Vietnam eyes greater Canadian investment as FTA talks progress

Minister of Finance Ngo Van Tuan and Canadian Ambassador to Vietnam Jim Nickel

The outlook emerged during a meeting in Hanoi on July 9 between Finance Minister Ngo Van Tuan and Canadian Ambassador to Vietnam Jim Nickel.

Minister Tuan reaffirmed Vietnam's commitment to strengthening the Comprehensive Partnership with Canada and thanked the Canadian government for its longstanding support for the country's socioeconomic development.

Recalling bilateral cooperation dating back to the 1990s, the minister noted that he had participated in a Canadian-funded public finance policy project in 1996, which helped train nearly 20 master's degree graduates for Vietnam's finance sector. He also acknowledged Canada's long-standing assistance to the State Audit Office of Vietnam, particularly in enhancing performance auditing.

Ambassador Nickel praised Minister Tuan's leadership in shaping Vietnam's macroeconomic policies and reaffirmed Canada's view of Vietnam as one of its key partners in the Indo-Pacific. He also thanked the Ministry of Finance (MoF) for its close cooperation in managing official development assistance programmes and broader financial cooperation.

Looking ahead, the ambassador said Canada's economic strategy places strong emphasis on economic security and clean, green growth, creating opportunities to expand trade and investment with Vietnam in priority sectors including agriculture, energy, aviation, defence and transportation.

He noted that Canadian companies continue to increase their presence in Vietnam, highlighting Fairfax Financial's long-term investments in the insurance sector. Canada is also supporting projects related to the energy transition, carbon neutrality and trade policy reform, including a power transmission project in Lam Dong province and programmes to strengthen women-led businesses through the World University Service of Canada.

Ambassador Nickel also proposed that Vietnam consider tax incentives for FinDev Canada, Canada's development finance institution, to facilitate greater investment in the private sector and small and medium-sized enterprises (SMEs).

"We are seeing excellent momentum in our bilateral relationship. Canada hopes negotiations on the ASEAN-Canada Free Trade Agreement will conclude in 2026, creating new opportunities for trade and investment that will benefit both sides," he said.

Responding to Canada's proposals, Minister Tuan outlined Vietnam's Socioeconomic Development Strategy for 2026-2030, under which the country aims to achieve upper-middle-income status by 2030 while pursuing double-digit economic growth. To meet these objectives, Vietnam plans to mobilise investment equivalent to around 40 per cent of GDP and strengthen energy, water and food security.

The minister highlighted a series of recently issued Party resolutions designed to support science, technology and innovation, private sector development and higher-quality foreign investment, saying these reforms demonstrate Vietnam's readiness to welcome more Canadian investors.

He added that the MoF has instructed relevant agencies to facilitate the approval of new products proposed by Fairfax Financial in accordance with Vietnamese regulations.

On green growth, Minister Tuan said the ministry is accelerating procedures to implement energy transition projects and programmes supporting SMEs, which account for around 30 per cent of Vietnam's economic growth. He also encouraged FinDev Canada to establish a representative office in Vietnam and asked relevant authorities to study preferential tax policies for the institution.

Concluding the meeting, Minister Tuan expressed his hope that Vietnam and Canada would continue to build a closer economic partnership by leveraging each other's strengths. He reaffirmed the MoF's commitment to expediting administrative procedures to ensure bilateral cooperation projects are implemented efficiently.

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