Vietnamese businesses look to expand into North America through Canada

24/11/2023    35

There remains ample room for cooperation between Việt Nam and Canada across multiple sectors, ranging from trade to investment, a HCM City official said.

Speaking at a seminar in the city, Võ Văn Hoan, vice chairman of the municipal People's Committee, said Canada is a crucial gateway for Vietnamese businesses to access the expansive and promising North American market.

Canada is Việt Nam’s second-largest trading partner in the Americas, following the US, he added.

In the first 10 months, bilateral trade between the two nations reached US$5.2 billion, down 16.3 per cent year-on-year. However, this figure does not fully reflect the potential of both countries, according to Hoan.

Việt Nam is considered a gateway for Canada to Southeast Asia and the Asia-Pacific region, he added.

Việt Nam is also Canada’s top trading partner in ASEAN and the sixth-largest trading partner in the Indian Ocean-Pacific.

As of July, Canada had 253 registered projects worth a total of $4.84 billion in Việt Nam, ranking 14th out of 140 countries and territories investing in the country. 

In HCM City, Canada has 131 investment projects worth over $133 million, ranking 22nd out of 120 countries and territories investing in the city. 

In the first 10 months of this year, Canada had 20 new investment projects worth $3.1 million in the city.

Nguyễn Quang Trung, consul general of Việt Nam in Vancouver, Canada, said: “There is great potential for Việt Nam and Canada to expand cooperation in several areas.” 

Both countries are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and are currently in the process of reinitiating negotiations for an ASEAN-Canada Free Trade Agreement this year.

Canadian investors have shown interest in sectors such as education, infrastructure, finance, and clean energy in Việt Nam.

Phạm Hồng Hải, vice chairman of Thiên Việt Securities Company and former National Director of HSBC Bank, Canada, said Canada is an ideal partner due to its stable macroeconomic and political environment, advantageous geographic location, abundance of skilled labour, clear legal system, and lower corporate taxes compared to the US and the EU.

The event was organised by the HCM City Center for Trade Promotion and Investment (ITPC) and the Vietnam-Canada Business Association (VCBA). 

Source: Việt Nam News