Vietnam Explores Textile Trade Expansion with Canada
Vietnam’s textile and garment industry is aiming to strengthen its presence in the Canadian market by advocating for a bilateral or free trade agreement. Despite holding the position of the third-largest exporter of textiles and garments to Canada, there is room for growth, with Vietnam currently accounting for a 12% market share in Canada’s imports. The industry attributes its success to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
At a recent textile exhibition in Canada, Vietnamese companies VEG and Thái Sơn Co demonstrated their commitment to CPTPP’s origin principles.
To further boost development, the industry is urging for a reduction in export taxes through a new agreement. VEG, which exported around $10 million worth of goods to the US in 2023, plans to expand its presence in Canada, capitalizing on favorable tax conditions.
However, challenges remain, as many domestic businesses fall short of meeting CPTPP requirements for fiber material origin. Bob Kirke, the President of the Canadian Apparel Federation, suggests that a free trade agreement between Vietnam and Canada could address CPTPP shortcomings.
With Vietnam targeting $44 billion in textile and apparel exports for 2024, collaboration and potential regulatory adjustments are seen as key elements to enhance competitiveness in the global market.