Canadian businesses focus on green energy and agriculture in Vietnam

Minister of Export Promotion, International Trade and Economic Development Mary Ng at the press conference on March 28 in Ho Chi Minh City

The minister made the comment during a working visit to Vietnam on March 28 accompanied by a Canadian trade delegation of around 170 companies operating in the fields of agriculture, processed food, clean technology, green technology, information and communications, and digitalisation.

“Canada is keen on cooperating in a number of areas with similar values and resonance between Canada and Vietnam, such as food security and energy," she said.

Canada is currently the 14^th largest foreign investor in Vietnam with 247 projects, worth more than $4.82 billion.

Besides investment, Canada is Vietnam's third largest trading partner in the Americas. Meanwhile, Vietnam is Canada's largest trading partner in ASEAN and the country's seventh largest import partner after the United States, Mainland China, South Korea, Japan, the Netherlands, and Hong Kong.

In 2023, Canada-Vietnam merchandise trade totalled $14 billion, with Canada exporting $776 million to Vietnam.

Canada had strengths in high-tech machinery, energy technology, telecommunications technology, biomedicine, and input products for industries such as minerals, plastics, wood, oil and gas, grain, and fertilisers.

In return, Vietnam can provide home appliances, furniture, and garments to the Canadian market, thanks to preferential tariffs under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Also on March 28, Ng witnessed the signing of a partnership agreement extension between Vietnam Airlines Flight Training Centre and CAE, a Canadian manufacturer of simulation equipment and aviation human resources training.

"The middle class in Vietnam is growing and is expected to account for about 26 per cent of the population by 2026. This is a great market for Canadian investors and businesses," Ng said.

According to the minister, Canada appreciates the role of Vietnam and ASEAN in the country's Indo-Pacific Strategy, and hopes that both sides will promote negotiations on the ASEAN-Canada Free Trade Agreement.

“ASEAN is Canada's largest trading partner, and we want to replicate the successful model of Canada and Vietnam in the region because Vietnam is a fast-growing, large-scale economy, an important door to help Canada move deeper into ASEAN,” she added.

At a meeting with Ng on March 27, Prime Minister Pham Minh Chinh said that Vietnam supports Canada as the rotating chairman of the CPTPP in 2024, and will promote ASEAN-Canada FTA negotiations and act as a bridge for Canadian goods to penetrate deeper into the region.

At the same time, the PM said the two countries will continue to effectively take advantage of cooperation mechanisms within the CPTPP framework as well as other agreed mechanisms to promote trade and investment capital flows and create conditions for Vietnamese export goods to increase their market share in Canada.

Minister Ng witnessed the signing of a partnership agreement extension between Vietnam Airlines Flight Training Centre and CAE on March 28

Canada eager to hike interest across Vietnam Vietnam has been extensively expanding its trade and investment ties with Canada while taking the advantage of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership as a big leverage.

Canada and Vietnam commemorate 50th year of diplomatic relations The relationship between Canada and Vietnam has developed in a gratifying way and has achieved many great breakthroughs over the past five decades, according to the Canadian Ambassador to Vietnam, Shawn Perry Steil.