Facilitating Vietnam's textile and apparel exports to Canada via CPTPP

DNHN - The Canada Textile and Garment Supply Fair 2023 in Toronto, the largest annual event related to textile sourcing in North America, has attracted six Vietnamese companies out of more than two hundred that are participating.

When entering the Canadian market, almost all Vietnamese businesses have adequate raw material capacity to take advantage of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Although this is only Vietnam's second time participating in this event, two companies, Viet Vuong and Vietnam Export Garments, are already present. These two businesses can produce fabrics that comply with the CPTPP's origin requirement.

Thai Son, May Hai, Tuong Long, and Wisermax were not directly involved, but the Vietnam Trade Office in Canada assisted them in organizing booths to promote and introduce their products. Bob Kirke, chairman of the Canadian Textile and Apparel Association, stated, when discussing the opportunities of Vietnam's textile and apparel industry, that Vietnam's textile industry is highly developed and globally competitive. According to him, Vietnam has numerous opportunities due to factories' long-standing investments in implementing environmental measures and utilizing energy efficiently. Therefore, the product is globally competitive.

The Canadian textile and apparel market is regarded as having a very high consumption capacity, with an annual consumption rate of up to 10 billion USD. Despite an annual growth rate of more than 40%, textile and apparel exports from Vietnam to this market are still very modest. According to the Canada Border Services Agency, Vietnam's textile and apparel exports will reach approximately $1.8 billion in 2022, up 41.2% from 2021. Vietnam has surpassed Bangladesh, a country with lower production costs, to become the second largest exporter of textiles to Canada, second only to China, with a market share of more than 12 percent.

As a result of the CPTPP's benefits, Canadian businesses are extremely interested in Vietnam's supply of goods. Nonetheless, Vietnamese businesses have yet to utilize this agreement in significant numbers.

At this year's fair, Vietnamese businesses directly participating have demonstrated their ability to supply qualified fabrics that meet the CPTPP's criteria for origin, which can catalyze trade and investment in textiles between the two nations. Vietnam's textile and apparel exports to Canada have been boosted by the fact that both Vietnam and Canada are members of this multilateral trade agreement. After the agreement went into effect, Canada eliminated 42 tax lines for Vietnamese textile and garment products, and after five years of implementation, the export value of textile and garment products from Vietnam increased by 100 percent compared to 2018. CPTPP points have not yet become valid.

Currently, the Vietnam Trade Office in Canada is promoting support for Vietnamese textile and apparel businesses by connecting and disseminating information about the Canadian market to maximize the country's principle of origin. CPTPP in textiles and garments, while assisting businesses to comprehend the shift in Canadians' attitudes towards apparel consumption and how to most effectively participate in the textile and garment supply fair in this country.

John Banker, the director of the Textile and Garment Supply Fair, stated that over the past two years, with the assistance of the Vietnam Trade Office, the fair has been able to establish connections and attract major Vietnamese companies. Vietnam is present at the fair. He expressed his hope that next year a large number of Vietnamese businesses will participate in this fair.

Phi Ngoc (TH)