Vietnam a gateway for Canadian firms to enter ASEAN

Vietnam will play an important role as a gateway for Canadian firms to enter the regional bloc that has one of the highest growth rates in the world and is expected to be the world’s consumption centre by 2030 given its market size, according to Canadian business insiders.

Canadian enterprises, including those from Quebec, have expressed their keen interest in the Vietnamese market, given the thriving trade ties between the two countries since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into force five years ago.

The country is the largest trade partner of Canada in ASEAN, with two-way trade rising from $3.86 billion in 2018 to more than $7 billion in 2022. During January – June this year, the figure reached $3.6 billion.

Director General of the Indo-Pacific Region under the Quebec Ministry of International Relations and Francophonie Gabriel Chartier said that the ministry rolled out its Indo-Pacific Strategy in 2021, which identified Vietnam and other Asian countries as important partners to expand business activities.

The Quebec international investment agency was established, responsible for supporting local firms who want to develop their business in Vietnam, he added.

There are around 125 cooperation projects between Vietnam and Quebec. Two-way trade has exceeded $1.5 billion, with the Canadian side selling electronics, agricultural products and medical equipment to Vietnam, and buying footwear and clothes from the Southeast Asian country.

The two sides are planning to carry out new cooperation projects, helping diversify collaboration in all areas, from culture, sustainable development to technology study.

Vice President of the Indo-Pacific at Export Development Canada (EDC) George Monize described Vietnam as an amazing market with high GDP growth and an expanding middle class.

According to Chairman of Groupe Engram Remy Franzoni, his customers have been curious and interested in cooperation opportunities with Vietnam, which holds strengths in technology and electronics.

The sound Vietnam-Canada relations have contributed to concretising Canada’s Indo-Pacific Strategy and its strategic partnership with ASEAN, he said, adding the Quebec authority and the Canadian Government as a whole have given priority to Vietnam, and consider the country a new intersection in the global value chain thanks to the cooperation potential in key areas.

Source: VNS