Vietnam’s south-central province of Binh Dinh holds many opportunities to boost investment connections with Canadian businesses, paving the way for access to the broader North American market, heard a conference.
The Thursday conference, themed “Canada - Gateway for Vietnamese enterprises to access the North American market,” was jointly held by the provincial People's Committee of Binh Dinh and the Vietnamese-Canadian Business Association (VCBA).
Exports to Canada expand fourfold after CPTPP
Identifying Canada as a potential export market and a gateway for Vietnamese enterprises to access the North American market, Binh Dinh has promoted cooperation with Canadian organizations and businesses, and sent delegations to promote trade and investment, said Chairman of the province Pham Anh Tuan.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which took effect in Vietnam in 2019, has contributed to promoting Binh Dinh province's exports to the North American markets, he noted.
According to Ngo Van Tong, director of the provincial Department of Industry and Trade, exports from Binh Dinh to North America fetched $569 million in 2023, accounting for 35.6% of the province’s total export revenue.
Notably, the province's export turnover to Canada increased fourfold, from $4.1 million in 2018 to over $17.2 million in 2023. In 2022, the figure was $23.9 million.
"In 2023, Binh Dinh's two-way trade with Canada reached $18.7 million, of which exports were valued at $17.2 million and imports $1.5 million. Its main exports to the Canadian market were seafood, indoor and outdoor furniture, garments, and plastic products," Tong said.
Nguyen Quang Trung, former consul general of Vietnam in Vancouver, said that Vietnam has been Canada's largest trading partner in Southeast Asia for nearly a decade, and both sides have agreed to bring bilateral trade to $10 billion per year. Canada is currently the 14th largest investor in Vietnam.
Many opportunities for Binh Dinh
According to Trung, Vietnam is an economic partner that plays an increasingly important role in diversifying Canada's trade in the region. This is consistent with Canada's Indo-Pacific Strategy (IPS).
Currently, a Team Canada Trade Mission delegation led by Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng is visiting Vietnam to learn about business and investment opportunities in agriculture, processed food, clean energy, clean technology, information and communication technology, and creative technology.
The government of Canada’s British Columbia province has opened an investment and trade representative office in Ho Chi Minh City and a Forestry Innovation Investment (FII) office in neighboring Binh Duong province.
"I think this trend is very suitable for Binh Dinh's investment promotion plan, as the province gathers many favorable infrastructure conditions such as seaports, airports, national highways, and Becamex Binh Dinh Industrial Park," Trung added.
Dan On, chairman of the Vietnamese Canadian Business Association (VCBA), said his association is ready to support Canadian businesses in investing in Vietnam as well as Vietnamese companies exporting their products to Canada.
Nguyen Hoai Bac, member of the VCBA executive committee, proposed connecting agro-forestry-fishery processing enterprises in Binh Dinh with the owner of the 88 supermarket chain in Vancouver.
According to Binh Dinh Chairman Pham Anh Tuan, Canadian firms have invested $2.72 million in two apparel projects in Binh Dinh. These projects have initially proved effective and contributed to the province's socio-economic development.
The official said that Canadian investment in the province remains modest, adding that Binh Dinh’s exports to Canada do not match the potential, strengths, and expectations of both sides. Binh Dinh hopes to welcome a new wave of investment with bigger projects from Canada, he stated.
The trade promotion conference, themed “Canada - Gateway for Vietnamese enterprises to access the North American market”, was attended by 200 businesses in the province and from foreign countries.
At the event, Becamex Binh Dinh JSC and Dan On Foods Corporation signed a memorandum of understanding on investment in a $10 million, 4-hectare agricultural product processing factory at Becamex Binh Dinh Industrial Park.