Outlook for bilateral relations, trade and investment between Vietnam and Canada
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As ASEAN’s major trading partner, Vietnam seeks to expand bilateral trade and business opportunities with Canada, as well as capitalize on prospects through the CPTPP. In this article, we look at some of the key factors that have made Vietnam an attractive investment destination for Canadian companies.
Vietnam-Canada relations
The relationship between Vietnam and Canada has flourished over the past five decades, marked by important milestones in trade, investment and commercial ties. Canada established diplomatic relations with Vietnam in 1973, opened an embassy in Hanoi in 1994 and a consulate general in Ho Chi Minh City in 1995. In 2017, the Canada-Vietnam Comprehensive Partnership was formally established and last year, 2023, the two countries commemorate 50 years of diplomatic relations. The Comprehensive Partnership identifies a series of areas of cooperation: political and diplomatic; trade and investment; development cooperation; defense and security; cultural and academic exchange; science, technology and innovation; and the links between peoples.
To boost bilateral collaboration, the two countries established the Canada-Vietnam Joint Economic Committee (JEC) on January 10, 2022. Co-chaired at the deputy minister level, the JEC provides a forum to address current and emerging bilateral trade and trade issues. The inaugural JEC meeting took place in Vancouver on July 6, 2022.
In November 2023, Vietnamese President Vo Van Thuong met with Canadian Prime Minister Justin Trudeau in San Francisco on the sidelines of APEC Economic Leaders Week. At the meeting, President Thuong suggested that both sides maintain exchanges at all levels, intensify cooperation between localities and maintain existing dialogue mechanisms in the fields of politics-diplomacy, defense-security and economy-trade.
Building on the momentum of high-level discussions, Canada’s Minister of Export Promotion, International Trade and Economic Development Mary Ng is leading a mission to Vietnam from March 27 to 29, 2024. This mission aims to explore opportunities for export within the India-Pacific Region, with Minister Ng accompanied by more than 135 Canadian companies and organizations. During the visit, discussions with international counterparts will focus on promoting sustainable and inclusive business practices. Additionally, Canadian companies are expected to establish meaningful connections with potential business partners and customers in Vietnam.
Vietnam-Canada bilateral trade
In 2023, Vietnam emerged as Canada’s largest trading partner within ASEAN, with bilateral trade reaching nearly 14 billion Canadian dollars (approximately 10.37 billion US dollars), revealed by the Vietnamese ambassador to Canada. , HE Pham Vinh Quang. He disclosed these details during a recent speech at a conference in Ottawa ahead of Minister Ng’s impending trip.
According to the United Nations COMTRADE database, Vietnam’s exports to Canada in 2023 amounted to $9.82 billion, enjoying a large trade surplus of $8.5 billion.
