Agriculture Goods from Canada to Enjoy Zero Tax
Joining in new-generation agreements like the European Union-Vietnam Free Trade Agreements (EVFTA) and the Comprehensive and Progress Agreement for Trans-Pacific Partnership (CPTPP) has brought great economic benefits to Vietnam, according to the Ministry of Industry and Trade (MoIT). Thus, CPTPP helps Vietnam gain tax-free imported seafood, beef and fruits from Canada.
On Nov. 24, an online webinar organized by Ho Chi Minh City Customs Department in collaboration with the Consulate General of Canada was held in Ho Chi Minh City, themed "The advantages of the CPTPP Agreement - Canada and Vietnam partnership and economic recovery after the pandemic".
The advantages of CPTPP
CPTPP has been in effect for nearly 3 years, covering 11 countries and territories. Canada is the market with the highest percentage of businesses taking advantage of the CPTPP's tariff preferences (50% of businesses compared to 21-29% in the remaining countries).
However, since May 2021, as the Covid-19 epidemic has taken a turn for the worse in Ho Chi Minh City, the production and business situation has been seriously affected.
Supply chains have encountered many difficulties, leading to a significant decrease in the proportion of import and export turnover of Vietnam - Canada through the Ho Chi Minh City border gate.
According to Nguyen Huu Nghiep, deputy director of Ho Chi Minh City Customs Department, the workshop was a great opportunity to learn about the problems Vietnamese businesses encounter.
It also discussed the potential of more tax incentives for trading in both consumer goods and raw materials.
He explained that CPTPP had a positive impact on the economy, bringing practical benefits to the business community, but there was still room for improvement.
He said the majors obstacles for Vietnamese businesses were difficult requirements of origin, food safety, and valid transport documents.
The seminar also shared the cases where Vietnam can purchase high-quality products from Canada at affordable and reasonable prices according to CPTPP.
|The webinar themed The advantages of the CPTPP Agreement - Canada and Vietnam partnership and economic recovery after the pandemic. Photo: Thanh Nien Online|
The Covid-19 pandemic has severely affected global trade, the two sides once again affirmed that trade ties were among key pillars of Vietnam - Canada, two founding members of CPTPP.
The seminar shared recommendations related to the implementation of the CPTPP Agreement, thereby offering solutions to handle problems, to support the business community and to create favorable conditions for import and export activities.
Canadian Consul General in Ho Chi Minh City, Behzad Babakhani deeply appreciated the opportunity to support businesses from Vietnam in taking full advantages of the Agreement.
He also said that events to promote Vietnam - Canada trade will take place every year to further promote trade, including CPTPP-related dialogue between the customs authorities and the Canadian business community.
The events will bring updates on new customs regulations and answer related questions.
|Canadian Consul General in Ho Chi Minh City (left) and Deputy Director of Ho Chi Minh City Customs Department. PhotoThanh Nien Online|
The trade turnover between Canada and Vietnam reached CA$ 8.9 billion in 2020, an increase of more than 11% compared to the previous year.
Exports from Canada to Vietnam reached CA$ 735 million, of which agricultural and food products accounted for more than half.
Canada's key agri-food and agricultural exports to Vietnam include grains, oilseeds, fish and crustaceans, fruit, beef and pork, and dairy products. Seafood, beef and fruit exported from Canada to Vietnam have enjoyed a tax rate of 0%.
Since 2015, Vietnam has been Canada's largest trading partner in ASEAN. Canada has removed 94 percent of the total tariff lines on goods importing from Vietnam within the framework of CPTPP, and Vietnam has abolished 66 percent of tariff lines on Canadian goods.
The Vietnamese diplomat said the friendship and the growing cooperative relationship between Vietnam and Canada provided a firm foundation for a reliable and sustainable supply chain.
|The seminar was streamed online. Photo Thanh Niee Online|
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