Processing export cashew. Việt Nam's cashew nut export to Canada was up by 21 per cent in 2024. —VNA/VNS Photo

HÀ NỘI — Canada's recent changes in trade policies, which focus on reducing domestic trade barriers, are expected to provide significant benefits to Việt Nam's exports.

According to Trần Thu Quỳnh, trade counselor and head of the Việt Nam Trade Office in Canada, provinces and territories in Canada now recognise each other’s imports, easing trade processes and reducing costs for imported goods.

This will make Vietnamese goods imported into Canada more affordable.

Key export items from Việt Nam saw impressive growth in 2024. Notably, reactor machinery and equipment grew by 90 per cent, becoming the second-largest export item from Việt Nam to Canada. Computer exports also experienced a 35 per cent increase.

Other products recorded positive growth, including textiles (up by 10 per cent), footwear (up by 16 per cent), seafood (up by 22 per cent), and wood products (up by 22 per cent).

Agricultural products also saw notable growth with cashew nuts up by 21 per cent, coffee rising by 16 per cent, and vegetables and fruits experiencing a significant 44 per cent increase.

Additionally, products like confectionery, cereals and pepper saw impressive growth rates of 30 per cent, 16 per cent and 81 per cent, respectively.

In 2024, Việt Nam's iron and steel products also recorded an uptick in exports, with common metals rising by 25 per cent and iron and steel products growing by 30 per cent.

This increase can be attributed to Canada's imposition of tariffs on all iron and steel products imported from China, which prompted a shift in sourcing.

Trade figures show an unexpected surge in the fourth quarter of 2024, a typically low import period for the Canadian market, said Quỳnh, adding that Canada’s peak import season typically spans from June to August.

Việt Nam saw a significant surge in the fourth quarter of 2024. Monthly exports to Canada increased by about $570-$590 million, representing an average rise of 20 per cent.

These monthly figures represent the highest levels of exports to Canada from Việt Nam in the past two years, since September 2022.

This surge in imports may suggest that Canadian businesses are preparing for potential disruptions in trade, including possible tariff actions from the US government under the Trump administration.

Quỳnh noted that this trend should be watched closely, as it signals the Canadian market's sensitivity to global trade fluctuations in the near future.

In 2025, Canada will continue to adapt its trade policies to address both domestic concerns and external pressures. One of the key initiatives is the campaign encouraging Canadian people to prioritise domestically made products.

Quỳnh also highlighted that this initiative could indirectly benefit Việt Nam’s trade and investment if Việt Nam’s businesses can effectively leverage the origin provision of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This provision enables businesses to export to other CPTPP markets at a zero-tariff rate, which could create new opportunities for Việt Nam’s exports.

While the shifting policies of Canada present good opportunities for Việt Nam’s businesses, there are concerns regarding trade defence measures.

On January 31, 2025, the Canada Border Services Agency (CBSA) concluded a review of oil pipes imported from Việt Nam and other countries, imposing an anti-dumping tax of 37.4 per cent on certain Việt Namese businesses that failed to provide the required information.

Additionally, on January 23, 2025, the CBSA announced the end of a review of the normal value and export price for upholstered chairs from Việt Nam and China.

Several Việt Nam’s companies were subject to a hefty anti-dumping tax of 179.5 per cent for not meeting information requirements.

In 2024, trade between Canada and Việt Nam hit a major milestone, with Việt Nam’s export goods worth $10.6 billion to Canada, marking an 8.2 per cent increase compared to the previous year, according to Canada's statistics.

This marks the first time that Việt Nam's exports to Canada have surpassed the $10 billion threshold. Notably, Việt Nam recorded a trade surplus of about $9.9 billion with Canada.

Việt Nam remains an essential trade partner for Canada, maintaining its spot as the 7th largest import partner among Canada's top 10 trading nations.

Within the ASEAN region, Việt Nam continues to be Canada's primary import partner, accounting for nearly 45 per cent of Canada's total imports from the region. — VNS