Vietnam to increase garment exports to Canada
Vinatex (Vietnam National Textile and Garment Group) participated in a workshop with its five member companies in Montreal- Canada. They were there to promote their textile and garment exports to the nation. The workshop was also attended by representatives of 35 Canadian companies dealing in textile and garment business.
Canada’s demand for textile-garment products is worth $13-14 billion each year and only 5% is provided by Vietnam. There is a huge opportunity to increase market share for the Vietnamese exporters in Canada, as both countries have sanctioned the Trans-Pacific Partnership (CPTPP) markets. Businesses have the opportunity to enjoy a better tariff policy if they satisfy rules of origin. Therefore, Vinatex has organised trade promotion activities in 2018 and 2019 to meet with Canadian importers.
Vinatex believes that there is huge co-operation potential for the two countries as Vietnam’s offers very competitive prices and it’s has an organised textile base. Canada can access the Vietnamese market with a tariff rate of zero per cent, and moreover the Canadian dollar is weak internationally. The CPTPP, which came in effect in Vietnam since January 14, is expected to enhance exports of Vietnamese textile and garment products to Canada. Almost 43% of the shipments would enjoy an import tariff of zero per cent in the first year the deal comes into force.
The total textile-garment demand in member nations of the CPTPP, with 11 members and a combined population of 500 million, is estimated at US$83 billion annually. In 2018, Vietnam’s textile-garment exports to CPTPP markets were $5.3 billion, making up 6.3 per cent of the market.
Garments News Vietnam