Vietnam advised to fully tap CPTPP to boost exports to Canada

Hoa Phat steel products meet Canada's quality standards. (Photo: VNA)

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.

Attending a seminar in Ho Chi Minh City on March 28, Quynh stressed two-way trade has increased to 10 billion USD from only 2.5 billion USD in 2013.

Vietnam shipped more than 9 billion USD worth of products to Canada but only 18% of which used certificates of origin (C/O) under the CPTPP to enjoy preferential tariffs while more than 90% used C/O most-favoured nation (MFN) tariff and general preferential tariff (GPT) which will be invalid in December 2024.

Around 4 billion USD worth Vietnamese exports to Canada did not capitalise on the CPTPP, which means Vietnamese goods are more expansive than their rivals in the market, Quynh said, stressing enterprises should pay attention to taking advantage of the trade agreement and working to meet the requirements on the rule of origin to improve the competitive edge for the Vietnamese products, thus increasing export revenue in the Northern American market.

Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng said since the CPTPP took effect, trade turnover between Vietnam and Canada surged by 170%, making the bilateral trade cooperation a “bright star” in the CPTPP bloc.

According to Mary Ng, Vietnam is Canada’s largest trading partner in the Association of Southeast Asian Nations (ASEAN) and Canada wants to expand this successful cooperation model in the region. Vietnam is an important gateway for Canada to develop its relations with other ASEAN member states and the whole Asia.

Deputy Director of the HCM City Customs Department Nguyen Huu Nghiep said the department has worked to facilitate trade for the business community, expressing his hope that the department and the Canada Border Services Agency will meet and discuss measures to remove bottlenecks and create confidence among import-export enterprises amidst radical changes in international trade./.