Vietnam's leather and footwear industry has opportunities to increase its export market share in Canada.

DNHN - According to the Vietnam Trade Office in Canada, it is plausible that leather and footwear will become Vietnam's next billion-dollar export item to Canada based on the growth rate recorded in the first seven months of 2023.

In light of Canada's continuous decline in import demand (down 2% over the same period), the Vietnam Trade Office in Canada stated that Vietnam's slight export growth compared to 2022 is a very encouraging sign. epoch 2022). Vietnam's export growth to Canada in the first six months of 2023 is still higher than that of all other ASEAN nations, including Indonesia, Malaysia, and Thailand. Vietnam will have exported 5.47 billion USD to Canada by the end of July 2023, a slight increase of 3.1% over the same period in 2022.

In addition, Vietnam remains Canada's most important import partner within ASEAN, accounting for 43% of Canada's total imports from the region. Notably, among the group of ASEAN countries, the Philippines is the country with the highest export growth rate to the region, nearly 25%. Numerous products that Canada is interested in importing from the Philippines, including rubber, iron, and steel, compete directly with Vietnam.

Nevertheless, from the beginning of the year to the present, the four product categories that account for the largest proportion of Vietnam's export turnover to Canada have maintained double-digit growth in export turnover: Electronics and mobile phones grew by 22.1%; shoe leather by 16.7%; knitted clothing by 16.9%; boiler reactor by 29.7%)...

Specifically for the leather and footwear industry, including transshipments from the United States, exports of leather, shoes, and handbags to the Canadian market (HS code 64, 42) will reach 593 million USD by the end of July 2023, with HS code 64 increasing by 16.7% and HS code 42 increasing by 27.2% over the same period in 2022. During this period, Canada imported a total of $2.8 billion worth of these two product categories; Vietnam alone accounts for over 21% of the market share.

Vietnam is currently the second most important exporter to Canada for HS code 64, after China, and the third most important exporter for HS code 42, after China and Indonesia. Regarding HS code 64, Vietnam has the highest export growth rate in the region, while Canada reduces its imports from China significantly. Regarding HS code 42, Vietnam also has a very high export growth rate, second only to Indonesia but far outpacing Canada's ten most important import partners.

However, because the Canadian market is relatively small, according to the Trade Office, export businesses must strictly adhere to the regulations of the import market, paying particular attention to labelling regulations. Food Safety Standards Act for Canadians (SFCR) stipulates that imported products must adhere to the Food Product Labelling and Advertising Guidelines of the Canadian Food Control Agency and the Food Safety Standards Act for Canadians (FSSC). It must contain the following information in two languages: product name, volume, ingredients, product class/type, manufacturer/country, importer, batch number, and PLU code number. The Canadian government is moving towards mandating GTINS/PLU codes. Imported goods are required to have a certificate of origin for customs declaration purposes. Canada recognises and encourages businesses with Global GAP, GMP, HACCP...

Ngoc Phi (TH)