The first thing that needs to be mentioned here is that Vietnam has not yet inked a Free Trade Agreement (FTA) with Canada, thus it is not entitled to any of trade benefits. However, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (which also has nine other countries) will allow Vietnam to bolster its textile and garment exports to Canada.
Markedly, Canada imports over US $ 13 billion worth of textile and garment products annually. Vietnam’s share in that is around US $ 550 million.
Additionally, Vinatex had recently sent a business delegation to Canada to explore the potential for collaboration with Canadian importers. Hanosimex, which introduced 40 knitting products and cotton towels to Canadian partners, said to optimise the CPTPP advantages. It will start capitalising on material supply sources to satisfy the ‘yarn forward’ rule of origin.
Phong Phu International JSC said through its direct meetings with Canadian businesses, it has succeeded in putting into practice the Original Design Manufacturer (ODM) manufacturing model and the company now only needs one to 1.5 days to create new product models, rather than the former two months.
