Vietnam and Canada share customs procedures

The delegation of 170 companies and organisations is being led by Mary Ng, Canada’s Minister of Export Promotion, International Trade, and Economic Development, from March 27-29.

“CPTTP in Action – Dialogue with Ho Chi Minh City Customs Department” held on March 28 in Ho Chi Minh City

According to Ng, since the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) took effect, two-way trade between the two countries has increased by 170 per cent.

“Cooperation between Canada and Vietnam is a bright star in the picture of international cooperation. If we look at the number of businesses participating in this forum, we see that the majority are medium- and small-sized businesses, but they are contributing to trade growth between the two countries. Today's meeting between state agencies and businesses is a great chance to promote trade between the two sides,” Ng said.

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

Nguyen Huu Nghiep, deputy director of Ho Chi Minh City Department of Customs, said Vietnam's economy is growing very quickly and the goal of the customs agency is to effectively support businesses and trade between the two countries.

“In the reality of trade between the two countries, we see that raw materials for one industry can be finished products from another, or a product has multiple functions, thus leading to differences in fixing the product code. That's why our customs agencies need to work together to find consensus on taxation,” Nghiep said.

Businesses also need to carefully review their import-export lists to be able to clearly identify their products and contact customs agencies immediately for further guidelines.

Tirkko Penttila, an expert on trade policies at Canada’s ministry of foreign affairs said that the CPTTP is based on non-discrimination, ensuring fairness between foreign and domestic countries, transparency, predictable new regulations according to international rules, and preferential access.

“The CPTTP is becoming the gold standard for international trade. Vietnam is a major trading partner and a target for Canadian investors,” Penttila said.

In 2023, Canada-Vietnam two-way merchandise trade totalled $14 billion, with Canadian exports to Vietnam hitting $776 milion.

Canada's exports to Vietnam include strawberries, prepared mussels, cosmetics, sanitary and household paper, and frozen french fries.

Quynh Tran, commercial counsellor and head of the Vietnam Trade Ofice in Canada, said that Vietnam and Canada have spent more than 30 years establishing trade agencies, and the trade value between the two countries has increased rapidly, especially after implementing the CPTPP.

“About 10 years ago, the trade value between the two countries was $2.5 billion. In 2023, two-way trade turnover reached more than $10 billion, excluding $4 billion transported via the United States,” Quynh said.

In implementing the CPTPP, Quynh recommend businesses from the two countries focus on the principles of origin and transshipment, and cumulative rules of origin.

“With FTAs, we exploit taxes and need to think about more open factors such as opportunities in market access and diversifying investment strategies for foreign markets,” Quynh said.

“This is also true for foreign businesses investing in Vietnam. Thanks to the FTA, they have great access from Vietnam market to other markets it has trade deals with, It also contributes additional elements to businesses interested in procurement and bidding as well as optimal logistics strategies. This is because the transit terms in the CPTPP are much more open than other FTAs,” she added.

Quynh suggested that Vietnam and Canada promote trade in agricultural products to meet both sides' potential.

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 favours Vietnam market A delegation of nearly 200 Canadian businesses is visiting Vietnam from March 26 to 29 to boost trade and investment.

Vietnam and Canada share opportunities to achieve net zero The path towards net zero was discussed at a workshop themed “Towards Net-Zero: Canada-Vietnam Experience Sharing”, held in Ho Chi Minh City on March 28.