Garment and textile exporters benefit a lot from the CPTPP. (Photo: VNA) HCM City (VNA) – Vietnamese exporters are eyeing Canada as ripe forprofits thanks to the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP), experts said at a conference held in Ho Chi Minh City onApril 10.
According to Deputy Director of the Ministry of Industry and Trade’sMultilateral Trade Policy Department Ngo Chung Khanh, the CPTPP brings higheradded value than Vietnam’s other bilateral and multilateral trade pacts. Canadais having high potential for Vietnamese exports like garments and textiles,leather shoes and seafood.
Canadian consumers can pay for high-value products, he said, adding that it isan important bridge for Vietnamese firms to expand their markets in America.
Meanwhile, Bui Tuan Hoan, an official from the Ministry’s European-AmericanMarket Department, said demand for Asian food has been rising in Canada due tothe increase in the population of Asian-Canadian people, while Canadian taxeson most tropical fruits will drop to 0 percent, and few strict technicalbarriers are erected in the country.
Vietnamese fruits will thrive in the Canadian market if exporters pay dueattention to improving preservation and transport processes, he said.
Along with two traditional products of frozen shrimp and tra fish, which havegained a foothold in this market, Hoan said shipping processed seafood andtop-quality products like tuna, cuttlefish and octopus are avenues worth exploring.
He stressed exports of garments and leather shoes, saying they are the mainbeneficiaries of the CPTPP. Import duties on garment and textiles will fallfrom 16-17 percent to 0 percent in four years while that on leather shoesdwindle from 18 percent to 0 percent in 7-11 years.
Under the trade pact, Canada pledges to remove 94.5 percent of tax lines leviedon Vietnamese products, and after four years, Vietnam will be exempt from some96.3 percent of the tax lines.
There is huge room for Vietnam and Canada to cooperate in wood processing andexports, he said, suggesting Vietnam enhance imports of Canadian wood fordomestic processing and re-export to the country.
Although there are ample opportunities for Vietnamese businesses in Canada,experts said companies should thoroughly grasp importer’s requirements onproduct origin and labels.
Trinh Thi Thu Hien from the Ministry’s Foreign Trade Agency said that besidesprices and product quality, Canadian customers look to exporters’ prestige,experience, and ability to provide post-sale services when purchasing products.
According to the General Department of Vietnam Customs, Vietnam-Canada tradetripled from 1.14 billion USD in 2010 to 3.85 billion USD last year, withVietnam’s trade surplus at 2.14 billion USD in 2018.
Trade links between the two countries have improved after they joined theCPTPP. In the first two months of 2019, Vietnam’s exports to Canada exceeded506 million USD, up 36.6 percent year on year.
The CPTPP, whichtook effect in Vietnam on January 14, 2019 gathers 11 member states, namelyAustralia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru,Singapore and Vietnam that altogether make up 13.5 percent of global GDP.-VNA
VNA
