countries will continue to grow, based on both traditional and value-added products and services.

What are the prospects of Canada-Vietnam business relations amid current global uncertainty?

Vietnam continues to be an important trade partner for Canada globally, and is its largest trading partner in the ASEAN region.

It is likely that this trading relationship will continue to grow year-over-year for the foreseeable future, as has been the case over the past decade.

We are optimistic about the prospect of Canada-Vietnam business relations, particularly as the two countries have a positive, established relationship and free-trade access through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. We look forward to supporting its members’ success and encourages all companies with interest to become involved with the chamber’s events and initiatives.

VIR