Vietnam is the third largest garment supplier to Canada with a market share of about 12%. Illustrative image (Source: VNA) Currently, Vietnam is the third largest garment supplier to Canada with a market share of about 12%.
In a recent garment and textile exhibition in Canada, the Vietnam Export Garment Co., Ltd (VEG) became one of the two Vietnamese businesses capable of producing fabrics that satisfy CPTPP's origin principles.
However, Vietnamese Trade Counselor in Canada Tran Thu Quynh said that the rate of CPTPP exploitation through material localisation by domestic enterprises remains at only about 50%, adding her office is working to guide businesses to make clearer investment and logistics strategies so as to better utilise the deal.
Canada imports 13-15 billion USD worth of garment and textile products each year.
Executive Director of the Canadian Apparel Federation Bob Kirke said that regulations on garment and textile export stated in the CPTPP, which were adopted with the engagement of the US, a country that has left the pact, have shown many shortcomings. Therefore, members need bilateral free trade agreements to deal with this situation, said Kirke, noting that Canada has signed separate agreements with Chile and New Zealand to eliminate the material origin principles. Among the ASEAN countries, Canada currently has reached a similar agreement with Indonesia, he added.
Kirke held that the garment and textile industry of Vietnam and Canada should coordinate more closely to advise the two governments to reconsider the pact carefully to ensure benefits for both sides, or consider the signing of their own free trade deal, thus increasing the competitiveness of Vietnamese garment and textile products./.
VNA
