The Vietnamese Embassy in Canada on November 10 held a teleconference to discuss investment opportunities and the export of wood furniture products to the Canadian market.
At the event, Vietnamese Ambassador to Canada Pham Cao Phong noted three main factors that serve to make Vietnam an attractive investment destination, including a strategic location in Southeast Asia, radical institutional reforms, and a promising consumer market that is home to over 96 million consumers.
Despite the global economic downturn caused by the impact of the novel coronavirus (COVID-19) pandemic during the first half of this year, two-way trade between the two countries has maintained positive growth of 0.1%.
According to the diplomat, Vietnam has continuously strived to integrate into the global economy in recent years through the signing of a series of free trade agreements (FTAs) in the Asia-Pacific region.
At present, the country is acting as a bridge for Canadian goods and services to reach the 660 million consumers based in ASEAN, as well as other important markets throughout the region, said Ambassador Phong.
Meanwhile, Canada can serve as a gateway for Vietnamese products to enter other markets throughout both North and South America.
Indeed, through tax incentives under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Vietnamese wood furniture is expected to enjoy a 0% import tax in the Canadian market, while similar products from other countries in Asia are subject to tax rates of between 6 % and 9%.
Ambassador Phong added that the COVID-19 pandemic will contribute to accelerating effective economic transformation, creating greater opportunities for bilateral and global economic and trade co-operation towards achieving the common goal of sustainable growth and prosperity for the two countries.
According to Canadian entrepreneurs, the Vietnamese market represents a promising destination for Canada to utilse in order to diversify its supply chains.
Walter Blocker, who has more than 25 years’ experience conducting business in the Vietnamese furniture market, affirmed Vietnam is a prominent market in ASEAN due to its political stability and the sense of responsibility displayed by Vietnamese workers.
Currently, the country also represents the fourth largest furniture supplier to Canada and the North American nation’s fifth largest trading partner in Asia, according to VOV