Việt Nam-Canada trade poised for further growth: minister

Việt Nam-Canada trade poised for further growth: minister

Economic ties between the two countries are gaining strong momentum, driven by expanding trade flows and growing cooperation across strategic sectors.

Maninder Sidhu, Canada's Minister of International Trade. — VNS Photo Khánh An

Trade between Việt Nam and Canada has more than doubled over the past several years, reflecting expanding economic ties and opening new avenues for cooperation across multiple sectors. Việt Nam News reporter Ly Ly Cao spoke to Maninder Sidhu, Canada's Minister of International Trade, during his visit to Việt Nam to gain insights about how the two countries can tap complementary strengths and unlock new opportunities for businesses and investors.

How do you assess the current state of Việt Nam-Canada trade relations?

I'm excited to be here in Việt Nam. It's an important relationship that we're building together.

Since 2018, when we started the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trading bloc between Việt Nam and Canada's founding members, trade was about US$6.5 billion, and now you see, eight years later, trade is over $15 billion.

It has increased by over 100 per cent. That is because of the work that Vietnamese companies are doing, but also Canadian companies in agriculture, aerospace, energy, and technology. And so, there are plenty of opportunities.

Which sectors hold the greatest potential for bilateral cooperation?

Việt Nam has access to high-quality Canadian products, including beef, fruits, maple syrup, and other agricultural goods.

As Việt Nam grows phenomenally, like, I mean, Việt Nam is growing at 7-8 per cent year-on-year, the purchasing power is increasing, and Vietnamese citizens want good-quality products. And Canada has those quality products.

Aerospace is another area where we have potential. We build airplanes in Canada, and we do flight simulations, so again, it's another area of opportunity.

Việt Nam is shipping good-quality products the other way, from machinery goods to technology to telephones, but also apparel. And I think there are many complementary sectors that we need to continue growing.

Are there any new initiatives or policy measures Canada is taking to further unlock commercial opportunities with Việt Nam under the CPTPP framework?

We visited PetroVietnam during my trip, where we talked about how as Việt Nam grows, the need for increased energy capacity will grow as well. So the country needs more energy, and Canada is an energy superpower.

We have five LNG terminals in various phases of development. We have LNG Canada 1 in Kitimat, BC. It was a milestone moment for Canada, because in the past, our energy went to one country. 

Now, through the LNG terminal that we opened up in Kitimat, that LNG can come to Asia within two weeks, as opposed to where Việt Nam orders from, it takes up to a month.

Therefore, we're well positioned to support Việt Nam's growth in energy, LNG, nuclear, but also clean energy. We have many clean tech companies that are world-renowned and they want to come and operate here in Việt Nam. 

So there are many areas of opportunity that we should continue to explore in energy, for sure.

Which sectors do you see as having the strongest potential for deeper Việt Nam-Canada cooperation in the next few years?

I think agriculture — as Việt Nam grows, they want better quality products. As Vietnamese people want to travel, there is more aerospace, more connectivity.

Maybe we should look at more Canadian tourists coming to Việt Nam. Canadians spend roughly over $50 billion a year in travel outside of Canada. And so Việt Nam should be presented as an opportunity, because it's a beautiful country.

I mean, I want to come back as well. Hence, tourism, aerospace, energy, agriculture, technology, and so many other areas that we can continue to collaborate on.

I think Việt Nam is making incredible investments in infrastructure, tying communities together, including opening new shipping lanes. And Canada is a hub, but we have access to global markets. We have 15 free trade agreements with 51 countries.

This gives us access to about 60 per cent of global GDP, 1.5 billion consumers, and I think Việt Nam is well-positioned to do that for Canadian companies that want to use Việt Nam as a launching pad to the region. 

And I think it can work both ways.

We welcome Vietnamese companies to come to Canada and set up shops there. 

But of course, we encourage Canadian companies that are doing work here, like Canadian Tire, setting up shops here and using Việt Nam as a hub to Asia. That aims to improve the transparency in regulatory policy dispute resolution for businesses. 

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