Vietnam - Gateway for Canadian Businesses to Access the Indo-Pacific Market

After 5 years of implementing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), trade turnover between Vietnam and Canada has increased from 3.86 billion USD in 2018 to 7.03 billion USD in 2022.

Việt Nam - Cửa ngõ để doanh nghiệp Canada tiếp cận thị trường Ấn Độ-Thái Bình Dương

Workshop "Vietnam - Gateway to the Indo-Pacific for Quebec businesses". (Source: VNA)

In the first half of 2023 alone, two-way trade between Vietnam and Canada reached 3.6 billion USD, attracting great interest from many businesses in the province of Quebec. This was demonstrated by the large participation of government representatives, businesses, and consulting firms in seminars and forums on the topic "Vietnam, the gateway to the Indo-Pacific for Quebec businesses". These events are considered an opportunity to reassess the level of awareness of the CPTPP, review the implementation of the agreement, and plan for the future for Canadian businesses.

Director of the Indo-Pacific region Gabriel Chartier of the Quebec Ministry of International Relations and Francophonie said that since 2021, the country has started to launch the Indo-Pacific Strategy, which identifies Vietnam and Asian countries as important regions to expand business activities there. Canada has established the Quebec International Investment Agency responsible for supporting businesses in the province that want to do business and develop their business in Vietnam because we consider Vietnam to be a middle-class market, growing very quickly in the Asian region.

Vietnam and Quebec currently have about 125 cooperation projects between the two sides. Bilateral trade relations have reached more than 1.5 billion USD, of which Quebec mainly exports electronics, agricultural products and medical equipment to Vietnam, while importing electrical appliances, footwear and clothing from Vietnam. The two sides plan to implement new cooperation projects, contributing to diversifying cooperation relations in all aspects from culture, sustainable development to technology research.

Assessing the potential of the Vietnamese market, George Monize, Vice President of the Indo-Pacific region of the Export Development Agency of Canada (EDC), said that Vietnam is really a great market. The two countries have achieved bilateral trade of more than 7 billion USD in a short time. There are three really attractive points: size among ASEAN countries, GDP growth rate and a growing middle class.

The Indo-Pacific region is identified by EDC as a key destination for Canadian businesses seeking diversification opportunities. The region is home to some of the world’s fastest-growing economies and the second-largest trading bloc for Canadian goods and services. The size of the region means there is significant untapped potential for Canadian exporters.

For Quebec, the Indo-Pacific region is now the second largest international export market and one of the fastest growing markets in recent years. Since the implementation of the CPTPP, Quebec has supported more than 250 businesses to expand their operations to Vietnam.

Mr. Remy Franzoni, President of Groupe Engram, a strategic consulting firm for small and medium-sized enterprises in Quebec, commented that Vietnam has strengths in technology and electronics. Mentioning Vietnam to his clients, he said that people are very curious and interested in cooperation opportunities. There has been a big change in people's perception of Vietnam. People have noticed a change in geopolitics and there are more opportunities outside of China. Having more partners everywhere is encouraging and Vietnam will be a good partner in the future.

Vietnam-Canada relations are contributing to the realization of Canada’s Indo-Pacific Strategy and Canada’s Strategic Partnership with the ASEAN region. The Canadian and Quebec governments always give priority to Vietnam and consider Vietnam a new intersection in the global value chain due to its potential in a number of key sectors. Quebec currently has a dynamic and innovative economy in areas such as aerospace, information technology, artificial intelligence, biotechnology and renewable energy.

Mr. Franzoni believes that there is still a lot of potential, and both sides are only scratching the surface of it. Therefore, both sides need to continue to improve their expertise in different industries. Quebec currently only serves a few specific areas, but there are still many opportunities. Hopefully, both sides will continue to coordinate well to achieve success and bring many benefits to Canada and Vietnam.

Vietnam is currently Canada’s largest trading partner in the ASEAN region and the leading destination for Canadian exports to ASEAN. As such, Vietnam is considered to be able to act as a gateway for Canadian companies looking to develop in this region, which is the fastest growing in the world and will be the world’s consumer hub by 2030 due to its market size.

Monzie shared that EDC is currently building an export support center in Southeast Asia. It is difficult to make a credit decision from the other side of the world and it is also difficult to understand the culture and norms because it takes time. EDC is trying to build relationships, build a support center for operations to be able to fulfill its obligations to Canadian and Vietnamese customers.

(according to VNA)

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