CPTPP creates favorable conditions for Vietnam to export to Canada
The CPTPP, which took effect from the beginning of 2019, is a driving factor in bringing Vietnam's exports to the Canadian market, of which exports in the first nine months of 2021 reached more than USD 3.9 billion, an increase of 25.7%.
According to statistics of the General Department of Customs, the export turnover of Vietnamese goods to Canada in September 2021 reached USD 490 million, an increased of 26% compared to the same period in 2020. Accumulated over the first nine months of 2021, the export turnover of goods to this market reached more than USD 3.9 billion, an increase of 25.7%, equivalent to USD 800 million over the same period in 2020.
Goods exported to Canada in the first nine months of 2021 increased sharply compared to the first nine months of 2020. In which, exports increased significantly in commodity groups such as: means of transport and spare parts increased by by 43.9%; timber and wood products increased by 34.9%; machinery, equipment, tools and spare parts increased by 49.3%; other common metals and products increased by 143.1%, etc.
Textiles and garments are the top export products to Canada, reaching nearly USD 695 million, an increase of 22.7% and accounting for 18.1% of the total export value of Vietnamese goods to this market.
Exports of all kinds of phones and components reached more than USD 610 million, accounting for 15.3% of the total value of goods exported to Canada by Vietnam.
After the US withdrew from the CPTPP Agreement, Canada is one of the most potential member markets of Vietnam in this Agreement. Canada is a major economy in North America, with the 9th largest GDP in the world, the 2nd in the CPTPP region in 2020.
The boost for exports to Canada after the CPTPP took effect is because, along with Mexico and Peru, Canada is one of three CPTPP partners that had not had any previous FTAs with Vietnam. With an additional structure of goods with Vietnam, the Canadian market has initially been taken advantage of quite quickly by exporters.
According to the Ministry of Industry and Trade, in the period before 2019 (the year the CPTPP took effect), Vietnam's exports to Canada still increased steadily, with an average growth rate of 18% in the 2010-2018 period, helping Vietnam's exports to this market increased from USD 802 million in 2010 to USD 3.8 billion in 2018.
With the CPTPP taking effect from the end of 2018 with Canada and the beginning of 2019 with Vietnam, the bilateral trade relationship has had a new transformation.
Currently, in addition to the CPTPP, Canada has 13 other FTAs that have come into effect with 49 FTA partners, but mainly concentrated in the Americas region. Besides Malaysia, Brunei, Singapore, Vietnam and South Korea, Canada has no FTAs with other Asian partners. Therefore, in the short term, Vietnamese goods exported to this market will have a competitive advantage over many other competitors thanks to the CPTPP.
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