The Vietnam National Textile and Garment Group (Vinatex) held a workshop in Montreal city on May 16, attracting representatives of 35 Canadian enterprises.
Total textile-garment demand in the CPTPP, which gathers 11 members with a combined population of 500 million, is estimated at 83 billion USD. In 2018, Vietnam’s textile-garment exports to CPTPP markets were 5.3 billion USD, a 6.3-percent market share.
Canada’s demand for textile-garment products is worth some 13-14 billion USD, 5 percent of which is provided by Vietnam.
Vinatex General Director Le Tien Truong said this market share hasn’t matched Vietnam’s stature as the world’s second largest apparel exporter. While Vietnam has a 14-percent market share in the US, the modest proportion in Canada is a chance for textile-garment exporters, especially as both countries have ratified the CPTPP.
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Vinatex General Director Le Tien Truong speaks at the workshop on Vietnam's textile and garment sector amid the CPTPP in Montreal city on May 16 |
He said all businesses have opportunities to access a better tariff policy if they satisfy rules of origin. Therefore, Vinatex has organised trade promotion activities in 2018 and 2019 to meet with Canadian importers.
Even in 2018, when the CPTPPP was yet to take effect, Vietnam’s textile-garment exports to Canada soared by 19.7 percent, Truong noted, adding that he hoped they can help boost Vietnam’s market share to 12-14 percent.
At the workshop, David Ostroff, President of David O International, highlighted the huge cooperation potential for Vietnam and Canada, noting that Vietnam’s prices are comparable to China’s, and its businesses operate in an organised and effective manner.
Notably, Canada can access the Vietnamese market with a tariff rate of zero percent, especially key with the Canadian dollar weak internationally. This is the right time for Vietnam to enter the Canadian market, he said.
The CPTPP, which took effect in Vietnam on January 14, is expected to boost exports of Vietnamese textile and garment products to Canada when 42.9 percent of the shipments of these products to the market will enjoy an import tariff of zero percent in the first year the deal comes into force.
Source: VNA