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Exports to the Americas increased sharply thanks to CPTPP


The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has been in effect for more than 3 years (from January 14, 2019). Looking back at the implementation process over the past years, Ms. Vo Hong Anh, Deputy Director of the Europe-America Market Department (Ministry of Industry and Trade), assessed that Vietnam's exports to CPTPP member countries increased sharply, especially in the Americas region.

There are 4 American countries participating in CPTPP: Canada, Mexico, Peru, Chile. In which, 3 countries that Vietnam has for the first time FTA relations are Canada, Mexico, Peru; Particularly for Chile, Vietnam has a bilateral FTA.

Thanks to the CPTPP, exports to Canada in 2021 reached USD 5.3 billion, an increase of 20.8% compared to 2020 and an increase of 75% compared to the time before the CPTPP took effect. Similarly, for the Mexican market, in 2021, exports to this market reached USD 4.6 billion, an increase of over 100% compared to the time before the CPTPP took effect.

In terms of the structure of Vietnam's exports to CPTPP member markets, phones and components are in the leading position, accounting for 20%; followed by computers, equipment and electronic products accounting for 16%; machinery, equipment and spare parts accounting for 9%; textiles accounting for 10% and footwear accounting for 7%.

For seafood, most CPTPP members have committed to reduce tariffs to 0% within 0-3 years.

Currently, the coverage of Vietnamese seafood products in markets is increasing markedly. For example, in the Canadian market, Vietnam is the leading shrimp exporter, accounting for 34% of the total value of Canada's shrimp imports. With Mexico, Vietnam is experiencing hot growth in pangasius exports. Mexico is the largest importer of Vietnam's pangasius among CPTPP member countries.

In addition, thanks to preferential tariffs, Vietnam has now become one of the five largest exporters of wooden furniture in the Canadian market. However, with Mexico and Chile, the market share of Vietnamese furniture is still relatively small, only about 1%, therefore, there is still a lot of room for growth for this item.

In terms of the structure of Vietnam's exports to the Americas, the group of phones, components, computers, machinery and spare parts accounted for the largest proportion of about 43%; followed by textiles, leather and footwear accounted for about 25%; timber and wood products accounted for about 8%; agricultural and fishery products accounted for about 4%.


Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
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