Expectation of increasing market share of Vietnamese textiles in Canada from 5% to 12-14%
The total textile and apparel needs of the 500 million people in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) amount to USD 83 billion. Meanwhile, in 2018, Vietnam's export value of textiles and garments to the CPTPP market only stood at US $ 5.3 billion, accounting for 6.3% of the market share.
Sharing at the Vietnam Textile and Garment Conference and CPTPP on May 16 in Montreal, Canada, Mr. Le Tien Truong, General Director of Vinatex, said that Vietnam accounted for 5% of the total USD 13-14 billion of textile demand. sewing in Canada. This market share is similar to that in Cambodia.
“This market share is not quite commensurate with the position of a second largest textile and garment exporting country in the world like Vietnam. We have a market share in the US of up to 14%, the low market share in Canada is really a potential for export textile enterprises, especially when Canada and Vietnam have ratified the CPTPP, "he said. Truong said, VNA quoted.
According to him, all businesses now have the opportunity to access a better tariff policy if they meet the requirements of rules of origin. He hoped that with CPTPP, Vietnam could increase its market share in Canada to 12-14%, equivalent to the level in other major markets.
In fact, in 2018, even when the CPTPP has not yet taken effect, Vietnam's textile and garment exports to Canada increased by 19.7%.
According to some Canadian businesses, the opportunity for cooperation between the two countries is huge. Firstly, Vietnam's prices are comparable to China. The second is Vietnamese businesses that work in an organized and effective manner. Thirdly, Canada's access to Vietnam market with 0% tariff is a big change, especially in the context of weak Canadian dollar in the international market.
42.9% of Vietnam's textile and apparel exports to Canada has a 0% tax from the first year of CPTPP. Therefore, the agreement is expected to be a push for Vietnam's textile and garment products to "attack" this market.
In contrast, the CPTPP is also more open to Canadian businesses. The need to diversify international trade has also become more urgent for Canada. On the CPTPP playground, this is considered a "golden time" for Vietnam and Canada to promote trade exchanges, especially in the field of textiles.