Vietnamese textile and garment enterprises seek opportunities to expand market share in Canada

In the context of Canada promoting the diversification of trade partners and Vietnam's desire to increase its export market share to this country, the Toronto Textile Fair 2025 has become a reliable address for Vietnamese textile and garment enterprises to seek cooperation opportunities and take advantage of incentives from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The trade promotion delegation of the Vietnam Textile and Apparel Association (VITAS) attending this fair includes 9 enterprises, with the goal of expanding the market and taking advantage of free trade agreements. Previously, the US was the main market for Vietnamese textiles and garments, accounting for more than 40% of export turnover, but recent tariff barriers have forced many enterprises to find new directions.

Sharing with VNA reporters in Canada, Deputy Secretary General of the Vietnam Textile and Apparel Association Nguyen Thi Tuyet Mai said the main purpose of Vietnam's textile and garment industry is to expand its export market share to the Canadian market. According to Ms. Mai, Canada is a country in the CPTPP free trade agreement bloc and Vietnam's textile and garment industry knows its advantage when exporting goods here is tax incentives. However, the biggest challenge lies in the rules of origin, when the entire production chain - from yarn, fabric to finished products - must be produced in a country in the CPTPP bloc.

Vietnam and Canada are among the countries that joined the CPTPP in the first phase in 2018. To date, Vietnam's textile and garment export turnover to Canada has doubled, from 600 million USD to nearly 1.2 billion USD, and is forecast to maintain a growth rate of 10% in 2025, despite trade policy adjustments from Canada.

According to Steve Tipman, Director of the Canadian Trade Promotion Agency, although Vietnam's textile and garment exports have increased sharply, "many products are still not eligible for CPTPP incentives and are subject to a tax rate of 15-18%. He said the Canadian agency is coordinating with the Vietnamese side to support businesses in understanding the rules of origin, helping goods meet CPTPP standards to be exempt from taxes.

At this fair, the Canadian Trade Promotion Agency coordinated with the Vietnam Trade Office in Canada to organize a workshop to guide Vietnamese enterprises on the rules of origin of materials under the CPTPP, especially in the context of Canada officially canceling the general tariff preference mechanism for Vietnam from the beginning of 2025.

Ms. Tran Thu Quynh, Commercial Counselor of the Vietnamese Embassy, ​​shared the main message that Vietnam wants to send to Canadian purchasing and manufacturing enterprises as well as all leaders in the textile and garment sector attending this fair: to consider Vietnam not only as a source of goods but also as a reliable and sustainable partner for long-term trade activities, including production connection, connection to develop common brands and other potentials in the future of the textile and garment industry.

Vietnamese textile and garment enterprises have adapted very quickly to market changes. Some enterprises such as Viet Hong or Bao Minh, specializing in denim fabric and garment production, have ensured the production of yarn or the origin of yarn, creating a closed supply chain, helping their products meet even the most stringent standards.

According to Bob Kirke, Director of the Canadian Textile Federation, Canada is trying to diversify its markets and the same is happening with Vietnam. Canada has a lot of potential for Vietnamese products and one of them is garments.

At the moment, when the rules are not very favorable to Vietnam, you are still doing very well and we should do better. Many Vietnamese products sold in Canada are subject to tariffs and Canada would like to remove those tariffs for consumers.

Through this fair, Vietnamese enterprises seem to have grasped the way to remove the bottleneck of rules of origin, thereby researching self-conversion or finding ways to cooperate to build closed production supply chains to eliminate current tax rates in the Canadian market in an effort to increase the export target by 12% as directed by the Prime Minister .

Source: https://baotintuc.vn/kinh-te/doanh-nghiep-det-may-viet-nam-tim-co-hoi-mo-rong-thi-phan-tai-canada-20251010074034756.htm