Canada’s export credit agency Export Development Canada (EDC) launched its representative office in Vietnam at a ceremony in Ho Chi Minh City this week.

“Trade and investment have boomed between Canada and Vietnam under the CPTPP,” Ambassador of Canada to Vietnam Shawn Steil remarked at the event on Thursday, referring to the Comperehensive and Progressive Agreement for Trans-Pacific Partnership.

“We're proud that Canada has become one of the top ten purchasers of Vietnamese products globally, but we still need to do more, and we need to do more for Canadian exports.”

According to Steil, EDC brings tools, resources, and acumen that will give companies on both sides the increased confidence to do business with one another. 

“This is another groundbreaking move for Canada and our commitment to Vietnam, and it will pay dividends for years to come,” he said.

In his remarks, the ambassador mentioned that Canada launched its Indo-Pacific Strategy two years ago. 

“We set a five-year plan with a ten-year vision to do more and engage more across the board, in the Indo-Pacific, with ASEAN, and above all, with Vietnam,” he stated. 

“Vietnam has attracted the attention of the world. Record rates of investment are coming into the country with steady growth and enormous opportunity. Canada's here in a comprehensive way and we're here for the long term."

EDC president and CEO Mairead Lavery said in her remarks, “When the team was talking about where we wanted to expand in the Indo-Pacific region, this was one of the countries that were really at the top of our list.

“Vietnam is now Canada's largest trading partner within the ASEAN region, and there's a really strong foundation for bilateral trade and investment."

The Vietnam office, co-located at the Consulate General of Canada in Ho Chi Minh City, is the 10th in the region and followed by a representation in the Philippines next week, Lavery said.

“We are really committed to this region and we want to see more Canadian exporters understand the opportunities that this region represents,” she said.

Vietnam a highly potential market 

Lavery told Tuoi Tre News at the event that Vietnam is a promising market.

“So first off, the potential is in Vietnam itself with the growing number of middle-income earners, with the population, with the talent, and the importance and resilience of Vietnam in the global supply chain,” Lavery said.

The second factor is the geographic proximity.

“I think where Vietnam is geographically located is also really important because Vietnam is a lot closer than other countries in Asia, and it can be a hub to go to other parts of Asia,” she said. 

“The third thing is stability,” Lavery continued. “When you find a country that's stable and has a very clear policy agenda, that's something exporters are really interested in.”

She revealed that it took EDC about two years, from assessing potential to assembling a team, before officially establishing their representation in Vietnam.

EDC focuses on identifying the biggest growth opportunities in the Indo-Pacific, as the agency cannot have representation in every market, Lavery added.

She went on to explain that part of EDC's work is providing Canadian companies and exporters with knowledge and insights into different markets.

The next step with having a presence on the ground, which allows them to educate businesses about the local culture and identify specific opportunities. This approach helps determine their needs and explore how those needs can align with opportunities in Vietnam.

“A large part of our job will be promoting Vietnam back in Canada and saying this is a great place to invest,” she said.

Lavery expressed her hope that with EDC's support, Canadian products such as clean technology, agri-food, and those in information technology, renewable energy, power generation, and infrastructure would find a market in Vietnam.

“Generally, our exporters are interested in manufacturing in Vietnam, and that could be in any sector,” she said. 

“I think there's also a great opportunity between Canada and Vietnam in critical minerals and rare earth metals.

“Those are areas that are really important for our new economy to support electric vehicles, to support AI, to support data centers, semiconductors. So there's just a great opportunity set.”

According to EDC, bilateral trade between Canada and Vietnam has grown to CA$14 billion in 2023 from CA$8 billion in 2018, when the CPTPP was signed between Canada, Vietnam, and nine other countries in the Indo-Pacific region.

In 2023, Canada’s imports from Vietnam reached CA$13.3 billion, while Canadian exports to Vietnam totaled CA$776.7 million.

This disparity highlights significant potential for expanding Canada’s export trade with Vietnam, EDC said.

(US$1 = CA$1.4)

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