Vietnam’s textile and garment industry are pushing for a bilateral or free trade agreement to alleviate export taxes and to expand their presence in the Canadian market. Despite securing the third-largest exporter status for textiles and garments in Canada, there is an opportunity for growth.
Currently holding a 12 per cent market share in Canada’s imports, Vietnam attributes its success to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Two Vietnamese companies, VEG and Thái Sơn Co, showcased their commitment to CPTPP’s origin principles at a recent textile exhibition in Canada.
To boost further development, the industry is urging for reduced export taxes through a new agreement. VEG, having exported around US $ 10 million worth of goods to the US in 2023, plans to establish additional branches in Canada, capitalizing on favorable tax conditions. However, challenges persist, with the majority of domestic businesses falling short of CPTPP requirements for fiber material origin. The President of the Canadian Apparel Federation, Bob Kirke, suggests a free trade agreement between Vietnam and Canada to address CPTPP shortcomings. As Vietnam targets $44 billion in textile and apparel exports for 2024, collaboration and potential regulatory adjustments hold the key to enhancing competitiveness in the global market.