Vietnam has been Canada`s largest trading partner in the ASEAN region since 2015. In 2018, trade between Canada and Vietnam reached $6.46 billion in both directions, up from $6.1 billion in 2017. In 2018, Canada`s merchandise exports to Vietnam totaled about $1 billion. Canadian merchandise imports from Vietnam totaled more than $5.39 billion. Duty-free access for goods trade between Canada and Vietnam will be implemented with the new agreement and the abolition of tariffs for Canada in key export regions. Agricultural products, such as beef products, will reduce tariffs by 34% in seven years, accompanying pork products that will benefit from the abolition of tariffs of up to 31% within nine years. Canada`s recent agreement with Vietnam is significantly weaker than that of its major trading partners, China and South Korea. Canada accounts for only 0.2 per cent, or $395 million of Vietnamese imports, while China accounts for 31 per cent or $60 billion of Vietnamese imports and South Korea 17 per cent, or $32.6 billion in Vietnamese imports. For more information, see trade and investment agreements. Canadian infrastructure and construction companies will find a market in Vietnam, with competition from China and South Korea. Take your business to the next level. Discover opportunities to grow your footprint in Vietnam with our Trade Commissioner Service (TCS) and learn more about trade relations between the two countries, market facts and other discoveries.
The Comprehensive and Progressive Trans-Pacific Partnership (PPCC) agreement is a free trade agreement between Canada and 10 other countries in the Asia-Pacific region: Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Once fully implemented, the 11 countries will form a trading bloc representing 495 million consumers and 13.5% of global GDP and allowing Canada preferential access to the most important markets in Asia and Latin America. Similarly, industrial products such as industrial machinery will eliminate tariffs of up to 25% in eight years, chemicals and plastics up to 31% in ten years and metals and minerals will remove up to 40% in ten years. However, successful market integration requires a strategic approach to Vietnam`s low costs, a young and growing population and an increasingly open economy. In addition to identifying key sectors, Canadian investors should become familiar with the current legal and tax environment. Canadian business leaders can play a key role in the development of Vietnam`s modern economy if they become more proactive. Choose a country to find market information and contact a sales representative for advice and export contacts. The conditions set out in the CPTPP create a framework for trade that allows for better market access between Member States.