Canada's investment in Vietnam is currently modest but it would rise in the next five to ten years as long as the investment environment is stable, consistent, and transparent, said Canadian Ambassador to Vietnam Shawn Perry Steil.
"Experiences suggest investment chases exports. So once the export market is growing and the trade is growing, investors will start looking for where they can invest," the ambassador said at the fifth anniversary of Vietnam-Canada comprehensive partnership Tuesday, adding that investment ties are below potential but that he is "not worried about the growth rate yet."
Steil emphasized Canadian investors, for the most part, are taking advantage of low cost but high quality manufacturing in Vietnam. Additionally, they are increasingly looking at not only export markets but actually manufacturing for the Vietnamese market.
"So once we see that shift happening, investors outlook is changing, more opportunities in the Vietnamese market and more investment will come," he said.
The ambassador also stressed that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), in which both Vietnam and Canada are members, provides a road map for Vietnam to enhance its investment environment.
As the pact includes some provisions that Vietnam can meet later, Canada is looking at ways to further support Vietnam to meet those standards in the agreement, he noted.
The highlight of the CPTPP, also the focus of the European and North American market and investors, are environmental sustainability and labor standards. Part of the agreement is standards on environment and labor, with Vietnam still working toward meeting those standards, according to the ambassador.
"There’s an enormous opportunity for Vietnam in an era where supply chains are becoming fragile and unreliable. Vietnam can become a reliable partner to ensure that critical supply chains are maintained clean and safe," he said.
The ambassador said energy transition is another key cooperation point. Canada has massive experiences to offer Vietnam in transitioning away from coal, including alternative energy production, and retraining and supporting industries with coal dependence.
"As a member of the G7, Canada is optimistic that the Vietnam-Canada partnership with energy transition cooperation will open new doors for more Canadian, G7 and international assistance and financing to help the progress in Vietnam," he added.
Canada was the 14th biggest investor in Vietnam as of October 20 this year, with 242 projects and registered capital of $4.82 billion, Vietnam's Ministry of Planning and Investment data shows.
Vietnam earned $3.8 billion from exporting to Canada in the first seven months of this year, up 32.1% year-on-year, and spent $397.8 million on importing from Canada in the period, down 13.4%, according to Vietnam Customs.