Vietnamese garment firms keen on stronger Canada foothold


Workers number fabric at a garment factory in Vietnam's Thai Nguyen Province. (Photo by Nhac NGUYEN / AFP)

OTTAWA: As Canada accelerates trade diversification and Vietnam aims to increase its export presence in the North American country, the Canada International Textile and Apparel Expo has become a key platform for Vietnamese garment and textile businesses to explore cooperation opportunities and take advantage of tariff preferences under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

A trade promotion delegation from the Vietnam Textile and Apparel Association (Vitas), comprising nine enterprises, is attending the fair with the goal of expanding market access and maximising free-trade agreement benefits.

While the United States has traditionally been Vietnam’s leading market, accounting for over 40% of total exports, recent tariff barriers have prompted many Vietnamese firms to seek new destinations.

Speaking to the Vietnam News Agency’s correspondent in Canada, Vitas deputy secretary-general Nguyen Thi Tuyet Mai said the key objective is to expand Vietnam’s export share in the Canadian market.

She noted that, as a CPTPP member, Canada offers tariff advantages for Vietnamese textile exports.

However, the greatest challenge lies in meeting rules-of-origin requirements, as the entire production chain, from yarn and fabric to finished products, must be sourced from CPTPP member countries.

Both Vietnam and Canada were among the founding members of the CPTPP in 2018. Since then, Vietnam’s textile and garment exports to Canada have doubled, from US$600mil to nearly US$1.2bil, and are projected to maintain a growth rate of around 10% this year despite adjustments to Canada’s trade policy.

Steve Tipman, executive director of the Trade Facilitation Office (TFO) Canada, noted that although Vietnam’s textile exports have grown significantly, many products still do not qualify for CPTPP tariff exemptions and are subject to import duties of 15% to 18%t.

He said Canada is working closely with Vietnam to help businesses better understand rules of origin, ensuring their goods meet CPTPP standards for duty-free access.

During the fair, TFO Canada, in coordination with the Vietnam Trade Office in Canada, organised a workshop to guide Vietnamese enterprises on material-origin rules under CPTPP, particularly as Canada officially ends its Generalised System of Preferences for Vietnam from early next year.

Tran Thu Quynh, Commercial Counsellor at the Vietnamese Embassy in Canada, said Vietnam’s key message to Canadian buyers, producers, and industry leaders attending the fair is that Vietnam should be viewed not only as a reliable sourcing destination but also as a sustainable, long-term trade partner.

She emphasised Vietnam’s readiness to engage in production links, brand co-development, and future industry collaborations. — Viet Nam News/ANN

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Vietnam , Canada , garment , export , CPTTP , trade

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