Canada’s recent trade policy adjustments, aimed at reducing domestic trade barriers, are expected to create favorable conditions for Vietnamese exports.
According to Trần Thu Quỳnh, Trade Counselor and Head of the Việt Nam Trade Office in Canada, Canadian provinces and territories now recognize each other’s imports, simplifying trade procedures and lowering costs for imported goods. This development is expected to make Vietnamese products more competitively priced in the Canadian market.
In 2024, several key Vietnamese exports experienced strong growth. Machinery and equipment exports surged by 90%, becoming the second-largest category of Vietnamese goods exported to Canada. Computer exports rose by 35%, while textiles, footwear, seafood, and wood products saw increases of 10%, 16%, 22%, and 22%, respectively.
Agricultural exports also expanded significantly, with cashew nuts rising by 21%, coffee by 16%, and fruits and vegetables by 44%. Other products, such as confectionery, cereals, and pepper, recorded growth rates of 30%, 16%, and 81%, respectively.
Iron and steel exports also increased, with common metals growing by 25% and steel products by 30%. This shift has been attributed to changes in Canada’s import tariffs on iron and steel.
Trade figures show an unexpected surge in the fourth quarter of 2024, traditionally a low-import period for Canada. Monthly exports from Việt Nam to Canada ranged between $570 million and $590 million, marking a 20% increase and reaching the highest levels in two years.
Looking ahead, Canada is expected to continue adapting its trade policies in 2025, including an initiative encouraging consumers to prioritize domestically made products. However, Việt Nam could benefit from provisions under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which allows for duty-free exports to CPTPP member countries.
At the same time, some Vietnamese businesses face trade defense measures. The Canada Border Services Agency (CBSA) recently imposed a 37.4% anti-dumping tax on certain Vietnamese oil pipe exports and a 179.5% duty on some upholstered chair imports.
In 2024, Việt Nam’s exports to Canada reached $10.6 billion, an 8.2% increase from the previous year, marking the first time exports surpassed $10 billion. Việt Nam also recorded a trade surplus of approximately $9.9 billion with Canada.
Việt Nam remains Canada’s 7th largest import partner and the top ASEAN trade partner, accounting for nearly 45% of Canada’s total imports from the region.
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