According to statistics of the General Department of Customs, Vietnam's exports to Canada in the first four months of 2023 reached USD 1,687 billion, a decrease of 17.1% over the same period in 2022 (the rate of decline was lower than in previous months). However, according to the data published on May 23, 2023, as of the end of March 2023, Vietnam had gained USD 2.187 billion in export turnover.

From the beginning of the year until now, the Top 10 commodity groups that account for the largest proportion of Vietnam's export turnover to Canada have maintained a double-digit growth rate (except for seafood with a decrease of 32.8%; furniture with a decrease of 32.8%; toys and sportswear with a decrease of  4%): electronics and mobile phones with an increase of 28.9%; footwear with an increase of 82.8%; knitted clothing with an increase of 12.4%; non-knitted clothing with an increase of 29.8%; leather products with an increase of 75.7%; optical equipment with an increase of 14.2%.

Some other important export items of Vietnam have started to record declines such as nuts and seeds with a decrease of 39.5%; plastic products with a decrease of 16.6%; rubber and rubber products with a decrease of 4.4%; iron and steel with a decrease of 77.8%; iron and steel products with a decrease of 4.5%; aluminum products with a decrease of 27.7%; ceramic products with a decrease of 15.2% over the same period last year.

The growth rate of Vietnam's exports to Canada in the first three months of 2023 is much higher than the growth rate of Canada's imports from countries around the world (9.3%) and higher than all major exporting countries in ASEAN such as Indonesia, Malaysia, Thailand, etc.

In the Top 10 of Canada's top trading partners, Vietnam recorded the largest export growth rate but dropped to the 8th position of export partner.

According to the Vietnam Trade Office in Canada, in the first quarter of 2023, through tracking the host country's data, Canada especially boosted imports from Ecuador, Argentina, Chile and Mexico. With the exception of Argentina, all Ecuador, Chile and Mexico have new-generation Free Trade Agreements (FTAs) with Canada.

Research on local data from 2018 to 2022 shows that, since the CPTPP took effect, Vietnam's exports in most fields of agricultural products and processed foods have increased (except for fruit and vegetable products).

In the field of consumer goods, many products of the domestic industrial sector have experienced a remarkable increase, demonstrating the positive impact of the CPTPP on Vietnam's exports to the region.

However, Vietnam's rate of using preferential tariffs under CPTPP has not yet fully taken advantage of the potential that this Agreement brings.

According to data, in 2022, about 81% of Vietnam's exports to Canada still use MFN tariff preferences and less than 1% still use GPT preferences; only 18% use CPTPP tariff preferences.

Kylie Nguyen