CPTPP is a new-generation free trade agreement (FTA) comprising 11 member states, including Vietnam and Canada. It is also the first FTA to help Vietnam navigate the American continent.

Despite the COVID-19 pandemic in 2021, Vietnam’s exports to Canada surged by 20.8% annually to 5.3 billion USD, up 75% prior to CPTPP validity. Last year, the figure surpassed 6.3 billion USD, up 19.8% year-on-year.

Vietnamese goods rush into Canada thanks to CPTPP. (Photo for illustration)

According to the General Department of Vietnam Customs, apparel was Vietnam’s biggest currency earner from Canada last year with a total turnover of 1.3 billion USD, up 40.3% annually and equivalent to 20.7% of Vietnam’s total exports to the country.

It was the result of zero percent tariff on all Vietnamese apparel committed by Canada after three years of CPTPP implementation, said head of the Ministry of Industry and Trade’s Department of European-American Markets Bui Tuan Hoan.

Footwear came second with a record revenue of 604.6 million USD, up 64.3%; and computers, electronic products and spare parts 521.3 million USD, up 27.7%.

Several types of goods recorded high export revenues such as handbag-suitcase-headwear up 115.2%, plastics up 224.5% and fisheries 39.3%.

Vietnamese Commercial Counselor in Canada Tran Thu Quynh said as Vietnam’s ninth biggest currency earner, aquatic products hold the potential of high growth in the coming years thanks to CPTPP.

According to the CPTPP’s commitments, Canada eliminated import duties for 95% of tariff lines and 78% of Vietnam’s exports to the country. All Vietnamese aquatic and wooden products have had their import tariffs removed since 2019.

Taxes on specific goods will continue falling in line with the roadmap, making it easier for firms that meet origin requirements to enjoy incentives.

Source: VNA