The Vietnam National Textile and Garment Group, better known as Vinatex, held a workshop in Montreal yesterday (16 May), which attracted representatives of 35 apparel firms in Canada.
Canada has demand for apparel and textile products that are worth nearly US $ 14 billion. However, Vietnam’s share remains paltry 5 per cent.
Talking about Vietnam’s less export of apparel and textile products to Canada, Le Tien Truong, General Director, Vinatex, said at the workshop that the market share of just 5 per cent does not match Vietnam’s standing as world’s second largest apparel exporter.
Such a less proportion of share in Canada also opens opportunities for several garment and textile exporters, which now holds more significance ever since both Vietnam and Canada have ratified the Comprehensive and Progressive Agreement for Trans-Pacific partnership (CPTPP).
CPTPP came into effect on 30 December 2018 between first 6 nations that ratified the agreement and Canada was part of those 6 countries. For Vietnam, the agreement came into force on 14 January 2019.
Truong also said at the event that even before CPTPP happened, Vietnam’s textile and apparel exports to Canada increased by almost 20 per cent in 2018 and it could enhance Vietnam’s market share to 12-14 per cent. Canada can access the Vietnamese market with a tariff rate of zero percent, especially considering that the Canadian dollar is internationally weak.
If businesses satisfy all rules of origin, they have opportunities to access better tariff policies and with this intent Vinatex has been organising trade promotion activities to meet Canadian apparel importers, which it will continue holding in 2019 as well.