Strengthening Canada-Vietnam Ties: A Path to Prosperity
During a recent working visit to Vietnam, Canadian Minister of International Trade Maninder Sidhu emphasized the importance of enhancing trade and investment relations between the two nations. Agriculture, energy, infrastructure, and aerospace were identified as key sectors ripe for collaboration. Moreover, he reaffirmed Canada’s dedication to creating a welcoming environment for Vietnamese investors, reflecting the growing significance of Vietnam as a partner.
The Evolution of Trade Relations
In the wake of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) implemented in 2018, bilateral trade between Canada and Vietnam has seen impressive growth. Initially valued at CA$6.5 billion (US$4.8 billion), this figure has since more than doubled, surpassing CA$15 billion (US$11 billion). Despite this positive trajectory, Sidhu pointed out that there remains considerable potential for further expansion, especially within the agriculture sector.
Sidhu celebrated Vietnam’s current role as chair of the CPTPP, indicating shared goals and priorities in maintaining a rules-based trading system. He referred to Canadian Prime Minister Justin Trudeau’s remarks at the World Economic Forum in Davos, underscoring the need for global cooperation to safeguard the multilateral trading framework. Additionally, he mentioned the importance of concluding the ASEAN–Canada Free Trade Agreement, with Vietnam playing a pivotal role in advancing negotiations.
Attracting Vietnamese Investment
The Minister’s discussions also focused on boosting Canadian investment opportunities, particularly through Canada’s Major Projects Office initiative. Launched in June 2025, this initiative aims to accelerate the approval and construction of significant projects, including energy, mining, and port infrastructure. With an estimated value of CA$150 billion (US$110 billion), this framework promises to shorten approval times, expediting the launch of projects that would enhance supplies of energy and critical minerals to the global market.
Canada is actively promoting its competitive tax incentives, reporting an effective rate of 13.2 percent — the lowest among G7 nations — to attract foreign investors, including those from Vietnam. During his visit, Sidhu met with leaders from Petrovietnam to explore investment potentials in liquefied natural gas projects and nuclear energy cooperation. Offering supportive tax and policy measures, he expressed Canada’s willingness to welcome Vietnamese capital.
Complementary Economic Sectors
Highlighting the complementary nature of the Canadian and Vietnamese economies, Sidhu pointed out several sectors where collaboration is particularly promising. In agriculture, Canada has a surplus of products such as beef, maple syrup, and apples, which appeal to the increasing demand among Vietnamese consumers as the middle class expands.
As Vietnam’s economy continues to flourish, rising incomes are leading to increased demand for both business and leisure travel. This trend presents significant opportunities in the aerospace sector. Companies like Montréal-based CAE Inc. are already making strides by partnering with aircraft manufacturers to provide cutting-edge civil aviation simulation and training technology. Notably, De Havilland Canada produces DHC aircraft models that have found a market in Vietnam, further signifying the potential for collaboration in this field.
Cultural Connections and Celebrations
In a warm gesture, Sidhu extended Lunar New Year (Tet) wishes to the Vietnamese people. This connection not only reflects goodwill but also highlights the cultural ties that further bind the two nations. The upcoming holiday, lasting a week, serves as a reminder of the importance of cultural exchange alongside trade partnerships.
Looking Ahead
The ongoing dialogue between Canada and Vietnam signifies an optimistic outlook for the future of bilateral relations. With a strategic focus on key sectors and a commitment to mutual growth, both nations stand to benefit from deeper cooperation. As they navigate the evolving landscape of global trade, the partnership promises to flourish further in the coming years.