Two export products to Canada rose dramatically under CPTPP

VCN - Cinnamon products currently rank first in export value to the Canadian market and account for nearly half of the cinnamon market share in this market.
Export products from local resources Export products from local resources
Turn pangasius by-products into million USD export products Turn pangasius by-products into million USD export products
Anise products triples in value at a rate of 226%
Anise products triples in value at a rate of 226%

A potential market

The Vietnam Trade Office in Canada said that Vietnam's cinnamon exports to the Canada have increased dramatically under the CPTTP. Before 2018, Vietnam ranked third after Indonesia and the United States in terms of market share, but since 2019, Vietnam ranked first in terms of export value to this market, and has maintained its position till now and accounts for nearly half of the cinnamon market share in the Canadian market. Within five years after implementing CPTPP, Vietnam's cinnamon products have nearly tripled in turnover value at a rate of up to 179%.

The Canadian trade office said that Canada has a need to import about US$20 million for cinnamon products. The Canadian market has a steady increase in consumption of this product, estimated at 22-25 million US$/year from now to 2025.

Vietnam's main competitors are Indonesia, India, the United States, China and Sri Lanka, which export cinnamon sticks or powdered cinnamon products. Meanwhile, the remaining countries such as Thailand, France, Germany, and Turkey often export deeply processed cinnamon products in the form of essential oils and cosmetics.

For anise products, in the first 7 months of 2023, Vietnam exported US$166,000 to Canada, down 8.4% year-on-year. This decrease occurs in the context of the Canadian market's general decline in demand for this product, down 8.4% compared to 2022. Exports of all countries to this market declined except for India, Macedonia and Spain.

Since CPTTP, Vietnam's anise exports to Canada have surged from US$117,000 in 2018 to US$381,000 in 2022. Before 2018, Vietnam ranked 8th, from 2022 Vietnam has risen to 6th place in terms of export value to this country.

According to the Vietnam Trade Office in Canada, although Vietnam's anise product has more than tripled in turnover value at a rate of up to 226%, however, this is a product that still has a lot of room to export. Because every year, Canada has a need to import about US$16 million for this product and it is estimated that Canada may import US$20 million per year from now to 2030.

Currently, Vietnam's main competitors are China, India, the United States, Turkey, and Egypt. The remaining countries such as Italy, Germany, and Spain often export deeply processed anise products in the form of medicines, cosmetics, etc.

For medicinal products, every year, Canada needs to import about 100 million medicinal herbs from other countries. However, Vietnam does not have a remarkable position in the area. The Vietnam's competitors include: China, the United States, India, Mexico, Morocco, Egypt, Turkey, Hong Kong, Taiwan, Colombia... However, every year, Vietnam Nam still exports an average of about US$500,000 of medicinal herbs to this market, reaching a peak of nearly US$700,000 in 2017. For medicinal products, the impact of CPTPP is insignificant.

It is necessary to build geographical indications for Vietnam's Cassia cinnamon

Notably, Vietnamese cinnamon and medicinal products exported to the Canada still enjoy 0% MFN tax even without using the CPTPP form. However, using the CPTPP form is still useful for Canadian importers. Because currently, Canadian manufacturers are also interested in taking advantage of RVC in their input strategies to take advantage of the principle of cumulative origin in production to export to markets where both Canada and Vietnam sign a Free Trade Agreement.

However, after CPTPP, the export of cinnamon products to the market also rose dramatically. This shows that CPTPP has a leverage effect, helping businesses of the two countries pay more attention to the structure of products/their markets, thereby indirectly promoting exports of products without a tax reduction roadmap. Besides, CPTPP also has a positive impact on Vietnamese exports thanks to the spillover effect and the development of supply chains, transportation and logistics between the two countries.

According to the Vietnam Trade Office in Canada, Vietnam has a lot of potential to accelerate the export of cinnamon and medicinal herbs to Canada because of four factors. First, the Canadian market's import demand for these products has rose steadily in the last 10 years (300% in the period 2012-2022). Second, Canada's immigration strategy plans to increase the population to 100 million people, with at least 500,000 immigrants per year, of which about 50% come from Asia who have high demand for cinnamon products. Anise and Asian herbs/spices. Third, due to the cold climate, Canadians are increasingly fond of using cinnamon in cuisine and health care. Fourth, in particular, CPTPP has brought a clear tariff advantage, helping Vietnam surpass competitors such as Indonesia, India and China.

According to the Trade Office, to scale up market share and export turnover value, the Vietnam Cinnamon Association needs to have a strategy to build geographical indications for Vietnam's Cassia cinnamon products to promote and affirm advantages of Vietnamese Cassia cinnamon compared to South Asian Ceylon cinnamon.

Vietnam - Canada promote financial policy dialogue mechanism Vietnam - Canada promote financial policy dialogue mechanism

In addition, businesses need to coordinate with other industries to increase the value of deep processing and bring new products to the market, such as cinnamon flower honey mixed with cinnamon powder, scented candles with cinnamon essential oil, cinnamon-scented bath oil, cinnamon-scented green tea... For anise products, currently, Vietnam mainly exported raw, unpackaged, unbranded products, so the identification of Vietnamese products in Canada is not high.

By Ngoc Linh/ Huyen Trang

Related News

Hai Phong Customs processes nearly 250,000 declarations in May

Hai Phong Customs processes nearly 250,000 declarations in May

VCN -In May, the number of declarations processed at Hai Phong Customs Department increased compared to the previous month and the same period last year.
Exporting fruit to the United States still faces many challenges

Exporting fruit to the United States still faces many challenges

VCN - The US market has over 330 million people with large consumption power, and is a key market for agricultural products and food, including seasonal fruits. However, compared to countries exporting to the United States, especially countries in the Americas, Vietnam's export products still face many challenges.
The outlook for maturing real estate corporate bonds might be more positive in 2024 compared to 2023

The outlook for maturing real estate corporate bonds might be more positive in 2024 compared to 2023

VCN - Customs News interviewed financial expert Nguyen Tri Hieu (Photo).
Five-month budget revenue reached half of the whole year 2024 revenue estimate

Five-month budget revenue reached half of the whole year 2024 revenue estimate

VCN - According to the Ministry of Finance, in May 2024, total state budget revenue is estimated to reach VND150.9 trillion. In the first five months of 2024, total budget revenue is estimated to reach VND898.4 trillion, equal to 52.8 percent of the estimate.

Latest News

Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s export of fishery products is expected to reach 4.4 billion USD during January-June, a year-on-year increase of 6%, despite such formidable challenges as extreme weather conditions and competitive pressure regarding export prices, high input costs and shortage of materials, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Shifts in investment flows for export-oriented industries

Shifts in investment flows for export-oriented industries

The country's textile, garment and footwear industries have long relied on imported raw materials, causing a current trend of foreign enterprises shifting industries to other countries, said insiders.
Intensive processing enhances spice export value: insiders

Intensive processing enhances spice export value: insiders

A world leading spice exporter with a revenue of some 1.5 billion USD every year, Vietnam should bolster intensive processing and trade promotion to increase added values, experts have said.
Supporting industries needs a push to grow: Insiders

Supporting industries needs a push to grow: Insiders

As the development of supporting industries of Vietnam has yet to match their potential, the sector needs a push to clinch a position in the domestic market and rise to the world, according to insiders.

More News

Greening creates competitive and sustainable advantages for enterprises

Greening creates competitive and sustainable advantages for enterprises

VCN - The gradual greening of production, green factories, green technology, clean materials, green energy, etc., has become an inevitable trend and creates competitive and sustainable advantages for enterprises in the face of difficulties and challenges.
Number of newly-established firms in five months highest on record

Number of newly-established firms in five months highest on record

As many as 64,758 enterprises entered the market in the first five months of this year, marking the highest number ever recorded, and a 4.5% increase from the same time last year, according to the Ministry of Planning and Investment (MPI)’s Business Registration Management Agency. ​
Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s export of fishery products is expected to reach 4.4 billion USD during January-June, a year-on-year increase of 6%, despite such formidable challenges as extreme weather conditions and competitive pressure regarding export prices, high input costs and shortage of materials, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Small but quality FDI projects invested in southeastern localities

Small but quality FDI projects invested in southeastern localities

New foreign direct investment (FDI) projects in southeastern localities in the first five months of 2024 are not large but friendly to the environment and apply high technologies.
Recovering demand for aquatic products comes with challenges: conference

Recovering demand for aquatic products comes with challenges: conference

The demand for aquatic products is expected to pick up from the third quarter of 2024, with many associated challenges requiring advertisements and the diversification of business products and markets, insiders have said at a conference held by the Vietnam Association of Seafood Exporters and Producers (VASEP) in Ho Chi Minh City on June 10.
Priority is given to exporting seasonal agricultural products

Priority is given to exporting seasonal agricultural products

VCN - Many important export agricultural product groups of Vietnam will encounter certain obstacles in the consumer market when the massive harvest begins. The problem is that priority needs to be given to avoid the situation of "good harvest and loss of value" for seasonal agricultural products.
E-commerce is exploding, requiring digital transformation of logistics "links".

E-commerce is exploding, requiring digital transformation of logistics "links".

VCN - Logistics services are an indispensable link in e-commerce transactions, especially cross-border transactions. Therefore, with the strong growth of the e-commerce market from 20 - 25%/year, the logistics industry is forecast to have strong development momentum
Firms advised to capitalise on cross-border e-commerce to boost exports

Firms advised to capitalise on cross-border e-commerce to boost exports

Manufacturing enterprises, including small and micro-sized businesses, can leverage e-commerce channels to directly sell goods to international consumers, increasing revenues and market presence, experts have suggested at a recent seminar on boosting Vietnam’s exports through cross-border e-commerce systems.
Vietnam

Vietnam's pepper export nears 500 million USD

So far this year, Vietnam has shipped abroad 114,424 tonnes of pepper worth 493.1 million USD, down 13.2 in volume but up 20.6% in value over the same period last year.
Read More

Your care

Latest Most read
Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s fishery export likely to reach 4.4 billion USD in H1

Vietnam’s export of fishery products is expected to reach 4.4 billion USD during January-June, a year-on-year increase of 6%, despite such formidable challenges as extreme weather conditions and competitive pressure regarding export prices, high input costs and shortage of materials, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Shifts in investment flows for export-oriented industries

Shifts in investment flows for export-oriented industries

The country's textile, garment and footwear industries have long relied on imported raw materials, causing a current trend of foreign enterprises shifting industries to other countries, said insiders.
Intensive processing enhances spice export value: insiders

Intensive processing enhances spice export value: insiders

A world leading spice exporter with a revenue of some 1.5 billion USD every year, Vietnam should bolster intensive processing and trade promotion to increase added values, experts have said.
Supporting industries needs a push to grow: Insiders

Supporting industries needs a push to grow: Insiders

As the development of supporting industries of Vietnam has yet to match their potential, the sector needs a push to clinch a position in the domestic market and rise to the world, according to insiders.
Greening creates competitive and sustainable advantages for enterprises

Greening creates competitive and sustainable advantages for enterprises

VCN - The gradual greening of production, green factories, green technology, clean materials, green energy, etc., has become an inevitable trend and creates competitive and sustainable advantages for enterprises in the face of difficulties and challenges.
Mobile Version